rapidly changing economic environment, businesses must continually evolve
just to survive. But those enterprises that have brought in Enterprise
Applications solutions to maximize the efficiency of their business processes
are faced with an additional challenge: What happens when the business
processes themselves undergo change? How can the Enterprise Applications
remain relevant and effective? For some companies, resolving these questions
is a challenge, but for others that have turned to SAP for their solution,
there is an answer in the new ValueSAP initiative.
ValueSAP is a "life cycle" approach to
creating and running an enterprise-wide software system - one that recognizes
that achieving "go-live" is not the ultimate goal, or even the most important
one. Instead, precisely defining the right solution before implementation
and continually improving it after implementation are equally important
considerations. In fact, the ValueSAP initiative holds that the primary
goal for an enterprise's system, such as mySAP.com, ought to be continuous
value generation through the entire life cycle of the solution.
By design, the ValueSAP initiative enables
companies to get the most from their enterprise application solution throughout
its entire life cycle. In doing so, ValueSAP moves beyond the traditional
focus on product solutions, recognizing that in this dynamic Internet-fueled
age, inter-enterprise projects using mySAP.com, for instance, can no longer
be considered to have a defined start and finish. Instead, an organization
must continually review and adapt its IT capabilities to reflect the changing
market, customer, and vendor environment. In short, the ability to remain
flexible and responsive has become a commercial necessity.
ValueSAP's "life cycle" approach focuses on four distinct phases: Discovery,
Evaluation, Implementation, and Continuous Business Improvement (CBI),
as shown in Figure 1. Each phase uses proven methodologies, tools,
and content that have been specifically designed to identify an enterprise's
key business processes and to measure their value to the organization.
Traditionally, SAP has been strong within the Implementation phase - and
these methodologies have been further strengthened in ValueSAP - but by
expanding the focus to include Discovery, Evaluation, and CBI phases,
the entire SAP product life cycle is enhanced, and new value is continually
- ValueSAP's Discovery Phase and Evaluation Phase help
companies identify and define the right IT solution to support their
business goals. Using a step-by-step process, these phases articulate
an enterprise's business strategy in terms of the human, cultural, technical,
and process requirements necessary to achieve it. They assess the financial
and technical risks involved. The Evaluation phase helps define how
the implementation will be achieved, and incorporates the measurements
upon which the implementation's success will be based. In short, these
phases together provide the clearest possible picture of what needs
to be done and how it will be achieved, ensuring the right things are
done in the right way.
- The Implementation phase leverages the metrics and indicators
defined during the Evaluation phase to ensure that the processes being
implemented achieve the desired goals, from the highest to the lowest
levels. There are also new layers of tools and activities within the
implementation, dedicated to maximizing the quality of the solution.
In addition, the Implementation phase also provides data to support
the methodology's next phase, Continuous Business Improvement.
- The Continuous Business Improvement (CBI) phase is a methodology
that checks an organization's business processes and SAP enterprise
applications, and provides recommendations on how to optimize their
use. In doing so, it enables companies to identify and adopt more flexible
business practices to increase their profitability and competitiveness.
It also helps companies exploit and optimize their initial investment
in SAP and plan for future value-added investments. See page 105 for
a detailed overview of the four phases and more on how the stages are
Industry Solution Maps and Key Performance Indicators
The key to the success of ValueSAP's new "life cycle" approach lies
in SAP's unique industry solution maps and its key performance
indicators (KPIs), both of which greatly enrich the tools and methodologies
used across the ValueSAP process.
- Industry solution maps describe key processes within defined
industry sectors, as well as the technologies and services required
to support those processes. They provide a powerful and useful overview
of the organization's primary business processes and their interrelationships.
Solution maps are used during both the Evaluation and CBI phases, and
are linked to the SAP Reference Models, which reflect the same business
processes but at a more detailed level.
- Key performance indicators are used throughout the entire
ValueSAP process. During the Evaluation phase, they enable an organization
to understand more clearly how its business processes are linked by
demonstrating the dependencies between them, and by defining the goals
for creating value. KPIs also redefine the success metrics of Implementation,
adding value to the already important considerations of speed and cost
of implementation. As a result, each ValueSAP phase is now considered
complete only when the KPI targets for that phase are achieved.
Linking the Evaluation and Implementation Phases In this approach, the
Evaluation phase and the Implementation phase are bound very closely together.
By linking the Industry solution maps with the more detailed processes
of the SAP Reference Model, the scope defined during the Evaluation phase
can be easily transferred to the Implementation phase. In addition, the
KPIs used in the Evaluation phase can, at any time, be remapped to the
Implementation phase to maintain precise focus on the business objectives.
Meanwhile, ValueSAP deploys SAP solution review techniques to make sure
that progress is monitored before, during, and after the system rollout.
The Evaluation phase also takes advantage
of the strategy definition roadmap recently introduced in Global
AcceleratedSAP (Global ASAP). It is understood that ASAP's predefined
processes shorten implementation times, lower project costs, and provide
a higher return on investment. Now, the ValueSAP Evaluation phase also
helps the customer identify the most relevant long-term solutions as well,
by defining a complete business case that identifies various opportunities
for generating additional value.
ValueSAP's Continuous Business Improvement Services help management teams
evaluate and approve ongoing enhancements and improvements to their processes
and systems as business conditions change. The CBI methodology and tools
enable an organization to evaluate its current position, revisit its original
business objectives, and identify strong new business opportunities. CBI
Services also employ industry-standard KPIs, which have been generated
by SAP's business partners.
In the case of a business that has undergone
a major change (such as a merger), the ValueSAP CBI solutions can be applied
as the start of a whole new "top-down" evaluation of the new situation.
But it is important to note that CBI can also provide an enterprise with
a "bottom-up" approach to improving business processes, without first
conducting a full ValueSAP evaluation. This can be done by applying CBI
tools and metrics to existing implementations. Moreover, CBI benefits
are not restricted to large organizations; CBI Services are adaptable
to organizations of all sizes.
For businesses using SAP solutions that
haven't first been through the ValueSAP life cycle using AcceleratedSAP,
SAP is providing a new range of tools that will enable them to "reverse-engineer"
their implementation to benefit from CBI, by extracting live system data
and then comparing the performance data from their own business processes
with external measures that may be considered best in class. This "gap
analysis" can then be plugged into the CBI methodologies. And even those
organizations that have documented their implemented business processes
may want to go back to verify that the documentation still reflects reality,
and call for a strategic review of their business processes against the
relevant KPIs. The ValueSAP framework, with the components of each stage
mapped out, is shown in Figure 2.
| An Integrated Approach
The ValueSAP initiative consists of four tightly
integrated phases: Discovery, Evaluation, Implementation, and Continuous
Business Improvement. Here's a closer look at how each phase works.
Discovery and Evaluation - The Foundation
The Discovery and Evaluation phases start by examining a company's
strategy and goals. By describing what is important to the business,
and why, a number of value drivers are determined. These
value drivers can be fed into SAP's value scenarios, which describe
where and how value can be achieved for a given set of business
SAP's industry solution maps
play a crucial role by articulating and
documenting "best practice" processes
from within 19 industries. Matching the
value drivers to the business processes
within the solution maps is a powerful
way to identify the business processes
needed to achieve strategy goals.
Evaluation stage, key performance
indicators (KPIs) are brought into play. These metrics define
the performance expected from the defined processes, and will become
a crucial measure of success in the Implementation phase.
primary business processes have been
defined, the next step is to identify
the system components that will best
support them. These are drawn up in the business
blueprint, which includes the modules, reporting, master data,
parameters, interfaces, and conversions that will be required.
The Implementation plan is
also drawn up at this stage. It documents the complete program for
implementing the chosen solution, incorporating the system architecture,
changing management plans, and education requirements for employees
throughout the organization.
end of the Evaluation phase, the customer
has a clear picture of what needs to
be done to achieve its business strategy
and how it will be accomplished. The
customer is in a strong position to move
to the Implementation phase.
Implementation - Building in Value
Four years ago, SAP began providing AcceleratedSAP, a consistent
repeatable method of implementing SAP Solutions. The ValueSAP approach
takes this a step further in the Implementation phase. In the past,
the main considerations of a successful implementation were based
on cost and speed. ValueSAP adds value to that equation by making
"time to benefit" a primary goal as well. Linking the value
of the implementation to a company's business processes creates
a platform that can be leveraged during future activities, so that
the total cost of ownership can be dramatically reduced.
phase leverages the KPIs defined during
the Evaluation phase to ensure that the
processes being implemented achieve the
desired goals. There are also new layers
of tools and activities, one of the most
important of which is role-based education. ValueSAP places
a premium on ensuring that staff members know how to maximize the
value of their solution. This includes training employees on integration
issues so they understand the impact their activities have on the
rest of the team.
The Implementation phase also supports the methodology's next phase,
Continuous Business Improvement, by providing a defined set of business
procedures that establish the exact scope of the implementation.
These procedures can be evaluated against their KPIs to see if they
need updating. The Implementation phase also yields a blueprint
that provides the framework to make improvements and to conduct
testing procedures. It enables a company to logically reconfigure
its business processes to best suit any new climate, yet still leverage
the maximum value from its SAP solution.
CBI - The Path to Greater ROI
The Continuous Business Improvement (CBI) phase helps ensure that
systems and processes are always in tune with business needs.
process leverages a host of performance
measurement tools along with the output
of the Implementation phase: a defined
set of procedures, the blueprint of how
they were implemented, and the testing
procedures. The CBI assessment is based
on a four-step methodology designed to
identify the key opportunities for improvement:
- Preparation for the onsite assessment of an organization's
key business processes. This includes reviewing an organization's
IT history with SAP and reviewing the SAP value scenarios and
- Analysis of the key business processes identified above.
At the end of this phase, the organization receives a comprehensive
report and presentation of the findings.
- Realization to turn recommendations into actions. The
emphasis is on defining measurable objectives, and defining the
key activities needed to accomplish them.
- Verification, which institutes an organizational structure
and supporting business processes to continuously identify and
act on new opportunities. It also concentrates on validating the
expected business benefits from each opportunity.
The use of the value scenarios, solution maps, and KPIs helps the
assessment team understand the current business processes, evaluate
the current business environment, and reveal opportunities for improvements.
Web Portal Access
The Internet-based mySAP.com portal will also play an important role
in this process, by supplying ValueSAP with "best practice" data accumulated
from other organizations, yielding even more powerful information to enhance
the efficiency of business processes. mySAP.com will also demonstrate
the potential of e-commerce, by enabling organizations to take advantage
of the kinds of "best practices" that are now feasible through Internet
technology in their dealings with external suppliers and customers.
Future releases of ValueSAP will provide
tools and support for organizations to measure their own performance through
SAP's existing Business Information Warehouse and Strategic Enterprise
Management tools. These will enable customers to build an even broader
set of Knowledge Management values into the solution. But for now, it
is clear that the new ValueSAP initiative offers enterprises a complete
and precise way to ensure that their ERP implementation is sharply focused
from the start, is implemented powerfully and efficiently, and remains
flexible and in tune with the organization's changing goals and objectives.