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BTS CP Program Quality Assurance
Carola Feind-Just
Head Consumer Products MEE
Business Transformation Services Public
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2 Public
SAP supports its customers reducing project cost and time through a best
practice/ benchmarking study
Initial
situation
Goals of
the study
• Demonstrate improvement potentials through optimization of the program methodology,
program governance and used program standards
• Compare customer’s program management methodology and standards with best practice
(Global top five CP industry peers considered in peer comparison)
• Quantify identified improvement potentials wherever possible taking into consideration
customer’s initial situation
• Derive clear recommendations to reduce program cost and time
• Describe concrete actions to implement the relevant recommendations
• Customer is planning a regional or global template program and wants to minimize
costs or time for the program
• Customer sent out a RFP to delivery partners and wants to cross-check costs and
times to evaluate delivery partner’s proposals
• Customer is currently developing a global template or rolling out a global template
and wants to compare it’s approach to best practice in single program phases
• Customer Design Authority wants to learn about best practice template development
and roll-out to cross check customer organization and standards
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 3 Public
SAP will benchmark all relevant program key activities with best practice and
derive cost and time potentials T
em
pla
te D
evelo
pm
ent
Local R
oll-
ou
t
Template Built
Strategy & Scope
Template Roll-out
Strategy
Governance, Roles,
and Responsibilities
Processes: As Is, To Be,
Mapping
Testing
Training
Cutover Preparation
Local Project
Preparation
Local Business
Blueprint
Local Realization
Local Final Preparation
Go Live & Support
Program Methodology
Example Key activities
SAP Program Methodology
Benchmarking
• SAP will be able to benchmark all typical program key activities with
CP industry best practices
• Broad range of detailed quantitative best practice information available
based on SAP experience with it’s global CP customers
• Relevant key activities for the benchmarking study have to be
chosen by the customer based on expected improvement potential
• Customer approach, governance structures, standards each chosen
key activity are compared with peers and industry best practices
• Customer performance is evaluated for each key activity related
to peer performance
• Improvement potentials could be implemented by customer and
customer delivery partner
• Improvement potentials each program phase concerning cost and time, risk aspects will be considered
explicitly
• Detailed description of peer behavior in all relevant program phases and description of detailed actions
to realize improvement potentials
Program
phase
Key
activities
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After choosing the relevant key activities the bench-marking study is based
on a four step approach
1 2
3 4
Understand Customer’s Method Identify cost/ time driver each key activity
Benchmark against peers Derive Customer specific recommendation
• Customer’s program approach has to be
understood in order to map it against SAP best
practice information
• SAP has to map Customer’s program approach to
SAP methodology to make available benchmarking
information comparable
• Comparison of Customer
approach to peers is
based on clearly described
cost driver each key activity
• Cost driver based project
approach allows to quantify
improvement potential
based on better compara-
bility of data
Degree of centrally
predefined test cases &
criteria
No
t
exis
tin
g
Om
ni-
pre
se
nt
B A C
Time / Cost Drivers Rating
Degree of centralized test
organization & execution
De
ce
ntr
al
Ce
ntr
al
B AC
A
B
…
• Comparison of com-
pany’s approach
to peers/ best
practice information
• Detailed information
on peer behavior is
provided to evaluate
Customer’s approach
Customer’s initial
situation/ culture
Best practice
approach
Recommendation
to save cost/time
Overall
alignment
Each key
activity, each
cost driver
Consolidated on kea activity
and overall approach level
Derivation of actions to save
time and cost + action plan to
execute
Degree of centralized test
organization & execution
A
Degree of centrally
predefined test cases &
criteria
B
Additional cost drivers
relevant Focused interviews have to be conducted with
Customer program management
…
Own
company
Peers
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 5 Public
Having chosen the two relevant key activities the benchmarking study is
based on a four step approach
Understand
customer’s approach
Identify cost/ time
driver each key activity
Benchmark against
peers
Derive customer-
specific
recommendations
1 2 3 4
• Understand customer’s
program approach
• Map customer to SAP
best practice
information to make
information
comparable
• Define relevant criteria
to assess benchmar-
king comparison to
peers
• Select criteria based
on customer’s current
situation
• Comparison of
customer’s approach to
peers/ SAP best
practice information
• Depict discrepancy to
peer/ SAP best practice
information
• Derive recommenda-
tions based on
customer’s current
situation and SAP best
practice
• Describe concrete
actions to implement
recommendations
• Focused interviews with
Proj. Mgt./ area experts
(~ 5-7 interviews,
~1 h each)
• 1 presentation to
Project Mgmt./ area
experts, 1,5h total
• Validating discussions
with area experts (~2-3
interviews, 0,5h each)
• Send out to program
mgmt. and experts for
validation (optional: 1
presentation, 1 h)
• Supportive: Focused
expert interviews (2
interviews, ~ 1h each)
• Finding presentation to
Project Mgmt./ area
experts,(1 presentation
of 1 hour)
• customer experts
involved in action plan
preparation (~ 2
meetings, 1h each)
• Final presentation to
Project Mgmt.
(1,5h total)
Pro
cedure
A
ctivitie
s
Cu
sto
me
r
Engagem
ent
Deliv
era
ble
s
Fully understood and
documented summary
of customer’s approach
for selected key area(s)
Set of relevant criteria
(cost/ time drivers) to
compare customer’s
performance to peers
customer’s perfor-
mance in respective
key activity in relation
to peers/ SAP best
practice
Recommendations to
save cost/ time
& action plan to
execute
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Concrete actions will be defined to execute on the identified cost and time
reduction potentials
Improvement
potentials
identified based
on peer comparison
Improvement po-
tentials directly trans-
ferable based on
detailed description
of peer approach
Improvement
potentials
not directly
transferable Adapt identified
improvement
potentials based
on Customer initial
situation
No transfer to
Customer possible
Calculate potentials
and derive actions
to implement im-
provement potentials
Calculate potentials
and derive actions
to implement im-
provement potentials
Recommendations to adapt program approach, governance, or program standards will be translated
into detailed actions to implement improvements and realize potentials
Calculation of im-
provement potential
is based on quanti-
tative cost and time
information of peer
approach each
key activiy
Customer initial
situation
and culture considered
Customer initial
situation
and culture considered
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 7 Public
The approach has been successfully executed together with Top Five Global
Consumer Product companies
Customer Customer program/ project scope Result
Top 5 SAP
Consumer Products
Customer
• Large regional template build and roll-out project
• Project conducted based on RFP information
• Program not started, program in preparation phase
• Program methodology benchmarking of all template
development phases executed
• Template roll-out phases not considered
• High improvement potentials
in process definition/ mapping
• Additional cost improvement
potentials in testing
• Development and send out
of new RFP to supplier
• Reduction of fully loaded
project costs by 15%
Top 5 SAP
Consumer Product
• Global template build and roll-out
• Template realization finished
• Focus of methodology benchmarking on testing, training,
and governance, roles, and responsibilities based on
program status
• High improvement potentials
in testing and training through
centralization and realization
of specialization improvement
• New overall testing strategy
developed based on bench-
marking results
… … …
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The project approach and project deliverables are demonstrated
based on a project example
1. The relevant key activities
are detailed
3. Recommendation is derived
based on initial situation
4. Detailed peer characterization
helps to make information
comparable
5. Cost driver related quantitative
Peer information helps to quantify
improvement potentials
2. Customer is benchmarked
against peers based on cost
driver‘s
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 9 Public
Project example – Program phase testing (1/5): The relevant key activities are
detailed
All key activities are detailed
to be able to identify the right
cost driver each key activity
All customer key activities
have to be fully understood
and mapped against the
SAP methodology to make
peer data comparable
Clear description of customer
key activity to make sure that
a full understanding is given
as basis for all further
comparison and evaluation
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 10 Public
Project example – Program phase testing (2/5): Customer is benchmarked
against peers based on cost drivers
Own company is benchmarked
against peers
Best practice could be
identified each cost driver
All peer data is compared
based on a set of cost driver
each key activity to make
data comparable and to
be able to use quantitative
information
A detailed description of
the best practice (also
of don'ts) helps to understand
the peer data. Specific patterns
in peer behavior are identified
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 11 Public
Project example – Program phase testing (3/5): Recom-mendation is derived
based on initial situation
Recommendation taking into
consideration customer intial
situation and culture
High level recommendation
as starting point for
quantification in this example
Recommendation leads
to detailed action plan
to implement the
recommendations and realize
the identified potentials
Specific pattern in peer
behavior which is considered
best practice.
Different peers could follow
a best practice approach
depending on the different cost
drivers
Detailed understanding of
customer’s program
methodology required
Focused interviews to be
conducted with Customer
program management
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 12 Public
Project example – Program phase testing (4/5): Peer characterization helps to
make information comparable
Peer characterization each
key activity
General information on
peer approach
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Project example – Program phase testing (5/5): Quanti-tative peer information
helps to quantify improvements
Detailed information on peer
approach detailed by cost driver
Quantitative date to be able
to quantify improvement
potentials
Most important cost driver
to be discussed for a
detailed estimation of
improvement potentials
Qualitative description of
peer behavior and peer
approach related to the
relevant key activity and
cost driver
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 14 Public
SAP BTS CP follows an efficient best practice approach
Only key activities with high improvement potentials should be chosen to focus on high cost or
time reduction potentials
SAP will get most of the relevant information from it’s network of SAP consultants with a broad
knowledge of the Customer program approach reduction of Customer internal personnel costs to
conduct the study
The overall effort is depending on the number of chosen key activities, the level of detail of the
peer comparison each key activity, and quantification needs to derive improvement potentials
The approach will mainly be an outside in approach bringing in peer and best practice information
To understand the Customer approach, program governance, and standards and to understand
the Customer initial situation several focused interviews with key stakeholders of the project have to
be conducted
Overall effort will sum up to 30 – 70 MD’s depending on the above mentioned criteria
SAP will need access to all program/ methodology related information and documentation available
SAP will need to work onsite being in close contact with program management
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 15 Public
Example for next steps
Discuss and identify the relevant key activities to be benchmarked
Organize initial meeting with program manager to present and discuss detailed project approach
Set up project organization
Identify Customer experts to be interviewed and align on project plan
Organize kick-off meeting
© 2014 SAP AG or an SAP affiliate company. All rights reserved.
Contact
Contact information:
Carola Feind-Just
Head Consumer Products MEE
Business Transformation Services
+49 151 5711 8299