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How SAP Enterprise Support can help to optimize the ITLandscape and Business ProcessesThomas Hering, Maintenance Go-To-Market Solution ManagementLausanne, September 3rd 2014
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2
• IT Budgets are shrinkingOpitimizing of IT operations required
• Less bandwith to support businessoperations with innovationsBudgets often limited to ensureoperations
• BUT:Inceasing demand fromLines of BusinessNew requirements and processesare expected to be operational
Challenges of a CIOEnabler of innovations with limited budget?
Operations(Tactical IT)
Innovations(Strategic IT)
Time
€
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 3
SAP Enterprise Support supports CIOs:
• continuous improvement ofbusiness
• Minimizing of operational risks
• Faster and leaner adoption ofinnovations
• Optimizing the IT TCO
Faster realization of added valuefrom your IT investments by leaneradoption of innovations
How SAP Support Services can helpOptimize operations and implement innovations faster
Operations(Tactical IT)
Innovations(Strategic IT)
Time
€
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 4
Benefits for Lines of Business AND ITCustomes use SAP Support throughout the entire lifecycle
Improvements for Lines of Business and IT,by limiting the risks
Avoid IT operations to impact businessprocesses
Optimizing the IT operational costs throughoutthe entire lifecycle
(Innovations, Implementation, Operations)
continuous improvement of business processes
Faster and leaner implementation of innovations
1
2
4
3Automation
Empowerment
Collaboration
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 5
SAP Enterprise SupportEnterprise Support provides a collaborative interaction model
Pas
tS
tand
ard
OSS
ReactiveProblem drivenSelectiveLittle Knowledge about solution
Message
Experts
Knowledge
CustomerSAP
SAP Service Marketplace
ProactiveContinuous
ComprehensiveDetailed knowledge
MessageSAP Solution Manager
Transparent & well-documented solution
Knowledge MonitorSolution
Knowledge
CUSTOMERSAP
Ent
erpr
ise
Experts
Collaboration
SAP Experts, Tools & Services support our customers proactively throughout the entire lifecycle
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 6
Example: Analysis of customer messagesIdentified potential to optimize system operations and trainings
41% are rated as “How-to-Consulting” and “Usability”, topicswhich could be addressed by appropriate trainings.
19% named as „Product complexity“ and „databaseinconsistency“. Could be reduced by SAP Continuous QualityChecks services like „CQC for Data Volume Management“ orapplication-specific offerings
9% are „Known bugs“, which could be reduced by proactiveMonitoring & Optimization with the Solution Manager.
9%
23%
9%3%27%
10%
3%3%
13%
Message categoryKnown Bugs
New Bugs
Database Inconsistency
Missing function
How-to-consulting
Product complexity
SAP deliveredcustomizingSAP documentation
Usability
243 Messages in 2013
146
174
22
Priority
Very high
High
Medium
Low
19% of messages are rated as „High“ or „Very High“ and require afast processing
0
5
10
15
20
25
30
Jan13
Feb13
Mrz13
Apr13
Mai13
Jun13
Jul 13 Aug13
Sep13
Okt13
Nov13
Dez13
Overview
Anzahl Meldungen
Some potential to improve situation by optimization,proactive monitoring and trainings
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 7
Benefits for Lines of Business AND ITCustomes use SAP Support throughout the entire lifecycle
Improvements for Lines of Business and IT
Avoid IT operations to impact businessprocesses
Optimizing the IT operational costs throughoutthe entire lifecycle
(Innovations, Implementation, Operations)
Continuous improvement of business processes
Faster and leaner implementation of innovations
1
2
4
3Automation
Empowerment
Collaboration
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 8
Advanced Security RegulationsDriving Customer Concerns – Challenges
Elec
tron
icea
vesd
ropp
ing Industrial espionage
Data protection& data secrecy
Hack attacks
Iden
tity
frau
d
Faci
lity
cont
rol
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 9
Typical security-sensitive industriesNational defense and security organizationsPublic sector authoritiesAerospace and defense companiesBanking and insurance companiesHigh-tech companies
Special advanced security editionThe advanced security edition of SAP EnterpriseSupport helps small and midsize organizationsmeet complex security regulations and data-privacy requirements.It remotely delivers individual services that involvesystem or data access – via the SAP Active GlobalSupport (SAP AGS) organization.These services help you to maximize the stability,availability, and performance of your entire solutionlandscape – for SAP and non-SAP software.
SAP Enterprise Support, Advanced Security EditionAnswering Customer Requirements
SUPPORTED INSTALLATIONS
SEC
UR
ITY
SCO
PE
SAP MaxAttentionSAP ActiveEmbedded
SAP EnterpriseSupport,
Advanced Security Edition
AdvancedSecure
SupportServices
AdvancedSecure
SupportServices
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Advanced Secure SupportService Packaging
Advanced secure support services coredeliverables:
SAP advanced secure connectionFoundation, basic, and advanced packages
SAP secure remote accessBasic and advanced packages
SAP security-cleared personnel accessAdvanced package
SAP secure room infrastructure(for provisioning of SAP secure remote access)
Advanced package
Advanced package7 Elements
Option II *+ 1 Element
Option I *+ 1 Element
Basic package5 Elements
Foundation3 Elements
* : Optional service available as add-on to advanced package.
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 11
Advanced Secure SupportPackages Overview
Service ElementsFoundation Package
BasicPackage Advanced Package
Including Foundation Including Foundation
based on SAP Enterprise Support or SAP MaxAttention
SAP secure setup service
SAP secure support customer interaction
Advanced secure connection
SAP secure incident message(including customer controlled exceptions)
SAP secure remote service *(including customer controlled exceptions)
SAP security-cleared personnel access(including customer controlled exceptions)
SAP secure remote access (leveraging secure room)
Option I: Classified message processing **
Option II: Exclusive secure room **
*: Service elements might impact scope of SAP Enterprise Support**: Optional service only available as add-on to advanced package
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 12
Benefits for Lines of Business AND ITCustomes use SAP Support throughout the entire lifecycle
Improvements for Lines of Business and IT
Avoid IT operations to impact businessprocesses
Optimizing the IT operational costs throughoutthe entire lifecycle
(Innovations, Implementation, Operations)
Continuous improvement of business processes
Faster and leaner implementation of innovations
1
2
4
3Automation
Empowerment
Collaboration
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 13
SAP Enterprise Support: Business Process AnalysisMonitoring and Optimization of business processes
When to apply:Response Times and Processing do not match with expectations from Lines of Business – sometimes evenafter costly hardware upgrade. SAP Business Process Performance Optimization could provide a solution.
ProcedureA SAP Service Engineer analysis during CQC service session performance-sensitive process steps andprovides recommendation how to optimize them technically.
Result: Business Process Performance Optimization helps to,• Optimize Response and Processing Times:
Acceleration of business processes to match internal and external expectations.
• Improve Productivity: Increase of processing of ineffective processes.
• Optimize Hardware ressources: Reduction of workload so that higher data volume could be processed.
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 14
Improvement of business processes (1/2)Example: Analysis of “Order to Cash”, “Finance” & “Interface Management”
The results* for „Order to Cash“ ,”Finance” & “Interface Management” show a significant potential to optimize financialliquidity, interest burden, and process costs.
Process Findings / KPI Business Risk Cost Driver
Finance
Open & overdue customeraccounts receivable (FI-AR)
48.264 open customer items in Accounts Receivable in thecurrent fiscal year were found, where the due date for thepayment is overdue by more than 30 days. Including theprevious 2 fiscal years, 93,653 open customer items in AccountsReceivable were found.
This key figure represents the number of open customers items (e.g. openinvoices) which were not yet settled in FI. This may result in delayed oreven lost revenue. Additionally, the high number of open items maydecrease the performance of FI transactions such as payment runs anddunning runs.
interest rate, daysof delay, averageamount of a invoice,handling costs
Order to Cash
Orders with Delayed Delivery127,873 sales orders have a planned goods issue date in thepast and no or only a partial delivery has taken place yet. Ofthese, 24.980 are less than six months old.
This key figure represents real sales backlog where the expected deliverydate was not met and lies in the past and the order is not completelydelivered. This is lost revenue and might lead to poor customersatisfaction.
average amount ofan order; interestrate; days of delay
Deliveries overdue for Billing77.549 outbound deliveries were found where a goods issueposting took place but no invoice was created although thebilling date lies already in the past. Of these, 33.125 are lessthan six months old.
This key figure represents the number of open outbound deliveries wherethe goods issue was posted but the invoice was not created yet. This willlead to a delay for the incoming payment from the customer. Also yourfinancial balance might not reflect all business activities accurately atperiod end closing.
average amount ofan order; interestrate; days of delay;manual handlingcosts
Overdue Payments(Sales invoices with open &overdue FI-AR items)
44.755 sales invoices were found that where correspondingopen FI-AR items exist and where the due date lies already inthe past. Of these, 33.270 were in the last six months
Business Risk: This key figure represents the number of open & overdueFI-AR items that are related to sales invoices. This can represent delayedor even lost revenue.
average amount ofan invoice; interestrate; days of delay;manual handlingcosts
Interface Management
IDocs failed with errorin week Nov 4-10:6.080 (~17%) of all outbound IDocs have failed with error6.777 (~7%) of all inbound IDocs have failed with error. Of these,5.167 are purchase orders
Purchases not processes, therefore possibly wrong stock and lowercapability to deliverOrders not processed; additional operational costs for manualreprocessing
additionaloperational costs
*Management summary from the CQC „Business Process Analysis“ for system PRD, November 2013
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 15
Improvement of business processes (2/2)Overview calculation of improvements resulting from CQC Business Process Analysis
Potential:
Influence on financial liquidity961 kEUR – 1.611 kEUR, and
Reduction of IT-costs26 kEUR – 51 kEUR
Next Steps:
Root cause analysis(with SAP Experts)
Implement recommendations(e.g. with trainings, improvingbusiness processes)
Permanent monitoring ofbusiness processesusing the SAP Solution Manager
Process Cost Driver Unit count Unit value @risk (min)
Unit value @risk (max)
Value @ risk(min)
Value @ risk(max)
Finance 48.264 € 241.320 €
Open & overdue customeraccounts receivable (FI-AR)
interest rate, daysof delay, averageamount of a invoice,handling costs
48.264 1,00 € 5,00 € 48.264 € 241.320 €
Order to Cash 913.750 € 1.370.625 €
Orders with Delayed Delivery
average amount ofan order; interestrate; days of delay;manual handlingcosts
24.980 10,00 € 15,00 € 249.800 € 374.700 €
Deliveries overdue for Billing
average amount ofan order; interestrate; days of delay;manual handlingcosts
33.125 10,00 € 15,00 € € 331.250 € 496.875
Overdue Payments(Sales invoices with open &overdue FI-AR items)
average amount ofan order; interestrate; days of delay;manual handlingcosts
33.270 10,00 € 15,00 € 332.700 € 499.050 €
Interface Management 25.714 € 51.428 €
IDocs failed with error additionaloperational costs 12.857 2,00 € 4,00 € 25.714 € 51.428 €
Total 987.728 € 1.470.317 €
Assumptions for calculations:• “Finance”: average value: 1 € (min) - 5€ (max); delayed for 30 days, 4% interest• “Order to Cash”: average value: 10€ (min) - 15€ (max); delayed for 30 days; 4% interest• Not considered: Cost for manual adoption
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 16
Benefits for Lines of Business AND ITCustomes use SAP Support throughout the entire lifecycle
Improvements for Lines of Business and IT,by limiting the risks
Avoid IT operations to impact businessprocesses
Optimizing the IT operational costs throughoutthe entire lifecycle
(Innovations, Implementation, Operations)
Continuous improvement of business processes
Faster and leaner implementation of innovations
1
2
4
3Automation
Empowerment
Collaboration
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 17
Access to SAP Business Suite 7 InnovationsA easy way to identify new functionality
SAP RoadmapsHow is the long-term Roadmap forSAP Business Suite?
Innovation DiscoverySAP offers a new self-service providing customers withinnovations tailored to their business as well as comprehensivebusiness and technical information.
Looking for a central access to informations?
http://service.sap.com/findinnovation
Improvement FinderWhich functions and functional enhancements are delivered withSAP notes and Support Packages?
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 18
Eliminate obstacles during implementation of innovations
Typical ObstaclesCosts for implementations are higher than costsfor licencesLong project durationHigh number of custom code, instead of usingSAP functionality and Best PracticesHigh cost for operations (TCO)
Customer RequirementsImplement innovations more cost-effective
Reduce efforts for implementions, e.g avoidunnecessary custom developments & reducetestting efforts
Optimization and Automatization of landscapeoperations and maintenance allows more focuson business-critical innovations.
.1:8 Licence costs vs.Implementationcosts*
*) Estimation based of market research
Enterprise Support &
InnovationControlCenter
SAP‘s answer tothese requirements
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 19
Benefits for Lines of Business AND ITCustomes use SAP Support throughout the entire lifecycle
Improvements for Lines of Business and IT,by limiting the risks
Avoid IT operations to impact businessprocesses
Optimizing the IT operational costs throughoutthe entire lifecycle
(Innovations, Implementation, Operations)
Continuous improvement of business processes
Faster and leaner implementation of innovations
1
2
4
3Automation
Empowerment
Collaboration
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 20
Custom Code ManagementReduce Risks and Costs in Development and Operations
65% of Custom Code Objects arenot used during last 4 weeks
12% of Custom Code Objects areidentical or very similar
(Clone)
60% of all objects includeCode Inspection Messages
20% of the system ressources are usedfor Custom Code
How SAP supportsExisting Custom Coding will be analysed for performance optimization and necessity. SAP Enterprise Support offers theCustom Code Management (CCM) and the CCM Cockpit.
The need to develop new Custom Code will be checked. The development of new Custom Code could be avoided if SAPStandard Objects are available.SAP with Modification Justification Checks (MJC) and Accelerated Innovation Enablement (AIE) offerings.
SituationGenerally there is unused Custom Code with a substandard performance.
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 21
Data Volume ManagementCost Reduction and Performance-Improvements
20%improved response time ofDB
20%reduction of DB size anddata growth rate.
Reduce theoperational costs
How SAP supportsExisting data will be checked for reduction potential. Focus is on identifying redundant data, deletion andarchieving of data.SAP helps with Data Volume Management (DVM) and the DVM Cockpit.
Future data growth will be limited proactively by the new Data Volume Strategy and Monitoring, Performancewill be optimized. Demand for new Hardware will be reduced or at least postponed.
SituationOn average customers can reduce the size of their database and growth of data by 20%.
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 22
SAP Enterprise Support Services* – exampleExamples for Continuous Quality Checks (CQCs) & Improvement Services
BuildIntegration and Going Live
Running Operations &continuous Optimization and Upgrades2 3
Implemention Project
CQC for Implementation
CQC Going Live Support
CQC Integration Validation
CQC Configuration Check
Modification Justification Check
Custom Code MaintainabilityCheck
CQC Upgrade Assessment
CQC EHP InstallationCheck
CQC for Upgrade
CQC Downtime Assessment
CQC Going Live Support
PlanEvaluation – Solution Design
RunPost Going Live Support
Upgrade
CQC Business ProcessPerformance Optimization
CQC Technical PerformanceOptimization
CQC Data Volume Management
CQC Security Optimization Check
CQC EarlyWatch Check
CQC Business Process Analysis& Monitoring
CQC Solution TransitionAssessment
CQC OS/DB Migration
CQC Transport ExecutionAnalysis
Accelerated InnovationEnablement
Business ScenarioRecommendations
Implement Better Operate Better Innovate Better
* Part of Enterprise Support
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 23
Realize the value with SAP Enterprise SupportRoadmap for Business Suite Innovation under your Enterprise Support Agreement
Technical protectionMitigation of risk and efforts
EvaluatingBusinessFunctions
Find Innovations
Preparation &Blueprint
EhPSandbox
DevelopmentInstance
EhP
QualityAssuranceInstance
EhP
4 weeksbefore Go
LiveGoLive 4 weeks
after Go Live
SAP CQCDowntime AssessmentTo be done after testupgrade of a system withsimilar amount of dataas the production system
CQC Downtime Assessment
CQC for UpgradeAnalysis
CQC for UpgradeVerification
SAP CQCUpgrade VerificationPerformed 4 weeks afterGo Live
SAP CQCUpgrade AnalysisPerformed 4 weeks before Go Live
CQC EhP Installation Check
SAP CQC EhPInstallation CheckTo be done beforeupgrade of DEV system
CQC GoingLive Support
SAP CQC Going Live SupportPerformed from day 1 until day 5after Go Live
Innovation Finder
Innovation FinderTo be used before your project tohelp you understand SAP NewInnovation for your pressingbusiness needs
SAP Standard Support
SAP AcceleratedInnovation EnablementEvaluate innovations incooperation with SAP Experts
SAP Accelerated InnovationEnablement (SAP Enterprise
Support Academy)
SAP Enterprise Support
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 24
SAP Solution Manager*12 Work Center support you during the entire ALM lifecycle
Landscape Transformation
Upgrade Management
Custom Code Management
Maintenance Management
Business Process Operations
Technical Operations
Solution Documentation
Solution Implementation
Template Management
Test Management
Change Control Management
IT Service Management
SAP Solution Manager focuses on complete IT-landscape:Including all Processes, Tools, Services and Best Practices to run SAP and Non-SAP solutions duringcomplete application lifecycle.
SAPSolutionManager
* To the full extent only available as part of Enterprise Support or Premium Engagement
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 25
SAP Enterprise Support AcademyComplete overview
BestPractices
library full ofproduct-,
database- andoperating system-
specific how-toguides for your
everydaybusiness
Access
Meet theExpert
Sessions
live webinarsconducted by
SAP experts onSAP Enterprise
Support servicesand SAP Solution
Manager
Access
AcceleratedInnovation
Enablement
live expertsessions toevaluate theinnovation
capabilities ofenhancement
packages for SAPBusiness Suite
Access
Expert-Guided
Implementations
remote sessionsby experienced
SAP serviceexperts providingworkshop style
interaction
Access
GuidedSelf-Services
which you can runany time and at
your own pace inyour own system
landscape
Access
SAP EnterpriseSupport Academy
Quick-IQs
Access
Tutorial onhow to make orchange system
settings byproviding the
related systemrecording
Access role-based content in the format that suits you best
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 26
Lifecycle-Support with SAP Active Global SupportCooperation for Success, Innovation & Growth
Inte
nsity
ofco
oper
atio
n
New
Tech
nolo
giesSAP ActiveEmbedded
Enhanced Support-Partnership for optimized operations and implementation ofinnovative technologies
SAP MaxAttentionStrategic Support-Partnership for continuous business process optimization and
cooperative innovation
SAP Enterprise SupportThe foundation for Implemention, Operations and Innovations
Implementation Operations Innovations
New
tech
nolo
gy&
Coi
nnov
atio
n
SAP Standard Support
Thank You!
Dr. Thomas HeringBusiness Support Principal
SAP AGMaintenance Go-To-MarketSolution Management
Mobile +49/171/3085617E-Mail [email protected]
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 28
Access to SAP Business Suite 7 InnovationsA easy way to identify new functionality: Innovation Discovery
http://service.sap.com/findinnovation
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 29
Access to SAP Business Suite 7 InnovationsA easy way to identify new functionality: Improvement Finder
http://service.sap.com/findinnovation
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 30
Access to SAP Business Suite 7 InnovationsA easy way to identify new functionality: Improvement Finder
http://service.sap.com/findinnovation
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 31
Access to SAP Business Suite 7 InnovationsA easy way to identify new functionality: SAP Roadmaps
http://service.sap.com/findinnovation
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 32
Advanced Secure SupportFrom Demand to Operation
Run
Build
Plan
Analyze
Evaluate
CUSTOMER
Initial offering information.
Analysis of customerspecific security and data
privacy requirements.
Specification of customersolution.
Operation readinessworkshop, joint
specification review,operations manual, test
and implementation.
Solution go-live andoperation.
CONTRACT SIGNATURE
SECURE ADVISORSALES SECURE ENGAGEMENT ARCHITECT
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 33
© 2014 SAP AG or an SAP affiliate company. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.The information contained herein may be changed without prior notice.
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