Best Practices for Managing Large-Scale SAP Consolidation

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Best Practices for Managing a
Large-Scale SAP System
Consolidation Project
Kevin Moore
Independent Consultant

1
In This Session
• Insight into the challenges, successes, tools, methods, and
lessons learned from each major phase – project prep through go-
live
• Tips for structuring business and IT teams globally and locally to
successfully complete this type of a project
• Guidelines for successfully migrating over 100 different master
and transactional data objects across functional domains from
multiple countries

2
What We’ll Cover
• Global SAP4UCB roadmap
• Project approach/golden rules
• Project schedule and project phase highlights
• Project teams – Business and IT
• Cutover/go-live
• Lessons learned
• Wrap-up

3
SAP4UCB Program
• SAP4UCB Program – Global initiative within UCB that started in
2006 to transition the company from local processes and data on
multiple SAP and non-SAP systems to global processes and
centralized master data on a single, global SAP ERP 6.0 system
• The focus of this presentation is on the SAP4UCB_NA project that
was a large and complex SAP system consolidation project for
North America that resulted in the successful migration and
integration of users, processes, and data from three separate
legacy SAP systems in three countries (U.S., Canada, and Mexico)
to a single, global SAP system

4
Global SAP4UCB Roadmap
2007 2008 2009 2010 2011 2012 2013 >>
India Nether.
France
Spain
Germany
Russia
China
AustraliaBelgium
Poland
Italy
Lux.
UK
USA
Canada
Mexico
Switz. Finland
Sweden New Zeal.
Japan
SAP4GTSO
2006

5
What We’ll Cover
• Cutover/go-live
• Lessons learned
• Wrap-up

6
Project Approach/Golden Rules
Global Process & Data Template
Global & Local Processes
Global & Local Data Ownership
Global & Local Approvals
Pharma GxP – OQ, PQ Required
Global & Local BRSs
One Chart of Accounts
No Changes to Standard SAP
First Option = Configuration
Start Together & Finish Together!
All 7 Sites – USA, CAN, MEX
1 UCB
Local
Global
Not Documented = Not Done
No Training = No Authorizations
Intercompany Processes and Data

7
Project Scope
12 Domains
18-Months
750+ Users
120+ Biz & IT Team
100+ Data Objects
900+ Tests
650 Transports
161 RICEFs
7 Sites
USA
CANADA
MEXICO
3 Legacy SAP Systems
Teams on 3 Continents
1 Global SAP 6.0 System
1 Global Template
3 3PL Locations
14 Entities
45 Global BRSs
25 Local BRSs

8
Migrated Systems
SAP R/3 4.7
UCB US, Canada
Live Since 1998
SAP R/3 4.7
Generics US, Research US
Live Since 2004
SAP R/3 4.7
UCB Mexico
Live Since 2003
Global
SAP
ERP 6.0
Interfaced Systems – Internal, External
SAP4UCB
NA
Project
Legacy Systems

9
SAP Landscape
DEV
Test
&
Train
1
Test
&
Train
2
PRO
Transport
Tasks
Refresh
Transports
Test & Train1 – Formal Testing and Training
Test & Train2 – Informal Testing and Training
Refresh
Transports

10
What We’ll Cover
• Cutover/go-live
• Lessons learned
• Wrap-up

11
Project Schedule
20112010 2012
Hypercare
(10 weeks)
Biz Go-Live
January 1st
Prep
Legal Entity Consolidation
(Legacy Systems)
Medicare
Coverage Gap
Global Budgeting/
Reporting Changes
Material
Re-Stamping
End-User
Training
SOP Updates
Prep
Key User
Training
Prep
E2E/Integration Workshops & Demos
TRAIN
DRD2 D3D1
Cutover
Data Dual Maint.
Tech Go-Live
Cutover Planning
(Data + Sites)
GO-LIVE !
Blueprint
Kick
Off
Fit-Gap
DESIGN Early
Development
Configuration
Development
BUILD
Formal OQ, PQ,
UAT, Regression
Addit.
Unit, E2E
Write Unit, E2E
Scripts
Write Formal
Scripts
Formal Test
Prep/RATEST
Prep
JAN JUL OCTFEB MAR MAY JUN SEP NOV DECAUGAPRJUL OCTSEP NOV DECAUG JAN FEB MARJUNMAY

12
Project Phases
• Fit-Gap
 Brief analysis and comparison of many of the primary
processes as compared with the global system prior to the
main project
 Formed initial teams of NA Key Users and SAP Central Team
Leads
 Demonstrated key features of the global system to the business
• Blueprint
 Typical blueprint with the following exceptions:
 Legal entities changed in the middle of the phase
 Several developments started for known required programs

13
Blueprint/Deliverables
Blueprint
Workshops
Document
Updates
NA Business
Review
Kernel
Guardian
Review
Validation
Sign-off
Solutions
BRS
Global
Local
BRS
Catalog
Funct.
Specs
(FS)
FS
Catalog
UDD
UDD
Index
TMX
CRQ
Requests in “Business Speak”
Requests to
Location Matrix
Design
“SAP Speak”
RICEF List
RICEF Design Specs
Traceability
Matrix
Function, SAP T-Code
to Location Matrix
SAP Change
Request

14
SAP Processes/Data – NA vs. Global
Global
Chart of Accounts
Material Master
Vendor Master
Customer Master
PR/PO Approvals
Treasury Management
Budgeting Processes
Supply Chain Planning Processes
North America
Local Data Views
Class 2 Substance Orders
DEA Controls
Rebates
Chargebacks
3PL Processes
A/P Payment Approvals
PI Sheet Confirmations

15
Project Phases
• Build
 On-site configuration and primary development
 Some off-shore resources used for development and
authorizations
 Updated processes and blueprint documentation reflecting
legal entity consolidation project
 CRQs – Changes created for all requests in Remedy/ITSM
 Heavy unit testing prior to transport release from DEV with
the goals of:
 Maximizing the quality of the solutions implemented
 Minimizing the changes needed after the build phase
 Minimizing the number of errors found in formal testing

17
Interfaces
SAP BI
Global
SAP
SAP HR
Hyperion
GLIMS
Chargebacks
Rebates
Grants
Banking 3PLs
EDI
Customers
Travel
ValueTrak/FFS
Vision/SFA
…
MDM
Mobile
Medicaid
GP
…
DEA Returns
Flat File
Payroll

18
Project Phases
• Testing
 Process testing
 Utilized local Test Coordinator to track and manage testing
activities in HP Quality Center
 Built test scripts and executed dry run/informal tests prior to
formal testing
 Data testing
 Utilized multiple local Test Coordinators
 Ran three cycles of data testing prior to the dress rehearsal
 Some dress rehearsal files were re-used for cutover
 Dual maintenance process activated with dress rehearsal

19
Testing Cycles
C3
OQ + PQ
GxP
C2
Unit + E2E
GxP, Non-GxP
C4
UAT
Non-GxP
DR
M + D
WP 1 – 7
D3
M + D
WP 1 – 7
D2
M
WP 1 – 4
D1
M
WP 1 – 2
667 + 42 61 + 79 60
20+ 70+ 100+ 100+
Process,RICEFsData
Primary ETL Tools: SAP BusinessObjects Data Services (BODS), Access, Excel
Primary Testing Tool: HPQC

20
Training
• Demos
• Face-to-Face
• Online Training
• Training Required at
Role level for UserID
Creation and Role
Assignments
SAY & DO
SAY
HEAR & SEE
SEE
HEAR
READ
90 %
70 %
50 %
30 %
20 %
10 %
Memory Retention
After 2 Weeks
ACTIVE
LEARNING
PASSIVE
LEARNING
Source: Edgar Dale, 1969

21
Project Phases
• Cutover
 Cutover Manager coordinated and planned with business and
SAP teams in all 12 domains for all 7 sites the activities related
to the extraction, mapping, transformation, review, approval,
loading, and post-load verification of over 100 data objects
 Site-specific plans were coordinated with site managers for
non-SAP data-related tasks, e.g., interfaces, printers, transition
activities at go-live
 Dual maintenance strategy defined for each master data object
 Some dress rehearsal files re-used for cutover
 Delta files allowed and used for several objects
 Tools – Transformations  SAP BusinessObjects Data
Services (BODS), Access, Excel. Loads  Primarily SAP
LSMW.

22
Project Phases (cont.)
• Hypercare
 Ten-week time period starting with go-live day
 Hypercare rooms identified for the three largest sites and
staffed with project resources
 Daily meetings held to review status, issues, solutions during
the first two weeks
 All issues were tracked, prioritized, and resolved by local team
for highest priority issues
 Project resources sent to the front lines to assist key users and
end users during first two weeks of go-live
 Nearly all project resources rolled off as planned
 Hypercare phase closed as planned without extension

23
What We’ll Cover
• Cutover/go-live
• Lessons learned
• Wrap-up

24
Business Teams/Roles
NorthAmericaEurope
End Users
North American Key Users
Global Key User
Global Process Owner
Local Key Users
Global
Management
Domains  SD MDM FI CO TR WM PUR PP QM PM Planning Interco
Business
Integration
Manager
Site
Managers
ATL, RTP, ROC,
SEY, PRI,
CAN, MEX

25
Roles and Responsibilities
• Business
 Organized by domain/module, e.g., SD, WM, PP, CO, etc.
 Global Process Owner
 Ensured process alignment across countries
 Global Key User
 Worked closely with NA team to align NA requirements with
global SAP processes and data
 North American (NA) Key User
 Domain lead across all NA sites
 Worked closely with SAP Domain lead
 Local Key User
 Subject Matter Experts for a domain at site-level

26
Roles and Responsibilities (cont.)
• Business (cont.)
 Site Managers
 Ensured requirements across all domains utilized by the site
were identified and met in SAP
 Managed availability of site business and IT resources
 Business Integration Manager
 Ensured integration across domains/modules in SAP along
with SAP Central Team Integration Manager
 Led workshops featuring global system functionality along
with SAP Central Team Integration Manager
 Supported NA Key users to stay aligned with global team

27
Asia
SAP IT Teams/Roles
EuropeNorthAmerica
SAP Central Team Leads
Global SAP Kernel Guardians
(Solution Architect Leads)
SAP Central Team Members
Valid.
Testing
TrainingAuth
SAP Central Team Manager
Global IT/SAP Management
ABAP
Lead
Data
SAP
Integration
Manager
SAP
Site
Leads
Configuration Development ------------------ Global Service Owners ------------------
---
Valid.
Testing
Leads
Auth
Local
Data
Lead
ABAP
Lead
ABAP
Local
Training
Admin
Data
Analysts
FI, CO, TR, SD, WM, PUR, PP, QM, PM
MDM, Planning, Interco
Auth
Off
shore
ABAP
Off shore
SAP Program Managers

28
Roles and Responsibilities
• SAP/IT
 SAP Program Managers
 Selected resources for entire project team
 Led weekly meetings with business site managers and NA
key users; led SAP4UCB_NA Project Steering Committee
meetings
 Aligned with parallel project leads, including BI, and others
 SAP Central Team Manager
 Manager of SAP Team Leads
 Ensured NA SAP Team deliverables were completed
 SAP Central Team Leads
 SAP Team Lead by domain, e.g., SD, WM, PP, CO, etc.

29
Roles and Responsibilities (cont.)
• SAP/IT (cont.)
 Services – One global service owner per service. Each service
spans all domains.
 Development/ABAP
 Validation/Testing
 Training
 Authorizations
 Data
Each global service owner needs a local coordinator to follow the
day-to-day activities of the service and manage the local resources
for the service

30
Tips for Team Building
• Define your team structure early in an overall governance strategy
 Each team should have a team lead responsible for planning,
status updates, and deliverable completion
 Each team lead from the local project team should work closely
with his/her global team counterpart
 Each business lead should work closely with the SAP/IT lead
• If your project is not first in the roll-out schedule, leverage the
templates, deliverables, experience, and lessons learned from
previous rollouts
 Leverage the resources from the previous rollouts on your
project, if they are willing and available

31
Tips for Team Building (cont.)
• If you define your teams in a domain approach, you will need to
add resources to cover the integration for end-to-end processes
 Order-to-Cash, Procure-to-Pay, etc.
• Learn to appreciate language and cultural differences
 The best ideas come from collaborating across teams globally
• Take time to show appreciation for the team
 Organize team building events, sports outings, selected
downtime for team members to interact on a non-business level
• Especially for managers and team leads, seek first to understand
an issue before jumping to conclusions, and learn to master the
art of public praise and private criticism
 Treat others as you want to be treated

32
Tips for Resource Selection
• Team leads should be senior resources in your industry
 Select team leads with strong leadership, communication, and
people skills, not just strong SAP skills
• Interview multiple people for every role
 Avoid selecting someone based only on a resume
 If the interviewee gets all the answers to your questions
correct, then you haven’t asked enough critical questions.
Everyone has limits on their abilities. You should know them
before they start working for you.
 Ask why they are available and why they want to work with you
• If selected resources aren’t effective, replace them as soon as
possible

33
What We’ll Cover
• Cutover/go-live
• Lessons learned
• Wrap-up

34
Cutover Planning
Master
Data
+
Dynamic
Data
Atlanta, GA
Seymour, IN
Princeton, NJ
Rochester, NY
Raleigh, NC
Toronto, CA
Mexico City, MX

35
Cutover Data
Materials
(MDM)
15 Views
Customer
G/L
14 CoCodes
Vendor
Cost
Center
Assets
Inventory
Bins
Transports/TechGo-Live
WBS
PUR
SD
Open PO
Open SO
B/S
MFG
Act
Type
Open Process
Orders
Open A/P
Open A/R
Bank
BusinessGo-Live
QM
I/O
Profit
Center
Examples, More Objects Apply
Planning
I/C
WM
PM
CO
Business GO-LIVETECH GO-LIVE
Primary Load Tool: SAP LSMW, Cutover Tracking Tool: Excel

36
Material Master Dependencies
BOM
Recipe
Inventory
QIR
PIR
Source List
Pricing
CMIR
Batch
Prod Vers
Open Purchase Orders
Open Sales Orders
Mtl Det
Open Process Orders
BusinessGo-Live
Examples, More Objects Apply
Transports/TechGo-Live
Material
Master
(MDM)
15 Views
Multiple MFG
and 3PL
Locations
AMPL
Insp Plan
Business GO-LIVETECH GO-LIVE

37
Tips for Data Migration
• Identify all objects in scope by system and domain early;
especially note objects with major dependencies, e.g., material
master
 Clean legacy data on source systems. It’s never too early
to start!
 Decide how much data to migrate, e.g., how many years – 2,
5, 10
• Select the data migration tool(s) early
• Select experienced, data-centric resources
 Note that process-oriented resources are not always the best
resources for data migration. Ask for references and call them!
• What will you do with your legacy system?
 Consider keeping the legacy system alive for several years to
minimize the amount of historical data to migrate

38
Tips for Data Migration (cont.)
• Test many combinations of the data across many processes
 Test multiple material types, customer account groups, vendor
account groups, sales order types, etc.
 Test end-to-end processes: Order-to-Cash, including SD
documents, FI/CO postings, output documents, and reporting.
Then compare the results to spot any gaps or issues.
• Test with multiple currencies and review postings
 Easy to invert the conversion factors
 100 USD = 135 EUR or
 135 USD = 100 EUR?
• Test with multiple units of measure
 1 EA could be a single unit in a box, one box in a case, etc.

39
Cutover Data Approval Process
Pre-Load
Approval
Global
SAP
LOAD
Dual
Maint
Map
Transform
Create
Load Files
Pre-Load
Approval
Extracts
USA, CAN Branded
Extracts
US Generics
Extracts
MEX Pre-Load
Approval
Local Data
Owners
NA
Key User
(All)
Validation
Post-Load
Signoff
IT
IT
Local Data
Owners
(Non-GxP)
IT
Global
Extracts
Pre-Load
Approval
Pre-Load
Approval
Post-Load
Signoff
Post-Load
Signoff
Post-Load
Signoff
* For GxP Objects,
Validation + IT +
NA Key User
Pre-Load
Approval
Biz QA
(GxP Only)
GxP = BOMs, Recipes, Prod Vers, Batches, QM
Local Data
Owners
GxP*
Legacy Systems

40
What We’ll Cover
• Cutover/go-live
• Lessons learned
• Wrap-up

41
Challenges
Time Impact
No.ofDomains/SitesImpacted
LOW HIGH
Material Re-Stamping
Approvals
Authorizations
Training Delivery
Parallel Projects Company Code Consolidation
During Blueprint
Documentation
Communications /
Time Zones
Process Testing
Data Testing Duration
Resource Availability
LOW
HIGH

42
Challenges (cont.)
• Company code consolidation during blueprint
 Blueprint was started in July, but in September it was decided
that the legal entity structure for the US was changing in two
legacy SAP systems at the end of the year
 Good news – Fewer entities to manage the following year
 Bad news – Processes, documentation, etc., required
updates and many key resources from the business and IT
were needed for 3-4 months
• Data testing duration
 Resource challenges as well as late decision on tools to use
 Data from three legacy systems migrating to a fourth live
system
 In the end, it took longer, but the data was tested with three
test load cycles plus a dress rehearsal prior to cutover

43
Challenges (cont.)
• Resource availability
 Most business resources continued in their daily jobs. Only a
few business resources were allocated 100% to the project.
• Approvals
 All changes required local and global approval from business
and IT. The global team was mostly in Europe, and due to some
time zone challenges, multiple sites, other global SAP projects,
and support, additional time was required to get final approvals.
 The fastest approvals occurred when meetings were
scheduled to review and update documents together verbally
and directly vs. the approach of sending numerous emails to
each other with questions, issues, and requests for feedback
and updates

44
Successes
SUCCESSLEVEL
Cutover Planning &
Execution
Business
Continuity
Hypercare
Data & Process Alignment
Global/Local
E2E/Integration
Workshops
SAP Configuration/
Development
GOOD
GREAT
Warehouse RF
Leadership
Blueprint
Workshops
EDI Senior
Resources
Business
Effort
Process Test
Execution
I/C Processes
Fit-Gap

45
Successes (cont.)
• Business continuity
 Business continued due to significantly tested data and
processes prior to go-live, as well as detailed cutover planning
and execution
• Cutover
 Detailed planning started 2-3 months prior to the start of
cutover
 All objects planned with business and IT by domain and object,
and especially noting dependencies by object and high-priority
objects, e.g., material master, batch master, inventory, etc.
• Hypercare
 Close support for users for ten weeks after go-live
 Locating selected team resources on the front line

46
Successes (cont.)
• Business effort
 Strong support from senior management globally and locally
 Competent and experienced key business users in every
domain
• Data and process alignment – Global/local
 All changes reviewed and approved globally by Global
Business Process Owner and Global Solution Architect
 Local changes allowed for legal, tax, and compliance reasons
• Fit-Gap
 Started with a fit-gap project with selected senior resources in
each domain prior to the full project
 Provided key users with an early view of the global SAP system
prior to formal blueprinting

47
Successes (cont.)
• Leadership
 Senior Management – Sets the appropriate strategy,
governance, team structure, budget, etc., prior to the project
starting. During the project, guides the team and removes
obstacles to keep the project on track.
 Project/Program Management must set clear expectations and
hold people accountable during each phase
 Stops people from wasting time on low ROI activities
• People
 Get the right people and you’ll get the best results
 Best Resources + Effective Leaders = Success!

48
Successes (cont.)
• Preparation
 Tasks and deliverables must have owners and due dates before
a phase starts. The rules for completing a task or deliverable
must be clear.
 Tip – At least one week before a phase starts, review the
schedule and deliverable template(s) in detail with the team.
Start with realistic examples by filling in key sections of a
deliverable and review together so everyone knows what the
final product should look like and what success looks like.
• Communication/clarity
 A focused 30-60 minute meeting with the right people will
replace numerous emails and hours of work and re-work

49
Successes (cont.)
• Location
 It is necessary to centralize some tasks globally, but it is also
wise to locate SAP resources near business teams for efficient
collaboration, requirements analysis, testing, and training
• Data/information
 Clean legacy system data, define clear data mapping rules, and
build user-friendly processes, procedures, and reports to
provide the information needed in a timely manner
• Planning
 For the cutover plan, create the plan a few months prior to the
technical go-live for all data objects and site-related tasks
 Fine-tune the cutover plan over time to produce the most
efficient and effective cutover/go-live possible

50
What We’ll Cover
• Cutover/go-live
• Lessons learned
• Wrap-up

51
Where to Find More Information
• Jim Collins, “Good to Great,” (Jim Collins’ blog, October 2001).
 www.jimcollins.com/article_topics/articles/good-to-great.html
• “Jim Collins: How to manage through chaos” (Fortune, September
2011).
 http://management.fortune.cnn.com/2011/09/30/jim-collins-
great-by-choice-exclusive-excerpt/
• Edgar Dale
 http://en.wikipedia.org/wiki/Edgar_Dale
• Jayesh Wala, “Lessons Learned from Geese for Team Building”
(SlideShare, December 2008).
 www.slideshare.net/jbwala/lessonsfrom-geese-for-team-
building-presentation

52
7 Key Points to Take Home
• Backfill business and SAP/IT resources in the day-to-day jobs so
they have time to work on the project full-time
• Build teams with senior resources and ensure team leads have
leadership and communication skills, not just strong SAP skills
• Minimize parallel projects and major initiatives
• Dedicate strong resources to data migration and remember that
strong SAP process skills may not lead to strong data skills
• Don’t underestimate material master and other key object
dependencies – Identify all objects in scope early in the project
• Start with a Fit-Gap Project to identify the scope of the project and
to get early buy-in
• Select and retain the best resources!

53
Your Turn!
How to contact me:
Kevin Moore
KMSAP@Ymail.com
www.linkedin.com/pub/kevin-moore/63/79/53a
Please remember to complete your session evaluation

54
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SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or
an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective
companies. Wellesley Information Services is neither owned nor controlled by SAP SE.

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