T4 S6 SLO Nitesh Final

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Perform cost efficient business and IT transformation viaSAP Landscape Transformation Services (SLO)

Nitesh AgrawalJuly 15, 2011



© 2011 SAP AG. All rights reserved. 2

Agenda

• Typical Business Challenges

• The SLO Service Portfolio Consolidate & Unite

Buy & Sell

Harmonize & Unify Convert Currencies

• Delivery Model




Four Challenging Factors That Put Pressure on IT toTransform Itself

Translate businessrequirements to the

right IT services

+

Show the businessvalue of IT

innovations

IT shifting frommanaging informationsystems to supporting

business processesand businessdifferentiation

Extreme pressure onIT to deliver more with

less

Complexity is risingand time frames forapplying innovative

changes aredecreasing

IT Transformation




How can CIOs and their IT Departments Address ThoseChallenges?

IT Transformation BusinessTransformation

BusinessTransformation

Strategy &Structures

OperationProcesses

Technology

IT

Company

Strategy &Structures

OperationProcesses

Technology

IT

Company

Choose your own way of transformation to achieve your goals and objectives.SAP can help you to identify the right areas to start with and offers you services, methods, and

tools for effective transformation.



We help you to manage your transformation efforts effectively

Addressing Your IT Transformation Needs with SAP ITTransformation Services - ITTS

© SAP 2008 / Page 5

ITIL™ v3 Services Lifecycle

Strategy Design Transition ContinualImprovement

Operation

StructuralTransformationServices

OperationsTransformationServices

TechnologyTransformationServices

Business

TransformationServices

SAP Enterprise Support

Realizes business driven changes,

results in lean setup and agility

Realizes efficiency and reduces TCO,

results in operational excellence

Realizes business value from “state of the art” technology,

Enables functionality

ITTS



ReduceIT cost

Adaptingto changes

Ensurefast and safe

realization

Plan

Re-model

Typic a l Bus iness chal lenges

Increaseagility

Sel l & buy

Consol idate& uni t e

sys temlandscapes

Value dri ver … and typ ica l business scenar ios

Build Run

Harm onize &

uni fy data

DataAccuracy

CurrencyChanges

Simpl i fy




Typical Business scenarios when SLO services would be required

Global SAP ITlandscape

Individualsolutions

ERP

BW

CRM/SRM

SCM

As-is situation Vision

Corporate restructuringChange org. units in SAP accordingly

Mergers & AcquisitionsAcquisition, joint venture

DivestituresBusiness area will be organized as

independent company, subsidiary is spun off,part of company will be sold

Business process optimizationAdapt processes in SAP system,

unified accounting, master data cleansing

Consolidate IT landscapesMerge systems, harmonize system landscape,

provide cross-system functions



System Consolidation

Reducing IT TCO / TCI

Centralization or De-Centralization

Internal re-organizations (divisional or functional)

Legal changes

Mergers & Acquisitions

Divestitors

Shared Service Center HR

Optimise system efficiency

Currency Conversion

Align Acquired Company to Group Standards

Align Controlling Standards (IFRS)

Financial Data Harmonization

Operations & Logistic Data Harmonization

System Landscape Optimization- How to reflect customer challenges to IT

© SAP 2008 / Page 8

SLOPortfolio

Governance & Legal changes

Organisational & Businesschanges

TCO & System efficiency

SLO support you to adapt IT due to

Buy & Sell

Consolidate& Unite

Harmonize &

Unify

ConvertCurrencies




Agenda


• The SLO Service Portfolio

Consolidate & Unite

Buy & Sell


• Delivery Model

• The Benefits



Business scenarios forSystem Landscape Optimization

Adapt your system landscape The need to integrate or to restructure companies, or part of companies

constantly increases. Are you planning to adapt your system landscape tonew or changed business requirements in the near future?

Buy & Sell

Consolidate & unite system landscapes Creating a more flexible and simplified system landscape becomes more

and more important. Are you currently planning to consolidate andharmonize your SAP systems or applications?

Consolidate& Unite

Harmonize business processes Providing accurate data is a crucial factor for a successful business. SAP

Data Harmonization services enable you to significantly increase the quality

of your company data. Unify and align your financial and controllingprocesses.

Harmonize &Unify

Convert currencies The introduction of a new currency - for example US Dollar - is only one

reason to convert the local currency within your SAP system. SAP CurrencyConversion services help you to realize your individual requirements.

ConvertCurrencies

© SAP 2008 / Page 10



SLO Consol idat ion andMigrat ion serv ic es

Client Transfer

System/Client Merge

Business Process Migration

HR System Merge & Split

Business ScenarioConsolidate & Unite

System A System B

Client 010

Client 020

Client 030

System A

System B

System C

Client 030Client 020

Client 010

Client 040

Reduce number of systems Redesign system landscape Implement new Business Templates



Set-up a multi client environment viaClient Transfer

Keep your system landscape current in the face ofmergers, acquisitions, and divestitures

Reduce the complexity of your system landscape asyou restructure your business organization and alignyour business processes

Minimize your total cost of ownership

Business Challenges

Transfer one or more clients from one or moresource systems to a multiclient system

Reduce maintenance costs and costs for upgrade orsupport packages

Re-centralize, consolidate servers and applications

Prepare target environment - reduce size of systemlandscape and simplify

Reasons for a Client Transfer

System A System B

Client 010

Client 020

Client 030

T a r g e t S y s t e mS o u r c e S y s te m



3

Client Transfer

Performance issues Application specific problems

Client transferrequires

several test runs priorto

productive conversion Analysis of cross-clientcustomizing

Analysis of R/3 Repository

Analysis of user exits

Analysis by SAPSystem

LandscapeOptimization

Repository Cross client customizing

User exists

Support packages

System harmonizationbased on the results ofthe system analysis

System alignment

2

Analysis1. Repository2. Cross ClientCustomizing

?

1

200 100100 200200

100

Three step set up of a multi client system

100



Set-up a single client environment viaSystem / Client Merge

Leverage data knowledge and data consistency

Ensure high data quality

Enable clear and transparent reporting Lower administration cost

Combination of upgrade and system consolidation inone project

Benefits

Reduce and simplify your system landscape

Facilitate maintenance

Downsize and recentralize existing structure

Integrate companies currently running on a separate

instance Harmonize business structures and processes

Reasons for a Client/System Merge

System A

System B

System C

Client 030

Client 020

Client 010

Client 040

Target System

Source Systems



Business Scenarios forSystem Landscape Optimization



Buy & Sell

Consolidate & unite system landscapes Creating a more flexible and simplified system landscapes becomes more


Consolidate& Unite




Harmonize &Unify



ConvertCurrencies



Business ScenarioBuy & Sell

SLO organ izat iona l s t r uct urechanges

Company code delete

Company code carve out

Plant reallocation

Controlling area merge/separation

P r i o r t o M i g r a t i o n

System 1

0800

0800

0810

0800

System 2

0605

605

A f t e r M i g r a t i o n

0800

0801

0801

0800

0800

0810

0810

0810

Incl. FI, CO, FM reallocation and rebuild

0820

0820

0820

Restructuring business organizations Mergers, acquisitions and divestitures Alignment with best-of-industry business processes Reduction of IT complexity

Harmonization of accounting & naming rules CC transfer + Split of CC & FM area CC transfer + Split of Controlling

& FM Area (not Company Code) CC transfer + Split of Company Code



Both systems nowcontain only relevant

controlling areas

Both systems nowcontain only relevant

controlling areas

Restructure your System Landscape viaCompany Code Deletion

Leverage data knowledge and data consistency

Ensure high data quality

Enable clear and transparent reporting

Lower administration cost

Benefits

Divestiture of a legally independent company orparts of a company:

System copy of sold or separated part of the

company to new hardware

Adjustment of data structure

System cleanup:

Company codes are no longer in use

New storage capacity available

Reasons for a Company Code Deletion

Controllingarea0002

PlantB002

Companycode002

System CopySource System

Controllingarea0001

Companycode001

PlantA001

Controllingarea0002

PlantB002

Companycode002

Controllingarea0001

Companycode001

PlantA001

Original businessunit

Original businessunit

Sold businessunit

Sold businessunit

Company A Company B

Deletion of irrelevantcontrolling areas and

company codes

Deletion of irrelevantcontrolling areas and

company codes






Buy & Sell



Consolidate& Unite




Harmonize &Unify



ConvertCurrencies



Business ScenarioHarmonize & Unify

SLO data har m onizat ion

Chart of Accounts Conversion

Customer and Vendor Conversion

Fiscal Year Conversion

Material Number Conversion

Controlling Area Rename/Merge

Data Harmonization Introduce unified accounting standards and roll-out global template for

cost accounting Unify and standardize financial and controlling processes

Increase reporting reliability

Align Business Information Warehouse data

© SAP 2009 / Page 19



Chart of Accounts Conversion

Consolidate financial reporting

Ease global reporting

Heighten transparancy

Lower administrative costs

Benefits

Introduction of a global chart of accounts due tocountry specific requirements and regulations

Introduction of International Financial ReportingStandards (IFRS)

Business driven change due to corporationrestructuring

Introduction of a unified chart of accounts

Reasons for a Chart of AccountsConversion

Prior to chart of

accountsconversion

After successful

chart of accountsconversion

ControllingArea

CompanyCode

Chart ofAccounts

ControllingArea

CompanyCode

Chart ofAccounts



Handan Iron and Steel GroupChart of Accounts Conversion

1000

2000

1000

INT

ControllingArea

CompanyCode

Chart ofAccounts

INT

INT

AccountNumber

………

1101000011010001

11010002

AccountNumber

11010000Merging

accounts

Renaming

accounts

4000000 50000000

4001000 50010000

INT

INT

INT

Chart ofAccounts

Prior to conversion After conversion






Buy & Sell



Consolidate& Unite




Harmonize &Unify



ConvertCurrencies



Business ScenarioConvert Currencies

Introduction of a new currency due to: changed legal requirements Introduction of a parallel currency Changing the number of decimal points

ERP

1st Local Currency(Functional Currency) Group Currency

Copy

Convert

Controlling Currency

FI-Solution

CO-Solution

$ € €

$

CO-Area

CO-PA

PC

Conversion of…HCM

BI

SLO Currenc y Conversion

Local Currency Conversion

Group Currency Conversion

Parallel Currency Introduction

Controlling Currency Conv.

Currency Decimal Conversion

Other SAP



Indiv idual Custom er So lu t ion :

Accelerated by tool-based method

Prec onf igured SLO mo dules guarant ee a highly-standardized andf lex ib le so lu t ion approach for cus t omer-speci f ic needs

SAP SLO of fers more than 50 “ t echn ica l ” se rvi ces

SAP Systems & Clients

Organizational Units

Master Data

Currencies

ArchivesRepositoryObjects

tailoredcombination

SLO Const ruc t ion K i t :

Tool-based method

FAST – SAFE – EFFECTIVEImplementation of business-driven

changes or harmonizationrequirements

SLO Ser vic e Por t fo l ioHow to c ome to a Cus tomer spec i f i c so lu t i on?



System Landscape Optimizationproject excellence and successes

… and many more




Agenda


• The SLO Service Portfolio Consolidate & Unite

Buy & Sell


• Delivery Model

• The Benefits



The SAP SLO team

© SAP 2008 / Page 27

The SAP SLO team consists of experts for SLOissues

from all areas of SAP development and consulting

SLO has its own development group and a specialized SLO consulting team

SAP System Landscape Optimization

SLOConsulting

SLODevelopment

Best practices, numerous successful projects,and longstanding experience The SLO serviceportfolio delivered by expert teams unitingdevelopment and consultancy skills



Productivemigration / conversion on aweekend

SLO Standardized Project Approach

Set up scope

Set up project plan

Kick Off

IVI

Technical analysis

Technicalspecification

II

Conflict solution

III

Application specificconcept

II. TestConversion/

Migration

III. Test Conversion/

Migration

I. TestConversion/ Migration

TechnicalRealization/

QualityCycles

GoLive /Post

GoLiveSupport

Analysis &Blueprint

Projectpreparations

Post Go-LiveSupport

Customer specific 1 – 2 Months 2 – 4 Months 1 – 2 Weeks

* Timeline based on completed SLO projects till date



The System LandscapeOptimization group offersin-depth knowledge, experttools, and the experience,not only to perform atechnical merge, but also

to guarantee processcontinuity after go-live asuccessful data transfer.”

Thomas Wind, Project Manager,Heidelberger Druckmaschinen AG

Unique, technology-based and method-based approach

Full service offering from strategy to implementation

Benefits from SLO services I

High degree of standardization: fast, safe, flexible andcost-efficient

High quality of tried-and-tested solutions Flexible adaptation to special requirements

Extensive knowledgebase; one-stop shop for allrelevant services

Experience

More than 15 years experience in reorganization projects More than 2300 successfully completed projects world-wide Over 7500 successful local currency conversions Projects are completed on time and within budget

© SAP 2009 / Page 29



The combination of SAPapplications and technicalknowledge, as well as theextensive experience ofexperts at armasuisse and

the System LandscapeOptimization group wereessential for the success ofthe project.”

Max Bär, Leader of the Data Migration Subproject,armasuisse

Technical implementation with special features

Benefits from SLO services II

Easy transfer of all data and documents into targetstructure Particularly important for long-term projects or orders Operation of source system not necessary since all

data are available in target structure after systemmerge

High performance conversion

NO key date

Technical conversion not bound to key date

© SAP 2009 / Page 30



Further Information

SAP Serv ic e Mark etp lac e

http://service.sap.com/slo

www.sap.com/service/slo

Pric ing and condi t ionsNitesh Agrawal

Head IT Transformation Services

[email protected]

General enquir ies

Send an e-mail to [email protected]



Thank You!

Contact information:

Nitesh AgrawalHead IT Transformation Services [email protected]




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© 2011 SAP AG. All rights reserved.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjectsExplorer, StreamWork, and other SAP products and services mentioned herein aswell as their respective logos are trademarks or registered trademarks of SAP AGin Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, CrystalReports, Crystal Decisions, Web Intelligence, Xcelsius, and other BusinessObjects products and services mentioned herein as well as their respective logosare trademarks or registered trademarks of Business Objects Software Ltd.Business Objects is anSAP company.

Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and otherSybase products and services mentioned herein as well as their respective logosare trademarks or registered trademarks of Sybase, Inc. Sybase is an SAPcompany.

All other product and service names mentioned are the trademarks of theirrespective companies. Data contained in this document serves informationalpurposes only. National product specifications may vary.

The information in this document is proprietary to SAP. No part of this documentmay be reproduced, copied, or transmitted in any form or for any purpose withoutthe express prior written permission of SAP AG.




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Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind,zu welchem Zweck und in welcher Form auch immer, ohne die ausdrücklicheschriftliche Genehmigung durch SAP AG nicht gestattet. In dieser Publikationenthaltene Informationen können ohne vorherige Ankündigung geändert werden.

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Microsoft, Windows, Excel, Outlook, und PowerPoint sind eingetragene Markender Microsoft Corporation.

IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5,

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Linux ist eine eingetragene Marke von Linus Torvalds in den USA und anderenLändern.

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HTML, XML, XHTML und W3C sind Marken oder eingetragene Marken desW3C ® , World Wide Web Consortium, Massachusetts Institute of Technology.

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