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Special Feature: SAP America Strategic Alliance Network

by SAP and Partners | SAPinsider

January 1, 2003

by SAP and Partners SAPinsider - 2003 (Volume 4), January (Issue 1)
 
The SAP America Strategic Alliance Network: Engaging with Our Services Partners to Bring SAP Customers Faster ROI and Speed to Business Results


Oliver Schilling, Vice President, SAP America Strategic Alliance Network

>>INSIDE<<
Accenture-SAP xApps Technology Delivers Information, Productivity, and Collaboration Without Complexity

Are Your SAP Systems Delivering Full ROI?

5 Steps for Defining a Strategy and Evaluating Expected ROI on an Enterprise Portal Deployment

How to Spell Value from the Letters in Alphabet Soup

IBM and SAP: More Choices, More Support for Customers Worldwide

Is Outsourcing Your SAP Solution Right for Your Business?

Don’t Forget: Training Tools Are Essential to a Successful SAP Rollout

SAP America’s Strategic Alliance Network (SAN) — Ensuring Successful Customer/SAP/Partner Engagements

If I were addressing you in a live forum, rather than in print, and asked how many of you enlisted the help of our services partners to implement your SAP systems, the vast majority of you would have your hand in the air. And for good reason. The solutions most SAP customers are installing cut across many complex disciplines, requiring the industry know-how of a leading systems integrator and the product knowledge possessed by SAP.

The question that arises is this: How do you ensure both parties work together for the common good of the customer? You, as customers, shoulder some responsibility; the rest must be borne by SAP and your services partner. For your part, you should encourage cooperative project management early in the sales and installation cycles:

  • First, it’s to your benefit to glean their combined depth of industry and product expertise to assure successful, timely implementations and minimize risk, resulting in a high level of customer satisfaction.

  • Second, the collaborative solution development using the best-aligned skills will create the most productive, effective custom-tailored solutions.

  • Third, an efficient partnering relationship offers the depth of organizational skills required to quickly resolve complex problems and effective escalation.

It’s then up to us — SAP and the services partner — to align our contributions and activities in a way that guarantees these benefits materialize through a shared risk model that holds both parties accountable to you for the best solution.

Toward this end, SAP has inaugurated the Strategic Alliance Network (SAN). The program is designed to ensure alignment between SAP’s services partners and the various SAP organizations and programs (see page S-14). It pairs our executives with our partners’ executives; our technical, implementation, and support teams with theirs; and so on. Knowledge sharing, cross-pollination of competency centers, coordinated project management, streamlined implementation, and escalation processes are tightly aligned through this network.

Entry to the SAN is reserved for the thought leaders in their respective industry sectors — partners that you will read about in the pages that follow. In total, more than 100 services partner organizations are now part of the SAN. And therein lies what I consider to be a significant benefit to SAP customers. When you reach a point where you need to expand your solutions landscape, SAP can align you with a services partner who offers the best solution in any particular industry space. Whether you need this type of assistance from us or already have a long-standing relationship with one of these alliance partners in place, the key benefit of the SAN remains the same. You are assured that joint delivery of our respective solutions will be optimized for your business and technical requirements.

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Accenture-SAP xApps Technology Delivers Information, Productivity, and Collaboration Without Complexity


Peter Cheese, Managing Partner,
Human Performance Service Line, Accenture


Christy Bass,
Managing Partner, Global Business Solutions, Accenture

Can your company’s distributors provide their customers with an online product catalog,safety information, order and delivery capabilities, and account management? For example, can a customer order products, schedule a convenient pickup time at the local distributor, and review his or her credit balance online?If not, they should.

To sustain a competitive advantage, companies need to collaborate. And in order to collaborate, companies need to integrate their existing heterogeneous IT assets and extend this integration to business partners, suppliers, distributors, or customers.

Accenture and SAP are collaborating to deliver new enterprise solutions that address real business challenges — integrating product, service, and customer information, sharing critical knowledge in real-time, and freeing employees for more strategic work.

The solution, Cross Applications or xApps, leverages Accenture’s business process, industry, and performance management experience, and SAP’s mySAP Enterprise Portal Platform and its “Drag & Relate” capability, to drive business value and results. These employee tools connect multiple legacy databases into a single, dashboard-like interface. xApps seamlessly integrates with existing SAP enterprise solutions, extending and optimizing the solution’s value. Moreover, xApp maintenance cost is merely a fraction of a customized solution.

mySAP Enterprise Portal Platform Promotes Collaboration Among Applications and Users

The mySAP Enterprise Portal Platform is the single point of entry across all applications. This unified portal environment extends user-centric collaboration, fostering interaction among various applications, business intelligence reports, unstructured documents and web content/services, as well as between the users within the portal environment.

Its unique Drag & Relate capability accesses and correlates information easily. SAP’s unification technology allows xApp users to work between different enterprise information sources on an ad-hoc basis simply by dragging and dropping information icons without interfering with the application.

Accenture and SAP already have five xApp solutions available for energy and chemical industry clients:

Accenture CRM for the Petroleum Industry: Accurate, Efficient Order Delivery
Accenture CRM for the Petroleum Industry provides customer relationship management, plus transaction processing, for petroleum marketers and suppliers. Delivering targeted financial information and conducting secure, paperless transactions, CRM for the Petroleum Industry collaborates among dealers, jobbers, franchises, and commercial vendors. The solution’s capabilities include product ordering, order management, price notification, excise tax calculations, paperless invoicing for fuel-related products, and distance learning and customer maintenance service capabilities.

For example, a local petroleum distributor can order a fuel shipment through the capability’s portal, avoiding a paper fax order and the risk of misplacement, loss, or inaccurate transcription. This solution eliminates facsimiles, printing, postage, and satellites, and can slash administrative labor expenses.

Accenture E and P Portal: Project Management Anywhere, Anytime
Accenture’s upstream collaborative workflow solution provides powerful project- and process-based teaming environments. Through the web-based portal, E and P Portal allows real-time integration of technical, project management, knowledge management, and virtual collaboration applications and data. The solution is flexible and can be adapted to all major upstream areas, including exploration, drilling, engineering and construction, production, marketing and transportation, and enterprise planning and management.

With the E and P Portal, companies have the potential to reduce costs while also raising productivity and reducing cycle time. The solution enables a company’s workforce to:

  • Collaborate faster and more effectively within and across organizations.

  • Access the right data despite rapidly expanding information flows and multiple, inconsistent data sets.

  • Coordinate complex projects within shorter cycle times.

  • Capture and leverage expert knowledge, best practices, and lessons learned.

  • Share results, consistently and adequately, despite multiple organization processes.

For example, E and P Portal allows your team members in different locations, using different data and applications, to collaborate more effectively on everything — from current process status, accessing forms, daily drilling reports, and best practices to current rig scheduling — all readily available and customized to their needs.

Accenture Knowledge Management for Chemicals:
Access Critical Data in Real Time

For the chemical industry, performance means providing valuable knowledge to employees and good service to customers. For example, if employees need to fix steam leakage on a finishing unit, examine a chemical’s testing history for a new application, or answer a customer service call that reports a failing air filter gasket adhesive, they need that knowledge. On their desktop. Now.

Knowledge Management for Chemicals facilitates knowledge sharing across audiences. This Accenture solution seamlessly integrates disparate knowledge sources and databases. Moreover, best practices, customer solutions, product testing reports, and expert advisors are available at an employee’s desktop. Knowledge Management for Chemicals provides information and collaboration among chemical industry maintenance, marketing and sales, engineering, customer service, and R&D segments through portal technology.

Accenture Web Services for Chemical Distributors: Deliver Products Quickly to Customers

The chemical industry needs to leverage its IT assets to help distributors create an easy and efficient customer order-to-delivery system. This xApp solution delivers product information and sales collaboration among chemical industry suppliers, distributors, and customers through portal technology.

Web Services for Chemical Distributors allows a local distributor, for example, to quickly and inexpensively build its own web site and provide full online sales services to its customers. This xApp integrates the supplier and distributor’s order-to-delivery process through the creation of a customizable distributor web site. The portal and site, both hosted by the supplier, allow distributors to provide their customers with an online product catalog, safety information, order and delivery capabilities, and account management.

An independent welder can then access the distributor web site and order gas, goggles, welding gloves, and nozzles, schedule a convenient pickup time at the distributor, and review his credit balance, all at a minimal cost to the distributor. These integrated services provide both a valuable customer service and sales channel for the distributors and suppliers.

Accenture Workstation Performance for Chemicals: Distribute Software Efficiently

Workstation Performance for Chemicals distributes software with personalized efficiency tools to specific workstations, reducing unnecessary software license fees by 15-30% and boosting workforce productivity. It also helps the chemical industry deliver information among sales, accounting, other business segments, and newly acquired businesses.

Workstation Performance for Chemicals standardizes desktop applications, providing a common “frontend” to all staff. This xApp solution also provides standardized desktop applications independent of the hardware, avoiding computer hardware replacement and costly integration of newly acquired companies. Workstation Performance for Chemicals’ remote software distribution capability might supply accounts payable software only to accounts payable computers, limiting licensing fee charges. And from this accounts payable portal, staff can easily track a purchase order through every stage.

Accenture and SAP Deliver xApp Solutions Through Global Alliance

The new xApps technology harnesses the SAP-Accenture Global Alliance and integrates business processes, business intelligence, knowledge management, and web content and services management to address real business challenges.

Leveraging Accenture’s global resources, innovative solutions, deep industry experience, and proven SAP skills, these xApps help clients mobilize their extended workforce, enabling them to execute at scale to sustain competitive advantage.

For more information, visit Accenture
at www.accenture.com.

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Are Your SAP Systems Delivering Full ROI?
BearingPoint’s Five-Phase Approach Will Help You Maximize Return on Investment Across the Value Chain

 

How do you measure the performance of your SAP-based process models to gauge whether or not they are achieving the intended ROI? How do you identify areas within your organization with the greatest opportunity for operational effectiveness and improvement? And then how can you align IT investment with strategic business direction?

Enterprise Value Creation

Enterprise Value Creation is a comprehensive framework of business tools that provide enterprise executives with visibility into all aspects of their organizations. From this vantage point, it is possible to see clearly what impact an initiative in one area will have in other areas. The strength of this approach lies in its ability to identify, quantify, and prioritize corporate initiatives that have the greatest potential to deliver both near-term results and long-term value.

Enterprise Value Creation consists of five phases, shown in Figure 1, that allow SAP customers to look at their processes objectively, with a financially sound perspective:

Figure 1 BearingPoint’s Five-Phase Enterprise Value Creation Framework

Phase 1: Value Identification
Value Impact Analysis is composed of a series of highly focused discovery and assessment activities designed to help SAP customers identify potential areas for financial and operational improvement. Using both proprietary tools and standard analysis processes, it is possible to measure an enterprise’s Key Performance Indicators (KPIs) against those of peer companies and to rank each company’s relative performance for each metric.

Phase 2: Operational Strategy
This phase delivers a Value Chain Blueprint, or operational strategy, for the enterprise. The goal is to provide decision makers with a planning framework for SAP initiatives as part of an overall enterprise-wide process that lays out the financial arguments justifying cost and risk.

Phase 3: Value Optimization
This phase develops a Value Realization Roadmap that incorporates the quantification of costs, risks, and benefits, including efficiency gains, cost takeout, legacy systems reductions, and working-capital investment reductions. Because the Roadmap maintains an enterprise-wide view, it not only defines prioritized initiatives that can lead to measurable financial benefits, it can also help build a supporting business case and ROI model for each opportunity.

Phase 4: Accelerated Return on Investment
In response to demands for rapid results and return on investment, BearingPoint has developed R2i® Rapid Return on InvestmentSM, a series of delivery methodologies and pre-configured operational solutions to meet near-term business requirements, while providing flexible platforms to enable the swift deployment of incremental capabilities and the realization of additional benefits.

Phase 5: Value Tracking
The final step of the Enterprise Value Creation framework is developing an ongoing set of checks and balances to help the enterprise continue to realize incremental value over time. The Enterprise Value Scorecard provides the means to measure and monitor the solution effectiveness of multidimensional projects and initiatives across an enterprise.

In this sense, the scorecard is not a single “final” phase, but rather a linear process that provides correctional feedback for continual performance improvements throughout the life of an initiative.

Use Enterprise Value Creation to Pinpoint Areas of Higher- Impact ROI
BearingPoint has a focus on evaluating current SAP environments and seeking areas to best leverage existing investments. Consider the following mySAP solution areas, which require only minor expansions of your SAP footprint, yet deliver high-impact returns:

Customer Relationship Management
Our approach is unique. It’s not about implementing SAP CRM, the software. It’s about frontend-to-backend process implementation, of which CRM is a part — effective integration of customer demand, inventories, and suppliers in a way that’s unique to your business. This requires people, process, and technology integration. For lasting value, SAP CRM and other elements of SAP software must be integrated with other applications in an overall framework. In some instances, your existing investment in R/3 or BW may be used to solve a customer-facing process issue. BearingPoint’s Configure To Fit® solution selects various elements of the SAP software suite, along with other software, to meet your unique enterprise requirements.

Enterprise Portals
BearingPoint has provided significant returns for many leading companies, such as implementing an enterprise financial portal with access by over 220,000 employees, an employee self-service portal with over 6,000 global employees connected via a single system, and the implementation of one of the first “collaboration business packages” linking suppliers to the production forecasting capabilities of SAP.

Human Capital Management
Implementing more than SAP Human Resources, we concentrate on business process reengineering, benchmarks, package selection, business case development, outsourcing, global strategy development, and SAP configuration. Working very closely with the American Payroll Association, we identify best practices to help support our clients.

APO
Our approach to APO at BearingPoint is to focus on the fundamentals of supply chain management and use APO as a key enabler to these processes. We work with our clients to understand current strengths and weaknesses in their supply chains, and help them establish solid supply chain management practices within their organizations before we configure the technology. Once this foundation has been established, our industry-based practitioners have the practical experience and know-how to tailor APO specifically for the client’s situation and deliver maximum value.

With over 3,200 professionals dedicated to mySAP.com and more than 1,100 successful SAP implementations, BearingPoint is truly a global player in SAP implementations. Our 18-year alliance with SAP, an average of 13½ years of industry experience, an 85% SAP personnel retention, and global footprint positions us well for all SAP customer needs.

Are your SAP systems delivering full ROI?

To learn how your company can benefit from Enterprise Value Creation and various other solutions, please contact us at 866-276-4768 (1-703-747-6748 from outside the US and Canada) or visit our web site at www.bearingpoint.com/sap-roi.

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5 Steps for Defining a Strategy and Evaluating Expected ROI on an Enterprise Portal Deployment

Adolf S. Allesch, Vice President,
Cap Gemini Ernst & Young

The current generation of portals has emerged as the key enabler for all business processes in the enterprise. As a result, portals have become the central component of a comprehensive growth framework that Cap Gemini Ernst & Young (CGE&Y) has identified as the Adaptive Enterprise. An adaptive company strategically harnesses technology across the organization to effectively identify and respond to ever-changing market dynamics and customer requirements. Enterprise portals are an ideal enabler for the adaptive model because they provide for the integration of multiple systems on one desktop, access to enterprise information any time and through any device, ease of use through browser-based applications, and the ability to optimize any of the new web-based business processes that are currently in development.

Portals are central to the IT infrastructure that all enterprises are moving toward, and getting there before your competition is possible. But how do you get started? Is it most important to improve the connectivity with your customers, or is it more worthwhile to enable collaboration on a real-time basis with suppliers? Should you focus internally, in terms of employee relationship management? Or some combination? All of these initiatives are relevant, and all of them can potentially generate tremendous value for your organization.

CGE&Y is the first systems integrator to address questions about strategy and ROI with a 5-step process and a set of tools to help clients define, predict, and measure the value of a proposed portal initiative, enabling the development of a strong, strategically sound business case.

Step 1: Take the Portal Index
The first step is to take an inventory of your current situation. To simplify the process, CGE&Y has developed a complimentary tool called the Portal Index. On the Index, all the major features and advantages of the newest portal technology are keyed to nine quadrants along two axes (see Figure 1). The horizontal axis represents connectivity: How do your employees, suppliers, and customers connect to you? Is it single sign-on? Can they do it from a workstation, a mobile device, a kiosk at the airport? The vertical axis represents your operational effectiveness: How well does a transition address your business needs? Do you have all the relevant information?

Figure 1 The Portal Index plots your company in relation to your current level of connectivity and operational effectiveness. Where you land relates to your potential ROI. The goal is to get to the Adaptive Frontier, and ultimately, the Adaptive Enterprise.

The 40 questions accompanying this framework gauge how your company handles its basic processes. For example, if most of your daily transactions are handled with a multi-step process through systems that are not integrated, you would score very differently than a company that is doing all the same functions through desktop alerts, single-click, and workflow.

Step 2: Evaluate Your Position
Using your answers, CGE&Y charts your position on the Portal Index. The picture that emerges allows you to quickly assess where you rank in any operational area or connectivity dimension. By analyzing your current position and goals with you, we can help you determine where to focus for the greatest benefit in a portal implementation.

Step 3: Confirm Total Potential Ownership
After determining your needs, we will work with you to develop a strategy and a business case for implementation. The Portal Index is built to return a potential ROI figure based on the scores of other companies that have been indexed. A portal also delivers a strong economic benefit in terms of total cost of ownership by creating a standard within the enterprise and a foundation that can be built upon easily in the future. Over time, this results in fewer “moving parts” in your IT architecture — less to manage, less to support — and therefore a lower total cost. When you’re able to better utilize assets such as people, products, and production capability, you get better return on them. The return on those assets with an enterprise portal is measurable today in orders of 400-500% on the portal itself in the first year alone.

Step 4: Look at Key Competitors
By benchmarking you against your industry peer group, the Portal Index also shows where you’re positioned against key competitors. This information helps in further determining your projected ROI and prioritizing your portal strategy so that you start your implementation at the proper level for your competitive situation.

Step 5: Proof of Concept and Proof of Value
With the results of the Portal Index and a roadmap in hand, some clients choose to proceed straight to implementation. A more viable path for others is a beta test phase. To get a portal solution up and running quickly and efficiently, CGE&Y has partnered with Hewlett-Packard to offer a pilot program to rapidly set up the infrastructure and launch the first release of an employee, customer, or supplier portal. This “Rapid Access” solution demonstrates the capabilities of third-generation portals in your own environment, providing a proof of concept that can later be implemented on a larger scale.

Rexam Beverage Can Americas (BCA), with 17 plants in the US, a wholly owned subsidiary in Brazil, and a joint venture in Mexico, is a division of the world’s fourth-largest consumer packaging company, Rexam PLC. In February 2002, Cap Gemini Ernst & Young (CGE&Y) began work on the implementation of a mySAP system for Rexam BCA’s core sales and production operations. An enterprise portal was included in the 10-month go-live schedule. Based on Rexam BCA’s larger goal to drive new levels of collaboration with its suppliers and customers, CGE&Y proposed an accelerated project to deliver the supplier portal component in 10 weeks and maximize the value of the SAP Purchasing system that has been in use at Rexam BCA for three years.

After Rexam identified four strategic suppliers to participate in their initial SAP Portal offering, CGE&Y worked closely with a group of representative users from Rexam and the suppliers on the portal’s design. CGE&Y conducted a 1½-day “Rapid Design Workshop” to demonstrate a working SAP Portal prototype. This facilitated the participants in determining the desired functionality of the Rexam Supplier Portal, which was delivered on schedule from start to finish in 10 weeks. With the Supplier Portal environment established and functioning, Rexam BCA can now turn its focus to the Customer Portal.

“CGE&Y understood our goal to use information technology to deliver exceptional customer and stakeholder value. Our SAP Portal efforts are a key component of our strategy to deliver that value through e-nabled collaborative business processes within our value chain. Although a longer-term SAP Portal project was underway, CGE&Y presented us with a business case to realize immediate value from our SAP Portal investment. Together we outlined an accelerated project that would launch Rexam BCA and a few of our strategic suppliers into a new way of collaborating through SAP Portals much more quickly than we expected,” says Paul E. Martin, CIO, Rexam Beverage Can Americas.

If you choose to substantiate the benefits in more detail, CGE&Y provides an ROI Calculator service to perform a more in-depth proof of value or total cost of ownership assessment. To date, more than 100 clients have taken advantage of CGE&Y’s services to obtain a more detailed financial analysis.

Getting Maximum Value
From the initial assessment to a business case that outlines the fiscal, technical, and political priorities at hand, CGE&Y prides itself on helping clients achieve their goals faster and at less risk. As a longtime SAP partner, we are adept at helping clients implement portals to leverage previous IT investments and maximize them through future ROI. In our view, companies that strategically take advantage of the robust functionality available in the enterprise portal platform are the ones that will ultimately get the most value from all their investments in enterprise information.

To receive a free, emailed copy of CGE&Y’s Portal Index questionnaire and submit your answers for evaluation, or to arrange a free consultation on CGE&Y’s ROI Calculator service, contact CGE&Y at acceleratecenter@cgey.com or 877-223-8383.

To learn more about how to make the case for enterprise portals or to order a CD-ROM about CGE&Y’s services and solutions for SAP, visit www.us.cgey.com/alliances/sap.

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How to Spell Value from the Letters in Alphabet Soup By the Consultants of Deloitte Consulting (Soon to Become Braxton)

 

Way back when, there was MRP. Then there was ERP. Then came SCM, CRM, B2B, PDA, SEM, and EE ... a veritable alphabet soup of consultant-speak. This endless pipeline of “latest greatest things” has left many executives wondering, “In a dizzying world of initials, how do you find real value?”

One way is to look for consulting partners who have a track record of doing what’s best for their clients. Fortunately, they’re really easy to spot. They’ve been around a long time (57 years in our case), and they have a list of quals and references a mile long. They also practice what they preach, transforming their own organizations when necessary to preserve the quality and integrity of the client-consultant relationship.

It’s also a good idea to find consultants who are a little beaten up instead of fully buttoned down. Ones who have clearly been spending a lot of time with their sleeves rolled up, building tools and solutions and testing them to see how they can improve ROI.

Over the course of its 12-year relationship with SAP, Deloitte Consulting (soon to become Braxton) has spent many long nights in the workshop. Although our work encompasses all of SAP’s business solutions and key industries, the latest fruits of our labors include:

I/S Beverage
SAP and Deloitte Consulting, a global certified integrator of the mySAP Beverage Industry Solution, have been teaming up all over the world to provide ERP relief to beverage companies. Our focus has been on helping companies to quickly gain efficiency benefits from I/S Beverage and on jointly developing country-specific SAP Beverage solutions to accommodate the unique tax laws and invoice delivery requirements of different nations.

As part of this effort, we are jointly developing localized versions of mySAP Beverage for Brazil, Japan, and Korea. In addition, we have deployed an industry process mapping tool, Beverage Industry Print, which accelerates process re-engineering by enabling companies to easily compare their operational practices with those of best-in-class beverage industry companies. We have also rolled out a business case tool, Beverage ValuePrint, that assesses the ROI of implementing the SAP software suite.

If you’d like to apply these tools to your situation, we have the resources to respond. At the time of this printing, Deloitte Consulting has more SAP-certified beverage industry practitioners globally and more active clients in the beverage industry than any other integrator/consulting firm.

Outsourcing
You’ve probably heard the buzz. The Extended Enterprise — the concept of gaining competitive advantage by linking a growing web of customers, business partners, and suppliers — is the next new thing. But a key component of this strategy involves a tactic that’s been around for years and that still hasn’t lost its shine: outsourcing.

We have developed two SAP outsourcing models that help companies to achieve one or more of the many proven benefits of outsourcing: lower operating costs, improved cash flow measures, better system efficiency, greater organizational agility, and strategic advantage.

The first is the Design-Build-Run model. With this model, we work with you to design, build, and implement the SAP applications and processes, and execute a service contract (typically for 3-7 years) where we take ownership of the maintenance and operations of the systems for post go-live support.

The second is the Business Transformational Outsourcing model, which encompasses all of the above while adding a financing option. This option takes the costs associated with SAP application development, implementation, and maintenance and spreads them out over a long-term agreement. This approach reduces up-front capital expenditures and accelerates return on investment.

Many experts will tell you that the trick of the trade in the outsourcing business is flexibility. By combining our deep knowledge of SAP solutions with our extensive business function competencies, we gain the agility needed to handle any-size piece of the outsourcing puzzle.

Don’t Forget the Prize Inside

From global strategies and operations to industry economics and financial structures, Deloitte Research conducts cutting-edge studies to give you a leg up on how changing market forces and rapidly evolving technologies will affect your business.

To download free copies of these reports, please visit us at www.dc.com/research.

We’ve also published a series of books dedicated to making sense of the alphabet soup and making your relationship with your consultants more positive and productive.

To order your copies of

  • How to Get the Most Out of Your Consultant

  • How to Eat the CRM Elephant and

  • Outward Bound (A practical guide to building an Extended Enterprise)

  please visit us at www.dc.com/straighttalk.

Supply Chain Management
At first glance, CRM and SCM don’t seem to have much in common. After all, “C” stands for customers and “S” stands for suppliers. But like Batman and Robin, these two really do need each other. Why? CRM can’t achieve total customer satisfaction unless the right products are delivered at the right time to the right customers. Businesses everywhere are realizing that they must have tighter integration with their suppliers to better fulfill customer needs.

As part of our SCM initiative, we are assisting SAP in developing the SCM APO solution at their headquarters in Walldorf, Germany.

That’s why SAP and Deloitte Consulting have come together to make SCM a top strategic priority. As part of our SCM initiative, we are assisting SAP with developing the SCM APO solution at their headquarters in Walldorf, Germany. In addition, we have developed an Opportunity Assessment tool, which helps companies to determine their readiness for implementing APO. We have also introduced a methodology tool, SCM Roadmap, that details the implementation process and pinpoints where the value lies.

In fact, we believe so intensely that SCM and CRM are made for each other that we’ve gone the extra mile to develop an SAP-powered prototype — DC Chemicals — that brings the value proposition of this dynamic duo to life. Via real-life scenarios, DC Chemicals ties together several CRM and supply chain best practices to illustrate how businesses can leverage the full suite of mySAP.com components to solve specific business problems. Although DC Chemicals was originally process-industry oriented, we are currently developing templates to transfer what we’ve learned through this piloting process to other industries.

For more, straightforward information about creating value, please visit us at http://www.dc.com/extendedenterprise.

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IBM and SAP: More Choices, More Support for Customers Worldwide

With more than 30 years of collaboration, innovation, service, and leadership behind it and over 5,000 installations to its credit, the IBM and SAP alliance has remained one of the more enduring associations in the industry. The combination of IBM’s leading e-business infrastructure and extensive industry, IT, and business consulting capabilities has proven to be an ideal complement to the mySAP.com e-business platform.

These competencies took a major step forward with the announcement that IBM had acquired PwC Consulting, the consulting and technology services arm of PricewaterhouseCoopers and a leading provider of SAP services. The move has resulted in a new IBM global business unit, IBM Business Consulting Services, which brings together more than 60,000 professionals in 160 countries, as well as superior track records in helping customers leverage what IBM and SAP bring to the table.

The new organization is further fortified by IBM Global Services’ known capabilities in areas like IT consulting, systems integration, application management, strategic outsourcing, and hosting, which can furnish additional support before, during, and following implementations.

The formation of IBM Business Consulting Services — now the world’s largest consulting organization — will give SAP customers even more choices with an expanded, tightly integrated portfolio of industry-specific solutions and services, a larger reserve of intellectual capital (more than 11,000 professionals dedicated to SAP), and in-depth experience in a wide range of industries. IBM solution and delivery centers, plus the company’s global Centers of Excellence, add another important dimension to IBM Business Consulting Services’ capabilities in the SAP arena.

IBM and SAP are quick to point out that various sectors bring with them various — and very specific — demands. Customers concur. Notes Lutz Schroeder, Application Development Manager, Toyota Informations-Systeme GmbH, “The automotive sector poses numerous special challenges, but in SAP and IBM we have two strong partners with whom we’re happy to meet those challenges.”

For example, the IBM-SAP International Competence Center (ISICC) offers technical expertise at the SAP Partnerport in Walldorf, Germany, at the Center in Japan, or at customers’ sites. Over the past several years, the ISICC has conducted briefings for hundreds of executives from companies around the world. Each of these sessions is customized to meet businesses’ individual requirements, and typically includes technical briefings by world authorities in a particular area.

“By implementing SAP, the World Food Programme achieves a new level of operating efficiency. The implementation consolidates business information contained in legacy applications into one place, fully accessible, even from many of our remote locations around the world. With IBM’s help as the implementing partner, the WFP now has one authoritative, consolidated information repository that allows us to be more responsive to our donors and, more important, better at delivering food to the hungry poor the world over.”

Ken Herman,
CIO and Director, Information and Communications Technology,
World Food Programme, the United Nations

The Best of Both Worlds...Now Better

The IBM and SAP alliance focuses on projecting and delivering results for customers across industries, at every stage of e-business development. This strategy is designed around helping customers create and implement synergetic, “end to end” working environments that reach beyond proprietary platforms and address the overlapping challenges of effectively blending business, industry, and technology requirements. Another important plus for customers: IBM continues to make it easy for companies to bundle and finance all the elements of their IBM and SAP solutions through IBM Global Financing.

From enterprise resource planning, supply chain management, and customer relationship management to financial management and human resources, IBM and SAP take a proactive approach to helping companies address both the tactical and strategic concerns associated with daily operations, and the never-ending challenges of alleviating cost, managing risk, realizing a faster ROI, and increasing effective interaction with customers. “Companies today are looking for real returns from their IT investments. They want to create dynamic, highly collaborative environments that enable employees, suppliers, partners, and customers to detect and react to changes in the business climate based on today’s — not yesterday’s — information,” says John Leffler, IBM Business Consulting Services, SAP Global and Americas Leader.

Clearly, IBM and SAP place a tangible premium on listening to their customers.

 
In addition to IBM Business Consulting Services, SAP customers can dip into any number of resources afforded by IBM Global Services — an international pool of intellectual capital, skills, and solutions that extends to every aspect of e-business design, deployment, and support. Service offerings include Application Management Services, Integrated Technology Services, Strategic Outsourcing, and On Demand Innovation Services, among others.
 
For more information on the IBM-SAP alliance please visit ibm-sap.com.
 

IBM recently completed its acquisition of PricewaterhouseCoopers’ global management consulting and information technology services business, PwC Consulting. As a result, PwC Consulting is no longer a part of the PricewaterhouseCoopers network of firms, and is now a part of the IBM Global Services business unit. Accordingly, all references to PwC Consulting or PwC in this document should be deemed to be references to IBM Global Services. IBM (including IBM Global Services) and PricewaterhouseCoopers are not the same organization, and neither governs or is affiliated with the other, or any affiliate, subsidiary or division of the other.

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Is Outsourcing Your SAP Solution Right for Your Business?

When Solvay America, Inc.’s Vice President Information Technology, Ben Gilbert, wanted to improve performance and availability of the company’s SAP application, he determined that the most strategic course of action was to look outside his organization.1

“We had been installing SAP for three or four years and needed to make the transition from a development mode into a maintenance mode... I liked the outsourcing business model...things were remarkably better from the very first second... we now have a much more predictable services IT organization... I’ve reduced my direct operating expenses... by 20 to 25 percent.”2

Whether or not your organization faces challenges exactly like these, you undoubtedly spend a significant amount of time and effort installing, managing, and supporting your SAP applications. So, is outsourcing right for you?

It may be if you’re considering an upgrade or you’re having trouble finding or retaining SAP technical personnel. Are you under pressure to reduce your operating costs? Do you want or need new hardware? Do you need 24x7 support? Are you unhappy with your system availability or frustrated with the speed of your SAP transactions? Are you uncomfortable with your DR solution? If you answered yes to any of these questions, consider outsourcing.

Outsourcing can reduce your operating costs, enhance technical capabilities, and improve performance and service:

1. Better service. Application outsourcing solutions are customized and tailored for each customer’s specific needs and requirements. This ensures optimal business efficiency across all levels of the technology infrastructure. When a problem does occur, certified technologists have extensive experience in performing upgrades, changes, and fixes. A dedicated support staff provides 24x7 customer service.

2. Faster performance. A qualified outsourcing partner delivers focused expertise in sizing and deploying the actual application, thus avoiding the false starts, delays, and other mistakes that can derail implementation. Ongoing system monitoring and tuning ensure maximum availability and efficient operation.

3. A more cost-effective solution. For new applications or where hardware needs updating, applications outsourcing obviously reduces up-front capital expenditures by eliminating the need to invest in new hardware. But that’s usually just the tip of the iceberg; outsourcing also lowers the ongoing operational expenses that contribute to total cost of ownership (TCO).

Once you’ve decided to outsource, selecting the best service provider is just as important. So, if you have SAP, consider BlueStar Solutions, the leading provider of SAP outsourcing services. We’ve done more than 75 migrations, 30 upgrades, and currently support more than 215 instances of SAP for our customers.

Our strong track record is reflected in our more than 50 customers and 35,000 hosted users worldwide, including eBay, Autodesk, Akzo-Nobel, Electroglas, National Oilwell, North Carolina Department of Transportation, and Solvay. Our guaranteed service delivery through our SLAs has resulted in 99.9% aggregate applications availability since June 2000. And, we save customers up to 30-40% of their IT operating costs.

So, should you outsource? If your SAP application is critical to running your business, having an outsourcing expert like BlueStar Solutions ensure its success is probably the best decision you could make. After all, you wouldn’t consider building your own house or performing your own surgery would you?


1. Solvay is a leading global chemical and pharmaceutical manufacturer.

2. International Data Corporation, Financial Impact of ASPs, September 2001.

 

Learn more at www.BlueStarSolutions.com.

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Don’t Forget: Training Tools Are Essential to a Successful SAP Rollout

A new SAP system, component, or technology is only as good as the people who use it. Acceptance of every new SAP system hinges on clear, focused end-user training. To achieve the proper results, end-user education initiatives must include a thorough evaluation of your organization’s training needs, opportunities, and supporting processes.

In our years of consulting for SAP customers, we have found the following training principles to be indispensable:

Begin with a business (not training!) blueprint.
Analyze your organization’s current business processes. This will reveal critical information about your internal and external operations. The implementation team can then forge a connection between the company’s unique business processes and correlated SAP processes.

Ensure the SAP trainer is appropriately trained.
This is a simple measure that is often overlooked. Most users find themselves frustrated due to lack of proper training, so make sure that training for the trainers is well provided for, with access to as many internal resources as possible. Help trainers develop the necessary skills for understanding the varying learning styles of employees and act as a resource for those still learning their system, and be sure to create materials that trainers can deliver to end users in several different forms, including end-user publications, stand-up training sessions, and online tutorials.

Be sure to include self-paced, online user education.
With a diverse palette of departments utilizing an SAP system, some end users will become savvy more quickly than others. With a self-paced education, employees can learn on their own time and at their own pace. With this option, users can access hands-on training media that reinforces their training, or even refreshes their learning simply by watching the correct way a procedure should be executed.

After any new training program is complete, continued support is essential.
For proper maintenance of an effective training program, updates to existing training materials will be necessary as you upgrade and change your configuration.

With training in place for employees, new users, new hires, or acquired employees, end users can be assured of a thorough understanding of their SAP system, and can gain the tools they need to maximize the benefits of running SAP.

Steven Niesman is the Chief Executive Officer of itelligence, Inc., an SAP Consulting and Channel Partner and wholly owned subsidiary of German parent company itelligence AG, an international consulting company with a global presence in 18 countries and 44 branches. Niesman holds an MBA from the Kellogg Graduate School of Management at Northwestern University.

itelligence Consulting™ offers a broad range of consulting services and customer support options, including call center, outsourcing, and training services. itelligence Consulting provides its customers with the it.education program, which includes basic and tailored SAP courses, Train-the-Trainer courses, and self-paced online user education courses.

For more information, visit www.itelligencegroup.com.

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SAP America’s Strategic Alliance Network (SAN) — Ensuring Successful Customer/SAP/Partner Engagements

A Q&A with Dan Wiley & George Marengo

What assurances do customers have that a joint SAP/Partner engagement model will progress smoothly, and yield the ROI they seek? If the partner you choose is a member of SAP America’s Strategic Alliance Network (SAN), you can proceed with confidence. What the SAN delivers and when, why, and how customers can benefit from its offerings, is what we asked SAP’s Dan Wiley and George Marengo.

What, exactly, is the Strategic Alliance Network (SAN)?
The Strategic Alliance Network, better known as the SAN, is the organization responsible for the business relationships with our services partners across the United States. Our mission is to engage with our services partners on a national level to create greater business value for our mutual clients through our collaborative efforts.

Let’s explore “business value,” since that is on the mind of everyone today. What value do you add to your customers by working closely with your partners?
There are many examples of the value-add our customers attain by working closely with our partners. Our ongoing partnership with Deloitte Consulting (soon to be Braxton), for example, has measurably bolstered the ROI of implementations of the mySAP Claims Management solution in the insurance sector. Another example is the market positioning SAP has with PwC Consulting (now IBM Global Services) for the mySAP Oil & Gas solution in the energy sector. And our work with CGE&Y has produced unprecedented time-to-solution timeframes — less than 5 months in some cases — for the mySAP Enterprise Buyer Professional solution.

In all cases, by drawing from the combined expertise and best practices of both the partner and SAP, not only were customers presented with a faster time-to-solution and a better ROI, but they also experienced a better solution as well. These types of joint engagements are replicated across all of the 21 industry solutions SAP has developed and supports.

So if you create synergy by working together building solutions, what guarantees do these solutions offer your customers?
The bottom line is less risk! Implementing complex, high-value industry solutions is a treacherous art form. It’s subject to all sorts of risk. Lots of mitigating factors stand in the way of customers and the enterprise solutions they set their sights on. The SAN, in achieving very tight alignment between SAP and our services partners, eliminates many of those risk factors for our clients. In streamlining a cooperative engagement, our customers are assured that resources from SAP and those of our partners are brought to bear in a well-coordinated, high-yield fashion. This is a critical project prerequisite.

We ensure that the knowledge and best practices of our industry strategic partner community is best leveraged in three ways:

  • A Solution Offering & Market Development program, which tasks the SAN to determine which partner has the greatest influence and success across an industry, and then aligns SAP with that market leader to develop industry solutions that provide the quickest ROI and business value for our mutual clients.

  • The Partner Alignment Opportunity Session (PAOS), which follows a well-defined process for engaging with a partner for opportunity planning and understanding the critical success factors for a client, and then determines how best to position ourselves jointly as a single team when developing and presenting our combined solution to a mutual client.

  • The Global Alliance Accounts (GAA), which focuses on specific companies whose purchase of SAP solutions crosses national boundaries, and who are considered strategic market leaders whose implementation could be leveraged across their entire industry.

Let us further explain. Our Solution Offering & Market Development program leverages SAP and our partners’ industry best practices to create solution offerings that drive and create business value, meet and exceed customer needs and expectations, give our customers a competitive advantage, and provide short-term ROI.

These solution offerings may be as straightforward as joint development of product demonstrations, collateral creation, or larger investments that produce a quick go-to-market software solution like xApps (see the Accenture article on page S-2). In each case, these offerings are designed to drive business value in the shortest amount of time with the maximum amount of value and benefit to our clients.

The SAP Partner Alignment Opportunity Session (PAOS) is a focused effort on a customer’s needs based on the mutual industry expertise of SAP and our partners. We bring together the SAP virtual account team (Industry Experts, Sales, PSO, Alliances, etc.) and our industry strategic partner team (Client Service Partners and Industry Directors) to determine the greatest ROI and business value for a specific client by following a best practices approach and methodology. These planning sessions are designed to create an opportunity plan to drive business results for our prospective customers in an industry, and focuses on mutually agreed upon account alignment, identification of business challenges, critical success factors, and a plan to deliver results to that prospective client.

The value of PAOS is recognized in these steps:

  • First, an agreed-upon industry strategic partner is chosen industry-wide.
  • Second, we gain executive alignment between SAP executives and our services partner executives.
  • Third, PAOS creates value through the development of a client needs assessment and solution build-out.
  • Fourth, a uniform and consistent account planning methodology and process is followed, based on a pre-defined best practices template.
  • And finally, speed to business results and value is created and then presented to our prospective client, creating a greater speed-to-market and faster ROI for them specifically.

Each opportunity considered, whether SAP- or partner-initiated, will include a uniform opportunity planning and engagement model addressing expectations for implementing an SAP industry solution. While our clients ultimately decide who will implement the SAP solution, the key element in this model is a commitment to jointly develop a solution with our partner to deliver business value (ROI) to our clients in an industry.

Another initiative is account-planning sessions for our Global Alliance Accounts (GAA). The GAA plan creates a joint SAP/Partner account plan that focuses on both near-term opportunities and long-term joint strategy to create value for a specific customer. The SAP/Partner GAA teams create an initial account plan, which is revisited approximately 4-6 times a year for progress. These global account planning sessions are similar to PAOS. While PAOS is an initiative to help our customers and partners drive value across an industry, GAA is a program we have put in place to help specific global accounts. The GAA process is also similar to PAOS in that it incorporates the SAN and partner best practices as well as an agreed-upon account planning methodology.

A GAA account planning session focuses on SAP’s most strategic accounts. The objectives of this session are to:

  • Create an account-specific engagement model
  • Align and coordinate a global virtual team
  • Present the business landscape, challenges, opportunities, organization, etc.
    • Partner point of view into the client
    • SAP point of view into the client
  • Create a joint strategic direction, including milestones, revenue targets, and personal commitments

Let’s talk about where the rubber meets the road. We know that what gets measured gets results. So how do you measure your results?
While these programs are critical to our success, you’re right in that we have to measure what constitutes success in an industry or an account. To that end, SAP places significant value in choosing our strategic industry partners. Success of our services partner engagement model will be measured through key performance indicators, or KPIs, which directly relate to our success across the 21 industry solutions SAP supports. Some of the key measurements are:

  • Customer satisfaction
  • Joint referenceable customers
  • Solution development by industry (competency centers, etc.)
  • Number of SAP/Partner engagements — by industry
  • PAOS sessions — by industry
    • Initiated jointly by SAP and Partner
    • Partner initiated — net new customers and licenses
    • Partner influenced

The bottom line is we don’t win if our customers and partners don’t win. The SAN is a dedicated organization that measures its results based on customer and partner satisfaction. We know that our customers have a need for their enterprise business applications to achieve specific results through a lower total cost of ownership, while providing the broadest functionality available. Through relationships with partners who are industry experts and have established best practices, a common understanding of business drivers, and a goal to achieve results, the SAN provides the value-add necessary to deliver on the results our customers demand.

So customers who work with the SAN can expect faster time-to-market and greater ROI?
Absolutely!

How should customers take advantage of these programs and partnerships in the SAN?
If customers have questions regarding who the SAP strategic industry partners are, or have questions on specific partners, they need only contact one of two representatives: the SAP Sector Alliance Manager or the Partner Alliance Manager.

SAP Sector Alliance Managers can help answer questions like:

  • Who is the strategic services partner serving my industry, and why?
  • What are the new products or jointly developed solutions geared specifically to my industry?
  • What are the industry-specific examples of short-term SAP implementations that yield increased ROI and value?
  • What are some industry success stories that can also work for my company?
  • How can I best leverage the SAN to understand the right partner based on my current business drivers?

SAP Sector Alliance Managers can help you determine the right partner in your industry.

SAP Partner Alliance Managers can help create the organizational alignment within the partner organization and answer questions like:

  • What solution offerings does a specific services partner provide, and where do they excel?
  • Where has the SAP/services partner relationship seen the most productive investments for customers?
  • What are up-and-coming initiatives this services partner has for my SAP landscape?
  • Are there success stories with this services partner that could benefit my company?

If you already know the partner you want to work with, the Partner Alliance Managers can help answer your questions.

Whatever a customer needs, the SAN is committed to providing the number-one business relationship for them and our services partner community alike. We are confident that the successful rollout of our new business engagement model will help to ensure a “win/win/win” result for our customers, our services partners, and SAP.

Industry-by-Industry Alliance Contacts Contact Phone Number Email
Sector Alliance Manager, Vice President Dan Wiley (650) 287-3729 Daniel.Wiley@sap.com
Consumer
East Matt Glitzer (201) 222-1722 Matthew.Glitzer@sap.com
  West Joe Raszewski (949) 622-2258 Joseph.Raszewski@sap.com
Manufacturing
Chemical
Pharmaceutical
Todd Logan (610) 661-8043 Todd.Logan@sap.com
  Mill Products
Oil & Gas
Konnie Daglis (404) 943-3026 Konnie.Daglis@sap.com
  Aerospace & Defense
Automotive Engineering & Construction
Ned Peller (972) 868-2118 Ned.Peller@sap.com
  High Tech Greg Gasparovic (650) 286-3114 Greg.Gasparovic@sap.com
Public Services Federal John Kunkel (202) 312-3535 John.Kunkel@sap.com
  State & Local, Utilities Amy Lowenstein (202) 312-3607 Amy.Lowenstein@sap.com
Services Communications/Media Shane Atherholt (610) 661-8031 Shane.Atherholt@sap.com
  Financial Services/Leasing Steven Birdsall (650) 387-1295 Steven.Birdsall@sap.com

Partner-by-Partner Alliance Contacts Contact Phone Number Email
Partner Alliance Manager, Vice President George Marengo (650) 287-3729 George.Marengo@sap.com
Director, Solutions and Channels Marketing Chip Rodgers (847) 962-7847 Chip.Rodgers@sap.com
Partner Marketing Manager Jeff Stein (516) 768-6899 Jeff.Stein@sap.com
Partner Marketing Manager Eileen Renner (650) 320-3551 Eileen.Renner@sap.com
Partner Marketing Manager Jennifer Schulze (650) 283-3629 Jennifer.Schulze@sap.com
Accenture Al Speer (610) 661-8373 Alan.Speer@sap.com
BearingPoint Jesse Judd (610) 661-2137 Jesse.Judd@sap.com
Cap Gemini Ernst & Young Julia Jeschke (303) 805-5251 Julia.Jeschke@sap.com
CSC Jim Lawson (404) 943-6473 James.Lawson@sap.com
Deloitte Consulting (Soon to Become Braxton) Russ Meyer (708) 836-3197 Russ.Meyer@sap.com
Emerging Partners Jim Lawson (404) 943-6473 James.Lawson@sap.com
IBM BCS Mark Del Grande (610) 661-2411 Mark.Del.Grande@sap.com
Plaut Jim Lawson (404) 943-6473 James.Lawson@sap.com

 

 

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