SAP Project Overview21st of April 2016

Nobel Oil Services (UK)

NOBEL OIL

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Agenda

№ Discussion point Slides

1 SAP Project scope: organizational and functional 3

2 SAP Project organizational structure 4 – 5

3 System architecture 6

4 SAP Project Master schedule and main deliverables 7

5 SAP support structure 8 – 9

6 Corporate SAP system VS legacy IT systems 10

7 Key success factors 11 – 12

8 Success story on Nobel Oil group of companies 13

9 Lessons learned – recommendations for beginners in SAP 14

10 SAP Active Global Support during the Project 15

3

Branch Office of Nobel

Oil Ltd. In Azerbaijan

Global Energy Solutions ProKon SOCAR-AQS LLAMREI-DMCC

Business Process Project Scope

Financial Accounting,

TaxesManagement Accounting Budget Control Sales

Project ManagementProcurement, Stock

Management

Human Capital Management

(incl. Payroll and

Performance Management)

Document Management

Reporting, Obligatory and Management

Organizational Project Scope

SAP Project: organizational and functional scope

IMPORTANT NOTE: 176 business processes and 170 print and report forms have been automated in the functional scope of the project

4

SAP Project: organizational structure overview

Board of

Directors

Nobel Oil group of companies

Project Steering

Committee

Project Sponsor

Project Manager

Project

Administrator

Team Leader

(Finance)

Team Leader

(Supply Chain)

Team Members

(Finance)

Team Members

(Supply Chain)

Management of

Consultant

Management of

Consultant

Project

Manager

Team Leader

(Finance)

Team Leader

(Supply Chain)

Consultants

(Finance)

Consultants

(Supply Chain)

Consultant

6 other project

streams…

Project governance, regular

communication, escalation of

possible open issues on all levels

Business Architect

(Supply Chain)

Change Manager

Business Process Owner

(Finance)

Business Process Owner

(Supply Chain)

Business Architect

(Finance)

5

SAP Project: organizational structure in details

Project Manager – 1 on all 5 companies

Project Administrator – 1 on all 5 companies

Change Manager – 1 on all 5 companies

PMO

Finance

Document Management

Human Capital

Project Management

Supply Chain

Business Process Owner: 1 on all 5 companies

Team Leader: 1 on all 5 companies

Team members: more than 10 working on day

to day project activities from all companies

IT

Head of IT: 1 on all 5 companies

Leader from IT: 1 on all 5 companies

Members of IT group: more than 5 working

on day to day project activities from all

companies

IMPORTANT NOTE: more than 50 people from NBO group of companies were actively involved in day to day activities of the Project

Business Process Owner: 1 on all 5 companies

Team Leader: 1 on all 5 companies

Team members: more than 10 working on day

to day project activities from all companies

Business Process Owner: 1 on all 5 companies

Team Leader: 1 on all 5 companies

Team members: more than 10 working on day

to day project activities from all companies

Business Process Owner: 1 on all 5 companies

Team Leader: 1 on all 5 companies

Team members: more than 10 working on day

to day project activities from all companies Business Process Owner: 1 on all 5 companies

Team Leader: 1 on all 5 companies

Team members: more than 10 working on day

to day project activities from all companies

6

System architecture. Overview

Top management reporting with SAP BI

Document management with OpenText

7

SAP Project Master Schedule and key deliverables

Stage 1. Project preparation

June July August September October November December January February March April May June July

2015 2016

Stage 2. Blueprinting

Stage 3. Implementation

21st of April 2016

Stage 4. Prepare and start Go-Live

Stage 5. Go-Live Support

• Project office

• Project organizational

structure/roles

• Project team staffing

• Project charter

• Project governance

• Project schedule

• Kick-off presentation

• Overview seminars

• BPML approve

• AS IS business processes

analysis

• TO BE business processes

development including

scheme development

• Blueprints approve

• Temporary data center

configuration

• System configuration

• System demonstration

• System testing

• Data migration tools

development and testing

• Roles and authorizations

system configuration

• Permanent SAP data center

configuration

• Migration from temporary

data center to permanent

• Integration/user

acceptance testing

• Data migration

• User manuals

development

• Trainings

• Technical system

landscape

preparation

• Development of

post go-live

support structure

and processes

• Issue an order for

Go-Live

• On-going management of

open issues

• Change management

after go-live

• SAP development

program – further

program stages

IMPORTANT NOTE: SAP CIS Quality Assurance control during all project

8

Support procedure. Overview

Incident registration in Solution Manager

Incident routing for solving

Finding solution for solving incident – 1st line

Finding solution for solving incident – 2nd line

System users –

employees of Nobel Oil group of companies

Incident coordinator –

employee of Nobel Oil group of companies

External consultants –

INLINE GROUP

External consultants –

SAP CIS or other companies

Head of Support group –

employee of Nobel Oil group of companies

Support group –

employees of Nobel Oil group of companies If not solved then it forwards to 2nd line

If could not be solved by INLINE then it forwards

to SAP CIS or other companies

IMPORTANT NOTE: all incidents are registered in SAP Solution Manager with daily monitoring and reporting to Project

Management team

If solved then it forwards to Users

SUPPORT PROCEDURE OVERVIEW RESPONSIBLE PERSON

Before incident registration

end user should address issue to key users (active

participants of SAP Project)

9

Support group. Organizational structure

IMPORTANT NOTE: SAP Solution Manager covers all incidents in all companies of Nobel Oil group of companies (not only

SAP Project companies)

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Corporate SAP system VS legacy IT systems

# Corporate SAP System Current IT systems Comments

1. 176 business processes 74 business processes Client had only 40% somehow automated (74 from 176) and they were

NOT unified among all companies in Nobel Oil group

2. 170 print and report forms 42 print and reports forms Client had only 25% somehow automated (42 from 176) and they were

NOT unified among all companies in Nobel Oil group and editable

(Word, Excel, etc.)

3. > than 10 000 unique material records approx. 2 500 material records in IT

system, the rest were in unstructured

files

Client had only 25% with limited number of characteristics and a lot of

dublicates

4. 550 unique suppliers and customers 150 unique suppliers and customers

in IT sysetmhe, the rest were in

unstructured files

Client had only 25% with limited number of characteristics and a lot of

dublicates

5. >200 active users <50 active users All users in corporate SAP System operate in one IT space and use

centralized unified master data

6. Accounting and Fianance management

(group of business processes)

Automated partly in 2 companies

from 5

Only 1 company had IT system with integration of some specific

processes between Supply Chain and Finance and Accounting

7. Supply Chain Management

(group of business processes)

Automated partly in 2 companies

from 5

Only 1 company had IT system with integration of some specific

processes between Supply Chain and Finance and Accounting

8. Human Capital Management

(group of business processes)

Automated partly in 2 companies

from 5

Only 1 company had IT system with integration of some specific

processes between Human Resources and Finance and Accounting

9. Document management

(group of business processes)

not automated In corporate SAP System OpenText (Document managemant system) is

fully integrated with SAP ERP (Finance, Supply Chain, Project

Management, Human Capital Management)

10. Project Management

(group of business processes)

not automated In corporate SAP System Project Managemant is fully integrated with

Finance, Supply Chain Management

11. Performance Management

(group of business processes)

not automated Performance Management methodoly was an input to SAP system, but

during the project methodology was updated to SAP Best Practice

requirements

12. Top management corporate reporting not automated During the project consultants developed a methodology for company

performance indicators (for each business stream, for each company

and corporate overview)

13. Incident management system not automated During the project consultants developed a methodology and technology

based on SAP Solution Manager and now all incidents in IT are managed

centralized in one place

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Key success factors (1/2)

# Customer efforts Positive effect on the project Positive effect on

Scope Time Budget Quality

1 The choice of a reliable partner INLINE GROUP was chosen as a winner in tender after

1,5 years of negotiations

yes yes yes yes

2 Functional scope was initially clearly defined and fixed in Business

Process Master List (BPML)

Team Leaders and Business Process Owners from the very

beginning better managed their expectations

yes yes yes yes

3 Orientation on result, stick to deadlines and initial project scope The key project goal was set as System Go-Live from 01st

of April 2016 for all project streams and companies. All

efforts of Project Management were focused on this main

goal.

yes yes yes yes

4 Travel and vacation schedule of all project team members (from the

Client and Consultant) was approved from the very beginning of the

project, as well as project governance, communication strategy,

change management procedure and other PMO document were

analyzed in details and approved from the very beginning of the

Project

Better project planning, better management of

expectations, better commination, full openness of any

kind of project documentation for all stakeholders

- yes - -

5 Overview seminars on SAP functionality were organized by

Consultant for all project team at the beginning of the project

All team members from the very beginning learned SAP

terminology, interface, main functions and better

understood Consultants during AS IS analysis

yes yes - yes

Team Leaders and Business Process Owners from the very

beginning understood the most part of SAP Best Practice

scenarios and better managed their expectations

yes yes - yes

6 Use SAP Best Practice instead of custom developments Avoid core SAP software modifications for greater

supportability and lower costs

yes yes yes yes

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Key success factors (2/2)

# Customer efforts Positive effect on the project Positive effect on

Scope Time Budget Quality

7 More than 25% of work time involvement in the Project of top

management from all 5 companies

90% of issues on the levell of top management were

solved during not more than 10 days

yes yes - yes

8 More than 50% of work time involvement in the Project of key

operational leaders and representatives from all departments

90% of issues on the levell of operational management

were solved during not more than 5 days

yes yes - yes

9 Remote access to SAP systems is organized for Consultants Consultants could work 24/7 - yes - yes

10 Approvals of project deliverables were efficient and went according

to project schedule without delays

From the very beginning in Project Charter matrix of

project deliverables with responsible people for agreement,

approvals and signing were approved

yes yes - yes

11 Project office was organized from the first day of the project for all

team members with all necessary infrustructure

Project office capacity made an opportunity to organize the

most part of meetings, trainings, etc.

- yes - yes

12 Employees of the Client not directly involved in the project but

future end users of

SAP system were always informed about SAP project progress and

key

project results

Make SAP Go-Live easier for all stakeholders - - - yes

13 Filling of data migration templates went on time and with needed

quality

Data migration tools and interfaces were tested and

approved in advance

yes yes - yes

14 SAP Quality Assuarance services as a quality gates on project

phases

Before closing each project phase SAP Active Global

Support team provided results of audit with the full list of

detailed recommendations to guarantee that

implementation goes according to SAP Best Practices

- - - yes

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Success story on Nobel Oil group of companies

> 2.5x increase of level of automatization in Nobel Oil group of companies which makes the whole group and each company more efficient in all

levels of management.

> 4x increase in number of print and report forms which are automatically generated from the System, are not editable and guarantee reliability

and precision of numbers.

> 4x increase in number of active system users which turns companies of the Nobel Oil group to the next level of business process quality and

business process organization.

> 5x increase in number of records in master data catalogues, which now become centralized without duplicates and with all necessary and

actual characteristics. Centralized master data catalogues are the key elements for corporate reporting.

> 10x decrease in time of getting reliable data for the corporate reports.

During the Project Nobel Oil not only got the IT system but the wide range of business values which are not measurable at the current moment in

figures but have a huge business effect:

all main business process are reviewed, updated, unified, written in paper and aligned with world best practices;

one single source of reliable information for all stakeholders available any time any where is built;

people from different departments and companies inside the group became ten times closer to each, they have built much stronger relationships

not only in business processes in SAP system but in a real life also.

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Lessons learned – recommendations for beginners in SAP

Choice of Partner (Consulting company) is a key element for success.

Maximum permanent involvement of top management during the whole Project makes the issue solving process more efficient.

Maximum (close to full time) employees participation during the whole Project makes results of the Project more predictable for all stakeholders, people

better manage expectations and at the end System Go-Live becomes easier because people are ready in advance and they clearly now what they get from the

System.

Maximum usage of SAP Best practice saves time, money and makes quality of results much higher in long term prospective neither custom developments

for each case which is specific for a company

Maximum business process standardization among different companies in a group makes group of companies and each company more efficient and SAP

project is a great chance to review and update own business process and procedures.

Maximum standardization of report and print forms makes group of companies and each company more efficient and at the end of the day saves time of

all project team members (from the Client and Consultant) for implementation and future support.

Hardware and System installation should be ready before Business blueprinting phase because during TO BE business process customization it’s better

to check how it will look like in the System.

SAP Active Global Support services before closing each project phase and during the whole implementation gives additional guarantee that phase

deliverables are archived according to SAP Best Practice with high quality.

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SAP Active Global Support during the Project

SAP ActiveEmbedded

Prep for Prod

Exploitation

Business / Technical

Blueprinting

Technical Feasibility &

Functional Check

(TFFC - 28 days)

Implementation Continuous Support of Go-Live

Guarantee Support

Post Go-Live

Support

Project

Prep

QG #1

19.06

QG #2

18.09

QG #3

20.01

Blueprint Draft

ready

10.08

Unit Test

done

24.11

UAT

done

30.03

PROD Setup

done

01.01

20.06.15 18.09.1501.06.15 01.04.16

Go-Live

20.01.16

Technical Integration

Check

(TIC - … days)

SAP Enterprise Support

Technical

Performance

Optimization (TPO)

Business Process Performance

Optimization

(BPPO)

Unit Test Mistakes List

done

14.12

18.07.1601.07.16

Q2 End

01.07

NOW

SAP Security

Infosession

Business Process

Performance Optimization

(BPPO)

Thank You for Your Attention

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