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© 2012 IBM Corporation July 2012 Cut Costs & Enable Growth with IBM’s SAP Application Management Flex for Ireland

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© 2012 IBM Corporation

July 2012

Cut Costs & Enable Growth with IBM’s SAP Application Management Flex for Ireland

© 2012 IBM Corporation

Contents

� Introduction

� Common Challenges in SAP Support

� IBM Application Management Services Flex – Solution for Ireland

– Our tiered SAP AMS Flex offering

– Service Categories: Bronze-Silver-Gold Tiers

– SAP AMS Flex - Service Level Objectives

– Transition / Migration to AMS - Approach

� IBM Global and Local SAP AMS Capability

� Application Management Services Flex: The Benefits

� Why choose IBM - SAP AMS Flex ?

� Services Description

� Contacts

© 2012 IBM Corporation

Managing SAP applications means balancing costs, risk and business value

Striking this balance requires:

2222 Reducing Reducing Reducing Reducing RISK ———— while accelerating the while accelerating the while accelerating the while accelerating the pace of changepace of changepace of changepace of change

3333 Driving Driving Driving Driving BUSINESS VALUE ———— while while while while maintaining high application stabilitymaintaining high application stabilitymaintaining high application stabilitymaintaining high application stability

1111 Decreasing Decreasing Decreasing Decreasing COSTS ———— while expanding while expanding while expanding while expanding capabilities and servicescapabilities and servicescapabilities and servicescapabilities and services

Introduction

© 2012 IBM Corporation

Common challenges in SAP support � Timely access to SAP application skills to provide

support to users to meet day to day business needs

� Freeing up internal resources from commodity support tasks to refocus them on aligning business requirements with a more strategic application of SAP

� Managing the business expectations and demand for new functionality

� Freeing up budget to invest in strategic projects

� Managing lower application maintenance costs while improving service levels, reducing risk and improving the return on investment

� Applying consistent processes, structures and standards in application support and maintenance

� Availing of cost attractive global delivery options that meet your fluctuating demand for support and change

� Finding a support provider who understands your business

© 2012 IBM Corporation

IBM SAP Application Management Services Flex for Ireland

IBM offers a new AMS solution to meet the challenges facing SAP clients in Ireland

IBM SAP Application Management Services FlexIBM SAP Application Management Services FlexIBM SAP Application Management Services FlexIBM SAP Application Management Services Flex

HIGHLIGHTSHIGHLIGHTSHIGHLIGHTSHIGHLIGHTS

• New affordable solutionaffordable solutionaffordable solutionaffordable solution that is easy to implement and good for your bottom line

•Flexible tiersFlexible tiersFlexible tiersFlexible tiers with different levels of service to suit varied needs, budgets and seasonal demands

• Measurable service levels at an agreed cost, reducing riskreducing riskreducing riskreducing risk for the client

• Improve the performance of SAP by applying skilled resources, performance tuning and consistently delivering on service levelsservice levelsservice levelsservice levels

OTHER SERVICESOTHER SERVICESOTHER SERVICESOTHER SERVICES

• Out of hours and on call cover

• SAP Upgrades

• Problem Management

• Major enhancements/ projects

• Transition to global delivery methodology

• Database Management

• Menu of Services

• Business Consulting

• SAP Patch Advice - provide recommendations on patch levels for SAP and DB.

• Testing

BASE SCOPEBASE SCOPEBASE SCOPEBASE SCOPE

• Support model set up

• Full SAP module coverage

• Incident Management – break/fix

• Minor enhancements

• Release planning

• Reports

Dedicated Dedicated Dedicated Dedicated people for clients in Irelandpeople for clients in Irelandpeople for clients in Irelandpeople for clients in Ireland

© 2012 IBM Corporation

Our tiered SAP AMS Flex offering

� The Bronze-Silver-GoldBronze-Silver-GoldBronze-Silver-GoldBronze-Silver-Gold model provides three options of services tailored for a mid-size client’s application management requirements

� The key differencesdifferencesdifferencesdifferences between the three tiers are: – Monthly SAP support call volumes

– Monthly allowance of hours for enhancements

– Mix of onshore / offshore resources in the team

– Support windows

� The key similaritiessimilaritiessimilaritiessimilarities between the three tiers are:– All tiers provide measurable Service Level Objectives

– All tiers provide a local Irish Service Delivery Management

– All tiers provide similar, preventative maintenance services for SAP Basis

– All tiers provide a call logging facility

– All tiers include full governance process– All tiers assume that that there is a fully functioning client super user base as a means of controlling

the number of support calls

© 2012 IBM Corporation

Service Categories: Bronze-Silver-Gold Tiers**

FixedFixedFixedService Level Objectives

361212Contract Review Period

ComponentComponentComponentComponent BronzeBronzeBronzeBronze SilverSilverSilverSilver GoldGoldGoldGoldMaximum number of monthly support calls

(break/fix)Resolution for up to 15 calls Resolution for up to 30 calls Resolution for up to 45 calls

Security related calls for user unlock & password reset

Up to 15 calls per month Up to 30 calls per month Up to 45 calls per month

Monthly allowance for minor enhancements – flexible depending on team capacity

Up to 3 days Up to 7 days Up to 10 days

Service Delivery Manager - Local 2 days per month 4 days per month 6 days per month

Hours of Support: Call logging User Working Hrs User Working Hrs User Working Hrs

India Hours of Support: Functional, ABAP & Basis

9.00am-6.00pm Mon-Fri 9.00am-6.00pm Mon-Fri 9.00am-6.00pm Mon-Fri

Monthly calls requiring liaising with Level 3 SAP Software support

1call @ 4 hrs/call 2 calls @ 4 hrs/call 3 calls @ 4 hrs/call

Monthly production change release windows (excl. emergency changes)

1 2 4

Monthly Service Report & Meeting Yes Yes Yes

SAP System Health Checks 22 Hours per month 45 hours per month 45

SAP Patch Advice – Production system 1 per year 2 per year 2 per year

SAP Production System Performance Assessment

Bi-monthly (6 per year) Monthly (12 per year) Monthly (12 per year)

Minimum Contract Period 36 36 36

© 2012 IBM Corporation

Service Categories: Bronze-Silver-Gold Tiers**

Our SAP AMS Flex Offering also has the following additional services available to complement any of the Bronze, Silver and Gold tiers. These additional services can be purchased separately.

• Interface monitoring• SAP Upgrade advice• Severity 1 – 24/7 BASIS Support• Out of hours / on call cover for business critical processes• Increased capacity at business critical peaks or to support increased seasonal demand• Ticketing self service • Systems enhancements in excess of AMS capacity

© 2012 IBM Corporation

Best EffortBest EffortBest EffortBest Effort3 Bus. Days3 Bus. Days3 Bus. Days3 Bus. DaysBest EffortBest EffortBest EffortBest Effort5 Bus. Days5 Bus. Days5 Bus. Days5 Bus. DaysBest EffortBest EffortBest EffortBest EffortBest EffortBest EffortBest EffortBest EffortEnhancements (Severity 5)

5 Bus. Days5 Bus. Days5 Bus. Days5 Bus. Days3 Bus. Days3 Bus. Days3 Bus. Days3 Bus. Days5 Bus. Days5 Bus. Days5 Bus. Days5 Bus. Days3 Bus. Days3 Bus. Days3 Bus. Days3 Bus. DaysBest EffortBest EffortBest EffortBest Effort3 Bus. Days3 Bus. Days3 Bus. Days3 Bus. DaysLow (Severity 4)

3 Bus. Days3 Bus. Days3 Bus. Days3 Bus. Days1 Bus. Day1 Bus. Day1 Bus. Day1 Bus. Day4 Bus. Days4 Bus. Days4 Bus. Days4 Bus. Days2 Bus. Days2 Bus. Days2 Bus. Days2 Bus. Days7 Bus. Days7 Bus. Days7 Bus. Days7 Bus. Days3 Bus. Days3 Bus. Days3 Bus. Days3 Bus. DaysMedium (Severity 3)

16 Hrs16 Hrs16 Hrs16 Hrs2 Hrs2 Hrs2 Hrs2 Hrs2 Bus. Days2 Bus. Days2 Bus. Days2 Bus. Days4 Hrs4 Hrs4 Hrs4 Hrs3 Bus. Days3 Bus. Days3 Bus. Days3 Bus. Days8 Hrs8 Hrs8 Hrs8 HrsHigh (Severity 2)

6 Hrs6 Hrs6 Hrs6 Hrs1 Hr1 Hr1 Hr1 Hr8 Hrs8 Hrs8 Hrs8 Hrs2 Hrs2 Hrs2 Hrs2 HrsN/AN/AN/AN/AN/AN/AN/AN/ACritical (Severity 1)

Resolution Resolution Resolution Resolution TimeTimeTimeTimeResponse TimeResponse TimeResponse TimeResponse TimeResolution Resolution Resolution Resolution

TimeTimeTimeTimeResponse TimeResponse TimeResponse TimeResponse TimeResolution Resolution Resolution Resolution TimeTimeTimeTimeResponse TimeResponse TimeResponse TimeResponse Time

SeveritySeveritySeveritySeverity

Customized Customized Customized Customized AMS SolutionAMS SolutionAMS SolutionAMS Solution

GoldGoldGoldGoldSilverSilverSilverSilverBronzeBronzeBronzeBronzeService LevelService LevelService LevelService Level

SAP AMS Flex - Service Level Objectives

Customized Service Customized Service Customized Service Customized Service LevelsLevelsLevelsLevels

© 2012 IBM Corporation

Transition / Migration to AMS - Approach Transition Due Diligence Transition Due Diligence Transition Due Diligence Transition Due Diligence

� It is acknowledged that each client will have different transition requirements. An exemplar transition solution approach has been produced to enable an initial discussion with the client.

� Due to the small number of tickets envisaged, particularly for the Bronze level, a pragmatic and relevant approach to transition will be necessary

� Where clients are moving the support of a mature solution to IBM the transition documentation requirements need to be reviewed for relevance and accuracy (e.g. integration test scripts may no longer be applicable or relevant)

� It is assumed that 6 weeks prior to the transition start date, connectivity will be in place to ensure that transition activities can commence on time

� Transition will be priced and billed separately

© 2012 IBM Corporation

Transition Timeline - Bronze

�Transition – Bronze Assumptions• Limited number of SAP modules

• Transition Lead full time, offshore, for 1 month

• Local SDM full time, onshore, for 1 month

• Team offshore - KT will be covered via documentation and webinars

• Good quality application documentation

• Low complexity

• Straight forward planning

• Aggressive Guided and Assisted Perform timeline

SSSSSSSS Steady State

PPPPPPPPPPPPPPPP Parallel Perform

APAPAPAPAPAPAPAP Assisted Perform

GPGP Guided Perform

PLPLPLPLPlanning

DDDDDDDDDue Diligence

Week Week Week Week 8888

Week Week Week Week 7777

Week Week Week Week 6666

Week Week Week Week 5555

Week Week Week Week 4444

Week Week Week Week 3333

Week Week Week Week 2222

Week Week Week Week 1111PhasePhasePhasePhase

© 2012 IBM Corporation

Transition Timeline – Silver & Gold

• Transition – Silver & Gold Assumptions

Limited number of SAP Modules

Transition Lead landed for planning and first two weeks of transition plan – all other transition off shore

Team offshore - KT will be covered via documentation and webinars

Local SDM full time during transition phaseMedium complexity

Integrated downstream applicationsAssisted and Parallel Perform to include critical business elements (Month End)

PhasePhasePhasePhase Week 1Week 1Week 1Week 1 Week 2Week 2Week 2Week 2 Week 3Week 3Week 3Week 3 Week 4Week 4Week 4Week 4 Week 5Week 5Week 5Week 5 Week 6Week 6Week 6Week 6 Week 7Week 7Week 7Week 7 Week 8Week 8Week 8Week 8 Week 9Week 9Week 9Week 9 Week 10Week 10Week 10Week 10Due DiligenceDue DiligenceDue DiligenceDue Diligence DDDDDDDDPlanningPlanningPlanningPlanning PLPLPLPLGuided PerformGuided PerformGuided PerformGuided Perform GPGPGPGP GPGPGPGP GPGPGPGPAssisted PerformAssisted PerformAssisted PerformAssisted Perform APAPAPAP APAPAPAP APAPAPAPParallel PerformParallel PerformParallel PerformParallel Perform PPPPPPPP PPPPPPPPSteady StateSteady StateSteady StateSteady State SSSSSSSS

© 2012 IBM Corporation

IBM Global and Local SAP AMS Capability

� IBM AMS supports over 250 clients worldwide with over 8,000 AMS consultants.

� In total, 25,000 IBM GBS consultants provide SAP consulting to over 400 in-flight SAP implementation engagements.

� Over 5,000 successful SAP projects at more than 9,000 sites

� IBM Ireland supports over 15 SAP clients with specialised local team of Project and Service Managers

� Global Delivery Centres throughout North America, Europe, Africa, India, China, South America

� Ireland specific SAP centre in India

� Global Business Solution Centre to develop and maintain re-useable assets and solutions.

© 2012 IBM Corporation

Application Management Services Flex: The Benefits

� Provides access to IBM skilled resources and knowledge networks which are sustained by IBM as part of our core business - access to scarce resources;access to scarce resources;access to scarce resources;access to scarce resources;

� Provides flexible resourcing for maintenance peaks and troughs and access to project resources to support changing business needs – streamlined change streamlined change streamlined change streamlined change request process;request process;request process;request process;

� Provides SAP support to measurable service levels at an agreed cost - predictability of costs, continuity of skills, enhanced service levels;predictability of costs, continuity of skills, enhanced service levels;predictability of costs, continuity of skills, enhanced service levels;predictability of costs, continuity of skills, enhanced service levels;

� Enables IT management & staff to focus on value adding activities such as improving business alignment, process improvement and strategy development & execution - reduced risk with IBM;reduced risk with IBM;reduced risk with IBM;reduced risk with IBM;

� Provides savings on existing and future maintenance costs - increase your ROI on increase your ROI on increase your ROI on increase your ROI on your ERP system.your ERP system.your ERP system.your ERP system.

© 2012 IBM Corporation

Why choose IBM - SAP AMS Flex ?� We service all your SAP requirementsWe service all your SAP requirementsWe service all your SAP requirementsWe service all your SAP requirements

– End to End SAP Services from a single organisation.– Proven transition methodology to help you move to the optimum global delivery model for your needs

� We do things wellWe do things wellWe do things wellWe do things well– IDC has rated IBM as the leader in the Application Management Services.

� We do the right thingsWe do the right thingsWe do the right thingsWe do the right things – We have developed the appropriate governance models, tools, methodologies and templates to respond

and deliver on your SAP support requirements.– We have an AMS team dedicated to Ireland clients only– Improve the performance of SAP by applying skilled resources, identifying process improvements,

performance tuning and consistently delivering on Service Levels– Innovation from our Research centres across IBM resulting in Best Practices and Centres of Excellence

for piloting new solutions.

� Easy to deal withEasy to deal withEasy to deal withEasy to deal with – Local dedicated Project Manager– Agile and flexible partner with depth of resources and expertise to provide AMS support and scale

resources for project go-lives, major releases and upgrades on demand.

� We provide cost effective solutionsWe provide cost effective solutionsWe provide cost effective solutionsWe provide cost effective solutions– We can provide support services using a multi-location model locally, regionally and globally so we can

offer the most cost effective delivery blend for your needs.

© 2012 IBM Corporation

Services Description (1 of 2)

� SAP Production Change Release

- Scheduled monthly maintenance window for promotion of objects into Production environment.

- Basis is responsible for importing of Transports

� SAP System Health Check– Check interfaces operating as expected– Check backups completed and disk space– Check SAP Running– Database checks – ECC Checks (Common Monitoring)– File system Checks

� SAP Patch Advice – Provide recommendations on patch levels for SAP and DB, does not include O/S level– Advice is provided for production environment only.

� SAP System Performance Tuning– Includes analysis and corrective action on a monthly basis– One page report detailing scope of analysis and recommendations

© 2012 IBM Corporation

Services Description (2 of 2)

� Support Calls– Clients can raise “Business As Usual” problem issues up to a mutually-agreed upon volume, on a

monthly basis. Calls are tracked and subject to SLOs for responses to client.

� Minor Enhancements– IBM SAP expertise can be engaged for minor enhancement work to an agreed level.

� Service Delivery Management– IBM SDM is responsible for managing the IBM support team– IBM SDM is part of IBM governance model, allowing for a clearly defined escalation path– IBM SDM is the main point of contact for the client

� Hours of Support**– IBM India resources will be in General Shift (9:00 AM IST – 6:00 PM IST), unless contracted

otherwise (alternate arrangements have varied cost implications).– On-Call coverage for Severity 1 only:

• Bronze & Silver – Only BASIS resources will be on-call outside General Shift• Gold – All resources will be on-call outside General Shift

� Liaise with SAP – Software system issues (e.g. bugs/error messages) can be referred to SAP, and the correspondence

managed and relayed to the customer by IBM up to an agreed upon level.

** Customize this as per implementing country/ support levels

© 2012 IBM Corporation

Contact Information:

For more information on IBM’s SAP Application Management Flex, please contact:

Simon RaboneAssociate Partner – SAP Service Line LeaderIBM Global Business Services

E-mail: [email protected]: +353 (0) 86 024 1889

Nigel Burke SAP AMS Ireland Delivery Centre Shared Service LeaderApplication Management ServicesIBM Global Business Services

E-mail: [email protected]: +353 (0) 86 820 7050

Pauline Evers SAP AMS Service Line LeaderApplication Management ServicesIBM Global Business Services

E-mail: [email protected]: +353 (0) 86 044 1488

© 2012 IBM Corporation

Thank you!