Upgrade Strategies for Small and Midsize Businesses
Pat Hickey, Director, mySAP All-in-One SolutionsMichael Labriola, VP of IT, TriVirix International
November 2003
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Agenda
1. Reasons for an Upgrade
2. Decisions on the Application
3. What to Expect on your Upgrade
4. mySAP ERP at TriVirix International
5. Summary
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Reasons for an Upgrade
Additional functional requirements Reduction of interfaces to legacy systemsTechnical limitationsEnd of maintenance
Return of investment
Costs
Risks
Advantages
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Influenced Areas in an Upgrade ProjectOrganizational Challenges
Time planningBudgetingResource planningDecision about project leadership
Business ProcessesRelease customizing vs. delta customizingMigration of modifications back to SAP standardModification adjustmentsTesting of customer programs, interfaces…Business process testingEnd-User training
TechnologySizing and system configurationPlanning of technical upgrade processExecution of technical upgradePost upgrade activities
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Reasons for an Upgrade
Primary Reasons for ERP Upgrade
1%
2%
19%
21%
27%
30%
0% 5% 10% 15% 20% 25% 30% 35%
Other
Support more users
Support current technology
Necessary (due to maintenance)
Need new functionality
New architecture is better platform forfuture functionality
Source: AMR Research, 2002
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Decisions on the Application
Functional Areas Added During the Upgrade
4%
7%
7%
7%
11%
13%
13%
13%
15%
15%
17%
17%
24%
30%
33%
35%
41%
0% 10% 20% 30% 40% 50%
Other
PLM/Product Development Management
Professional Service Automation
Project Management
Order Management
Supply Chain Management
Manufacturing
Maintenance Management/EAM
Inventory Management
General Ledger, Accounts Payable
Financial Management
Purchasing
Customer Management
Business Intelligence
Human Resources/Self-Service
Internet-Based Procurement Applications
Portals
Source: AMR Research, 2002
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+
+
+SAP
NetWeaver
mySAPERP
Purchase/Transition Options for Customers
mySAP Business SuiteCustomer can buy and deploy mySAPBusiness Suite
mySAPBusiness Suite
SAP NetWeaver
mySAP ERPCustomer can buy and deploy mySAP ERP
Combining mySAP ERP & SolutionsCustomer can combine mySAP ERP withmySAP Solutions
+
+
+SAP
NetWeaver
mySAPERP
+ mySAP SCM
mySAP CRM+SAP Packaged
Solutions+
Combining SAP R/3E & Parts*Customer can combine existing SAP R/3 installations with Solutions, SAPNetWeaver (also parts of it, like Portal or BI) and with SAP packaged solutions
+ mySAP SCM
SAP R/3 Enter-prise
+ mySAP CRM
+ SAP NetWeaver
SAP Packaged Solutions+
*Only for Installed Base
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What is the General Situation in the Installed Base?
There are factors that are leading SAP R/3 SMB customers to consider modernization, consolidation, and rationalization of their ERP environment.
They want to improve the overall user experience when business processes are getting more demandingThey have new reporting, regulatory, and transparencyrequirementsThey need to integrate multiple, diverse systems with SAP while reducing cost and optimizing system landscapeRestructuring activities, mergers, and acquisitions require new target ERP landscapesSome want to go to the mySAP Business Suite, but the step is too large and they are looking for a next stepSome simply want to extend the scope of their existing ERP functionality
… mySAP ERP provides a solution to these problems!
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SAP R/3 Transition Options to mySAP ERP
SAP R/3Pre 4.6c
SAP R/34.6c
SAP R/3Enterprise
This option does not require an
upgrade, only a license change
Recommended Transition Paths
Alternative options
mySAP ERP
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SAP R/3 Transition Options from mySAP ERP
SAP R/3Pre 4.6c
SAP R/34.6c
SAP R/3Enterprise
These options do not require an upgrade, only a license change
Recommended Transition Paths
Alternative options
PackageSolutions
mySAP SRM
mySAP Business Suite
mySAP PLM
mySAP SCM
mySAP CRMmySAP ERP
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Influencing Key Factors for Project Duration
StrategyFunctional upgrade vs. Upgrade with new implementation
New features and functionsNew features in already used transactionsAmount of new functionalities to implement
ModificationsAmount of modifications which could be returned to SAP standard Amount and complexity of needed modifications in the new release
DocumentationLevel and quality of documentation for modifications and testing
Last but not least…Range of testing and trainingCustomer and/or partner skills in upgrade projectsAvailable resources and management commitment at customer
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Average Project Duration
Project duration in months
0
2
4
6
8
10
12
1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96
Customer
Mo
nth
s
Source: Survey at productive SAP R/3 Enterprise customers by Global ERP Initiative in 2003
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Agenda
1. Reasons for an Upgrade
2. Upgrade Strategies with SAP
3. Providing Value with mySAP ERP
4. What to Expect on your Upgrade
5. mySAP ERP at Trivirix International
6. Summary
mySAP ERP Upgrade at TriVirix
Michael LabriolaVice President of Information Technology
mySAP ERP Upgrade at TriVirix
Michael LabriolaVice President of Information Technology
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Overview of Company
% Established in 1998, venture capital funded
% Manufacturing and related services for medical device and other life science companies
% Today, 200 TriVirix employees in the US and UK manufacture and service 40 different types of medical equipment for 25 customers
Services:% Product design and launch% Assembly and test, to user-ready condition% Repair, refurbishment, other post-production services
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Key Business Drivers
Why did TriVirix need to upgrade?
Preparation for FI / CO Improvement ProjectUpgrade Validation Requirements equal to Support Packages
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SAP Solution Implemented
mySAP Business Suite Implemented
SAP R/3 Enterprise 4.7mySAP Enterprise PortalKnowledge Warehouse
1. Implementation
April 15, 2003 – Upgrade Sandbox System for TestingJune 28, 2003 – Rebuild Sandbox System, Prepare for UpgradeJuly 4, 2003 – Upgrade over holiday weekend
• Make a copy of production to the Sandbox and start upgrade• Rebuild Development and Test, copy from Production when
completeAugust 4, 2003 – Start of Early Watch SessionAugust 15, 2003 – Early Watch Session Report and System ReviewAugust 22, 2003 – All Issues resolved, validation testing complete
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Key Benefits and Lessons Learned
Benefits
Moved to the latest release before FI / CO improvement project
Lessons Learned:
Don’t deviate from you test environment (SR-1 Issues)Test all of your business transactions (Deprecation Run)
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Moving Forward
Next Steps
Currently involved in FI / CO improvement projectmySAP Business Intelligence mySAP Customer Relationship Management 4.0
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Agenda
1. Reasons for an Upgrade
2. Decisions on the Application
3. What to Expect on your Upgrade
4. mySAP ERP at TriVirix International
5. Summary
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CV New/ Past Payment
2003SAP R/3 or mySAP ERP -> mySAP Business Suite
2003SAP R/3 -> mySAP ERP
Conversion Policies for 2003
Credit in % of past payment
100 %
75 %
50 %
25 %
1 2 3 4 5
CV = Net Contract Value
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Further Information at SAP Service Marketplace
mySAP ERP http://service.sap.com/erp
SAP NetWeaverhttp://service.sap.com/netweaver
Development Newshttp://service.sap.com/developmentnews
SAP R/3 Enterprisehttp://service.sap.com/enterpriseNew Release Strategyhttp://service.sap.com/releasestrategy
Release Noteshttp://service.sap.com/releasenotes
Upgrade Information Centerhttp://service.sap.com/upgrade
Upgrade Focus Grouphttp://service.sap.com/ufg
Services from SAP Support and SAP Consulting
Online Knowledge Productshttp://service.sap.com/okp
Safe Guardinghttp://service.sap.com/safeguarding
Maintenance Strategyhttp://service.sap.com/maintenancestrategy