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8/4/2019 Mr. Zeeshan Guest Speaker
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Zeeshan R Haryani
SAP - FICOAn Open Discussion
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Agenda
INTRODUCTION TO SAP
COST OF SAP IMPLEMENTATION
ORGANIZATIONAL STRUCTURE WITH LIVE EXAMPLE
CHALLENGES IN SAP IMPLEMENTATION
SAP AS A CAREER
Q&A
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Agenda
INTRODUCTION TO SAP
COST OF SAP IMPLEMENTATION
ORGANIZATIONAL STRUCTURE WITH LIVE EXAMPLE
CHALLENGES IN SAP IMPLEMENTATION
SAP AS A CAREER
Q&A
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What is SAP? (the company)
Started in 1972 five former IBM employees
Top 5 software company (MS, Oracle, IBM, Google)
Trades on NYSE: SAP
Headquartered in Walldorf, Germany (near Heidelberg)
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What is SAP? (the name)
The good names
Pronounced S A P NOT Sap
Systems, Applications and Products in Data Processing
The other names
Stops All Progress
Start And Pray
Software Acquires Problems
Satans Accounting Program Sada Aii Parashani
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Who Uses SAP?
the Worlds best run companies.
80% of Fortune 500 Coke
Conagra
Caterpillar
Exxon Mobile (over 60 instances)
Chevron
Marathon Oil Cooper Industries
Nike
General Electric
Baker Hughes
Enron.?
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SAP ERP and Data Flow
Manufacturing most popular
Growth out of MRP
9 basic modules
Interconnected andindependent
R/3
MM
FI CO
SD PP
PLM
QM WM HR
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SAP End to End Cycle
Quote toCash
Plan toProduce
Requisition to Check
Sales Order
Sales &
Operations
Planning
Demand
Planning
Inventory
Sourcing
Material
Requirements
Planning
Delivery
Planned OrderProduction
Order
Production
Control
Purchase
Requisition
Vendor
Selection
Purchase
OrderGoods Receipt
Invoice
Verification
Vendor
Payment
Cost Controlling
Financial and Logistics Reporting
Business Information Warehouse
BillingQuote Customer
PaymentSD
PP
MM
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Agenda
INTRODUCTION TO SAP
COST OF SAP IMPLEMENTATION
ORGANIZATIONAL STRUCTURE WITH LIVE EXAMPLE
CHALLENGES IN SAP IMPLEMENTATION
SAP AS A CAREER
Q&A
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Costs of Implementing SAP
What does it cost?
Hardware Software
Bioware
Cultural changes
Different organization Change management
Process changes
Where to start?
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SAP Implementation Costs
50-100 million, typical
One company, 50 million for current system
Previous company, >100 million
Everything in-house
Highly customized
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SAP Hardware Costs
Do you have data center?
Fire detection and prevention
Above 50 year flood level?
In hurricane, earthquake, or tornado zone?
Do you have a hot or cold backup site?
5-10 million depending on size Multi-mirrored
Real-time backup
Application, database, load balance
Do we need new PCs?
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Software Costs
10-25 million up front
SAP licenses (various modules) Oracle or other database licenses
BW or other analytics
Administration tools
Backup and recovery software (real time?)
Annual licensing/maintenance fees 22%
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Costs of SAP Expertise
10-45 million on hardware and software
10-40 million on bioware
SAP eliminates 10/hr data entry clerks
Now you need 100,000+/yr Basis administrators
Consultants can be expensive
You want the expensive ones
Know business and technical
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SAP Consultants
Lots of consultants
Few have the skills Find, a finder!
Lots of billing rates
SAP Platinum consultant - $300/hr
Quality, independent - $150/hr
Someone who read an SAP book not worth the time
Good consultants know the business!
Technical aptitude
Communication skills
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Cultural Changes
Immediate fear
Job losses Job changes
Management oversight
Dashboards
Drilldown
Centralized/Shared processes and resources
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Cultural Changes
Unbelievable level of complexity
Learn to speak SAPaneese Arguments change
What is the correct authorization object?
Which movement types are considered consumption?
Allocation of costs
Data is a valuable asset
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Process Changes
What changes?
Nothing Everything
Optimize your process first!
Streamline
Leverage technology
Only one big change
Document, document, document
Communicate, communicate, communicate
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Is it Worth It?
YES!!!If done correctly Eliminate non-value added steps
Improve management information
Significant soft cost saving
Focus resources
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Agenda
INTRODUCTION TO SAP
COST OF SAP IMPLEMENTATION
ORGANIZATIONAL STRUCTURE WITH LIVE EXAMPLE
CHALLENGES IN SAP IMPLEMENTATION
SAP AS A CAREER
Q&A
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IBM Globa l Se rv ices
2 0 0 5 IB M C o r p o ra t io n67 March -2005ERP / SA P Overv iew | 1 .01
Organizat ional Structu re in S A P R/3
Hum an ResourcesHum an ResourcesControll ingControll ingClientCl ientCl ient
C o m p a n yC o m p a n yCodeCode
PurchasingPurchasingOrganizat ionOrganizat ion
PersonnelPersonnelAreaArea
Production PlanningProduction Planning
Sales and D istributionSales and Distr ibution M ater ia ls M anagementM ater ia ls M anagement
Financial Accoun tingFinancial Accoun ting
SalesSalesAreaArea
Controll ingControll ingAreaArea
PlantPlant
Org Structure
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Getz Org Structure
C h a r t
f
c c
ts
t z
C o n t ro l l i n g
r
a
G e t z
C o m p a n y C o d e
G e t z
e a l t h
2 0 0 0
C o m p a n y C o d e
G e t z
h a rm a
1 0 0 0
C o s t c e n t e r G ro u p
L e v e l
p e ra t i o n
C o s t c e n t e r G ro u p
L e v e l
ro d u c t i o n
C o s t c e n t e r
G ro u p
L e v e l
i n a n c e
C o s t c e n t e r
G ro u pM a r k e ti n g
C o s t c e n t e r
G ro u pH u m a n
e s o u r c e
C o s t c e n t e r
G ro u pP ro d u c ti o n
C o s t c e n t e r
G ro u pQ u a lit y C o n tro l
Q u a li t y
s a s u ra n c e
C o s t c e n t e r
G ro u pS u p p ly C h a in
C o s t C e n tre C o s t C e n treC o s t C e n t re C o s t C e n tre C o s t C e n treC o s t C e n tre
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Thal Org Structure
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Dewan Group
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Tripack Org Structure
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Agenda
INTRODUCTION TO SAP
COST OF SAP IMPLEMENTATION
ORGANIZATIONAL STRUCTURE WITH LIVE EXAMPLE
CHALLENGES IN SAP IMPLEMENTATION
SAP AS A CAREER
Q&A
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Challenges in SAP Implementation(Implementer's Side)
Project Preparation Phase Project Scope
Project Plan (Detail)
Business Blue Print Phase Lack of Ownership
Non Availability of Users
Slow Decision Making
Realization Phase Reporting Requirements
User Acceptance Test
Train the Trainer
Final Preparation Phase Data Migration
Availability of cut over data
Golive & Support Teething Problems
End User Training
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Challenges in SAP Implementation(Companys Side)
Fundamental Issues
does management fully understand its current business processes, and can it make
implementation decisions in a timely manner? Is management ready to undertake drastic business process reengineering efforts to yield
dramatic outcomes?
Is management ready to make any changes in the structure, operations, and culturalenvironment to accommodate the options configured in the ERP system?
Is the organization financially and economically prepared to invest heavily in an ERPimplementation?
Every Company Thinks They are Unique
People active top management support and commitment are essential
Ignorance of knowledgeable end users in all stages of the implementation process
Politics (Personal Level)
Turnover of Users
Attitude being Customer (Mindset)
Organization Change ERP implementation requires organizations to reengineer their key business processes
Politics (Departmental Level)
ERP System is Considered an IT Project
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Change Management Phases
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Implication of CMP
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Case Study organisations
Key Features Firm A Firm B
Type of firm Multinational Public sector
Industry Pharmaceutical Education
Size (emp.) 2,000 100,000
Turnover 5 billion 300 billion plus
Scope of project Comprehensive Financials / Procurement / projects
Type of implement. Worldwide roll out 144 plus sites (all over Pakistan)
Duration 6 + 2 months for HO; 3 months for Rollout 2 years plus 8 years support
Project leadership Steering committee Steering committee plus, Ministy plus World Bank
Project managers Local top managers in sites Finance officer
Project teams 15 consultants plus Project |Manager 50 plus consultants plus project manager plus project director
Key issues in ERP implementation
Rationale for project Seeking FDA compliance Old system crumbling
Key problems y Managing differences between sites
y Setting up the template and sticking to it
y Managing difference versions of SAP
y Saving local gains whilst implementing single instance
y Deadlines imposed worldwidey Communicating with staff / negotiating changes to work
practices
y Lack of awareness of magnitude of change needed
y Managing expectations
y Trade off between doing the right thing and doing it r ight
y Tight budgetary constraints and lack of top management support
y Difficulties in getting every one to agree on specificationy Managing different cultures internally
Deserve special mention Production Planning Module World Bank Pressure
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Agenda
INTRODUCTION TO SAP
COST OF SAP IMPLEMENTATION
ORGANIZATIONAL STRUCTURE WITH LIVE EXAMPLE
CHALLENGES IN SAP IMPLEMENTATION SAP AS A CAREER
Q&A
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SAP Careers
SAP Business Analyst
Liaison between the business and the techies
Good communication skills
Understanding of local business and industry practices
Technical track
ABAP
BASIS
Functional track
FICO Consultant
MM Consultant .
Project management
Techno-functional
Project / IT Director
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SAP Careers
Salaries
Business Analyst - 70K Basis 85K
Functional 90K
Project manager 120K
Independent consultant Bill at $150/hr
Take home $110/hr
Less travel costs
Approximates to $175K
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SAP Careers
The downside!
Lots of travel (good or bad) Long hours
Work-life balance challenges
Project work
Projects end - Jobs end
Specialized knowledge not always transferable
Great opportunities with great companies
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Agenda
INTRODUCTION TO SAP
COST OF SAP IMPLEMENTATION
ORGANIZATIONAL STRUCTURE WITH LIVE EXAMPLE
CHALLENGES IN SAP IMPLEMENTATION SAP AS A CAREER
Q&A