Software Implementation
Methodology
Chokchai A.
29/02/2008 CONFIDENTIAL 1
Agenda
Today’s Business & IT Challenges
Critical Success Factors for a Software
Implementation
Example SAP Method/ Risk Management
Typical SAP Implementation Timeline
CONFIDENTIAL 2
Today’s Business & IT Challenges
In the recovering economy, companies are once again searching for
growth of revenue and profit
Companies need to respond faster to market changes and adapt
quickly to stay ahead of competitors
At the same time, there is intense pressure to reduce total IT costs
which limits development and implementation initiatives
Companies need to reallocate money within their organizations in
order to create sustainable value and innovation
Organizations are re-thinking their current strategies and developing
new business models to reflect the changed market conditions
CONFIDENTIAL 3
Economic Trends: Enterprises are responding to global economic pressures
through actions to control costs, achieve efficiencies and find pockets of
global growth
Globalisation, as enterprises expand into new markets to boost sales and
secure low cost production facilities
Consolidation, as enterprises focus on achieving scale economies and
creating complimentary brand portfolios
Specialisation, as enterprises divest non-core operations to increase cost
efficiencies across the enterprise and improve shrinking margins
Increased Diligence, as enterprises bracing for years of wealth global
economies exercise better cost management and more rigorous focus on
return on invested capital
CONFIDENTIAL 4
Strategic Trends: Enterprises demand better alignment of their
business and technology strategies
E-business maturation, forcing enterprises to migrate existing legacy
applications to the web
Best Business Process Practice, as enterprises attempt to improve business
and eliminate applications based on sub-optimal business assumptions
Business Application Standardisation,, as enterprises try and reduce
application customisation
Business Application Interoperability,, as enterprises promote enterprise
wide integration and look to participate in net-markets, next generation business
models and multi enterprise networks
Integrated Global Resource Utilisation, as enterprises realise the cost
advantage of using lower cost labour resources to achieve cost efficiency goals
CONFIDENTIAL 5
Buying Environment Trends: Enterprises are seeing dramatic shifts
in how, why and by whom IT investments are made
Increased Receptivity Towards Outsourcing, as enterprises differentiate
on the basis of products, services and knowledge rather than business
processes and I.T. support
Increased receptivity of Application Management, as enterprises
become comfortable with and often demand multi-vendor and multi- country
resources for AD/M
Increasing emphasis on ROI, as enterprises are demanding more
business value and productivity improvement from expensive technology
investments
Continued Demand for skilled I.T. Resources, especially for specialised
applications core to industry competitiveness
CONFIDENTIAL 6
Critical Success Factors for a Software Implementation
Executive Buy-in and Go-ahead
Identified Business Problem and its solution via flexible IT
infrastructure
– Robust, flexible solution
– Reuse
– Sufficient input and support (cooperation) from the business
Project Governance defined (for project / foundation for enterprise)
– People and rules, organization and functions are clear
Project Roadmap is defined
– Description of all essential work items
– Timeline and assurance for planned projects on the road
Milestones and measurements accepted by everybody
CONFIDENTIAL 7
Implementation Methodology
Stage I Stage II
Program Management
Business
Project Business Final Go Live Organization
Evaluation Realization Sustain
Preparation Blueprint Preparation and Application
Support
Architecture
Operations
Risks:
• Development of risk
conscious culture for the
project
CONFIDENTIAL 8
Example SAP Method
Key Aspects of the method
Supports the easy integration of methods when more than one is applicable to a project
and allows for tailoring to suit the needs of the industry or client
Designed to support complex programs of work with multiple concurrent projects
Integrates key project work streams
Provides the roadmap and description of work which must be accomplished tailored to
specific industry value chain
Supports an integrated team concept and serves as the project documentation
repository
Program Management
Business
Domains
Project Business Final Go Live Organization
Evaluation Realization Sustain
Preparation Blueprint Preparation and Application
Support
Architecture
Operations
CONFIDENTIAL 9
Typical Client SAP Method
•Implementation methodology has been mapped across the phases of an software
implementation and enhanced with the addition of two phases – Evaluation and Sustain
•This method complies with the key concepts of ITIL.
Typical Software Project Lifecycle
Program Management
Business
Realization
Preparation
Preparation
Evaluation
Business
Blueprint
Sustain
Project
Organization
Support
Go Live
Final
and
Application
Architecture
Operations
SAP AG TM for AcceleratedSAP
• Approach Philosophy • Project Phases
Implementation methodology is designed to be scalable and Phase 0 - Evaluation
encourage the iterative definition and refinement of deliverables Phase 1 - Project Preparation
throughout the project lifecycle. The project lifecycle is composed Phase 2 - Business Blueprint
of activities that are organized by phase and domain views. Phase 3 - Realization
These activities represent specific activities and deliverables Phase 4 - Final Preparation
(outputs). Phase 5 - Go Live and Support
Phase 6 - Sustain
CONFIDENTIAL 10
Example SAP Method
Phase 0 – Evaluation
Objective: Program Management
Realization
Preparation
Preparation
Evaluation
Business
Go Live and
Business
Blueprint
Develop and / or confirm
Sustain
Project
Support
Final
Organization
project scope, align scope
Application
with company strategy, and
build stakeholder support Architecture
Operations
Activities: Sample Key Deliverables/ Results:
• Understand Customer Strategy and Market Position.
• Understand Strategic Opportunities Strategy, Market Position Analysis Document
• Understand the Client’s Readiness for Change Prioritized List of Strategic Opportunities
• Conduct Senior Executive Level Workshop Covering: Preliminary Change Readiness Assessment
– Project Strategies Confirmation Completion of Executive Level Confirmation
– Project Scope
Workshops
– Organization Readiness
– Demonstration of Software Capabilities and Impacts Project Strategies are complete and signed-off by
• Build planning for the Software project the project sponsors
• Establish Project Organization Project scope is signed-off by the project sponsors
• Assign resources Project Plan is delivered
Risks: The project kickoff meeting is held
The Steering Committee is in place
• Analyis business and financial risk that will impact the forecasted timeline The project team is staffed
• Evaluate possible risk of change in business requirement affecting the expected
business benefit
• Measure the business risk of the customer against initial project requirements.
CONFIDENTIAL 11
Example SAP Method
Phase 1 – Project Preparation
Objective: Program Management
Preparation
Preparation
Realization
Evaluation
Business
Perform detailed project
Go Live and
Business
Blueprint
Sustain
Project
Support
Final
planning & scoping, Organization
establish the project team, Application
and refine documents Architecture
created in evaluation Operations
Activities: Sample Key Deliverables/ Results:
Create Project Charter
Refine Project Team Organization Project Charter
Refine Earned Value Milestones Project Team Organization Structure
Develop Detailed Workplan Milestone Program Plan
Define Project Methods, Standards, Procedures, and Detailed Workplan
Tools Document Methods, Standards, Procedures, and
Understand Risks and Critical Success Factors
Conduct Team Orientation
Tools
Define Technical Infrastructure Organization Project Risks and Critical Success Factors
Assessment
Risks: Team Orientation meeting is held
• Lack of key project resources Technical Infrastructure Organization Document
• H/W performance issues
• Slippages against plan
• Key Project resources
CONFIDENTIAL 12
Example SAP Method
Phase 2 – Business Blueprint
Program Management
Objective:
Preparation
Preparation
Realization
Evaluation
Business
Go Live and
Business
Blueprint
Sustain
Project
Create a detailed description
Support
Final
Organization
of your business information Application
requirements
Architecture
Operations
Activities: Sample Key Deliverables/ Results:
• Conduct Trainings Information Requirement Forms
• Define Information Requirements Detailed Information Requirement Document
• Identify Business Content Reports/ Indicators Detailed Analysis Document
• Define new Reports/Indicators Detailed Workplan for Remaining Phases
• Define Reports/Indicators components
• Perform GAP Analysis and Resolution
• Build Detailed Analysis Document
• Set up and Install Development Environment
• Conduct Scope Workshops
• Build Detailed Workplan for Remaining Phases
Risks:
• Redundancy in technology and impact to business
• Downtime and impact to the business
CONFIDENTIAL 13
Example SAP Method
Phase 3 – Realization
Objective: Program Management
Preparation
Preparation
Realization
Evaluation
Business
Go Live and
Realize the business
Business
Blueprint
Sustain
Project
Support
Final
Organization
requirements defined in the
Business Blueprint & Application
transform the requirements Architecture
into an approved working Operations
system
Activities: Sample Key Deliverables/ Results:
Install Business Content Indicators/Reports Components Test Plan
Build Non Business Content Report/Indicators Test Plan
Indicators/Reports Trained Project Team on Testing Methods and
Conduct Test sessions Supporting Tools
Develop Training Materials Security Profiles and Authorizations Created
Conduct Instructor and Pilot training Procedures and Training Materials
Create Security Authorizations Built and Tested Report/Indicators
Define Go-Live Checklist Knowledge Transfer Assessment
Risks:
• Systems failure (operational, performance bottlenecks)
• Application integration failure
• Scope creep
CONFIDENTIAL 14
Example SAP Method
Phase 4 – Final Preparation
Objective: Program Management
Preparation
Preparation
Realization
Evaluation
Business
Go Live and
Complete preparation of
Business
Blueprint
Sustain
Project
Support
Final
Organization
the production system,
including end user Application
training, system Architecture
management, and Operations
cutover activities
Activities: Sample Key Deliverables/ Results:
• Products Promote to Production • Cut Over Checklist
• Conduct System Test • Production Readiness Review
• Refine and Execute Go Live Checklist
• Quality Review
• Refine and Execute Production Support Plan
• Prepare and Conduct End User Training • Go Live Approval
• Conduct Quality Review and Obtain Final Cut
Over Approval
Risks:
Pilot test failure
Performance issues due to infrastructure scalability
Knowledge/ skills transfer gap
CONFIDENTIAL 15
Example SAP Method
Phase 6 – Go Live and Support
Objective: Program Management
Preparation
Preparation
Realization
Evaluation
Business
Go Live and
Transition from a pre-
Business
Blueprint
Sustain
Project
Support
Final
Organization
production environment
Application
to a live, stable,
Architecture
productive operation
Operations
Activities: Sample Key Deliverables/ Results:
• Provide Production Support (Help Desk) • Production System Ready
• Validate Information Results • Center of Excellence (COE) – Knowledge
• Optimize System Tuning Management
• Execute Ongoing Security Administration • Production Capable End Users
• Conduct Post Implementation Project • Post Implementation Project Review
Review
• Benefits Measurement
Risks:
Go live failure due to incorrect requirement
capture therefore need to have old system
operational
CONFIDENTIAL 16
Example SAP Method
Phase 7 – Sustain
Objective: Program Management
• Help ensure that there
Preparation
Preparation
Realization
Evaluation
Business
Business
Blueprint
Sustain
Project
Support
Go Live
Final
Organization
is a framework in place
and
Application
to sustain and improve
Architecture
the performance of the
Operations
system after go-live
Activities: Sample Key Deliverables/ Results:
• Provide Production Support (Help • Center of Excellence (COE) – Knowledge
Desk) Management -> Knowledge Based
• Optimize System Tuning • Post Implementation Review (PIR) – Lesson
• Benefits Measurement Learn
Risks:
• Lack of skilled resources to maintain the operation
running of the system in its early years
• transition risks due to unclear system design
CONFIDENTIAL 17
Typical SAP Implementation Timeline
Go-Live
<Da te>
Project Preparation Blueprint Realization Final Preparation Go-Live and Support
Focus Focus Focus Focus Focus
Getting the project Understanding the Configuration / Development User training Cutover and
started Client’s Business of the system UAT on QAS validation of the
Identifying Team Goals / Requirements Unit and Integration testing production system
Preparations for
members Gaining a high level on DEV Cutover Supporting the end-
Developing a high understanding of Preparation of user training users
Organization
level plan Processes Organizational Change Change Issue resolution
Developing Business Management (OCM) management
Blueprint
Deliverables Deliverables Deliverables Deliverables Deliverables
Project Standards Project Team Training Test Plans (Unit, Integration, System validation: Production
and Procedures Org Structure User Acceptance, System) (Security, Data, Environment
Project Charter Communications Plan Configured system according Configuration, Production Support
Scope & Approach Development,
User Training to blueprint Go-Live review
Technical
OCM Strategy Strategy Develop programs according Project close letter
Infrastructure)
Project Plan Business Process to RICEFW Transition to
Production Support
Project team training Master List User Roles & Authorizations Plan (Help Desk) Hosting services
plan Approved Business User Training materials Cutover Plan
Project Kickoff Blueprint Prepare testing environment User Training
Meeting Refined Project Plan (QAS)
Go / No-Go
Decision
Prepare Production
environment
CONFIDENTIAL 18
Top pain points around application management?
Lack of resources 57%
Lack of applications skills / knowledge 47%
Cost reduction 46%
Focus to our core competencies 44%
To reduce workload on internal IT staff 34%
To address a lack of infrastructure 30%
To provide predictable costs 30%
To improve flexibility/scalability 26%
To improve speed to market 24%
To provide training skills/knowledge 23%
To provide business process skills / knowledge 20%
To reduce risks 19%
To gain expertise in enterprise application strategies 11%
To provide predictable schedules 7%
To provide consistent remote locations adoption / support 6%
Other 3%
0% 10% 20% 30% 40% 50% 60%
CONFIDENTIAL 19
