businesscase on sap implementation at global retail company

8/11/2019 BusinessCase on SAP implementation at Global Retail Company

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SAP implementation at Global RetailCompany

KUMAR GAURISH

13810043


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Table of Contents

1. Introduction.................................................................................................................................. 2

1.1. Project Name.......................................................................................................................... 2

1.2. Project Team........................................................................................................................... 2

1.3. Project Description................................................................................................................. 2

2. Background and problem definition.............................................................................................. 3

3. Measurable Organisational Value (MOV):.................................................................................... 3

4. Key benefits realised...................................................................................................................... 5

5. Quantifying MOV........................................................................................................................... 5

6. Real Challenges of SAP Implementations...................................................................................... 6

7. Framework for Implementation.................................................................................................... 7

8. Value Realization.......................................................................................................................... 11

9. Recommendations........................................................................................................................ 12


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1.Introduction

1.1. Project Name:SAP implementation at Global Retail Company

1.2. Project Team: The team consists of basically

1. Steering committee: The members of this particular committee include Project

Director, Executive Sponsor, Customer representative and Customer

Decision maker.

2. Project Manager

3. Consultants

4. Technical members.

5. Change managers

6. Operations team which include people like inventory manager

7. Financial Consultant

1.3. Project Description:

The client is the US branch of a global Retail company. As a result of organic andinorganic growth over the years, the business system landscape becamefragmented and inefficient. In order to position the company for future growth, theclient needed to integrate and standardize their business processes and systems.


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2.Background and problem definition

The client is truly global company with operations in several countries acrossEurope, North America, and Asia. The US branch of the company serves the North

American marketplace and includes both headquarters and manufacturingoperations. The company recognized the strategic advantage that an integrated SAPplatform could bring for its North America operations. The company was also awareof the many challenges which stood in the way of their goal of continued growth andefficient operations:

Many financial and operational processes were highly manual

Compliance requirements demanded solid integration

An integrated solution was required to manage the increasingly complex

organization

The company needed a better platform to improve collaboration between the

growing number of business units to take advantage of future opportunities

The legacy applications were becoming outdated

One of the clients main objectives for the project was to establish a scalable, flexibleplatform which would address these challenges and allow them to quickly integrateplanned acquisitions and support future business expansion.

3.Measurable Organisational Value (MOV):

Real-time access to higher quality information

More structured data forming a basis for informed strategic and operational

decisions

A consolidated, single view of the business

More efficient working practices, thanks to standardized, integrated business

processes

Ability to manage the growing complexity of purchasing processes

Improved inventory management

Better coordination of work across multiple locations

Comprehensive business insight and analysis, supporting faster decision-

making and tighter control

Support for significant business growth with seamless, quick and easy

integration of newly


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Business Benefits:There are some benefits which an SAP implementation should always bring irrespectiveof the customer's industry.

1. Reduced purchasing costs due to:

a. Ability to view entire purchasing history with suppliers and negotiate futurediscounts

b. Channelling all spend through preferred vendors, thus increasing contractcompliance to leverage discounts

c. Elimination of maverick or non-compliant requisitioning amongst the userbase

d. Greatly reduced procurement team intervention in the purchase order

creation function.

e. Improved productivity through the utilisation of simple and user-friendlyscreens built on internet best-practise

2. Instil purchasing process compliance by deploying a small set ofrequisitioning processes applicable to all types of spend

3. Reduce maverick buying by having a centralised requisitioning systemwith built in controls and an efficient but all-encompassing approval pro

4. Process efficiency without losing the necessary control due to:

a. Deploying best practise requisitioning, approval, purchase order creationandoutput processes which have been tried and tested at various customersfor nearly 10 years.

b. A fully integrated and auditable approval process, which allows all

requisitions to be approved by the necessary people in the quickest

possible time

5. A high user acceptance as a result of:

a. Easy to use screens and logical processes.

b. Reduced transactional times.c. Full transparency of errors and warnings when needed.

d. Planning and carrying out the necessary change management andtraining tasks.

6. Complete audit trail is available for any and all transactions


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4.Key benefits realised

Implement pan-European system processes to enforce purchasingcompliance.

Leverage future price discounts by being able to track purchasing spend.

Reduce training costs and improve user acceptance through theimplementation of a 'Buying Channel Framework'.

Onboard all vendors through global and local catalogues and contracts.

Minimise disruption to the business and enable a smooth transition

5.

Quantifying MOV

The table below shows examples of the quantifiable benefits SAP can realise :


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6.

Real Challenges of SAP Implementations

How to structure an SAP technical support organization

How to encourage apples-to-apples SAP sizing exercises, and then evaluate

each vendors solution approach on a level playing field

How to determine realistic high-availability and performance requirements

How to plan for and develop an SAP Data Center

What to include in an SAP Operations Manual

How to plan for and execute both functional and load/stress tests

How to really leverage your SAP system landscape for training and testing

What training is really required across user and technical boundaries, and when it should be delivered

What role the help desk and SAP Operations teams must be both staffed for

and prepared to play

The infrastructure or basis tasks that need to be addressed, and when, to actu-

ally make it to Go-Live

How to build buy in with the business folksthe owners and end users of

the system.


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7.Framework for Implementation

Project Definition and Description

Project type

Naming, roles, language

Project standards (Status, keywords, documentation types)

Timeframe

Define System Landscape

Development

Quality Assurance

Production

Define Business Blueprint via Business Process Repository

Customer Business Process requirements, analysis, documentation andmanagement /Scoping

Visualization of Standard Business Process by scenario description, product


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documentation, demos, and transactions.

Project-specific adaptation, for example, new Processes, documentation ateach level (Requirements, print outs, reports, concepts).

Generation of Blueprints.

Project Issue Management, Status Management

SAP Feasibility Check

Configuration

Configuration guides for Standard Business Scenarios

Configuration support per scoped structure element, for example, productdocumentation, IMG, non-ABAP configuration, BC sets, and CATTs

Project documentation, for example, customizing, modification,

enhancements


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Customizing Synchronization

Testing

Define and maintain test cases, test catalogue

Organize and perform testing

Manage problems in Service Desk

Ensures that Customizing of certain objects is in-sync across systems

Reuses Customizing (e.g. of SAP R/3) in other systems(e.g. SAP CRM)

Avoids redundant Customizing activities in a solution landscape


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Train End Users for SAP ERP 2004

Web based end user training

5 SAP Tutor (recorder) licenses

Deliver SAP GoingLive Check

Handover to Support Organization


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8.Value Realization

After identifying elements of potential ROI, organizations can then continue to look at

elements over time after the implementation to measure actual ROI. Calculate ROI usingthis simple equation:

ROI = [(Payback - Investment)/Investment)]*100

When determining payback, be sure to consider all business processes that areimpacted by the new SAP system. Look at all time savings, cost savings, and increasedrevenues that can be attributed to the new system. Similarly, when calculatinginvestment, consider all costs detailed in this paper, including acquisition, training,Implementation, maintenance and so on.


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9.Recommendations

Almost every company in the Forbes Global 2000and many near misseshasintroduced enterprise resource planning (ERP) systems in-house. To be sure, there's a

lot more than just SAP ERP being implemented out there. Oracle and Microsoft haverobust ERP offerings, as do several midsize and smaller niche players. Thus, mostexperts speak of implementing ERP as being less about "changing the game" and moreabout simply leveling the playing field.ERP as a broad business solution is no longer perceived as innovative. Yes, theopportunity exists for innovative business processes and practices to be introduced, butimplementing ERP is generally perceived as a necessary component of doing businessand less of a strategic differentiator than 10 or 15 years ago. Fortunately (for SAP andtens of thousands of customers around the globe) the same can't be said of the robustsupply chain, product lifecycle, and customer relationship management businessapplications available todayapplications that still hold the promise of changing the

game for those firms who introduce and leverage them for competitive advantage.

businesscase on sap implementation at global retail company

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