Value of Independent Quality Assurance

How to Improve ROI for your SAP Programme

22 November 2011

Agenda

British American Tobacco and TaO Data Management in TaO The Value of Independent Quality Assurance Conclusion

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British American Tobacco and TaO Introduction Video to British American Tobacco (BAT)

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British American Tobacco and TaO Welcome to TaO

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TaO ‘way‘ 'path’ ‘route’ ‘journey’

Representative of what this programme is about – a journey towards exponential growth for the Group

towards something valuable

British American Tobacco and TaO A Target Operating Model that Drives the TaO Vision

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BAT 2015: from good shape to great shape

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A business anchored in consumer-led, world-beating brands…

…driven through by a flexible, global supply chain network…

…enabled by efficient and effective business support…

…built on continuous innovation and product lifecycle management…

6 …all underpinned by globally integrated strategy & planning

Integrated Business Planning (IBP)

HR Finance IT

Global Supply Chain Network

Product Lifecycle Management (PLM)

New Product Introduction (NPI)

Global Brand Management

British American Tobacco and TaO TaO “Roadmap” to Success

The Global Template is the delivery of the technical solution that underpins the BAT Target Operating Model (TOM) - the desired business model we need to be in 2015 Business Requirements gathering and mapping within future TOM framework

Target Operating Model Business Requirements

ERP System Design Build, Test & Cutover

Global Template supporting 80% of functional and process scope Industry best practices Standard SAP functionality. BAT best practices As-Is BAT processes and systems

Pilot Go-Live (in Malaysia) Global Deployment

A Pilot to prove the solution in a ‘safe’ environment Chosen Pilot market of Malaysia (300+ users) including above market as necessary (SSC, Treasury, APO …). Rapid deployment to remainder of ASPAC region A Global Roll-In across the remaining regions

Past Today Future

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Data Management in TaO BAT Data Management Strategy within TaO

MDM Drivers

MDM Categories

Consistent Global Data Definitions. Governed Standards. Enterprise Data Model supporting Target

Operating Model (TOM) processes.

Consistent Migration Processes to support a Template Deployment.

Organisation to deploy. Enabling technology (ETL Tool).

Consistent Master Data Management Processes.

Organisation to sustain. Enabling technology (SAP MDG-x).

Data Design

Data Migration

Master Data Management

BAT Data

Management Strategy

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Data Management in TaO Master Data Management utilising a Regional Shared Service centre

Approach Design a solution to manage master data on an on-going basis. Utilise existing MDM process design in an existing organisation. Provide an MDM technology that supports Local, Regional and Global master data organisations and interaction. Understand and implement changes in the organisation to reflect the TaO solution. Implementation Planning SAP MDGx is a new concept and BAT are one of a small handful of companies implementing at present. Long-term strategic benefits for BAT to implement SAP MDG The implementation plan has been limited in scope (at this stage) to reduce risk, but with a clear roadmap for the future.

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Data Management in TaO Master Data Management utilising a Regional Shared Service Centre

Chosen Technology - SAP MDG Central hub-based maintenance of key master data objects and fields. Workflow-driven processes that are flexible while ensuring governance and

standardisation. Harmonised user interface, based upon Enterprise Portal or the Business

Client Data model and business logic follow the best practices of the SAP Business

Suite and re-use existing data structures, business validations and various services

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The Value of Independent Quality Assurance Independent Quality Assurance is a key enabler for delivering successful ROI from an SAP programme.

Companies embark on ERP programmes with no independent advisory service in place. Quality Assurance is only a formal review at the end of a stage. Quality Assurance adds overhead in time and cost without bringing value. It is too late to include an embedded QA service support now.

Traditional approach and thinking… Leading practice…

Increasing number of companies are introducing independent Quality Assurance services that help deliver their ERP programmes on time and budget. Quality Assurance is not only about end-stage reviews; it should be embedded as an integral part of the programme approach so as to avoid potential issues before they arise. An embedded QA team typically delivers savings over and above what is invested in Quality Assurance activities due to on-going guidance on integration topics, project management and early review of key draft deliverables. It is never too late …

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The Value of Independent Quality Assurance Lodestone’s approach to Pro-active Quality Assurance at British American Tobacco as an integrated part of Project TaO.

1. Governance

2. Time Management

3. Scope Management

4. Risk Management

5. Human Resources

6. Change Management

7. Deployment

8. Quality Management

9. Financials

10. Program Integration

1. Quality and completeness of key deliverables

2. Planning assumptions

3. Readiness for next phase

Project Health Quality Review

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The Value of Independent Quality Assurance How Lodestone is helping British American Tobacco achieve success through ongoing Quality Review of key project deliverables

Partner Team

Client Team

Deliverable Development

Client Review

Lodestone QA Partner

Review

Client Leadership

Team

Deliverable Sign-off

Continuous Coaching Feedback Loop

Pro-active Coaching & Guidance

Quality Reviews at Completion

Project Board

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November 24, 2011

Pro-active guidance on project management & integration topics Provide client management guidance in key areas of the project (e.g. template, integration, deployment, project management)

Review of key project deliverables

Process design documents, Functional specifications, Data Migration strategy, IT Architecture etc. Project organisation related (governance and project organisation, roles & responsibilities) Overall project documents (e.g. PID, project handbook, stakeholder maps) Project management processes (e.g. scope control, risk management) Integration topics (Master Data, Reporting/BI, Architecture, Infrastructure, Security etc.)

The Value of Independent Quality Assurance Ways of working

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November 24, 2011

Participation in project milestone reviews

Project status Readiness assessments

Regular reporting on project health and formal quality reviews

Based on reviewed deliverables Based on participation in respective standing meetings (e.g. integration meeting, Leadership Team meeting)

The Value of Independent Quality Assurance Ways of working

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Not Applicable

Strategic Alignment

Organisation & team set-up

Supporting systems & methods

Categories

Project Integration

Change Management

Scope Management

Deployment

Key Success Factors

Governance

Human Resources

Time Management

Quality Management

Risk Management

Project Financials

Project Success

Good To be monitored Attention required

Evaluation

Clear objectives

Well defined business case

Alignment of major stakeholders

Drivers

Executive support

Experienced project manager

Qualified and motivated project team

User dependency

Reliable estimates and plans

Maximum transparency on status

Appropriate methods and tools

Standardised proven technology

The Value of Independent Quality Assurance Lodestone’s project diagnostic aims at creating a Heat Map on the Health of a project

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Not Applicable

Conclusion How my ROI has been improved with a pro-active and independent QA service

Best Practices SAP can be implemented many ways. Working with a QA partner and SAP ensures we are applying the process and technology effectively.

Perspective

I believe you should operate with a systems integrator and not be operated by them. Having a third party provides assurance that the right decisions are being made for the right reasons. Having a methodology does not guarantee success. Being able to compare worked examples of documents and practices that fit with the chosen methodology improves productivity and quality.

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Conclusion How my ROI has been improved with a pro-active and independent QA service

Experience •There is no single or “right” way to execute such a large and complex programme, so having a greater breadth of experience on the project reduces risk. It is very difficult to find people with experience of truly global SAP implementations. Having a Systems Integrator and an independent Quality Assurance partner increases the resource pool.

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