What Well Cover..Why build a global BW system?Designing a global BW architectureThe six dimensions of global BW project managementGlobal BW project examplesAn in-depth look at a global TelecomA global industrial companyA glance at four other global BW implementationsGetting the team togetherLessons learned: global BW project management Project Management, the team composition, the BW Product and other lessons learnedWrap-up

What Well CoverWhy build a global BW system?Business caseScopeApproachPerformance measuresTool selectionDesigning a global BW architectureThe six dimensions of global BW project managementGlobal BW project examplesGetting the team togetherLessons learned: global BW project management Wrap-up

Where Does Senior Management Think It Is?Why??

Why is Management Not Getting What It Wants?1. Reporting is still organized around departmental functions2. Reporting is organized around geographical boundaries3. Tools are not standardized4. The focus has been on standardizing processesMost importantly: A global enterprise reporting architecture has not been implemented

Why Not Use Yesteryears ERP Reporting Tools?While providing higher flexibility, more interactive analysis capabilities and ability to consolidate data from many sources, data warehouses and ODSs have rapidly replaced many of the earlier ERP reporting toolsSource: Fredrick HoggrenSwedish Civil Economist Association

Why Consider a Global Data Warehousing Solution?The more access a company has to global information, the faster it can respond to opportunities, threats and risks.

Monthly performance reporting is simply not adequate to run a modern multi-national organizationThe advantages that data warehousing offers faster market response, reduced operating costs, knowledge-based strategic decision support, and more have made it a required tool of the global economy. Paul Foote in State of the Marketplace. Faulkner Information ServicesTransactions (i.e. R/3)BIDW (BW)Operational Data Store(BW)

Analytics vs. Reporting

Decide early on howmuch analytics vs.basic reporting the teamis going to deliver.

Balanced scorecardsbased on key performanceindicators require more substantial more workthan creating simple financial reports.

How will users access data in multiple areas? Analytics contains pre-developed rules to view or examine data

Level of Project Delivered Content

Tools and accelerators

Industry and process specific solutions

Level of Embedded Analytics

Complex analytics (balanced score- cards, budgeting, planning, KPI)

Interactive Mgmt. reporting (OLAP, MQE)

Alternative Approached to ERP iAnalytics

ERP Data warehouse (1st generation)

Enhanced data warehouse (2nd generation)

Custom analytics (2nd generation)

Integrated analytics (3rd generation)

What Activities in the Supply Chain Drive the Company?DevelopProducts/ServicesPerformProcurementProduceProducts/ServiceManageLogistics/DistributionPerformMarketing/SalesManage Customer ServiceResearch Customer/Market NeedsConduct Basic ResearchDesign & Develop Products / ServicesTest-market ProductDevelop Resource Requirements PlanDevelop & Implement Manufacturing ProcessesDevelop & Implement Service ProcessesManage Vendor/Contractor RelationshipsOrder Materials/SuppliesManage Inbound LogisticsReceive Materials/SuppliesManage Material/Supply QualityManage Raw Material/Feedstock InventoryReturn Materials to VendorsQualify & Select Vendors/ContractorsManage Engineering ChangesManage Product/Service QualityObtain, Install, & Maintain Production EquipmentDevelop & Maintain Production ProceduresPlan CapacityPlan Production RequirementsSchedule ProductionProduce & Package Products/ServicesPerform Production ControlManage Work-In-Process InventoryDevelop & Maintain Bills of Material/FormulaePlan Inventory LevelsManage Finished Goods InventoryManage Outbound Product FlowManage TransportationPerform ShippingManage Warehouses/Distribution CentersDevelop Market StrategiesDevelop Marketing PlanDevelop Assortment/Brand PlanDevelop Product PackagingCreate Demand ForecastEstablish & Manage Distribution ChannelsManage Finished Goods InventoryManage In-Store MerchandisingManage Sales Force/BrokersPlan & Execute Promotional EventsProcess Customer OrdersManage Product Packaging/ConfigurationManage Product/Service PricingManage SchedulingManage Customer Credit RatingsHandle Inquiries/ComplaintsCollect Customer DataProvide Customer ServiceHandle Warranties/Claims/ReturnsDo not build a global system around what data is easily "available". STEP 1: Determine what activities in the supply chain drives the profit of your company. Regardless of organizational, geographical or system boundaries.

Determine Your Global Performance MeasuresEquipment/Labor (Utilization)HeadcountProcess Steps (NumberProduct Development (Cost)Product Development (Cycle Time)Product Introduction (Number)Schedule/Cost Estimates (Accuracy)Equipment/Labor (Utilization)HeadcountProcess Steps (Number)Purchase Discounts (Value)Purchase Order (Volume/Frequency)Purchase Price Variance (Value)Purchasing (Cost)Purchasing (Cycle Time)Supplier Defects (Number)Supplier Lead TimeSupplier On-time DeliverySuppliers (Number)Changeover/Turnaround (Cycle Time)Defects/Off-Quality (Cost)Defects/Off-Quality (Volume/Quantity)Engineering Design Changes (Cycle Times)Engineering Design Changes (Volume/Frequency)Equipment/Labor (Utilization)HeadcountInventory Work In Process (Level/Value)Manufacturing (Cycle Time)Parts/Stock Keeping Units (Number)Process Steps (Number)Production Lot/Batch SizeProduction Schedule (Accuracy/Fulfillment)Productivity/ThroughputQuality of ServiceRework (Cost)Rework (Volume/Frequency)Scheduled Maintenance (Cost)Scheduled Maintenance (Cycle Time)Scheduled Maintenance (Frequency)Scrap/Waste (Cost)Theft/Shrinkage (Cost)Unscheduled Maintenance (Cost)Unscheduled Maintenance (Cycle Time)Unscheduled Maintenance (Frequency)STEP 2: Determine what performance measures you need to track in BW. Consider what successful companies in your industry are doing..

Distribute ProductsMarket / Sell Products / ServicesManage Customer ServiceLook to the Industry for Best Performance Measure PracticesCarriers (Number)Dock-to-Stock (Cycle Time)Equipment/Labor (Utilization)HeadcountInventory (Accuracy)Inventory Finished Goods (Level/Value)Inventory Finished Goods (Turnover)Inventory Intransit (Level/Value)Inventory Raw Materials (Level/Value)Inventory Raw Materials (Turnover)Picking (Accuracy)Picking/Packing (Cycle Time)Process Steps (Number)Advertising Effectiveness (Awareness)Advertising Effectiveness (Perception)Annual Purchase VolumeClosure/Conversion RateCustomer Complaints (Volume/Frequency)Customer Retention RatesCustomer Returns (Number)Design/Formulation/Package Changes Distribution Channels (Number)Event ROIForecast (Accuracy)Forecast (Cycle Time)HeadcountIn-Stock Ratio on Promoted items/RainchecksMarketing (Cost)Marketing (Cycle Time)Marketing Effectiveness (Cost)Marketing Effectiveness (Cycle Time)Product/Brand Forecast (Accuracy)Product/Brand Forecast (Cycle Time)Shelf/Floor AllotmentShopping FrequencySKUs (Number)Traffic Count & Transaction SizeVariance to Plan (Market Share)Variance to Plan (Production Cost/Volume)Variance to Plan (Sales Value/Units)Adjusted Orders (Volume/Frequency)Backorders/Stockouts (Volume/Frequency)Billing (Cost)Billing (Cycle Time)Credit/Debit Memos (Volume/Frequency)Customer Satisfaction RatingEquipment/Labor (Utilization)HeadcountInquiries/Complaints (Volume/Frequency)On-time Delivery RateOrder Fill RatioOrder Fulfillment (Cycle Time)Order Processing (Cycle Time)Order Processing (volume)Process Steps (Number)Response/Wait TimeWarranties/Claims/Returns (Cost)Warranties/Claims/Returns (Volume/Frequency)NOTE: The performance measures may be different than those you are reporting on today

Ignore organizational, geographical or system boundaries.

Where Are We?Why build a global BW system?Designing a global BW architectureThe six dimensions of global BW project managementGlobal BW project examplesGetting the team togetherLessons learned: global BW project management Wrap-up

What Logically Belongs in a Global BW System?Two years ago, with version 3.0B, BW became increasingly able to report on operational detailed data. But some reports still belong in R/3 or other transactions systems

Why Is Management Not Getting What It Wants?In the next section well take a look at the typical global Data Warehouse architecture and see how SAP BW maps to this conceptual architecture

Afterwards we will look at an example how this may integrate with multiple environments from an enterprise perspective.

The Global Target Architecture An ExampleMeta DataData Warehouse and Decision Support Framework R/3LegacySystemsExternal systemsInternetMessagingSource Data

DataExtraction TransformandLoadProcessesExtractSummationMarketing & SalesPurchasingCorporateProduct LineLocationOperational Data StoreTranslateAttributeCalculateSummarizeSynchronizeTransformSummarized DataData Subsetsby SegmentData WarehouseOLAPDataMiningBatch ReportingManaged Query Env.AccessData MartsVendorProvidedReconcileFinanceSupply

Source: Rainer Gebhardt, Insights Where Do I Start?Focus on an area that solves a problem instead of becoming a "replacement" project. Gradually, using a prioritized phased approach, solve other business problems.

A good way to think of BW rollout planning is in terms of business problems. Reporting projects since most companies have more than one project, totals in each business area may exceed 100%This table illustrates the reported focus areas from companies in the US and Europe for their DSS development.

Where Are We?Why build a global BW system?Designing a global BW architectureThe six dimensions of global BW project managementGlobal BW project examplesGetting the team togetherLessons learned: global BW project management Wrap-up

The Six Global DimensionsThere are six core global dimensions you must consider before embarking on a global DW strategy. Project management is important, but its only one of these dimensions. Failure to account for the others may result in project failures. Source: Peter Grottendieck, SiemensFor each dimension, articulate an approach, constraints, limitations and assumptions before you start your project.

The Six Global Dimensions (cont.)Be aware that US management styles can often come across as very aggressive and authoritative. To get local buy-in, assign meaningful leadership roles to local managers.Culture, language, attitudes and politics can get in the way of a global project Make sure you have a blend of local resources in leadership roles and consider local consultants instead of bringing in US resourcesIntercultural Know How

The Six Global Dimensions (cont.)One of the first steps is to make sure you have reliable connectivity and bandwidth to move the data each night What happens if the data movement fails? How can you get access to backup tapes?Can the bandwidth handle end-of month high volumes?What infrastructure do each source site use?Infrastructure Prerequisites

The Six Global Dimensions (cont.)Do all team members and end-users communicate as effective in English?DocumentationDo we need multi-language training and documentation?Does basic conversational English mean that users can read and understand technical training material and documentation?Have you installed Unicode on your BW system?Training

How Tightly Should Multiple BW Projects be Controlled?Source: The Conference Board SurveyThe relationship between global control and success:

Where Are We?Why build a global BW system?Designing a global BW architectureThe six dimensions of global BW project managementGlobal BW project examplesAn in-depth look at a global TelecomA global industrial companyA glance at four other global BW implementationsGetting the team togetherLessons learned: global BW project management Wrap-up

Lets Look at a Global BW Project Example

Fortune 100 company with operations around the world230 systems identified as mission critical23 installations of SAP R/3 on 6 continentsOther ERP systems:JD EdwardsCustom-developed Oracle systems

A case study

Data Warehouse Initiatives These were the DW initiatives that corporate HQ knew aboutA case study

Alternative Global BW ApproachesTOP-DOWN APPROACHBuild a global data warehouse for the company, and proceed sourcing data from old legacy systems driven from a top-down approach.BOTTOM-UP APPROACHFocus on a bottom-up approach where the BW project will prioritize supporting and delivering local BW solutions, thereby setting the actual establishment of the global Data Warehouse as secondary, BUT not forgotten.

Bottom-Up Approach Rationale

SAP BW Activities and Architecture

An Approach to BW Reporting Architecture DevelopmentBISC (Business Information Supply Chain) Responsibilities

SAP BW Rollout ApproachThe project delivered local SAP BW solutions and packaged solutions for decision support as a first priority, and the Global Data Warehouse as a second priority.

A fixed departure approach was applied with focus on delivering solutions rather than projects and software; specific BW solutions were developed according to a pre-defined schedule where local business units were invited or encouraged to participate.

A Global Rollout a Different European ExampleIn this case, the company created both a local and global BW system for CRM dataSwitzerlandAustriaTurkeyGlobal Development Spiridon/CRMothers BWBelgiumSpainPortugalothers CRM (one client)

IrelandUKNetherlandsothers Local AMC/Dev Spiridon /CRM

Local AMC/Dev Spiridon /CRMSpiridon CRM South West (Madrid)BWLocal AMC/Dev Spiridon /CRMSpiridon CRM North West (Den Haag)BWLocal AMC/Dev e.p@ss /CRMe.p@ss CRM Mid South (Wien)BWSource: Siemens Corp information 2003

Some Lessons Learned From Other Global ImplementationsThe major findings highlight the need for specialized BW skills and very strong scope control

Deciding Which Front-end To Use For A Global BW SystemA major decision for the global BW system is the selection of which delivery mechanism to support and who get access to which tool.Most companies start with BW OLAP for web and add other types of interfaces later..

Example SummaryA conceptual architecture is the first step and the physical architecture is a product of this. It should be driven by the user needs and the types of interfaces needed, and not by an internal IT exercise.

SAP BW can now be used as an enterprise Data Warehouse and a Global rollout can be accomplished.

There are two core ways to succeed, but both require strong central control and support.

Where Are We?Why build a global BW system?Designing a global BW architectureThe six dimensions of global BW project managementGlobal BW project examplesGetting the team togetherLessons learned: global BW project management Wrap-up

Practical Tips: Getting The Global Team TogetherInvolve relevant business departments, regardless of organizational and geographical boundaries. Create a user acceptance team with a total of 5-7 members from the various business departments or organizations. Keep the number odd to assist with votes when decisions are made. With fewer than 5 members it can be hard to get enough members present during some meetings.Make the team the focus of requirements-gathering in the early phase and let this team later become the user acceptance team (testing) in the realization phase.Meet with the team at least once a month during realization to refine requirements as you are building and have something to show the team. This approach is hard to execute when also managing scope, but essential to make sure the system meets the requirements

Practical Tips: Getting The Global Team Together (cont.)15-25 team members and normally 6-18 months duration depending on scopeThese are roles not positions. (sometimes one team member can fill more than one role)Tip: Keep back-end developers centralized, while query developers can be de-centralized.

Sleep and TravelPeople crossing 4 or more time zones need over 36 hours to adjust, increasing to > 72 hours when crossing 6 or more time zones. Some simple rules to address this: Create a "project time" in the middle. I.e. for European and US projects, middle time would be Eastern US time +3 hrs, and European central times less 3 hours. No meetings would be scheduled between 8 AM and 11 AM in Europe, nor between 2 PM and 5 PM in the US.Fly to the destination the day before, or allow at least 4 hours downtime for sleeping and showering at the hotel.Schedule meeting times around when people are traveling.Keep each trip over 5 days minimum to adjust for sleep, or risk running the team "into the ground"Plan extended weekends for family time for staff after a long trip (including consultants)

Getting Local "Buy-in" And Developing Local Support

The Use of AmbassadorsGetting power users involved early is important to the overall success of a Data Warehousing projectTo help support the businesses that have already gone live, a strong local community of ambassadors is needed. If you dont have them, on-going projects may get bogged down with basic support of reports.

Ambassadors - How To Use Local ResourcesOf the total work of 7,061 hours for presentation development from August though October, 58% of the enhancement work was performed by local resources. This allowed the central team to move their focus to the next implementation, while ensuring local support and empowered Ambassadors to help the users in each organization.

Business ContentOct. 02Jan. 02Mar. 03May. 03Jun. 03Germany, HollandUSAAustriaSpainItaly

Some Benchmark Indications on AmbassadorsSurvey of 84 companies: The Conference Board.Increased business involvement increases the probability for data warehouse project success.

Where Are We?Why build a global BW system?Designing a global BW architectureThe six dimensions of global BW project managementGlobal BW project examplesGetting the team togetherLessons learned: global BW project management Project managementTeam compositionBW ProductOther lessonsWrap-up

Lessons Learned: Project ManagementA user acceptance team (UAT) of 5-7 people should be created from the first day, and all acceptance criteria should be established well in advance of the implementationUse of Rapid Application Development is the preferred development methodology Use a phased business content approach with standard delivered content first, then customize if absolutely neededIt is hard to estimate accurately the data movement effort 80% of delays and surprises occur in this area, and this work is often under-estimatedTreat the workplan only as a tool and adjust it as neededSpend less time on the project preparation phase and as much as possible on the realization phase. Many issues cannot be planned, but time can be set aside to deal with them.

Lessons Learned: Team CompositionDeveloper training should start early for all project team membersSAP R/3 skills are not easily transferable to BW hands-on experience is needed (its hard to learn while being productive)The quality of the team members is much more important than the number of members. A skilled BW developer can accomplish in one day what 3 novice developers can do in a week. Project time and cost estimates should be based on teams experience levelsPlan on formal knowledge transfer from external resources starting from day one. Link inexperienced members with experienced onesHave identified go-to resources available in all areas (make a list)

Lessons Learned: The BW ProductThe time to develop BW will depend on how much customization was done when R/3 was installedThe tool has a high learning curve and training cannot substitute for experience. Plan on spending 10-15% of overall effort on performance tuning of queries and data loads. Test the performance as part of the development effort.Implementation of LIS, SIS, EIS are no longer needed to use most standard extractors from BW, but most extractors are normally enhanced. Plan on using 50-60% of the project effort on data extraction, movement, validation, load, scheduling and testing.

Lessons Learned: The BW Product (cont.)Use the statistics cube to monitor system performance and dont forget to use the cost-based optimizer if you are using Oracle as your databaseDirect updates to InfoCubes (non-loads) are complex. If this is needed for reconciliation efforts, create a data staging area, make changes here and re-load the data. Direct cube updates for non SEM/ APO, SCEM cubes are hard to make work in practice.Do not succumb to using BW as a dumping ground some reports belongs in R/3. Finally, do not attempt to cram all data into one cube. Keep InfoCubes logically organized and use multi-cube queries as needed.

Other Lessons LearnedGlobal user training should be custom-made and tailored to each country or region.A global line support organization should be established and be part of the development effort (knowledge transfer).Buy hardware early (international delivery times can delay the project)Locate the users as soon as possible and take a look at the networkFinally, create Ambassadors, road shows and/or brown-bag sessions.

Where Are We?Why build a global BW system?Designing a global BW architectureThe six dimensions of global BW project managementGlobal BW project examplesGetting the team togetherLessons learned: global BW project management Wrap-up

ResourcesGlobal Project Management Handbook by David L. Cleland, Roland Gareis. Hardcover: 672 pages. McGraw-Hill Professional; ISBN: 0070113297

International Journal Of Project Management, Magazine Publisher: Elsevier Ltd ASIN: B00007AYDS

The Distance Manager: A Hands On Guide to Managing Off-Site Employees and Virtual Teams by Kimball Fisher, Mareen Fisher. Hardcover: 252 pages Publisher: McGraw-Hill; ISBN: 0071360654

7 Key Points to Take HomeUse the 6 dimensions framework to guide your BW developmentPlan for a truly Enterprise Architecture that is designed, not evolvedSpend much time on getting the right resources on your teamInvolve the local staff in a proactive manner and make them part of your leadership team.Dont re-invent the wheel use experienced resources that have done it before and pay particular attention to management styles, politics and culture.Conduct post-implementation reviews with each local organization in order to learn from experience and to give the subsidiaries a voice in how the project is executed.Consider an "ambassador" concept to assist in local support and buy-in.

Your Turn!!!How to contact me:bergb@lrc.edu

Case Study 1Reference MaterialsKnowledge Information Transfer Database Samples

Case Study 1Reference MaterialsKnowledge Information Transfer Database Samples