Managing long term value realization with SAP Control …€¦ · Managing long term value realization with SAP Control Center Concept ... R&D/ Engineering ... SAP control center

Managing long term value realization with

SAP Control Center Concept

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Internal

Our speakers

• Chief support architect

• Developing and leading PE Practice in 2004–2010 in

South Africa and MENA

• Developing the SAP Mission Control Center (MCC)

concept and building the SAP MCC EMEA

• Driving the the SAP Operations Control Center

Program globally to support customers digital

transformation strategy

Joerg Rudat

Global Head of ICC

DBS PE & ES – Strategic

Customer Initiatives

Marcus-Alexander Funke

Head of SAP Global Operations

Control Center Program

GSS PE & ES

– Global PE Practice

• Chief support architect

• ~20 years in SAP Consulting, SAP Active Global

Support, and today in DBS PE & ES

• Developing and building the ICC concept in EMEA

• Responsible for global ICC Strategy and Content


The world is changing around usFrom On Premise to (Hybrid) Cloud

SAP HANA

SAP HANA Enterprise Cloud SAP HANA Cloud Platform Line-of-Business Apps

(On Premise) Private Cloud (Managed) Public Cloud

Managed-Cloud-as-a-Service Platform-as-a-Service Software-as-a-Service

Customer Systems

People Customer

SAP Business Suite

SAP Business Warehouse

SAP HANA Datamart …

Build Extend Run

applications Finance Supplier

Custom infrastructure and

maintenance

New Apps Collaboration

People

SAP JamSoccer

Health

Consumer

Startups

Any

DB

Enterprise Management


All Systems on On-PremiseHybrid Solution

(Mix of On-Premise, Private Cloud , SaaS etc )

Business Context Performance & Availability

Security Capability to track E2E Process

Ability to Execute Upgrade on Customer Schedule

Operation Process Design Release Management

Application Management & Monitoring System Management & Monitoring

Infrastructure Management & Monitoring Change Management

Governance Define and track SLAs*

IT Service Management Solution Documentation

Customer IT - Key Changes to Operations.When Moving from On Premise to Hybrid IT Model

Accountability Direct Control TransparencyLegend:

OrchestrationGovernance

Trans-

parency

TransparencyDirect Control

Orchestration

IT

Accountability

GovernanceOrchestration

Direct Control

IT

Accountability

• Customer IT Operations

accountability remains the same

though the Operations

Management needs change.

• Direct control and responsibility

reduces

• New challenges to manage a

now diverse integrated

landscape

Note: Size of the circle indicates the

magnitude of the parameter

• Business Process / Service

focused Operations rather

than System Centric.

• Requires greater end to end

visibility of IT and Business

Solution.

• Increased requirement to

orchestrate operations rather

than direct control.

Governance

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Customer

The world is changing around usWith that the “Role” of IT has to change

Business Process

Management

Business Context

Application

Management

Applications

Middleware / Platform

System

Management

System

Database

Operating System

Virtualization

IT Infrastructure

Management

Servers

Storage

Networking

On Premise

Classic IT: Cost Center

Cloud Scenarios

Managed-Cloud-

as-a-Service

Platform-as-

a-Service

Software-as-

a-Service


SAP’s contribution to reduce costs and accelerate time to value with the

SAP control center concept

MISSION CONTROL CENTER

Get access to the entire knowledge and

experience of the SAP ecosystem via the

SAP Mission Control Center

INNOVATION CONTROL CENTER

★ Accelerate time-to-value

★ Enable breakthrough innovation

★ Reduce total cost of implementation

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OPERATIONS CONTROL CENTER

★ Business process improvement

★ Improve business continuity

★ Reduce total cost of operations


SAP Operation Control Center – Imagine…..... you map the Digital Boardroom idea to IT operations

Total Transparency

Ensure transparency and efficient operation

through monitoring, alerting and managing

escalations.

Business Processes Enablement

Close engagement with business units

according to SAPs Process Map.

Mapping of technical objects to business

processes.

De-Escalation Management

Safeguard critical events and incidents in

our application landscapes.

OCC is the key enabler between business and IT


SAP Operations Control Center – Imagine…..... you map the Digital Boardroom idea to IT operation

What is “Operations Control Center” really? Definition

An Operations Control Center (OCC) is a physical

entity or a layer of an IT organization that • provides the relevant transparency on health of

the end to end IT landscape and underlying

software components

• creates the relevant transparency along the IT

aspects of the execution of E2E critical or core

business processes

• manage critical exceptions and continuous

improvement on the above aspects based on

data driven insights

• running on standardized IT processes

Operational Control Center is sitting as layer

across / above typical IT departments that are

usually responsible for the day to day IT operation.


Landscape Health Detailed drill-down

Operations Control Center – Imagine…. .... you see all aspects of the health of your IT landscape at one glance


Business process dashboard

Operations Control Center – Imagine…. .... you see hiccups in critical business processes before the business notices


Business process level-2 view

Operations Control Center – Imagine…. .... you pinpoint where the hiccup occurred and improve business processes

Metric view


Scoping an Operation Control Center – Imagine…. .... .... you identify cost savings by an industrialized and value-based scoping

OperateDesign Build

Powered by SAP Solution Manager

Discover

Continuous

improvement

Understand Scope

• Survey1

• Incident analysis

• Business process

analytics

• Transport Execution

analysis

RunSAP Like a Factory: Participant Profile

1

Regions Select Yes/ No

North America

Latin America

Europe

Middle East And Africa

Asia Pacific

RunSAP Like a Factory: Solution Details

2

SAP Solution - Areas of ResponsibilityNumber of Production

Systems per SAP Solution

Asset Management

Corporate Strategy and Sustainability

Finance

Human Resources

IT Management

Manufacturing

Marketing

Procurement

R&D/ Engineering

Sales

Please indicate the regions in the scope of the survey:

Which SAP Solutions do you have implemented (SAP Solution Explorer Areas of

Transparency into:

• Business and IT cost drivers

• Initial series of continuous

improvements

• Benefit targets (KPIs and

moving the needles)

• Business process

improvement Workshop

• Benefit calculation

• Value proposition

Transformation programTransformation proposal

Create transparency into challenges

Understand challenges and initial assessment

Success measurement

• Baseline

• Benchmark

1Run SAP Like a Factory


Operation Control Center – Imagine….... SAP runs IT!

SAP CIO and Chief Process Officer, Helen Arnold

OCC Dashboards


Wrap-up – Operations Control CenterEfficient IT operations to reduce the total costs of operations

OCC Footprint *

>60Running OCCs

>70Open opportunities for future

projects

30Running projects

AllCore solutions covered

General Experiences

Almost 50%time and effort saved by avoiding manual

monitoring

Up to 45%reduction of time affected by service-down

occurrences

Up to 25%reduction in the total number of business

critical incident

Customer Examples *

Healthcare and Consumer Lifestyle (multinational): OCC

delivers value to business

Topic: Enhancing Business Value & continuous service improvement

Result: Improved supplier finance process, consistent promotion

management data over landscape

Benefit: Multi million business value per year and 20% incidents drop

Retail (Denmark): ICC to avoid custom developments

Topic: A better way forward for outsourced IT operations

Result: Gained control over outsourced operations and ensure higher

levels of service availability to business.

Benefit: Improves response times and prevent incidents from occurring

in the first place

SAP runs SAP: SAP IT uses OCC to safeguard critical business

Topic: E2E centric view to business

Result: Total transparency about health, availability & execution of

business process

Benefit: Improved reliability in all major applications.

*) Status: June 2016 / General figures based on SAP’s experience during customer OCC-based projects


Wrap-up – Operation Control CenterEfficient IT operations to reduce the total costs of operations

Up to 25% reduction in the total number of incident costs

Up to 50% time and effort saved by avoiding manual monitoring

Up to 20% increase of first-level resolution rate (shift left)

Up to 25% reduction of time affected by service-down occurrences

Drive

business innovation

Stable

operations

Distribution of

IT spending

Business

innovation

IT costs

28%

72%












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Innovation Control Center

….achieve your IT and business goals, reduce time to value

Innovation Discover & enable breakthrough innovation with

minimum disruption

Speed Accelerate the deployment of your solution to improve

time to value

Cost Reduce TCI by utilizing standard solutions and efficient

use of SAP experts

Stability Safeguard and optimize your implementation, while

ensuring smooth handover to operations

Long Term Establish a repeatable model for innovation-focused

project delivery based on measurable outcomes

Innovation

Control

Center


The Solution: Manage long-term innovative transformation

with a strong delivery framework

TQM

SAP Mission Control Center - expertise in mind

Innovation Control Center - the customer priorities in mind

EOD

Solution 1Innovation

Safeguarding

Innovation

DiscoveryInnovation

Acceleration


Safeguarding

Innovation

DiscoveryInnovation

Acceleration


Safeguarding

Innovation

DiscoveryInnovation

Acceleration

Innovation Framework

Transition to Operations

Continuous Improvement

Transition to…

Continuous…

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SAP Mission Control Center - expertise in mind

Innovation Control Center - the customer priorities in mind

Innovation Control Center : Innovation Framework… manage long-term innovative transformation with a strong delivery framework

TQMEOD

A “living” value based innovation roadmap for the engagement

Continuous value management and KPIs (incl. monitoring)

A customer-tailored, tool-based connection to the SAP Mission

Control Center (e.g. via dashboards, SAP Jam, Q-gates, etc.)

Measuring and reviewing your innovation index

Different types of innovation discovery and enablement workshops

Support delivery setup for underlying projects including Q-gates

(SAP or partner driven)

Innovation Framework


Innovation Control Center ….guidance from the solution vendor in every phase of the project, in every project!

DISCOVER PREPARE EXPLORE REALIZE DEPLOY RUN

PROGRAM

projects

sub projects

Jump-start your

implementation project

• Simplify and innovate in

co-operation with SAP

• Get the most out of your

strategic SAP investment

• Create a value-based

innovation roadmap

Minimize risk in

implementation projects

• Mitigate implementation risks

• Make the go-live a non-event

for your business

• Prepare for sustainable

operational excellence

Speed-up your implementation project

• Accelerate your implementation

• Decrease time to value

• Reduce implementation and operational IT cost



…. you have an engagement model supporting all project phases

Rapid Prototyping

Go-live

Continuous support to unlock business value quickly

Solution Design &

Architecture Workshops

Integration Validation

Gap Validation

Prepare IT Operations (OCC)

Application Lifecycle Management with SAP Solution Manager:

Solution Documentation / Test Management / Change Management

SAP Development Support engagement

Note: All PFG requests are within the duration of ICC engagement. Timeline to be tailored to each ICC engagement




at customer

at SAP

ICC as part of the S/4 Value Assurance PackagesEngagement Foundation Components

The foundation for a successful delivery of innovation

programs is SAP’s Innovation Control Center (ICC).

This includes a Technical Quality Manager (TQM) and

access to the Mission Control Center (MCC)

The Package Migrate and Implement

also includes typical ICC Services

(e.g. Gap Validation, Solution Design Review)

as part of the Build Design Support

Technical Implementation

Plan and Safeguard

Migrate and Implement

Engagement Foundation

Mission control center

SAP’s back office


TQM

Project

Lead


Wrap-up – ICC

Well-established in the EMEA market

24

ICC Footprint *

124Running Projects

200+Open opportunities for future

projects

24Industries covered

AllCore solutions covered

General Experiences

Almost 40%reduction of time and effort when industry and

solution best practices have been provisioned

Up to 50%avoidance of modifications when SAP Standard

was used instead of customer customizations

Up to 30%of cost reduction through preparation of

operations for post go-live

Customer Examples *

Automotive Industry (Germany):

ICC to safeguard a partner-driven implementation project

Topic: Implement eWM together with the local partner

Result: Project complemented with brand-new technology knowledge,

Mitigation of technical risks

Telecom Industry (UK): ICC to discover new SAP HANA capabilities

Topic: Create a CRM on HANA prototype

Result: Customer business convinced by using the prototype; sped-up

the implementation by re-using the prototype results

Logistics Industry (Switzerland): ICC to avoid custom developments

Topic: Validate functional gaps and safeguard the implementation

Result: 300 days of development saved

SAP runs SAP: SAP IT uses ICC to retire custom code

Topic: Retire ABAP objects to save operational costs

Result: 20% custom code retired

*) Status: June 2016 / General figures based on SAP’s experience during customer ICC-based projects












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Engagement Management Support

Office

Supports holistic value realization of premium

engagements including cross coordination for

complex request across multiple expert areas.

Creates transparency and performs quality

assurance.

Central Control Core Team

Manages the overall prioritization, assigns

teams to complex situations, and ensures

overall follow up and transparency across all

units of the MCC.

SAP Mission Control Center …ensures consistent support across all solutions, technologies and deployment models

Solutioning Center

Supports value propositions and premium

engagement scope.

Mission Critical Support

Production Support

Resolves critical customer situations which

have or might have an impact on customers' or

SAP's business, like emergencies or situations

which require outstanding management above

and beyond SAP standard processes.

Supports successful Go-Live

Deployment Support

For e.g. SAP HANA / SAP HEC /SAP Cloud

Provides expertise & knowledge transfer for

Customer Innovation Control Center,

Customer Operation Control Center and

Integration Validation.

SAP MISSION

CONTROL CENTER


MCC APJBeijing

China

MCC NANewtown Square

USA

MCC EMEASt. Leon-Rot

Germany

MCC LASão Paulo

Brazil

St. Petersburg

Dublin

Bangalore

Singapore

Shanghai

Melbourne

Mexico

Korea

Tokyo


… one place for all experts to support the customer and SAP’s strategy

★ 24x7 Production Support

★ Global Mobility of SAP Experts

★ Central Monitoring


The Solution for a Large Automotive Customer

EWM Template Implementation with Innovation Control Center

WHAT has been delivered…

Blueprint / functional support (gap validation):

System design phase supported with dedicated workshops

Technical support (Integration validation)

Address technical risks (e.g. performance, interfaces);

Scoping done and work streams set-up

Transition to operations:

Preparation of OCC in scope; in progress

Project management support:

In process

Cutover and data migration support:

In process

WHY ICC was positioned…

New module (EWM) to be integrated in a

template landscape

Business is very critical for the customer

Limited partner knowledge in some areas

Customer wants support in different

areas / in different project phases

Customer wants dedicated contact

persons, not a changing project team

Innovation

Safeguarding

Innovation

Acceleration


The Solution for a Large Automotive Customer: Collaboration model for continuous

and regular access to best-in-class experts for functional and technical knowledge

Rollout Project

Implementation E2E tests

DiD

Go Live

GL prep.

SW design

Stress test

DiD

Process

design

EWM Template Project

Template design and

implementation

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July

SAP Development

EWM and ERP Consulting

EWM Migration experts

EWM Development Architects

EWM Product Support

Test & Performance Experts

EWM Operation Experts

SAP Solution Manager experts

Technology

architects

Localization experts

• ICC lead

• EWM engagement lead/

architect


Volkswagen: Saving Time and Money with SAP® Extended

Warehouse Management and SAP MaxAttention™

Increased

Productivity

Saved

Money on implementation costs

Faster

Time to value, focusing on

business value instead of long

project durations

Improved

Quality of solutions

Saved

Money on maintenance costs

due to less custom code

Reduced

End-user issues after going live

with the solutions

Studio SAP | 42407 (16/10) This content is approved by the customer and may not be altered under any circumstances.

"We are very satisfied with the support from SAP MaxAttention. Thanks to the innovation control center concept,

we were able to significantly reduce time to value and simplify our solution landscape. SAP supports us on our

journey to becoming a digital enterprise."Christian von Tluck, Head of IT, Volkswagen Group, Group Genuine Parts and Service Division

Company

Volkswagen AG,

Group After Sales

Headquarters

Baunatal, Germany

Industry

Automotive

Products and Services

Genuine parts, service products

Employees

5,000 (Group After Sales)

Revenue

€5.9 billion

Web Sites

www.volkswagen-ag.com

Objectives

• Implement a modern warehouse and business solution

• Deploy the solution without impacting business

• Reduce the risk of project delays and cost overrun during implementation

Why SAP

• Support from the innovation control center as part of SAP MaxAttention™ services, accelerating time to value

• Solutions that address the company's needs, including the SAP® Extended Warehouse Management (SAP EWM) and

SAP ERP applications

Resolution

• Deployed SAP EWM and SAP ERP with support from SAP MaxAttention

• Used the innovation control center to guide implementation

• Solved more than 100 perceived gaps and functional issues with support from the Digital Business Services organization at SAP

• Significantly improved response time for critical scanner transactions in the warehouse and peak throughout in the outbound area

• Reviewed custom code, supported technical configuration, and optimized end-to-end performance and hardware utilization

with SAP MaxAttention

• Avoided business disruptions with monitoring tools and on-site empowerment of Volkswagen Group’s support organization

for EWM operations and for running integrated SAP ERP and SAP EWM processes

Future plans

• Deploy the innovation control center supporting the company’s growth strategy, requiring internationally networked and

highly efficient logistics

• Enable digital transformation and business success with SAP MaxAttention

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

http://www.volkswagenag.com/content/vwcorp/content/en/homepage.html

Appendix



….you relay on an engagement model with lean front office and strong back office

SAP’s front office

On-site service and support experts from nearshore

locations

Best-in-class tools, methodologies, and service

procedures with built-in experience from thousands

of customer issues and escalations

SAP’s back office and industrialized

infrastructure

Centralized access to a remote expert network,

ensuring consistent service quality

Innovation discovery, deploy and build, as well as

run and optimize all covered

Open to partner ecosystem

Right expert at the right time

Consulting

Development

Support

EducationMCC

Deployment

Support

Customer IT

Lines of Business

Partner SI

SAP

Customer

Project

Team

Decision Makers

ICC Lead

Experts

SAP Innovation Control Center


ICC Angel


Innovation Control Center : Innovation Acceleration….how customers benefit from Gap Validation

Gap Validation

Blueprint optimization to become as

close to SAP standard as possible

Avoid unnecessary modifications

Enable you to leverage best practices

for your implementation project to

reduce time and effort

Innovation

Acceleration

ICC customer avoids costly

modifications and uses SAP

standard instead.


Innovation Control Center : Innovation Safeguarding….you mitigate technical risks before you endanger your ability to go live

Integration Validation

Continuous technical support aligned

with project and embedded in program

governance

Identify and mitigate technical risks

early in your implementation project

Prepare your operations for post go-live

Innovation

Safeguarding

ICC customer satisfies his users by

providing a stable and robust

solution with limited business

disruption.


Confidence

Wrap-up – control center conceptCreate the confidence, ability, and accountability to innovate

Capability

Accountability

Value chain optimization

Orchestration and integration validation

IT management platform

Single source of truth

Zero-downtime

upgrades

Business process

improvement

Run SAP Like a Factory

Operations Control Center

Gap

validation

Building blocks and

best practices

Build SAP Like a

Factory


Development

factory

ICC OCC


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Managing long term value realization with SAP Control …€¦ · Managing long term value realization with SAP Control Center Concept ... R&D/ Engineering ... SAP control center