managing long term value realization with sap control …€¦ · managing long term value...
TRANSCRIPT
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Internal
Our speakers
• Chief support architect
• Developing and leading PE Practice in 2004–2010 in
South Africa and MENA
• Developing the SAP Mission Control Center (MCC)
concept and building the SAP MCC EMEA
• Driving the the SAP Operations Control Center
Program globally to support customers digital
transformation strategy
Joerg Rudat
Global Head of ICC
DBS PE & ES – Strategic
Customer Initiatives
Marcus-Alexander Funke
Head of SAP Global Operations
Control Center Program
GSS PE & ES
– Global PE Practice
• Chief support architect
• ~20 years in SAP Consulting, SAP Active Global
Support, and today in DBS PE & ES
• Developing and building the ICC concept in EMEA
• Responsible for global ICC Strategy and Content
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Internal
The world is changing around usFrom On Premise to (Hybrid) Cloud
SAP HANA
SAP HANA Enterprise Cloud SAP HANA Cloud Platform Line-of-Business Apps
(On Premise) Private Cloud (Managed) Public Cloud
Managed-Cloud-as-a-Service Platform-as-a-Service Software-as-a-Service
Customer Systems
People Customer
SAP Business Suite
SAP Business Warehouse
SAP HANA Datamart …
Build Extend Run
applications Finance Supplier
Custom infrastructure and
maintenance
New Apps Collaboration
People
SAP JamSoccer
Health
Consumer
Startups
Any
DB
Enterprise Management
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Internal
All Systems on On-PremiseHybrid Solution
(Mix of On-Premise, Private Cloud , SaaS etc )
Business Context Performance & Availability
Security Capability to track E2E Process
Ability to Execute Upgrade on Customer Schedule
Operation Process Design Release Management
Application Management & Monitoring System Management & Monitoring
Infrastructure Management & Monitoring Change Management
Governance Define and track SLAs*
IT Service Management Solution Documentation
Customer IT - Key Changes to Operations.When Moving from On Premise to Hybrid IT Model
Accountability Direct Control TransparencyLegend:
OrchestrationGovernance
Trans-
parency
TransparencyDirect Control
Orchestration
IT
Accountability
GovernanceOrchestration
Direct Control
IT
Accountability
• Customer IT Operations
accountability remains the same
though the Operations
Management needs change.
• Direct control and responsibility
reduces
• New challenges to manage a
now diverse integrated
landscape
Note: Size of the circle indicates the
magnitude of the parameter
• Business Process / Service
focused Operations rather
than System Centric.
• Requires greater end to end
visibility of IT and Business
Solution.
• Increased requirement to
orchestrate operations rather
than direct control.
Governance
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Customer
The world is changing around usWith that the “Role” of IT has to change
Business Process
Management
Business Context
Application
Management
Applications
Middleware / Platform
System
Management
System
Database
Operating System
Virtualization
IT Infrastructure
Management
Servers
Storage
Networking
On Premise
Classic IT: Cost Center
Cloud Scenarios
Managed-Cloud-
as-a-Service
Platform-as-
a-Service
Software-as-
a-Service
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Customer
SAP’s contribution to reduce costs and accelerate time to value with the
SAP control center concept
MISSION CONTROL CENTER
Get access to the entire knowledge and
experience of the SAP ecosystem via the
SAP Mission Control Center
INNOVATION CONTROL CENTER
★ Accelerate time-to-value
★ Enable breakthrough innovation
★ Reduce total cost of implementation
In-h
ou
se
Rem
ote
In-h
ou
se
Rem
ote
OPERATIONS CONTROL CENTER
★ Business process improvement
★ Improve business continuity
★ Reduce total cost of operations
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Customer
SAP Operation Control Center – Imagine…..... you map the Digital Boardroom idea to IT operations
Total Transparency
Ensure transparency and efficient operation
through monitoring, alerting and managing
escalations.
Business Processes Enablement
Close engagement with business units
according to SAPs Process Map.
Mapping of technical objects to business
processes.
De-Escalation Management
Safeguard critical events and incidents in
our application landscapes.
OCC is the key enabler between business and IT
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Customer
SAP Operations Control Center – Imagine…..... you map the Digital Boardroom idea to IT operation
What is “Operations Control Center” really? Definition
An Operations Control Center (OCC) is a physical
entity or a layer of an IT organization that • provides the relevant transparency on health of
the end to end IT landscape and underlying
software components
• creates the relevant transparency along the IT
aspects of the execution of E2E critical or core
business processes
• manage critical exceptions and continuous
improvement on the above aspects based on
data driven insights
• running on standardized IT processes
Operational Control Center is sitting as layer
across / above typical IT departments that are
usually responsible for the day to day IT operation.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Customer
Landscape Health Detailed drill-down
Operations Control Center – Imagine…. .... you see all aspects of the health of your IT landscape at one glance
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Customer
Business process dashboard
Operations Control Center – Imagine…. .... you see hiccups in critical business processes before the business notices
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Customer
Business process level-2 view
Operations Control Center – Imagine…. .... you pinpoint where the hiccup occurred and improve business processes
Metric view
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Customer
Scoping an Operation Control Center – Imagine…. .... .... you identify cost savings by an industrialized and value-based scoping
OperateDesign Build
Powered by SAP Solution Manager
Discover
Continuous
improvement
Understand Scope
• Survey1
• Incident analysis
• Business process
analytics
• Transport Execution
analysis
RunSAP Like a Factory: Participant Profile
1
Regions Select Yes/ No
North America
Latin America
Europe
Middle East And Africa
Asia Pacific
RunSAP Like a Factory: Solution Details
2
SAP Solution - Areas of ResponsibilityNumber of Production
Systems per SAP Solution
Asset Management
Corporate Strategy and Sustainability
Finance
Human Resources
IT Management
Manufacturing
Marketing
Procurement
R&D/ Engineering
Sales
Please indicate the regions in the scope of the survey:
Which SAP Solutions do you have implemented (SAP Solution Explorer Areas of
Transparency into:
• Business and IT cost drivers
• Initial series of continuous
improvements
• Benefit targets (KPIs and
moving the needles)
• Business process
improvement Workshop
• Benefit calculation
• Value proposition
Transformation programTransformation proposal
Create transparency into challenges
Understand challenges and initial assessment
Success measurement
• Baseline
• Benchmark
1Run SAP Like a Factory
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Customer
Operation Control Center – Imagine….... SAP runs IT!
SAP CIO and Chief Process Officer, Helen Arnold
OCC Dashboards
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Customer
Wrap-up – Operations Control CenterEfficient IT operations to reduce the total costs of operations
OCC Footprint *
>60Running OCCs
>70Open opportunities for future
projects
30Running projects
AllCore solutions covered
General Experiences
Almost 50%time and effort saved by avoiding manual
monitoring
Up to 45%reduction of time affected by service-down
occurrences
Up to 25%reduction in the total number of business
critical incident
Customer Examples *
Healthcare and Consumer Lifestyle (multinational): OCC
delivers value to business
Topic: Enhancing Business Value & continuous service improvement
Result: Improved supplier finance process, consistent promotion
management data over landscape
Benefit: Multi million business value per year and 20% incidents drop
Retail (Denmark): ICC to avoid custom developments
Topic: A better way forward for outsourced IT operations
Result: Gained control over outsourced operations and ensure higher
levels of service availability to business.
Benefit: Improves response times and prevent incidents from occurring
in the first place
SAP runs SAP: SAP IT uses OCC to safeguard critical business
Topic: E2E centric view to business
Result: Total transparency about health, availability & execution of
business process
Benefit: Improved reliability in all major applications.
*) Status: June 2016 / General figures based on SAP’s experience during customer OCC-based projects
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Internal
Wrap-up – Operation Control CenterEfficient IT operations to reduce the total costs of operations
Up to 25% reduction in the total number of incident costs
Up to 50% time and effort saved by avoiding manual monitoring
Up to 20% increase of first-level resolution rate (shift left)
Up to 25% reduction of time affected by service-down occurrences
Drive
business innovation
Stable
operations
Distribution of
IT spending
Business
innovation
IT costs
28%
72%
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Internal
SAP’s contribution to reduce costs and accelerate time to value with the
SAP control center concept
MISSION CONTROL CENTER
Get access to the entire knowledge and
experience of the SAP ecosystem via the
SAP Mission Control Center
INNOVATION CONTROL CENTER
★ Accelerate time-to-value
★ Enable breakthrough innovation
★ Reduce total cost of implementation
In-h
ou
se
Rem
ote
In-h
ou
se
Rem
ote
OPERATIONS CONTROL CENTER
★ Business process improvement
★ Improve business continuity
★ Reduce total cost of operations
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Internal
Innovation Control Center
….achieve your IT and business goals, reduce time to value
Innovation Discover & enable breakthrough innovation with
minimum disruption
Speed Accelerate the deployment of your solution to improve
time to value
Cost Reduce TCI by utilizing standard solutions and efficient
use of SAP experts
Stability Safeguard and optimize your implementation, while
ensuring smooth handover to operations
Long Term Establish a repeatable model for innovation-focused
project delivery based on measurable outcomes
Innovation
Control
Center
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Internal
The Solution: Manage long-term innovative transformation
with a strong delivery framework
TQM
SAP Mission Control Center - expertise in mind
Innovation Control Center - the customer priorities in mind
EOD
Solution 1Innovation
Safeguarding
Innovation
DiscoveryInnovation
Acceleration
Solution 2Innovation
Safeguarding
Innovation
DiscoveryInnovation
Acceleration
Solution 3Innovation
Safeguarding
Innovation
DiscoveryInnovation
Acceleration
Innovation Framework
Transition to Operations
Continuous Improvement
Transition to…
Continuous…
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Internal
SAP Mission Control Center - expertise in mind
Innovation Control Center - the customer priorities in mind
Innovation Control Center : Innovation Framework… manage long-term innovative transformation with a strong delivery framework
TQMEOD
A “living” value based innovation roadmap for the engagement
Continuous value management and KPIs (incl. monitoring)
A customer-tailored, tool-based connection to the SAP Mission
Control Center (e.g. via dashboards, SAP Jam, Q-gates, etc.)
Measuring and reviewing your innovation index
Different types of innovation discovery and enablement workshops
Support delivery setup for underlying projects including Q-gates
(SAP or partner driven)
Innovation Framework
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 21Internal
Innovation Control Center ….guidance from the solution vendor in every phase of the project, in every project!
DISCOVER PREPARE EXPLORE REALIZE DEPLOY RUN
PROGRAM
projects
sub projects
Jump-start your
implementation project
• Simplify and innovate in
co-operation with SAP
• Get the most out of your
strategic SAP investment
• Create a value-based
innovation roadmap
Minimize risk in
implementation projects
• Mitigate implementation risks
• Make the go-live a non-event
for your business
• Prepare for sustainable
operational excellence
Speed-up your implementation project
• Accelerate your implementation
• Decrease time to value
• Reduce implementation and operational IT cost
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Internal
Innovation Control Center
…. you have an engagement model supporting all project phases
Rapid Prototyping
Go-live
Continuous support to unlock business value quickly
Solution Design &
Architecture Workshops
Integration Validation
Gap Validation
Prepare IT Operations (OCC)
Application Lifecycle Management with SAP Solution Manager:
Solution Documentation / Test Management / Change Management
SAP Development Support engagement
Note: All PFG requests are within the duration of ICC engagement. Timeline to be tailored to each ICC engagement
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Internal
at customer
at SAP
ICC as part of the S/4 Value Assurance PackagesEngagement Foundation Components
The foundation for a successful delivery of innovation
programs is SAP’s Innovation Control Center (ICC).
This includes a Technical Quality Manager (TQM) and
access to the Mission Control Center (MCC)
The Package Migrate and Implement
also includes typical ICC Services
(e.g. Gap Validation, Solution Design Review)
as part of the Build Design Support
Technical Implementation
Plan and Safeguard
Migrate and Implement
Engagement Foundation
Mission control center
SAP’s back office
Innovation Control Center
TQM
Project
Lead
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Internal
Wrap-up – ICC
Well-established in the EMEA market
24
ICC Footprint *
124Running Projects
200+Open opportunities for future
projects
24Industries covered
AllCore solutions covered
General Experiences
Almost 40%reduction of time and effort when industry and
solution best practices have been provisioned
Up to 50%avoidance of modifications when SAP Standard
was used instead of customer customizations
Up to 30%of cost reduction through preparation of
operations for post go-live
Customer Examples *
Automotive Industry (Germany):
ICC to safeguard a partner-driven implementation project
Topic: Implement eWM together with the local partner
Result: Project complemented with brand-new technology knowledge,
Mitigation of technical risks
Telecom Industry (UK): ICC to discover new SAP HANA capabilities
Topic: Create a CRM on HANA prototype
Result: Customer business convinced by using the prototype; sped-up
the implementation by re-using the prototype results
Logistics Industry (Switzerland): ICC to avoid custom developments
Topic: Validate functional gaps and safeguard the implementation
Result: 300 days of development saved
SAP runs SAP: SAP IT uses ICC to retire custom code
Topic: Retire ABAP objects to save operational costs
Result: 20% custom code retired
*) Status: June 2016 / General figures based on SAP’s experience during customer ICC-based projects
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Internal
SAP’s contribution to reduce costs and accelerate time to value with the
SAP control center concept
MISSION CONTROL CENTER
Get access to the entire knowledge and
experience of the SAP ecosystem via the
SAP Mission Control Center
INNOVATION CONTROL CENTER
★ Accelerate time-to-value
★ Enable breakthrough innovation
★ Reduce total cost of implementation
In-h
ou
se
Rem
ote
In-h
ou
se
Rem
ote
OPERATIONS CONTROL CENTER
★ Business process improvement
★ Improve business continuity
★ Reduce total cost of operations
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Internal
Engagement Management Support
Office
Supports holistic value realization of premium
engagements including cross coordination for
complex request across multiple expert areas.
Creates transparency and performs quality
assurance.
Central Control Core Team
Manages the overall prioritization, assigns
teams to complex situations, and ensures
overall follow up and transparency across all
units of the MCC.
SAP Mission Control Center …ensures consistent support across all solutions, technologies and deployment models
Solutioning Center
Supports value propositions and premium
engagement scope.
Mission Critical Support
Production Support
Resolves critical customer situations which
have or might have an impact on customers' or
SAP's business, like emergencies or situations
which require outstanding management above
and beyond SAP standard processes.
Supports successful Go-Live
Deployment Support
For e.g. SAP HANA / SAP HEC /SAP Cloud
Provides expertise & knowledge transfer for
Customer Innovation Control Center,
Customer Operation Control Center and
Integration Validation.
SAP MISSION
CONTROL CENTER
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Internal
MCC APJBeijing
China
MCC NANewtown Square
USA
MCC EMEASt. Leon-Rot
Germany
MCC LASão Paulo
Brazil
St. Petersburg
Dublin
Bangalore
Singapore
Shanghai
Melbourne
Mexico
Korea
Tokyo
SAP Mission Control Center
… one place for all experts to support the customer and SAP’s strategy
★ 24x7 Production Support
★ Global Mobility of SAP Experts
★ Central Monitoring
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Internal
The Solution for a Large Automotive Customer
EWM Template Implementation with Innovation Control Center
WHAT has been delivered…
Blueprint / functional support (gap validation):
System design phase supported with dedicated workshops
Technical support (Integration validation)
Address technical risks (e.g. performance, interfaces);
Scoping done and work streams set-up
Transition to operations:
Preparation of OCC in scope; in progress
Project management support:
In process
Cutover and data migration support:
In process
WHY ICC was positioned…
New module (EWM) to be integrated in a
template landscape
Business is very critical for the customer
Limited partner knowledge in some areas
Customer wants support in different
areas / in different project phases
Customer wants dedicated contact
persons, not a changing project team
Innovation
Safeguarding
Innovation
Acceleration
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 29Internal
The Solution for a Large Automotive Customer: Collaboration model for continuous
and regular access to best-in-class experts for functional and technical knowledge
Rollout Project
Implementation E2E tests
DiD
Go Live
GL prep.
SW design
Stress test
DiD
Process
design
EWM Template Project
Template design and
implementation
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July
SAP Development
EWM and ERP Consulting
EWM Migration experts
EWM Development Architects
EWM Product Support
Test & Performance Experts
EWM Operation Experts
SAP Solution Manager experts
Technology
architects
Localization experts
• ICC lead
• EWM engagement lead/
architect
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 30Internal
Volkswagen: Saving Time and Money with SAP® Extended
Warehouse Management and SAP MaxAttention™
Increased
Productivity
Saved
Money on implementation costs
Faster
Time to value, focusing on
business value instead of long
project durations
Improved
Quality of solutions
Saved
Money on maintenance costs
due to less custom code
Reduced
End-user issues after going live
with the solutions
Studio SAP | 42407 (16/10) This content is approved by the customer and may not be altered under any circumstances.
"We are very satisfied with the support from SAP MaxAttention. Thanks to the innovation control center concept,
we were able to significantly reduce time to value and simplify our solution landscape. SAP supports us on our
journey to becoming a digital enterprise."Christian von Tluck, Head of IT, Volkswagen Group, Group Genuine Parts and Service Division
Company
Volkswagen AG,
Group After Sales
Headquarters
Baunatal, Germany
Industry
Automotive
Products and Services
Genuine parts, service products
Employees
5,000 (Group After Sales)
Revenue
€5.9 billion
Web Sites
www.volkswagen-ag.com
Objectives
• Implement a modern warehouse and business solution
• Deploy the solution without impacting business
• Reduce the risk of project delays and cost overrun during implementation
Why SAP
• Support from the innovation control center as part of SAP MaxAttention™ services, accelerating time to value
• Solutions that address the company's needs, including the SAP® Extended Warehouse Management (SAP EWM) and
SAP ERP applications
Resolution
• Deployed SAP EWM and SAP ERP with support from SAP MaxAttention
• Used the innovation control center to guide implementation
• Solved more than 100 perceived gaps and functional issues with support from the Digital Business Services organization at SAP
• Significantly improved response time for critical scanner transactions in the warehouse and peak throughout in the outbound area
• Reviewed custom code, supported technical configuration, and optimized end-to-end performance and hardware utilization
with SAP MaxAttention
• Avoided business disruptions with monitoring tools and on-site empowerment of Volkswagen Group’s support organization
for EWM operations and for running integrated SAP ERP and SAP EWM processes
Future plans
• Deploy the innovation control center supporting the company’s growth strategy, requiring internationally networked and
highly efficient logistics
• Enable digital transformation and business success with SAP MaxAttention
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 32Internal
Innovation Control Center
….you relay on an engagement model with lean front office and strong back office
SAP’s front office
On-site service and support experts from nearshore
locations
Best-in-class tools, methodologies, and service
procedures with built-in experience from thousands
of customer issues and escalations
SAP’s back office and industrialized
infrastructure
Centralized access to a remote expert network,
ensuring consistent service quality
Innovation discovery, deploy and build, as well as
run and optimize all covered
Open to partner ecosystem
Right expert at the right time
Consulting
Development
Support
EducationMCC
Deployment
Support
Customer IT
Lines of Business
Partner SI
SAP
Customer
Project
Team
Decision Makers
ICC Lead
Experts
SAP Innovation Control Center
SAP Mission Control Center
ICC Angel
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 33Internal
Innovation Control Center : Innovation Acceleration….how customers benefit from Gap Validation
Gap Validation
Blueprint optimization to become as
close to SAP standard as possible
Avoid unnecessary modifications
Enable you to leverage best practices
for your implementation project to
reduce time and effort
Innovation
Acceleration
ICC customer avoids costly
modifications and uses SAP
standard instead.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 34Internal
Innovation Control Center : Innovation Safeguarding….you mitigate technical risks before you endanger your ability to go live
Integration Validation
Continuous technical support aligned
with project and embedded in program
governance
Identify and mitigate technical risks
early in your implementation project
Prepare your operations for post go-live
Innovation
Safeguarding
ICC customer satisfies his users by
providing a stable and robust
solution with limited business
disruption.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 35Internal
Confidence
Wrap-up – control center conceptCreate the confidence, ability, and accountability to innovate
Capability
Accountability
Value chain optimization
Orchestration and integration validation
IT management platform
Single source of truth
Zero-downtime
upgrades
Business process
improvement
Run SAP Like a Factory
Operations Control Center
Gap
validation
Building blocks and
best practices
Build SAP Like a
Factory
Innovation Control Center
Development
factory
ICC OCC
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 36Internal
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
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