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Lean and Agile SAP Approach

December 2015

This document is protected under the copyright laws of the United States and/or other countries as an unpublished work. Thisdocument contains information that is proprietary and confidential to Genesis Consulting Partners, LLC and/or affiliates or itstechnical alliance partners. Information in this document shall not be duplicated, used, or disclosed in whole or in part. Any useor disclosure in whole or in part of this information without the express written permission of Genesis Consulting Partners, LLCand/or its affiliate(s) is prohibited.

© 2015 Genesis Consulting Partners, LLC and/or its affiliate(s) (Unpublished). All rights reserved. The Accelerate methodology is acomponent of Genesis Consulting Partners, LLC implementation content and contains processes, templates and techniques usedto deliver Genesis Consulting Partners, LLC services.

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• Welcome and Introduction

• Overview of Lean Thinking Principles and Agile Techniques

• Key benefits of a Lean and Agile SAP implementation

• Customer Success Stories: Learn how they used Lean and Agile to Deliver Amazing Results

• Getting Started: What it takes for your team to become Lean and Agile

Contents

© Genesis Consulting, LLC www.genesisconsulting.com3

Welcome and Introductions

Jason Fair

• CEO, Genesis Consulting

• 22+ years of industry experience leading SAP software implementations

• Started career as an SAP Customer and implemented Financials on SAP Version 2.1H

• SAP Functional expert, Technical development, Integration Management and extensive Project Management

• Agile SAP Coach and Executive Advisor for past 5 years

• PMP, CSM, Certified SAP Consultant, CPA

• Thought leader for Lean Agile SAP

• Enjoy spending time with my 4 kids and skiing, triathlons, and traveling.


Genesis Consulting

We specialize in delivering the following services:

SAP Technology: • Strategy and Planning

• Project Management

• Systems Integration and SAP Consulting

• Industry Solutions

Advisory Services

Lean Agile Coaching

Business Intelligence and Analytics

Organizational Change Management

Recognized by Inc. Magazine in September 2013 as the 270th Fastest Growing Company in America, 27th Fastest Growing IT Services Firm


http://www.agilealliance.org/

http://www.agilealliance.org/

http://www.scrumalliance.org/

http://www.scrumalliance.org/

http://www.asug.com/Default.aspx

http://www.asug.com/Default.aspx

Agile

Approach

ASAP

“Waterfall”

Waterfall to Iteration


A Lean and Agile Approach to ERP

Lean Thinking

• Eliminate Waste

• Pull From Demand – Focus on business value

• Empower Workers

• Enable Continuous Improvement

Some Agile Techniques

• Frequent inspection and adaptation

• Aligning development with customer needs & company goals

• Co-location

• Self-organization and accountability

• Becoming a team player

• Elimination of “waste” and “ceremony”

• Empirical demonstration of results

• Customer is always present

• Product managers and owners

• 5 planning events: product planning, release/feature planning, iteration planning, sprint review, and stand-ups

Agile is a journey, not a destination.


• Feature Sets versus Process Sets

• Not necessarily promoting “code” to production after each sprint

• Coding vs. Configuration

• Complexity of Business Requirements

• Diverse set of skills required to complete ERP Process Sets

• Introduction of integration sprints

• Concurrent “Support” teams with dependencies• Systems Administration

• Security

• Organizational Change

• Quality Assurance / Testing

• Training / Deployment

Application Development vs. SAP


Kanban Board

Courtesy David J. Anderson & Associates, Olav Maassen QNH

5 4 43 2 2

Flow

InputQueue

DevReady In Prog Done

BuildReady

Test ReleaseReady

Stage Prod.DoneIn Prog

DevelopmentAnalysis


Delivering SAP Business Process Solutions


Common SAP Business Process

• Vendor Information is maintained in the Financial System

• Payment terms for vendors are maintained in financial system

• Products or Materials commonly procured are maintained in a material master

• Inventory items are defined with storage locations and minimum and maximum ordering levels

• Users define what needs to be procured for business needs

• Managers approve Purchase Requisitions (ECC) or Shopping Carts (SRM)

• Financial Information is added to requirement by user

• Real time funds availability check in financial system

• Standard reports available for monitoring budget

• Procurement department determines if requirements are sourced or if existing contract vehicle can be utilized

• Approved requirements can be sourced to the following:

• Contracts• RFx’s• PO’s

• e-Sourcing happens in SRM for bidding on RFxDocuments

• Purchase Orders and Contracts can be replicated to Financial System

• Users receive goods or services

• Service entry sheet or a goods receipt is entered in SRM or ECC

• Confirmation documents are replicated to the financial system when done in SRM

• Second step in the three way match

• Partial receipt is available

• Quality of goods or services analyzed

• Vendors submit invoices to financial department

• AP enters invoice document in financial system

• System validates existing PO or Contract exists and validates goods or services have been received

• Invoice posts once three way match is validated

• Payment sent to vendor in payment run

Requisition to Check Process


Release

Theme 1

Theme 2

Theme n…

Theme

Epic 1

Epic 2

Epic n…

Epic 1

(aka. Feature)

Story 1

Story 2

Story n…

Story 1

Task 1

Task 2

Task n…

Task 1 Maintain an iterative process of analysis to

continually refine and decompose Requirements into discrete units of work

Level of Effort (LOE) estimates are iteratively refined as decomposition reveals new information (gaps, complexities, redundancies, etc…)

Process Level 1 / 2*i.e. work stream and/or core functionality

Blueprint Document level i.e. Create a Service Order

Detailed Requirement / Process Step level i.e. Create Services Order for Services < $10,000

Unit of Work• Configure Order Type• Develop BAPI*May be a Business Requirement, RICEFW, Configuration, etc…

Process Level 2 i.e. Requisition to Check Process

Business Process / Requirements Decomposition


Decomposition of ERP Process

• Vendor Information is maintained in the Financial System

• Payment terms for vendors are maintained in financial system

• Products or Materials commonly procured are maintained in a material master

• Inventory items are defined with storage locations and minimum and maximum ordering levels

• Users define what needs to be procured for business needs

• Managers approve Purchase Requisitions (ECC) or Shopping Carts (SRM)

• Financial Information is added to requirement by user

• Real time funds availability check in financial system

• Standard reports available for monitoring budget

• Procurement department determines if requirements are sourced or if existing contract vehicle can be utilized

• Approved requirements can be sourced to the following:

• Contracts• RFx’s• PO’s

• e-Sourcing happens in SRM for bidding on RFxDocuments

• Purchase Orders and Contracts can be replicated to Financial System

• Users receive goods or services

• Service entry sheet or a goods receipt is entered in SRM or ECC

• Confirmation documents are replicated to the financial system when done in SRM

• Second step in the three way match

• Partial receipt is available

• Quality of goods or services analyzed

• Vendors submit invoices to financial department

• AP enters invoice document in financial system

• System validates existing PO or Contract exists and validates goods or services have been received

• Invoice posts once three way match is validated

• Payment sent to vendor in payment run

Requisition to Check Process Theme

Epics

Story


Story Mapping

time

activity

task

sub-tasks or task details

• Represents business process flow and steps with tasks and activities• Discuss the steps of the process with candidate users• Record tasks as they say them• Rearrange tasks and insert tasks as you clarify the big story• Add activities as you identify them from discussion

ne

cess

ity

• For a user to successfully engage in this activity, is it necessary they perform this task? If it’s not absolutely necessary, how critical is it?

* From Jeff Patton at Agile Product Design


Story Mapping * – Release Planning

• Choose coherent groups of features that consider the span of business functionality and user activities

• Support all necessary activities with the first release• Improve activity support and add additional activities with subsequent

releases

timeo

pti

on

alit

y

necessary

lessoptional

moreoptional

first release

second release

third release



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Story Mapping


User Story Mapping is an approach to Organizing and Prioritizing user stories

© Genesis Consulting, LLC www.genesisconsulting.com

Lean Agile SAP Customer Case Study


Proof of Concept

• 10 year SAP customer

• Full SAP suite of applications (FI/CO, MM, HR/Payroll, etc.)

• Active production support team

• Portfolio of on-going continuous improvement projects

• Developed Lean Agile SAP Proof of Concept with Genesis

• Selected Performance Management Project• Defined scope, selected resources

• Legislative mandate to automate performance appraisals

• 3 weeks behind schedule before Lean Agile SAP

• Implement EP and Performance Appraisals


Lean Agile to Manage COTS Initiatives

• Visual Management approach

• Promotes self-management

• Transparency of assigned work

• Facilitates teamwork and cross-training

• Immediate knowledge of project status


POC Results

Completed project 1 week ahead of schedule Team realized a 200% increase in productivity and efficiency Project validated that customer needs evolve

Scope Changes – 20% Adds 18% Drops

Process validated Lean Agile processes are adaptive Team was not disrupted by the scope changes Team adapted to change in just 4 sprints

Customer, Team Members and Project Management Confirm empirical evidence is better that Progress Reports Scrum planning events free up significant time for teams to focus on “Value

Add” work Work products completed significantly faster

Team habits have changed – becoming “Lean Thinkers” Client now deploying Lean Agile approach across portfolio of SAP Projects

Change is an Asset and Not a Liability© Genesis Consulting, LLC www.genesisconsulting.com20

"Having the business decision-makers in the room to answer my questions in a timely manner, as well as to make decisions right when I needed them, was very powerful. In the past seven days, I saved one week’s worth of work." – SAP Developer

“This team was able to get three weeks worth of work done in just one week by using this Lean Agile SAP approach." – Business Process Specialist

"By being collocated there is a higher awareness of each of the team members' contributions towards the project's common goal. This has helped us as a project team have clearer communicationon levels we don’t normally have" – NetWeaver Analyst

"Post production support will be much easier and quicker, because the support people have been involved from the beginning and truly understand what we will be delivering on go-live" – Business SME

"This process requires that we demonstrate our work every few weeks. The project stakeholders are now so much more informed about what we are doing, and the business is more prepared for what we will be delivering to them when we go live." – Configuration Analyst

"I was just so impressed. Everyone was so happy and proud when they demonstrated their work to the stakeholders after each iteration" – Project Manager

“Before this process, I was uncertain how this project would get done in time. Now I am comfortable that we will get it done in time.” – Business SME

Customer Testimonials

SAP project teams are realizing up to 250% increase in productivity and efficiency.


Expanding Lean Agile toManage ERP Operations


Major CPG Global Company

• 12 year SAP customer

• Full SAP suite of applications including: FI/CO, MM, Planning, Manufacturing, Warehouse Management, Transportation

• Project to deploy Baseline SAP template to European countries

• New to Agile – Pilot project for SAP in Agile

• Portfolio of on-going and competing continuous improvement projects

• Completed Agile Assessment and then developed Lean Agile SAP Delivery Framework with Genesis

• Kicked off project with 170 team members and 13 work streams all using Agile, Kanban


Scope Decomposition – Story Mapping


Executive Steering Committee

Business LT IT LT

Project Leadership

ProgramDirector

Product Teams

Scrum Master

Product Team

Business LT/IT LT: Supports the Project Director and provides direction and course-correction where necessary.

Executive Steerco: Provides continuous direction and course-correction where necessary.

Operational Steerco: Key decision makers (Product Owners and IT Solution Owners) to support the teams and provide leadership for making scope and design decisions and issue resolution.

IT Lead

Business Lead

Project Leadership Team: Ultimate responsibility for the delivery of the project that delivers solutions that the Operational Steerco accepts and operates after project closure.

Scrum Master

Product Team

Scrum Master

Product Team

Operational Steering Committee

IT Solution Owner

Product Owner

IT Solution Owner

Product Owner

IT Solution Owner

Product Owner

ChangeDirector

Solution Architect

Roles and Responsibilities

Program Management Team: Responsible for overall program management and support for the project team including:- Managing the governance of the project- Risk and Issue Management- Project Reporting- Financial Management- Project Administration

IT Lead

Business Lead

IT Lead

Business Lead

Program Manager

Program Support

Program Management Team


Project - Teams

Planning and Mfg.

Supply Planning

Warehouse Management

Order to Cash

Transportation Management

Finance

Organizational Change

Management

Development WebMethods Master Data

Field IT Technical BI/Reporting Testing

Support Teams:• Comprised of IT and

Business team members.• Support Functional teams.• Teams are integrated with

functional teams.• Support functional teams

in daily scrums, sprint planning, and sprint reviews.

• Participate in Scrum of Scrums and Integration meetings as needed.

Core Teams:• Comprised of IT and Business

team members.• Drive the key business

process and solution functionality for the project.

• Maintain product backlogs of all items to be delivered as part of their scope.

• Manage integration and dependencies across other core teams and to support teams.


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• Full vision of scope of work – Visualizing the work

• All teams are working in iterations

• Stakeholders engaged on a regular basis for feedback

• Visual progress of product development – Never been done before

• Increased quality of the product

• Prioritizing scope based on business need – “Must Have”

• Significant reduction of scope and consolidation of requirements

• Originally planned work and estimates based on prior projects are taking significantly less time

• Streamlined 14 traditional project documents into 4 key documents

• Streamlined testing activities to include automated testing and integrated testing events.

• Collaboration between teams has improved integration and quality of solution

• Improved relationships between IT and Business – Building Trust

Key Benefits to Date


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ASAP 8 for Agile Projects


SAP Activate

• SAP Activate is on SAP Jam Site


A Lean Approach to Implementing SAP


Agile ERP Success Factors

• Find the right Product Owner and engage Stakeholders

• Focus on Team Work over mechanics

• Collaboration over co-location

• Building the Backlog – Story Mapping and Stories

• Set rules of engagement for the team

• Selecting the right metrics and the right reporting tools

• Align team and individual performance metrics to tangible project goals


Agile ERP Success Factors

• Conduct Agile Readiness and Cultural Assessments

• Identify the Executive Champion(s)

• Be flexible in creating a model that works for the culture of the organization

• Consider varying steps of adoption (it’s a journey…)

• Select the right first project – Not all projects are good candidates for Agile

• Train the team – at all levels

• Develop a Product Council that is willing to work


Approach to Lean and Agile ERP

33© Genesis Consulting, LLC www.genesisconsulting.com

Conduct Agile Assessment and

Build Delivery Framework

Train Team Plan Project Implement

• Complete a Readiness Assessment to identify areas of risk to introducing Lean and Agile

• Develop an overall strategy to introduce Lean and Agile and build a delivery framework that addresses: team structure, governance, roles and responsibilities, testing, documentation, release management, tools

• Develop a Communication and Training Plan

• Develop an overall project/release schedule

• Define key objectives and outline concepts for training.

• Plan the training for Executives and Team Members

• Customize training based on Delivery Framework

• Develop the training materials and exercises for Agile Training and Product Owner Training

• Schedule the training• Deliver the training

• Conduct workshops focused on defining the scope of the project

• Complete Value Stream analysis for key business processes

• Conduct legacy application analysis including short, mid, and long term plans for each application

• Decompose business processes to build Story Maps

• Develop initial release strategy

• Develop initial product backlogs

• Mobilize the team(s)• Prepare the working

environment• Establish the tools and

standards for project• Team Kick-Off• Refine the backlogs• Establish team norms• Start first iteration

1-2 Weeks 2-3 Days 2-4 weeks TBD

“Life is a continuous journey

of transformation.”

www.genesisconsulting.com

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Connect with Genesis Consulting

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http://www.genesisconsulting.com/

http://www.genesisconsulting.com/archives/category/blog

http://www.linkedin.com/company/229924

http://www.facebook.com/GenesisConsultingPartnersLLC

http://www.youtube.com/user/GenesisConsulting1



e | [email protected] | 804.523.8007w | www.genesisconsulting.com

CEO

5207 Hickory Park Drive, Suite EGlen Allen, VA 23059

jason fair

e | [email protected]

t | 804.523.8007w | www.genesisconsulting.com

Chief Operating Officer

5207 Hickory Park Drive, Suite EGlen Allen, VA 23059

nick coticchia


Visit our website:www.genesisconsulting.com