Serena Project Case Study

Sapphire, AtlantaApril 23, 2007

2

Agenda

► Project Mission Statement► Challenges► Partner Selection► Summary

► Scope, Timelines► Best Practices Adapted► Benefits Realized► Kudos

3

Serena’s Project Mission Statement

“Build the foundation for strong business processes through a solid long term enterprise system strategy creating competitive advantages and cost savings for Serena”

► Business Drivers Improve existing business processes and procedures Leverage new system functionality Adopt best practices Improve quality of business data stored Accurate reporting of business data

► Project Goals► Combine Technical and Functional upgrade► Conversion of Fiscal Year variant to be done in one step► Harmonize business process as per requirements of Serena► Cleanse Master Data to facilitate better Information System► Remove redundant and unwanted configuration and programs► Enhance performance of SAP system

4

Challenges

► 4.5B Unsupported version

► Large backlog of support packs, enhancement requests & bug fixes

► Many customizations – no documentation

► Redundancy Multiple redundant ABAP objects – only 127 of 1700 objects in use Redundant Configuration

► Data Quality

Lack of Archival Process

► Convoluted business processes Fiscal Year Variant Revenue Recognition reconciliation Complex Legal consolidation with 17 countries and more than 80

company codes

► Increased on-going costs

5

Partner Selection

► Partner Selection Desire to engage experienced partner Not many options due to new technology Cognizant –

Vendor engaged in R&D Successful assessment study conducted Recommend to move beyond Technical Upgrade Depth of Domain knowledge and Technical

Expertise

6

Summary

Project objective

Background

7

Scope Matrix

BusinessScope

Serena

ModuleScope

Finance Materials Management

Sales & Distribution

IS – Software

Human Resources

GeographicScope

Americas EMEA Asia Pacific

TechnologyScope

ECC 5.0 with DIMP

InterfaceScope

Taxware CBI UPS/Non UPS shipping

Serena Intranet

HR Online

Reports Standard SAP reports

Minimal Customized reports

DataConversions

Master data loads

Open transaction data

B

C

A

F

D

E

G

1 2 3 4 5

8

Project Timelines

9

Best Practices Adapted

► Project Management Course Corrections – Resourcing, Communication Optimum Communication levels

Weekly Core team Weekly Status Review meeting Monthly Steering Committee

Focus on Business Benefits in Blueprint phase Scoping frozen in Blueprint phase Adherence to Change Control processes Capping of FRICE Objects

75 person-days of effort Continuous effort estimation and prioritization done to limit Development

► Teamwork Excellent Team – Onsite, Offshore and Core team Team Chemistry/teamwork (no personal agendas) Rapport/Credibility of Cognizant with with key stakeholders Flexibility from Serena and Cognizant resources

► Executive Buy-in Senior Management Buy-in and Support Monthly Steering Committee Meetings

10

Successful Execution

11

Benefits Realized

► Standardization Migration of highly customized processes to SAP Best Practice standardization

(i.e. Fixed Asset module was 99% customized and is now 99% standardized) Standardized Customer Site Identification numbers.

► Usability Clean system without irrelevant data, reports, configuration, result in

dramatically improved usability.  This has also shortened the time to train a user► Accuracy

Validations and controls built-in prevent incorrect calculations and unexpected results

Automation of exchange rate load prevent errors in loading Order Entry Pricing Conditions re-designed which result in more efficient and

accurate order entry.  This in turn improves business data for analysis Customer Master Data scrubbed which result in improved ability to analyze

customer base► Productivity Improvement

Cleanup of transactional data result in significantly shortened processing time for SAP Revenue Recognition

Combination of Pricing Condition Re-design and Deferred Revenue Recognition re-design result in dramatically improved deferred maintenance revenue recognition process

Automated re-measurement of foreign currency accounts (re-measure from monthly exchange rates to month-end rates)

Development of new chart of accounts and profit centers with contiguous account groups allow for scalability/growth without modifications to existing reports

12

Benefits from Data Cleanup

Before After

82 27

13 1

12 12

8 6

63 4

106 48

8088 < 500

78 4

20000 < 5000

300000 25000

111 40

2283 < 300

2248 < 300

Terms of Payment

Cost Centers

Profit Centers

GL Accounts

Vendor Account Groups

Vendor Records

Customer Records

Currencies

Functional Areas

Posting Period Variants

Document Types

Parameters

Company Codes (Legal Entities across 17

countries

Chart of Accounts

13

Kudos