Integrated End to End Application Lifecycle Management

SAP® MaxAttention™ Summit 2011Integrated E2E Application Lifecycle ManagementTable of Content 2 141. White Paper: End to End Integrated Application Lifecycle Managment 192. Customer Case: Custom Code Management 233. White Paper: SAP Landscape Transformation for Data Migration4. SAP Landscape Transformation Overview Brochure

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTINTRODUCTIONAccelerating innovation while reducing risk and TCO requires holistic application lifecycle managementapproach. Managing an SAP-centric solution effectively presupposes a comprehensive and up-to-dateknowledge about the solution itself. This white paper will provide an outline and an overview over thestandard procedures that you ought to complete in application lifecycle management. The main focus will beon activities that are required to set live business driven changes, i.e. the implementation or improvement ofbusiness processes in an SAP-centric solution. Application lifecycle management comprises four majorareas as lined out in Figure 1 to orchestrate your entire solution end-to-end.In general, SAP differentiates between two different kinds of changes, based on the time which is needed toimplement the changes and release them into productive use. The biggest release category, therefore, iscalled major release. A major release takes between 3 – 6 months until go live and has an immediate andlasting impact on core business processes.Here, portfolio and project management allows you to manage business requirements from initial ideas toportfolio and project management in the program management office, i.e. all relevant information is availableto all stakeholders right from the start.Figure 1: Application lifecycle management to orchestrate your solutionIn the solution implementation area for major releases, you can manage the software production process,including test management, where SAP Solution Manager offers processes and capabilities for testautomation. These allow you to ensure completeness of all required test cases, automated regressiontesting as well as enhanced test script maintenance. Moreover, you can define the scope of your testingactivities based on risk.All changes during the solution implementation are controlled by quality gate management, which integratesall stakeholders into the change process, and enables defined sign-off procedures at each major milestoneof a project, e.g. built to test.Version 1.0 // July 1, 2011 2

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTThe underpinning end-to-end transport and correction system provides visibility into risks, risk mitigation,over-taker protection as well as 100% transparency of dependencies for both SAP and non-SAP softwarechanges in your business processes.In many system landscapes several projects are executed in parallel, often in different developmentsystems. There might be a new development in a project development system and at the same time errorsneed to be corrected in a maintenance system for the productive environment. The development teams mustnot lock each other’s activities. In this scenario, it is vital that the development systems are aligned andadjusted on a regular basis. As various wokstreams have been conducted in parallel you cannot simplypropagate the resulting changes by transport requests into the follow-on systems. This would mean thatcurrent software levels could be overwritten and inconsistencies arise. To avoid this, SAP Solution Manageroffers controlled imports into the relevant target system. This approach is called retrofit.During the complete project, this knowledge is continuously enriched and 100% transparent and visible inyour solution documentation. All information from the project is seamlessly cut over into productive usage inthe solution in SAP Solution Manager. The advantage of this approach is that there is no media break in thisimportant phase, and that the knowledge accumulated during the project is available for the operations team.SAP calls this knowledge Single Source of the Truth – a structured, comprehensive, unified and reliablecollection of information about all projects in progress and the state of the productive SAP solution which inturn provides the basis for informed and fact-based customer decisions and actions during the completesolution lifecycle.From the lifecycle perspective a project covers the application management phases from requirementsthrough to deploy. All information you have accumulated during the project will be cut-over into a solution atthe end of the deploy phase, including knowledge transfer to end-users with e-Leaning Management,implementation of the support organization etc. The major release is described in detail in the followingsection of this whitepaper.On the other hand, there are releases which have a much shorter duration and are used primarily to correcterrors and execute smaller corrections. These are called minor releases. Minor releases are triggered viarequirements which arise during the operations phase of the solution, and need to be applied within a monthor faster than that. These requirements are logged via service requests or incidents that occur repeatedlyand are logged as problems in IT Service Management in SAP Solution Manager.For the requests and problems that need corrective action change requests are created. The changerequests are evaluated and approved by the quality manager and the change advisory board according toITIL v3 standards. The execution of the change is guided and controlled by change request managementwithin SAP Solution Manager. Thus, you can manage changes that need a quick resolution in an efficientand well-documented way. These changes are necessary e.g. if an error endangers the productiveenvironment. This type of change can be executed with an urgent or normal correction in change requestmanagement. You can find further details in the section Minor Release of this whitepaper.Version 1.0 // July 1, 2011 3

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTMAJOR RELEASE (3 - 6 MONTHS)Highly integrated solution landscapes require a controlled and quality-approved change managementprocess to enable solution operations to be reliable and highly available. Looking at the application lifecycleof SAP-centric solutions it becomes obvious most changes and extentions will be motivated by changes ofthe application layer. Custom developments and customizig changes are managed via projects andtransported from development via test to production systems. These type of changes require a formal qualitymanagement process spanning all phases of the application management lifecycle up until the final transportinto the production landscape.Figure 2: Delivery of Requirements via ReleaseRequirementsDuring the requirements phase, your primary concern is to evaluate scenarios and their respective businessprocesses and check their viability for your project. Planned change requests emerge during the operate andoptimize phases and will be followed by an assessment and technical feasibility checks to prepare thesubsequent decision-making milestone. In the SAP Solution Manager environment, you can use theBusiness Function Prediction for SAP ERP. The capability simplifies the discovery of SAP innovations. Itrecommends the business functions delivered in SAP Enhancement Packages which are relevant to yoursolution. You can request the service which helps you to implement SAP Enhancement Packages for SAPERP.Version 1.0 // July 1, 2011 4

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTFigure 3: Business Function Prediction for SAP ERPIn many projects, however, you need to first analyze which transactions and processes are currently in useso that you can define the project scope. For that reason, SAP Solution Manager offers a capability whichallows for an automated analysis of systems and business processes: the Solution Documentation Assistant.To enable you to deal with impending bottlenecks quickly and inefficiently, it is essential that you haveprofessional, more visible project management procedures and a clearly defined project scope. With these inplace, you will be able to safeguard your company’s investments, deploy resources for specific objectives,set priorities, and ensure that everyone involved in a project communicates well.As lined out in the process in Figure 2, releases start with business process owners or key users who haveenhancement requests to the existing solution. These requirements are logged via service requests orincidents that occurr repeatedly and are logged as problems in IT Service Management in SAP SolutionManager. For the requests and problems that need corrective action, change requests are created. Thechange requests are evaluated by the quality manager and the change advisory board according to ITIL v3standards.The approved change requests are used by the portfolio manager to define the scope of the release usingthe capabilities of SAP cProjects. He also is responsible for budget decisions and the overall investmentstrategy. Moreover, SAP Solution Manager enables you to manage the entire portfolio management for yoursolution. You can define, scope and plan your projects using functions from SAP Portfolio and ProgramManagement.Version 1.0 // July 1, 2011 5

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTFigure 4: Portfolio and Program Management with SAP Solution ManagerThe project manager plans the project within the time and budget constraints and ensures that the projectlives up to the benefits defined in the business case.During a quality gate, all stakeholders approve the scope of the project. A quality gate, also known as q-gate,is a special milestone in the project management capabilities of SAP Solution Manager. It controls the importof project data in follow-on systems: data can only be propagated into follow-on systems if a q-gate has thestatus “passed”. All activities described in the quality gate management process are planned to be supportedby SAP Solution Manager. ! Quality Gate Management to provide complete transparency regarding changes and to enable formal transitions from one phase to another via Quality Gates ! Synchronised Transport Management to collect changes and transport requests from all development workbenches and for all SAP supported development environments (ABAP, Java, .NET, C/C++). Transports from various systems can be transported in a synchronized fashion to gurantee availability of all dependend developments and changes in subsequent target system landscapes.To manage the application lifecycle management process, quality gate management offers an overview overall projects in your solution. This overview is displayed in the quality gate calendar in SAP Solution Managerand allows you to quickly get visibility of which projects are going on and what the status of the quality gatesare.Version 1.0 // July 1, 2011 6

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTFigure 5: Quality Gate CalendarDESIGNIn the design phase, an implementation project manager oversees and directs the deployment of newproducts, services or projects for an organization. He defines the blueprint of the project , defines themilestones, and creates the work breakdown structure (WBS).SAP Solution Manager’s role during this phase is to provide you with roadmaps – proven procedures forproject management – and to structure project management activities clearly using tools such as projectadministration functions. SAP Solution Manager also helps you to draw up a well-defined, comprehensiveconceptual design (business blueprint) for your project.Figure 6: Business Blueprint in SAP Solution Manager Version 1.0 // July 1, 2011 7

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTThe purpose of the business blueprint is to outline the current situation as identified during workshops so thatyou can document the target state for the solution being implemented and the resultant requirements. Theconceptual design drawn up by the project team members therefore describes how your enterprise wants tomap its business processes using SAP and non-SAP systems.This phase also entails the following steps: ! Refining the original project goals and objectives ! Finalizing the overall project schedule ! Implementing Organizational and Change Management ! Defining functional standards for and documenting customer developments ! Defining the requirements for the authorization concept, security policy, and end-user training concept ! Planning the system environment for operationsThe decision whether planned changes can enter the build phase will be brought forward to the members ofthe q-gate scope to build. During the q-gate meeting all aspects will be discussed including reasons for therequirements, priorities, involved risks, impacted mission-critical business processes, budget availability, etc.The decision will be documented and signed by the involved decision makers.BUILDDuring the build phase changes will be implemented. This might be a solution extention with customdevelopment activities, customizing changes, interface changes or integration of a partner or 3rd partyapplication. Developers will perform unit tests and the Q&A department will prepare functional and useracceptance test for the next phase. Change Impact Analyis should be performed to check whether mission-critical processes are affected by these changes. In addition, it is recommended to prepare solutionoperations, e.g. solution documentation.To implement the business function you defined in the requirements phase, you use the build phase to setup the system landscape that will run your scenarios and business processes. You adopt the structure usedin the business blueprint, which helps you to configure your solution around your business processes andalso during subsequent testing activities. Configuration Implementation encompasses the following steps:• Continuous monitoring of project targets, especially costs, deadlines, and resources• Active implementation of organizational and change management• Elaboration of training materials and end user documentation• Creation of end user roles and implementation of authorization and security concept• Elaboration and implementation of realization specifications for customer developmentsYou can activate the evaluated business functions right from SAP Solution Manager.Figure 7: Business Function Activation Version 1.0 // July 1, 2011 8

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTDuring the q-gate meeting build to test it will be decided whether the development and other system changeactivities are mature enough to be transported from development to the test system landscape. The decisionand the reasons are documented and signed by the involved q-gate members. Only after the q-gate hasbeen passed successfully data can be imported into the follow-on systems.TESTToday’s software solutions involve multiple development workbenches and create different file types ortransport objects. On top, the execution of many business processes requires the availability of multiplesystems. The Trade Promotion Management process of the consumer products Industry for examplerequires ! SAP NetWeaver Portal ! SAP CRM ! SAP ERPTransports originated in the involved development workbenches in the development systems regarding UIand business logic changes must be transported in a synchronized fashion to guarantee smooth testing inthe subsequent testing landscape. Individual transports would often lead to business processes that fail inthe subsequent system due to non-reconciled transports of isolated UI or business logic changes that areinconsistent.When an SAP solution is implemented, for example, SAP CRM as an enhancement to an existing SAP ERPimplementation, a number of business processes are adapted, configured, and documented in the businessblueprint, a catalog of the business processes in operation. The test coverage is derived from the list ofbusiness processes that have been adapted. The test management process is devided into the followingsteps: ! Create test plan ! Create test packages ! Assign test packages to testers ! Run tests and log results ! Review resultsStarting from the SAP Solution Manager project structure, it is possible to generate test plans and testpackages.Test packages can comprise manual and automatic test cases. The framework for automatic testsin SAP Solution Manager, eCatt, has been used as tool to automate the testing process and to create testdata for user acceptance test. With SAP Solution Manager you can assign test packages to testers and trackthe progress of your test.During the execution of tests, it is possible to manage the collaboration between users and developmentteam (create internal messages, log tests, review the testing status). At the end of a test cycle you canreview the results of the testing.Version 1.0 // July 1, 2011 9

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTFigure 8: Test Package CreationAfter a planned change has been approved, an initial risk assessment is carried out on the effects thechange will have on critical business processes. A second, more detailed, risk analysis is then performedboth during and after implementation of the change in the development system, and tests are run in the testsystem. A type of analysis application capable of performing change-impact analysis and identifying thepotential impact on critical business processes should be used. This type of analysis allows the testcoverage to be determined on a risk basis: Test activities will focus on changes impacting critical businessprocesses. This reduces the potential amount of effort associated with testing, and enables test resources totarget risk areas more precisely. The business process change analyzer (BPCA) in SAP Solution Managersupports these tasks.Figure 9: Test Scope Optimization with Business Process Change Analyzer Version 1.0 // July 1, 2011 10

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTDuring the test phase all relevant types of tests will be executed including ! Regression tests ! Integration tests ! Scenario tests ! User acceptance tests ! Performance testsProblems and errors are documented by the testers or test automation tools via the Incident Managementprocess. Root-Cause Analysis will be performed to assess complex problems. Problems that need to befixed require additional activities in the development system with subsequent transports into the test systemlandscape.Test coordinators will monitor the progress of test activities, number of open high priority problems and retestactivities after problem fixing. Test exit criteria must be in place to ensure at least the following criteria 1. User acceptance tests verified that the business departments agree with the planned changes 2. Integration tests verified that processes spanning multiple instances have been correctly executed 3. Regression tests validated that all core business processes can be executed with correct system behaviour and results 4. Performance tests showed that the changed solutions provides an acceptable response timeFinal activities at the end of this phase include updates of the end-user documentation and other pre-go-liveactivities.After the functional quality assurance SAP recommends to monitor core business processes, as e.g. creatinga sales order in single user mode. In doing so, it is possible to detect problems in performance, dataconsistency, and technical compliance before they appear in load tests or in the productive operations. Withan E2E Trace Analysis you can effectively foresee performance problems which will happen in a multi usersituation. Moreover, data consistency problems can be avoided by analyzing the commit behavior in an E2ETrace (SQL behavior) and technical exceptions which are not visible in the UI of an application but still canproduce significant problems in production can be prevented.By closely monitoring the program flow with an E2E Trace Analysis you can even reduce or eliminate loadtests and improve business process continuity after changes. Simulating parallel execution in load testsmeans a lot of effort for script management and provision of test data. Each reduction of efforts for load testshas a significant impact on total cost of ownership. If load tests are necessary, however, they can bemonitored and statistically analysed with the E2E Workload Analysis and the E2E Exception Analysis.Instead of logging on to each system load tests can be analyzed from a single point o access, the SAPSolution Manager.This procedure after the functional Integration Test which analyzes performance, data consistency, andtechical compliance systematically is called Integration Validation. SAP extends classical qualitymanagement with best practices and with a validation of integrated, cross-technology and component-spreading solutions.The most important quality gate will take place at the end of the test phase when the involved decisionmakers have to discuss the maturity of all tested changes. This will include test status reports, achievementsof predefined quality goals and test exit criteria to decide wether a change can be transported into theproduction system landscape. Again, the final decision must be documented including the informationavailable at this point in time.Version 1.0 // July 1, 2011 11

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTFigure 10: Quality Gate Test to DeployDeployAfter a successful q-gate test to deploy the transport lock can be released and the final synchronisedtransport can take place. The project ends when the changed solution can be handed over to the solutionoperations organization. Tested configuration settings as well as modifications and customer developmentsare also transported to the production system.The objective of this phase is to make the transition from a preproduction environment to productionoperation. It is important to establish support structures for end users that are available long term and notjust in the critical period immediately after going live. SAP Solution Manager’s integrated Service Desk canbe used for this purpose. Moreover, SAP Solution Manager offers a wide range of resources and tools tohelp you run the solution. For instance, you can monitor the implemented processes across all systems.Particularly when a system has not been in operation for long, it is advisable to run SAP EarlyWatch, whichproactively analyzes the system. The objective is to identify potential problems proactively, preventbottlenecks, and monitor system performance regularly and automatically by setting up SAP EarlyWatchAlert in SAP Solution Manager. It is also an effective tool for checking your core business processes andsystems.SAP EarlyWatch Check, a service that proactively analyzes your operating system, database, and SAPsystem with the objective of optimizing performance, gives additional recommendations and proposals forfurther action.Version 1.0 // July 1, 2011 12

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTMINOR RELEASE (< 1 MONTH)As explained before, application lifecycle management not only supports major releases but also minorreleases, e.g. applying break-fixes during maintenance. Here, processes and capabilities of SAP SolutionManager as in major releases are used which have been explained in detail in the previous section.Figure 11: Delivery of Requirements via MaintenanceA user in a business department identifies potential for improvement in a specific transaction. The user canenter an incident directly from the transaction in question, describing the context. Alternatively, a businessprocess owner requests a minor change.The incident appears in the worklist of the IT help desk employee, who processes the incident and generatesa change request, if appropriate.The request is approved, and thus the decision is taken to execute the change. As time is of the essence inminor releases, this decision is sufficient and does not require quality gate management.Developers perform design and coding, including adaptation and customization of the solution. They alsoperform the unit tests of their developments.After the decision has taken place that the development is finished, the quality manager defines andorganizes test management for the change, including functional, regression, acceptance, integration, andload testing.Following the successful test and the decision that the development can be transported into the productionsystem, the release manager is responsible for the implementation of changes to the IT infrastructure, sothat these are carried out effectively, safely, and verifiably. The technical operators can then import thechanges into the productive environment, using the same infrastructure (quality gate management, CTS+) asin major releases.Version 1.0 // July 1, 2011 13

END TO END INTEGRATED APPLICATION LIFECYCLE MANAGMENTSAP® MaxAttention™ Summit 2011Customer Case: Custom Code Management

CUSTOMER CASE: CUSTOM CODE MANAGEMENTCustom Code ManagementHOW TO MINIMIZE THE “CUSTOM CODE EFFECT” ON THE OPERATIONS OF ANINTEGRATED SAP SOLUTION?The cutting-edge new concept from SAP provides a comprehensive insight into how companies canefficiently and effectively manage their home-grown Custom Code. From initial conception to final retirement,it delivers full transparency on every Custom Code object, automates the analysis of changes, and clearlyidentifies usage, utilization, and business impacts on the customer objects. It also supports the cycles ofoptimization and provides excellent reporting capabilities with easiness of a push on a button. Use SAP'sCustom Code Management now for an instant reduction of costs, efforts, risks, and improve software qualityacross the whole Custom Code lifecycle. Effective and efficient Custom code Management is the passport tothe standardization and simplification of applications in every SAP system used.IS CUSTOM CODE REALLY NECESSARY?Resist the temptation to create new custom code. Oncebuilt it remains in your system forever. UnobservedCustom Code Footprint leads to high maintenance andoperation costs and also can lead to unforeseen risksbeing executed. This results in a high Custom CodeEffect in your integrated solution. Discover how SAPhelps you achieve your goal to save money andincrease the value of IT for the business and get moreout of already available functional capabilities.SAP’s Application Lifecycle Management together withthe innovative Custom Code Management Process canefficiently and effectively manage and control yourhome-grown Custom Code.Specific questions are answered automatically: ! What is my custom code footprint? ! How much custom code is being used or impacted? ! How do I measure and optimize the quality of my custom code? ! Do I have clones in my system? ! How can I measure the success?Using the methods available for the as-is analysis of your IT system landscape, it is still difficult to clearlyillustrate the optimization potential that can be attained. For you to see the results in a clear and coherentmanner, SAP provides you with a model that you can use to analyze the data. In the abstraction of theillustration, a multidimensional city-model is formed with buildings that have different heights, colors, andlocations within the city landscape. Each city thereby reflects the state of each system in your IT systemlandscape. You can use this multidimensional abstraction model to measure and evaluate your customVersion 1.0 // July 1, 2011 15

CUSTOMER CASE: CUSTOM CODE MANAGEMENTenhancements and developments. Of the known characteristics of your custom enhancements anddevelopments in your IT system landscape, you need to consider four main dimensions, including: ! Quantity ! Quality ! Estimation of the influence on core business processes ! Classification of the technical implementation in relation to the SAP standardThe aspects governance and software lifecycle management complete this model.WHERE WE ARE?With one of SAP’s top customers we started an innovationproject to establish the basis for this unique Custom CodeManagement capability in Solution Manager as Single Sourceof Truth. As the starting point, a huge custom code footprintwas given together with a great opportunity to improve thesituation and as a positive effect also the reduction of the totalcost of ownership or the operation for the SAP systems. The“Custom Code Effect” is accompanied with a complexlandscape with 1-n Development to Production systemstogether with long running deployment cycles and a really longhistory with merges and a lot of implementation projects. The high level business cases are given by enabling a sustainable custom code database as the single source of truth for governance, documentation, and reference. The global baseline of all Custom Code objects enables a measurable governance process across all SAP systems and landscapes. Now actions to reduce complexity through elimination of obsolete Custom Code objects in SAP Landscape can be started. At the end no work should be done on non-relevant Custom Code objects per systems. It is also essential to always keep this ‘Single Source of Truth’ up to date to be sustainable and to have all related information available at every time on-demand. Last but not least, the asset is the input/output database for otherSolution Manager accelerators like “Solution Documentation Assistant” or “SAP Code Inspector”.The Custom Code Management ‘Single Source of Truth’ leads to the following four technical use cases asthe starting point for our co-innovation cycle:! Use Case 1 - Detect unused custom code and get the baseline information per system! Use Case 2 - Document ownership and other attributes for Custom Code Library in a sustainable matter! Use Case 3 - Refresh mechanism for Technical Object Library by automatically updating the existing Database! Use Case 4 - Transparency of Custom Code Objects usage in different systemsThis should be enriched by a deep bonding between the new Custom Code Database and available SAPaccelerators to leverage the technical library by using the database as input reference and output storage forother accelerators. Individual design of the technical Custom Code library will be integrated in SAP SolutionManager 7.1.Version 1.0 // July 1, 201 16

CUSTOMER CASE: CUSTOM CODE MANAGEMENTWhat do we get after the implementation? First the total cost reduction due to the effort reduction for upgradeand other projects by setting the focus on relevant custom code. Second the improvement of simplificationenabling the governance and cleanup activities by providing clear Ownership for Custom Code objects. It isfollowed by the sustainability given easily by the default attributes of the ‘Single Source of Truth’. At the endit helps in standardization by providing transparency on what is used and where.THE SOLUTION: CUSTOM CODE MANAGEMENTWithin Solution Manager 7.1 we have designed an application called Custom Code Lifecycle Management.The new application is based on a generic library with predefined elements and attributes for custom codeobjects whereas new objects or attributes can be added and maintained by the customer. Now we have fullcontrol of our customer objects supported by the reporting capability of Solution Manager. We can maintaincompany-dependent or independent attributes and steer the lifecycle of their custom code across SAPlandscapes.The screens demonstrate the described capability. Easy configuration is given by uploading the data modelitself, by selecting the systems and activating the collectors till maintaining the manual attributes anduploading to the reporting platform. This ensures our reliability and sustainable approach with the fulltransparency to start the action to reduce the TCO – effect of custom code.Version 1.0 // July 1, 201 17

CUSTOMER CASE: CUSTOM CODE MANAGEMENTThe awareness and prioritization is gainedwith our city model. The custom codelifecycle management application and thefour dimensions are the first steps inobtaining transparency. After that theownership could be taken over and thecontrol of the city can be started. This isenabled with additional optimizationcapabilities within the Solution Manager,like our Custom DevelopmentManagement Cockpit (CDMC), theClonefinder or the SAP Code Inspector.To support our customers SAP providesservices, like the Expert Guidedimplementation for CDMC or ExpertGuided Implementation for SoftwareQuality and Clones and SAP Custom Code Management – Service with a strong focus on empowering andpromote best practices using such tools. This optimization helps on the way to the green city. Last but notthe least, the results and experience during continuous optimization should also improve the entire customcode lifecycle in all phases to have a best-run customization application. As an example, an enhancedquality check during the custom code development phase or an adequate decision process at the verybeginning to the requirement itself. Efficient and effective Custom Code Management ensures success. We can get a ‘green, bright, and small City’. To sum it up: ‘Transparency is the first step and smart optimization is the second one to reduce the TCO-effect within in your solution’. SAP’s Custom Code Management with its integrated capabilities can reach the target.Version 1.0 // July 1, 201 18

CUSTOMER CASE: CUSTOM CODE MANAGEMENTSAP® MaxAttention™ Summit 2011White Paper:SAP Landscape Transformation for Data Migration

SAP LANDSCAPE TRANSFORMATION FOR DATA MIGRATIONSAP Landscape Transformationfor Data MigrationMOTIVATIONVarious IT-driven aspects like the harmonization and simplification of the existing IT infrastructure or achange in the software vendor strategy as well as other rather business-driven aspects may initiate thereplacement of legacy systems by SAP software. Very often the effort and costs of the data migration areunderestimated - based on analyst studies (Bloor, 2007), about 80% of data migration projects run over timeand/or budget. It is crucial and a key success factor to choose the most suitable platform for the datamigration. SAP Landscape Transformation (LT) for Data Migration is the ideal solution for any migrationprojects replacing legacy systems with SAP. Based on proven technologies in use for more than a decade inthe System Landscape Optimization (SLO-) portfolio of SAP, SAP LT for Data Migration includes a flexiblebut highly standardized platform that ensures an efficient execution of data migration projects withpredictable results.SAP LANDSCAPE TRANSFORMATION SOFTWARE – AN OVERVIEWSAP Landscape Transformation software is a standard SAP product that enables SAP customers andpartners to perform End-To-End SAP transformations as well as Non-SAP to SAP migrations.SAP LT software can assist you in the evaluation phase by analyzing the current situation, and identifying anappropriate transformation solution for adapting the existing SAP system landscape.Furthermore, it provides valuable knowledge and guidance through predefined project roadmaps. The SAPLT work center acts as a central cockpit to effectively manage all technical aspects of End-To-End SAPtransformations. SAP LT software serves as a new process in SAP’s Application Lifecycle Managementconcept – leveraging and integrating with key features of SAP Solution Manager.The transformation capabilities for End-to-End SAP transformations cover the following areas: ! Leverage Sell, Buy, and Restructure: Available transformation solutions support the realization of divestitures and internal reorganization by fully aligning affected system landscapes, and as a resul ! t guarantees agility through cost-effective implementation of organizational changes ! Unify and Transform Data: Ensures consistent and accurate data as a crucial factor in helping SAP customers successfully operate their business. Related transformation solutions help to unify and simplify financial and controlling processes - for example to improve transparency in financial reporting, implement corporate standards or meet legal requirements. ! Consolidate and Reduce IT Cost: Facilitate the planning and realization of system consolidation projects by creating flexible and simplified IT landscapes that reduce system redundancies, lower total cost of operations, and decreasing administrative and maintenance efforts.Version 1.0 // July 1, 2011 20

SAP LANDSCAPE TRANSFORMATION FOR DATA MIGRATION Analysis & SAP LT V 1.0 SAP LT V 2.0 Technology Generic & scenario specific analysis: Generic & scenario specific analysis: Platform ! Sell ! Restructure (SAP Landscape ! Financials and Controlling ! Financials and ControllingTransformation, basic) ! Consolidate systems ! Logistics and Operations Leverage Sell, Buy, and Restructure Leverage Sell, Buy, and RestructureKnowledge Sell: Restructure: ! Profit Center Merge ! Cost Center Merge ware ! Carve-out company ! Company Code Merge & ! Controlling Area Merge Restructure:Roadmaps Unify and Transform Data ! Profit Center Reorganization* & Financials & Controlling: Logistics & Operations:Conversion Unify and Transform Data Financials and Controlling: ! Controlling Area Rename ! Customer Number packages ! Chart of Accounts Conversion (CoA) ! Fiscal Year Conversion Conversion Consolidate and Reduce IT Cost ! Asset Class Conversion ! Vendor Number Consolidate systems: ! Conversion of Asset Account Conversion ! Material Number Rename ! Client Transfer Determination ! Company Code RUennamdeer discussion !UnCodset CrendteirscCounsvserisoionn ! Profit Center Conversion t *available starting with ERP EhP5Covering these three areas, SAP LT provides a comprehensive set of data migration functionalitiesincluding: ! The extraction of the data and mapping to different data structures (for example, different SAPreleases)! The conversion of the data to reflect the desired target situation! High speed data loadingCUSTOMER NEEDS AND KEY PAIN POINTSThe technical data migration is a key step for a successful newimplementation or the restructuring of an existing ITinfrastructure. As in other IT projects, data migration projectshave to stay in time and budget and limit potential risks to aminimum.SAP customers expect a fast, reliable, and non-disruptivemigration approach with the flexibility to load and transform datainto SAP data structures dependently from the source format.Data migration projects today are lacking one central controland monitor instance to successfully manage all necessarymigrations steps for a complex data migration project. Such asingle center of control needs to be independent from the way and technology the data is extracted from thesource system and loaded into the target system.Another critical success factor is the time and speed of the data load. With traditional approaches hugevolumes of data takes may take very long with the risk of unpredictable system outages, related costs, anddisruption of the business. Version 1.0 // July 1, 2011 21

SAP LANDSCAPE TRANSFORMATION FOR DATA MIGRATIONOVERVIEW AND BENEFITS OF SAP LANDSCAPE TRANSFORMATION FOR DATA MIGRATIONSAP Landscape Transformation software includes a flexible platform for SAP to SAP but also Non-SAP toSAP data migrations. A development framework allows the definition of relations, migration rules, andconsistency checks across affected migration objects. With the central migration cockpit, you are able tomanage all technical data migration activities. With the available status tracking functionality, you canmonitor the entire migration process.The figure outlines the architecture and key building blocks of SAP LT for Data Migration.Legacy System SAP LT SAP SystemFile formatData bases Migration Table Data Extrac- tion / MappingOther formatsThe key features of SAP LT based migration platform include: ! Supporting data load from any source format ! Different interfaces for outbound processes, for example, direct input, BAPI, direct database insert ! Ability and high-performance approach for loading mass data ! Automated data import and generation of migration programs also considering customer-specific enhancements / fields ! Comprehensive and flexible data mapping capabilitiesWith SAP LT for Data Migration, SAP customers benefit from a holistic and reliable approach that ensuresfast and high-quality data migrations into SAP. Version 1.0 // July 1, 2011 22

SAP LANDSCAPE TRANSFORMATION FOR DATA MIGRATIONSAP® MaxAttention™ Summit 2011SAP Landscape Transformation Overview Brochure

SAP Functions in Detail SAP® LANDSCAPE TRANSFORMATIONSAP Landscape Transformation ALIGNING IT WITH BUSINESS GOALSTo keep pace with ever-changing market conditionsand business challenges,SAP® Landscape Transfor-mation software helps toaccelerate your businessand IT transformation andto turn complex businessrequirements into a highlystandardized set of transfor-mation solutions. The soft-ware enables you to betterplan, analyze, sequence, andrealize your own transforma-tion project within commonbusiness scenarios such asmergers and acquisitions,divestitures, internal reorga-nizations, and projects toharmonize existing businessprocesses.

CONTENT 4 The Business Case for Land- 16 Unifying and Transforming Data scape Transformation 4 Enterprises Face Constant 16 Unifying Financials 17 Converting Charts of Accounts Need for Transformation 18 Consolidating Systems and 4 Growing Complexity Drives Reducing IT Costs Transformation 19 Consolidating Your Systems 5 Aligning IT Infrastructure with via Client Transfer Business Goals 6 Choosing the Most Efficient, 21 Complementary SAP Services 21 Support for IT Transformation Cost-Effective Path to Transformation Strategy and Project Preparation 7 The SAP Landscape 22 Start Quickly, Gain Knowledge, Transformation Approach 8 Phases of Tackling a Learn to Manage Transformation Transformation Project 22 Focus on Core Business 8 Identifying the Best Transform- ation Approach While Experts Execute 9 Analyzing System Landscape Transformation and Designing Project 22 Enhancing Standard10 Evaluating and Preparing Capabilities for Customer- Transformation Projects Specific Projects10 Realizing the Transformation 23 Special Conditions Call for Project Special Technical Solutions11 Maintaining and Monitoring the 23 Take Advantage of Service System Landscape and Support for Standard SAP Products12 Specific Business Scenarios 23 Find Out More in Focus 24 Quick Facts12 Leveraging Selling, Buying, and Restructuring12 Scenario: Selling a Company or Business Unit12 Scenario: Carving Out a Company or Business Unit via “Clone and Delete”14 Scenario: Reorganizing Profit Centers

THE BUSINESS CASE FOR LANDSCAPETRANSFORMATIONEnterprises Face Constant Need Transformation scenarios Realignment and adaptionfor Transformation Leverage sell, buy, and restructure to new business strategies:Enterprises constantly face transforma- • Evaluate IT costs and reduce TCOtion needs. Many of these transforma- Unify and • Reflect new business challengestion requirements arise from a variety transform dataof external sources. Organizations may at IT levelencounter changing market expecta- Consolidate and • Use existing corporate IT knowledgetions, which need to be reflected in reduce IT costtheir corporate structure and product to innovateportfolio. Many companies are also • Consider best practices, industry-struggling to increase the transparencyof their business and to operate effec- specific business processes, andtively. But companies also experience IT strategiespressure from the inside. Not only • Implement IT governancedo they have to deal with regional dis- • Realize customer’s visionparities and system complexity, butthey also have to cope with internal Figure 1: SAP® Landscape Transformation Helping Align IT with New Business Strategiesreorganizations. As a result, companiesmust be able to adapt their operational for best practices, and standardized Many SAP customers manageprocesses and structures – quickly and technologies secure your envisioned diversified landscapes that they haveefficiently. transformation scenario. built around numerous SAP systems and multiple solutions from the SAPTo help companies keep pace with The software also supports efforts to Business Suite applications – including,global market changes, retain market consolidate system landscapes and for example, the SAP ERP, SAP Cus-flexibility, and realize their goals on the optimize existing processes. SAP Land- tomer Relationship Management, andIT level, SAP now offers its new, stan- scape Transformation software helps SAP Supplier Relationship Manage-dard SAP® Landscape Transformation you plan, analyze, sequence, and suc- ment applications, as well as SAP busi-software. SAP has designed the soft- cessfully realize your own transforma- ness intelligence and industry solutions.ware to help customers adapt organiza- tion project within common business The complexity of such a system land-tional structures, unify and simplify their scenarios. scape is often further compounded byexisting business processes, or realize the need to handle regional demandsconsolidations via a structured and Growing Complexity Drives and disparate legal requirements.integrated approach. Transformation Over time, the established processes Ever-changing market conditions and frequently grow, become extensivelyIncorporating the SAP knowledge and business challenges force corporations complicated and expensive, and lackexpertise that comes from more than to constantly improve their business transparency. Key factors that con-10,000 successful transformation portfolio, increase their revenue tribute to complexity include:projects over two decades, this stan- growth, and protect and expand market • Multiple instances and differentdard software can help reduce total share. To continue operating on a solidcost of operations (TCO), ensure data and reliable IT foundation, a company release levels and platformsquality, and achieve data consistency. must constantly update and optimize • Redundant and inconsistent masterOutstanding methodologies, support its business processes and incorporate this changing reality into its IT land- and transaction data scape (see Figure 1). • Different process design and incomplete business processes requiring manual reentry4 SAP Functions in Detail – SAP Landscape Transformation

• Numerous interfaces spanning across • Harmonizing master data and prepar- both SAP and non-SAP systems ing to introduce global templatesEnterprises respond to these recurring • Reducing total cost of operationstransformation needs with IT-driven through system consolidation andinitiatives that can vary considerably in data centralizationscope. Redesign options include, forexample, reorganizing the company’s You can see a major benefit of SAPinternal structure on the system level, Landscape Transformation in the pre-simplifying processes, or harmonizing definition of scenario-based road mapsmaster and transaction data. Regard- that provide full guidance, support bestless of the scenario, reliable software practices, and include in-depth docu-and expertise are required to realize the mentation (see Figure 7) and integratedenvisioned transformation scenario – knowledgeware. The software containsefficiently and cost-effectively. tutorials that show users how to create and execute projects. These elementsAligning IT Infrastructure with help you better conduct and success-Business Goals fully carry out your transformationIf you are encountering the need to project. The software’s work centertransform your IT landscape – the SAP structure helps you to manage yourLandscape Transformation software project in the most efficient and reliablecan help you realize your future busi- manner – the proven transformationness setup. The software is fully functionality enables customers andembedded in release 7.0 of the SAP partners to navigate through the differentSolution Manager application manage- project stages and help ensure maximumment solution and fulfills all technical agility and transparency.and business requirements whilemaintaining data consistency and The software’s analysis functionalitiesconsidering system integration aspects. offer you a comprehensive overviewIn addition, the software complements of general system, database, and appli-the application lifecycle management cation characteristics. This overview(ALM) portfolio from SAP and leverages enables users to evaluate and assesssynergies with other processes, such the effort, duration, technical feasibili-as solution documentation and test ty, and application-specific require-management. ments of the project at an early stage.SAP Landscape Transformation sup- The second release of the software,ports the following business scenarios: scheduled for fall 2011, will support• Managing mergers and acquisitions, additional transformation scenario components (see Figure 2). and carve-out projects• Managing reorganization activities• Optimizing or simplifying business processesSAP Functions in Detail – SAP Landscape Transformation 5

SAP® Landscape Transformation 1.0 SAP Landscape Transformation 2.0Analysis Generic and scenario-specific analysis: Generic and scenario-specific analysis:and technology • Selling • Reorganizing businessplatform • Financials and controlling • Financials and controlling • Consolidating systems • Logistics and operationsKnowledgeware,road maps Leverage sell, buy, and restructure Leverage sell, buy, and restructureand conversionpackages Selling: Reorganizing business: Reorganizing business: • Profit center merge • Company carve-out • Profit center • Company code merge • Cost center merge • Controlling area merge reorganization Unify and transform data Unify and transform data Logistics and Financials and controlling: Financials and operations: • Chart of accounts (CoA) conversion • Customer number controlling: Consolidate and reduce IT costs • Controlling area rename conversion • Fiscal year conversion • Vendor number Consolidate systems: • Asset class conversion • Client transfer • Conversion of asset conversion • Material number rename account determination • Company code rename • Cost center conversion • Profit center conversionTimeline Q4 2010 Q3 2011Figure 2: Road Map for SAP Landscape Transformation Strategy for Releases 1.0 and 2.0Choosing the Most Efficient, Cost- • Creating a new design for can be the consequence and result inEffective Path to Transformation processes uncontrollable costs and persistentThe “greenfield” approach – building security issues. Furthermore, thisa system from scratch – is the most • Setting up a new authorization approach is associated with great effortcommon procedure to meet IT trans- concept for the company’s IT and functionalformation needs. But, at the same departments. All these factors limit atime, this approach can be seen as • Creating new master data company’s ability to constantly adaptthe most cost-intensive one because and organizational structures its system landscape to recurringit requires completely rebuilding all (for example, cost centers) transformation requirements.existing enterprise resource planning(ERP) solutions, structures, and inter- Moreover, the greenfield strategyfaces for the new target system. The comes with its own risks. Manualprocess of rebuilding is extensive processing may produce errors inand may include: data selection and transfer. Incomplete data structures, missing data history, and incomplete application integration6 SAP Functions in Detail – SAP Landscape Transformation

The SAP Landscape Traditional approach Approach based on SAP® LandscapeTransformation Approach (“greenfield”) Transformation softwareWith its SAP Landscape Transforma- Typical approach replaces all SAP Landscape Transformation softwaretion software and services, SAP now existing ERP applications with operates on running systems, helpingoffers a standardized software-based a new target ERP system ensure business continuityapproach for addressing transformationscenarios in a holistic fashion (see SAP SAP SAP SAPFigure 3). Benefits include: Transformation Direct• Help for customers to build their onto new system transformation own transformation capability, realize SAP upcoming changes via in-house • Starts with scenario analysis to choose resources, and monitor their system Very expensive, high-risk approach: best solution and target system landscapes • Leads to multiyear projects• Consistent data transfer across • Ignores functional expertise B E all SAP solutions and consideration AC of the complete data history embodied in existing ERP assets• Smooth data transfer via continuous • Usually does not allow transfer D testing cycles to help ensure all data is changed correctly of historical data and running • Saves time and money by operating• Significant reduction in overall processes to new system directly on database level project duration and downtime of • Can put your existing database the productive systems thanks to at risk and may result in loosing phased transformation SAP maintenance coverage if• Streamlined IT transformation process performing non-SAP-certified and significant reduction in overall conversions at the database level project risk and costs• General reuse of customizing settings SAP• Possibility to incorporate a Unicode conversion or an upgrade during a • Helps guarantee preservation of single downtime period historical data, running processes,• Reduced maintenance activities after and persistence of maintenance client transfer transforms SAP SAPSince SAP Landscape Transformation Figure 3: Comparison of Transformation Approachesis standard SAP software, it is fullycompliant with SAP regulations, andcustomers benefit from assured main-tenance and continuous support. SAP Functions in Detail – SAP Landscape Transformation 7

Identify transformationapproachAnalysis platform in Analyze system Evaluate andSAP® Landscape landscape and prepare transfor-Transformation soft- design project mation projectware provides genericsystem analyses for Analyses help to SAP Landscapescope and technical design target blueprint Transformationfeasibility assessments and set up a transfor- provides guidance mation project plan through best practices and detailed road maps Realize transfor- Maintain and monitor mation project system landscape Conversion and SAP Landscape migration technologies Transformation enables enable cost- and companies to be ready time-efficient for upcoming changes transformationsProject phasesFigure 4: Typical Transformation Project Phases Phases of Tackling a Transform- Identifying the Best Transformation ation Project Approach The analysis platform in SAP Land- Based on modern project management scape Transformation provides generic techniques and many years of experi- system analyses that help companies ence in transformation projects, the assess scope and technical feasibility. setup of SAP Landscape Transfor- Software-based analyses offer the mation software optimally guides advantage that they work with existing customers and partners through all system information to provide the base main project phases (see Figure 4). for cost estimates, risk assessments, These phases are described below. and feasibility studies. As a result, you can avoid incorrect conclusions due to missing or misleading information.8 SAP Functions in Detail – SAP Landscape Transformation

Figure 5: Output File from SAP® Landscape Transformation AnalysisAnalyzing System Landscape and • A detailed overview on the • A full picture of existing discrepan-Designing Project respective system landscape(s) cies to be tackled throughout projectAfter an enterprise has selected the realization and during data migrationmost suitable approach to perform a • Database characteristics andtransformation, it can create a project scenario-specific information With these insights, you can thenaccording to individual requirements design the target blueprint and set upand include the desired business trans- • Estimates of time, costs, and project a detailed transformation project plan.formation component. This process resources at an early stage in theresults in a project template, which projectcomprises all relevant project stepsand transformation requirements. • A comparison of essential systemScenario-specific analyses (see settings and data structures, suchFigure 5) provide customers and part- as repository objects and differentners with key insights, such as: customizing settings • Identification of conflicts, missing information, and duplicate entries SAP Functions in Detail – SAP Landscape Transformation 9

The analysis platform in Company Carve-outSAP Landscape Transforma-tion provides generic Company Carve-outsystem analyses that helpcompanies assess scope Figure 6: SAP® Landscape Transformation Road Map for Company Carve-Outand technical feasibility.Software-based analyses of-fer the advantage that theywork with existing systeminformation to produceand present cost estimates,risk assessments, and feasi-bility studies. As a result,you can avoid incorrectconclusions due to missingor misleading information. Evaluating and Preparing results in minimal system downtime. Transformation Projects To help ensure maximum data security Supporting the application of best and minimum system downtime during practices, SAP Landscape Transfor- the conversion of the productive sys- mation provides guidance and scenario- tem, various test runs are carried out specific road maps that give you a prior to the conversion. Depending on detailed overview on all project phases the project complexity, the testing (see Figure 6). phase involves one or more test cycles in a dedicated test system. After each Realizing the Transformation Project test conversion, you are able to validate SAP Landscape Transformation the following conditions: enables you to realize transformations • Data consistency of data structures in a cost-effective, timely, and efficient • Data access after conversion run manner. Its proven conversion and • Verification of test results migration technologies allow you to • Verification of changeover update or change all historical data. A phased transformation approach prerequisites10 SAP Functions in Detail – SAP Landscape Transformation

Figure 7: Documentation on Migration and Conversion Technology in SAP® Landscape TransformationAs soon as the test results are satis- Maintaining and Monitoring the Systemfactory, you can realize the conversion Landscapein the productive environment. All The SAP Landscape Transformationproject steps are carried out using software supports several businessa process tree – similar to the imple- scenarios and can help you identifymentation guide commonly used in an options for improvement. Furthermore,SAP software system environment. companies can quickly respond to upcoming business changes and adaptAfter a successful cutover to the new their organizational structures accord-system and business operations, your ingly. Companies can benefit fromproductive system will be up and run- higher efficiency, data quality, andning. Consistency and compliance are improved transparency.assured for all system data – includingopen items, complete data history, anddata archives. SAP Functions in Detail – SAP Landscape Transformation 11

SPECIFIC BUSINESS SCENARIOSIN FOCUSBusiness strategy Increased alignment of IT • Focus on core business (divest and business noncore assets, reduce complexity, and streamline your business) Business transformation Increased agility • Raise cash (use cash to improve Easing of M&A and outsourcing financial situation, accumulate cash for future expansion) • Comply with legal requirementsProcesses and organization Increased insight When selling or divesting a part of your Process innovation organization, you have to cleanse yourSupplier Enterprise Customer Business process productivity company’s organizational structures Business process quality of data elements associated with the divested entity in a way that both main-IT management Management of IT complexity tains transactional integrity and meetsPhysical and IT resources Development efficiency legal requirements. Data security, legal Operations efficiency compliance, and operational efficiency Landscape consolidation are critical success factors for chang- Reduction of migration risk ing business transactions. SAP has developed a landscape transformation solution to cover the entire range of requirements arising from a divestiture project.Figure 8: Translating Business Strategy into IT Transformation Scenarios Scenario: Carving Out a Company or Business Unit via “Clone and Delete”The most suitable transformation Leveraging Selling, Buying, and Your company may want to spin offapproach is not always straightforward Restructuring a subsidiary or business unit or createand clear at first. To fully realize a an independent entity within yourchange in business strategy on the IT These scenarios address common busi- group. As a result, your system land-level, the overall project requirements ness events: mergers and acquisitions, scape will need to mirror this structuralneed to be outlined in detail and trans- spin-offs, and divestitures, as well as change, and you may need to carvelated into a suitable transformation restructuring projects. SAP Landscape out the subsidiary’s company codesscenario (see Figure 8). Transformation offers an integral to reflect the new structure. The approach to realize transformation carve-out transformation scenarioThe standard SAP transformation projects and enables you to be ready (see Figure 10) enables you to extractsoftware addresses various transfor- for future business opportunities. selected company codes from yourmation needs, which are grouped into existing systems and transfer them intospecific business scenarios (see Scenario: Selling a Company or the spin-off’s target environment toFigure 9 for typical scenario triggers). Business Unit form a legally independent company.This categorization helps you translate Decisions to sell or divest part of theyour business needs into an appropri- organization are mainly driven by objec-ate transformation scenario. tives to:12 SAP Functions in Detail – SAP Landscape Transformation

Specific Business Scenarios Figure 9: Solving Complex Typical trigger Transformation Transformation Business Requirements within Focus requirement solution Standardized Transformation SolutionsLeverage sell, buy, Sell a company Sell a company Company carve-out Shift areas of responsibility through “cloneand restructure and delete” Profit center reorganizationTransfer company Reorganize a profit (new G/L based)(share deal) centerChange business (based on key date) Chart ofor organizations accounts Implement country- conversionUnify and transform Comply with new legal specific chart ofdata requirements in financials accountsTransform and align Increase transparency in Implement groupwidein financials financial reporting chart of accountsConsolidate and Reduce cost of operations Set up multiclient Client transferreduce IT cost systems (same release)Set up multiclient Increase agility by reducing Client transfersystems landscape complexity (with upgrade)Company carve-out via “clone and delete” approach Figure 10: A Typical Company Carve-Out ScenarioProductive system System copy Copy complete production systemCC 001 1 2 1CC 002CC 003 system CC 001 In system copy, delete company codesCC 004 copy CC 002CC 005 CC 003 2 unrelated to divested entity 3 CC 004 CC 005 In production system, delete company 3 codes related to divested entity Deliver system copy to acquiring entity 4 and release production systemCompany codes to be retainedCompany codes to be deleted SAP Functions in Detail – SAP Landscape Transformation 13

With the help of the SAP Landscape • Thorough assessment of IT land-Transformation software, company scape prior to carve-outcodes are deleted in the followingphases: • Evaluation of different carve-out• Business preparation options (project-based solution) – Creation of conversion/deletion • Best practice and guidance in project concept evaluation, preparation methodology, and project execution – Definition of test scenarios• Technical preparation • Effective and safe separation through a productized solution package – Setup of test system – Installing program functions • Separation process supported by• Test conversion tools with preservation of history – Starting approximately two months for share deals before conversion of the productive • Minimum downtime and business system interruption – Complete conversion of test system Scenario: Reorganizing Profit Centers – Testing of test conversion results The reorganization of profit centers• Conversion of productive system can be triggered by various external (usually over a weekend ) and internal reasons. For example, – Conversion of entire productive a changed corporate structure – and system therefore a shift of responsibilities – – Final tests requires companies to precisely adapt their controlling processes and adjustThe carve-out scenario allows you to profit centers. Also, internally drivenaccomplish this transformation without objectives – for example, the simplifica-interrupting your day-to-day business. tion of the existing profit centerSAP Landscape Transformation also structure, the unification of the overallhelps you maintain compliance with all reporting structures, or a change fromlegal requirements. The main business a cost center–based structure to ascenarios are audited by Ernst & Young profit center–based reporting structure(please visit www.service.sap.com/slo – may require reorganization. Whateverfor more information). By providing the scope, a change to the profit centerroad maps that contain detailed instruc- structure requires you to reassign alltions and predefined templates, as well affected objects (such as materials,as direct links to the action items for purchase orders, and sales orders)each single project step, the SAP soft- to the respective profit center (seeware guides you safely through the Figure 11). This often entails changingproject. thousands of objects and making corresponding adjustment postings.In short, using SAP Landscape Trans- Moreover, restructuring profit centersformation for a divestiture or spin-off can affect not only the profit centerallows you to take maximum advantage assignments in your general ledger butof the following benefits: also all data that feeds into the general ledger. Companies facing such a14 SAP Functions in Detail – SAP Landscape Transformation

Reorganization date Prior period closing Reorganization completionDefine Assign new Period-end Change Cumulativereorganization profit center processes master data transferplan to first-level in asset postings of objects accounting, Change balance sheet controlling transactional data* accounts 04/01 04/30 * For example: purchase orders, receivables . . .Figure 11: Typical Profit Center Reorganization Scenarioreorganization project are often ham- solution for reorganizing profit centerspered by manual calculations and trans- (split, merge, and change), reassigningfers, multiple transactions, manual rec- master and transaction data, andonciliation, and unstructured audit trails. changing the profit center assignment on a key date. The profit center reorga-With SAP Landscape Transformation nization functionality of the softwaresoftware, you can reorganize profit provides a unique and complete viewcenters in the following phases: on your reorganization process as well• Business preparation: as a plan that gives you a detailed view of all reorganization measures. The – System analysis of data affected functionality enables customers to flexi- by profit center reorganization bly adapt their organizational structures and also helps to increase data quality – Creation of reorganization concept for reporting. – Definition of test scenarios• Technical preparation Reorganizing your profit centers by – Setup of the test system using SAP Landscape Transformation• Test conversion: software yields the following additional – Starting approximately four to benefits: • Provision of a single point of entry six weeks before conversion of the productive system for the entire reorganization process – Complete conversion of the test (defining, triggering, monitoring, and system reporting) – Testing of test conversion results • Automated calculation and journals• Conversion of the entire productive • Full audit trail system (usually over a weekend) • Approach with minimum reconciliation effortWith SAP Landscape Transformationsoftware customers receive a proven SAP Functions in Detail – SAP Landscape Transformation 15

“The SAP chart of Unifying and Transforming Data Establishing a centralized SAP ERP accounts conversion application throughout the enterprise service gave us a In today’s globalized world, businesses can help streamline your business comprehensive con- must be able to handle multiple lan- operations, deliver greater cost effi- version tool set that guages and comply with state- and ciency, and speed up IT responsive- minimized the manual country-specific tax regulations, as ness for business users. processes associated well as implement corporate templates. with editing journals The following objectives especially and reporting structures Regional and local disparities have impel companies to initiate transforma- and reduced the risk a significant impact on a company’s tion projects: of errors.” overall business operations. These • Achieving accurate reporting and disparities provide a compelling argu- Hans Joachim Jordan ment for introducing more widely transparency: Responsible for SAP FICO Processes accepted standards, such as generally – Gaining more transparency for Behr GmbH & Co. KG accepted accounting principles (GAAP) and International Financial Reporting financial and operational reporting Standards (IFRS). – Setting up, changing, and extend- Since high-quality and consistent data ing accounts structure or organiza- forms the basis for running reliable tional structures and efficient business processes, • Fulfilling legal requirements by corporations today pay close attention implementing dedicated standards: to increasing the transparency of – Adjusting processes and struc- their financial processes and envision tures to comply with legal a company-wide unification approach, requirements such as aligning data structures and – Adopting accounting standards processes. • Simplifying: – Closing more quickly, accelerating Unifying Financials period-end closing procedures Unifying your financial and controlling – Streamlining accounting processes structures can give you the chance to • Unifying: redefine your existing business setup. – Harmonizing accounting structures Regionally organized structures may – Implementing corporate heighten administrative complexity requirements and may result in alignment efforts. – Harmonizing as a result of other transformation triggers • Reducing operating costs16 SAP Functions in Detail – SAP Landscape Transformation

Converting Charts of Accounts complies with the company’s futureSAP Landscape Transformation accounting standards. The analysissupports you in introducing standard functionality of the SAP Landscapefinancial guidelines and helps you to Transformation software helps youharmonize your chart of accounts. assess the feasibility and scope of your planned chart of accounts conversionAs part of your efforts to streamline and set up your transformation projectinternal processes, you may decide appropriately.that all legal entities in your groupshould use the same chart of accounts In the following conversion phases,in the future. The SAP Landscape you can opt to either rename or mergeTransformation software helps you to your accounts and cost elements.replace local or regional charts of Using a detailed, predefined methodol-accounts with a new, single, unified ogy, the SAP Landscape Transforma-chart of accounts (see Figure 12). tion software guides you safely through all steps of the conversion process.Prior to the project, you need to con- Since data quality is critical to the suc-duct a preliminary, in-depth analysis cess of a unification project, it is essen-of the financial and controlling solution tial to meet all organizational and oper-of the company’s ERP software and ational requirements and optimallyestablish an overall project path that support the new business processes. Prior to conversion After conversionControlling Company Chart of Account Chart of Accountarea code accounts number accounts number 1000 100 INT 11010000 NEW 11010000 11010001 NEW 11020000 11020000 Merge 11020001 200 INT2000 300 GKR 30000000 Rename NEW 50000000 GKR 40000000 NEW 60000000 400 … …Figure 12: Typical Chart of Accounts Conversion Scenario SAP Functions in Detail – SAP Landscape Transformation 17

“Following SAP’s proven, With the SAP Landscape Transforma- Consolidating Systems and Re- best-practice conver- tion software, you perform a chart of ducing IT Costs sion procedures gave us accounts conversion in the following peace of mind through- phases: Many international companies operate out the entire process, • Business preparation: a widely distributed system landscape from planning through to with data centers spread out across testing and implementa- – System analysis of areas affected the world. This often leads to disparate tion.… I would highly by chart of accounts conversion systems that boost operating expense recommend the SAP and maintenance efforts. Hence, the chart of accounts con- – Definition of project scope and need to rationalize the capabilities of version service to other feasibility check strategic data centers is a top concern SAP customers.” for corporations. Moreover, a lean and – Creation of conversion concept clear data system is essential for trans- Hans Meskens, Project Manager – Creation of mapping and blueprints parent data management and is a pre- SAP Financials NextiraOne – Definition of test scenarios requisite for quick and sustainable busi- • Technical preparation ness decisions. – Setup of test system – Installation of program functions System consolidation can be a first • Test conversion (at least 2 cycles) step in designing a more rational, – Complete conversion in test efficient, and resilient IT infrastructure that can support the targeted business systems model. For example, establishing a – Testing of test conversion results single-system instance with standard- ized processes, add-ons, programs, for all business processes and business data can significantly • Production conversion reduce system complexity. In addition, this centralization can significantly – Chart of accounts conversion in lower the overall cost and reduce the productive systems – usually over effort required for maintenance and a weekend administrative work. – Final tests A centralized IT environment with • Conversion of downstream systems independent clients can facilitate data management and global reporting. (development, consolidation, and test It can also make your company’s finan- system), either as conversion or as cial and sales data readily available copy of productive system throughout the enterprise, and support the establishment of standardized and To summarize, the benefits you achieve uniform business processes and by using SAP Landscape Transformation procedures. to unify and harmonize your financial structures include: • Preservation of assets (processes, data, and systems) • Transparency of your business processes • Efficient execution of accounting and period-closing procedures • Fulfillment of legal and corporate requirements • Safeguarding of your historical data18 SAP Functions in Detail – SAP Landscape Transformation

“Based on the figures Source system Target system Figure 13: for 2006, we’ve been System A Typical Client able to cut our operat- Client 010 System C Transfer Scenario ing costs by 64%. Client 010 This means that the System B Client 020 project – including the Client 020 Client 030 cost of necessary upgrades – has paid for SAP Landscape Transformation can By applying the client-transfer approach itself in the space of support you in your efforts to build up a (see Figure 13), you can design and six months.… Thanks centralized SAP ERP application, which build an IT infrastructure that can better to our centralized IT lowers your efforts for system mainte- support the business needs critical to setup and our harmo- nance and upgrades. You can not your organization’s continued success. nized system land- only reduce the number of systems scape, the next project and interfaces, but you can also In an SAP system environment, a client will be much easier and remove data redundancies and improve transfer supports the centralization of cheaper to perform.” the quality of your business data. data from multiple source systems into one single target system with multiple Walter Osbelt, Project Lead Consolidating Your Systems via stand-alone clients. This approach can voestalpine group-IT GmbH Client Transfer be seen as a quick-win solution, since it System consolidation projects are requires no process harmonization. By typically triggered by objectives to: bundling your data center resources • Lower IT costs, including operating, into one location, you can enhance your business performance and at the infrastructure, and energy costs same time cut operating costs and • Reduce administrative overhead reduce the communication efforts for • Reduce IT complexity by decreasing your IT staff. System administration becomes significantly easier because number of system interfaces and there is only a single, centralized sys- redundancies tem landscape to support. Moreover, • Harmonize systems to better support the new environment facilitates future business and to increase efficiency implementations and upgrades. of shared service center • Enable better business agility SAP Functions in Detail – SAP Landscape Transformation 19

A typical client transfer project with • Production transfer (usually overSAP Landscape Transformation com- a weekend):prises the following phases: – Client transfer between productive• Business preparation: systems – Final tests – Comparison analysis of differences between affected systems in: The benefits when you use SAP Land- SAP repository and “user exits” scape Transformation for system con- Client-independent customizing solidation and harmonization projects include: – Creation of client transfer concept • Software-based, in-depth system – Harmonization of differences assessment and comparison found in system comparison • Identification of most suitable consol- analysis – Definition of test scenarios idation approach• Technical preparation: • Use of best practices and guidance – Setup of test system – Installing program functions in project evaluation, preparation• Test transfer: methodology, and project execution – Complete transfer between • Possibility to transfer all data – test systems including data history – to existing – Performance monitoring target system – Testing of test transfer results • Minimum system downtime and for all business processes minimum business interruption20 SAP Functions in Detail – SAP Landscape Transformation

COMPLEMENTARY SAP SERVICES Strategy Design and Realization Continuous Figure 14: Overview preparation and testing improvement of Complementary SAP ServicesConsulting Getting started, discovery and evaluation, tailored workshops, on-demand consulting,and training and expert guidanceExecution Transformation scenarios: sell, buy, and restructure Harmonize and unify data, consolidate, and reduce IT costsSolution Transformation scenarios for SAP® Customer Relationship Management,enhancement SAP Supplier Relationship Management, SAP Supply Chain ManagementTechnical Examples: sizing/performance tuning/downtime minimizationoptimizationSupport Examples: evaluation support,* execution support,* SAP MaxAttention™services services * Available through SAP MaxAttention supportTo complement SAP Landscape Trans- • Incorporate company-specific Support for IT Transformationformation software, SAP also offers a requirements Strategy and Project Preparationvariety of services that provide supportand consulting along the entire project • Meet transformation needs not yet Many companies struggle to translatelifecycle – from strategic consulting covered by the SAP Landscape business-driven transformation require-to analysis support to optimization ser- Transformation software ments into an IT program. Often suchvices during the realization phase up to a process is impaired because thegoing live (see Figure 14). In addition, • Win in-depth knowledge on scenarios information on existing solutions, meth-to help you gain in-depth knowledge supported by SAP Landscape Trans- odologies, project blueprints, and soabout transformations, you can book formation via training services from forth is just missing. At this stage, SAPtraining offerings specific to SAP Land- the System Landscape Optimization transformation experts can assist youscape Transformation upon request. group by drawing up transformation plans that provide the best and fastest solutions,Thanks to this flexible approach, • Learn how to manage all phases which are based on your unique require-companies can individually put together of specific transformation scenarios ments. In the initial project phase, SAPthe service package according to their and better support tasks related to experts use their in-depth knowledgeneeds to manage their transformation project phases to help your company manage specificprojects. For example, the services challenges like the combining of existinghelp companies to: • Take full ownership of transformation solution components; the assessment• Identify the best transformation programs (combining technical real- of project costs, duration and risk; ization, project management, testing, and the coordination of simultaneously scenario to match the company’s and performance tuning) running projects. business strategy• Accelerate the pace of the project’s progress regarding preparation, proj- ect scope, and technical feasibility SAP Functions in Detail – SAP Landscape Transformation 21

Complementary SAP Start Quickly, Gain Knowledge, scenarios. This particularly suits com-services provide support Learn to Manage Transformation panies that do not plan on realizingand consulting along the SAP offers training and consulting several transformation projects within aentire project lifecycle – packages that can be flexibly com- certain time frame and therefore do notfrom strategic consulting posed to suit customer- and project- plan on building up in-house knowledgeto analysis support and specific requirements. Companies may about SAP Landscape Transformationoptimization services face a transformation project, struggle software. The System Landscapeduring the realization with setting it up, and seek to build up Optimization group’s services arephase up to going live. or extend their knowledge on specific specifically tailored to meet your indi- project tasks. To help with this, SAP vidual requirements during analysis, Landscape Transformation software design, realization, and going live. By offers comprehensive information offering expert guidance and accompa- about scenario-based transformation nying the complete execution process projects. The software also includes from start to finish, SAP gives you and a detailed documentation guide for your functional departments the advan- handling the product. In addition, the tage of being able to concentrate software includes an online knowledge instead on core business issues. product that consists of numerous presentations and audio recordings. Enhancing Standard Capabilities for Additional training and consulting Customer-Specific Projects can complement the project team’s SAP Landscape Transformation soft- activities and enable it to get started ware is designed to address certain quickly with the transformation project. business scenarios. If you plan to The services include: realize an IFRS-related scenario, you • Supporting transformation project might be forced to extend your transformation requirements to include planning aspects of controlling and assets. • Participating in scoping workshops You can realize the main focus of your transformation project via the SAP and proof-of-concept and design Landscape Transformation software phases (for example, with the chart of • Providing instructions for evaluating accounts conversion functionality). the results of analysis functions in However, additional project require- SAP Landscape Transformation ments such as merging controlling • Planning and optimizing transforma- areas and installing certain financial tion project test cycles controlling templates, as well as chang- ing cost structures and adapting your Focus on Core Business While Experts business warehouse solution, may Execute Transformation need to be addressed via customer- The System Landscape Optimization specific consulting projects. In such a group from SAP Consulting offers consulting project, you will need to numerous services – spanning all SAP touch on the following two areas: Business Suite applications – to cover the complete range of transformation22 SAP Functions in Detail – SAP Landscape Transformation



QUICK FACTS www.sap.com /contactsapSummary 50 104 549 (11/03)SAP® Landscape Transformation software helps accelerate business and IT transformation ©2011 SAP AG. All rights reserved.and turn complex business requirements into a highly standardized set of transformationsolutions. The software lets you better plan, analyze, sequence, and realize your transformation SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign,project within common business scenarios that address mergers and acquisitions, divesti- SAP BusinessObjects Explorer, StreamWork, and other SAP productstures, internal reorganizations, and projects to harmonize existing business processes. and services mentioned herein as well as their respective logos areComplementary SAP services provide support and consulting throughout the entire trademarks or registered trademarks of SAP AG in Germany andproject lifecycle. other countries.Business Challenges Business Objects and the Business Objects logo, BusinessObjects,• Manage mergers and acquisitions, carve-out projects, and internal reorganizations and Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as align IT with business goals well as their respective logos are trademarks or registered trademarks• Adapt organizational structures to recurring business transformation challenges, updating of Business Objects Software Ltd. Business Objects is an SAP company. and optimizing processes supported by a solid and reliable IT foundation• Reduce total cost of operations through system consolidation and data centralization Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as wellKey Features as their respective logos are trademarks or registered trademarks of• Guided project execution – Use scenario-based project road maps and integrated Sybase, Inc. Sybase is an SAP company. knowledgeware All other product and service names mentioned are the trademarks• Empowerment – Enable companies build their own transformation capability, realize of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. changes via in-house resources, and monitor system landscapes• Analysis platform – Assess project scope and technical feasibility, and determine the These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) most suitable transformation approach for informational purposes only, without representation or warranty of• Consistent data transfer – Enable consistent transfer across all SAP solutions, taking any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group into account complete data history products and services are those that are set forth in the express• Continuous testing cycles – Help ensure all data is changed correctly warranty statements accompanying such products and services, if• Unicode conversion during single downtime – Exploit ability to incorporate a Unicode any. Nothing herein should be construed as constituting an additional warranty. conversion or an upgrade during a single downtime periodBusiness Benefits• System integration and data consistency via preconfigured and structured execution steps• Reduced project duration thanks to minimal downtime approach• System landscape monitoring and change implementation via control processes• Cost-efficient realization of transformation projects through proven SAP conversion and migration technologiesFor More InformationCall your SAP representative, or visit us online at www.service.sap.com/saplt.