SUGEN/SAP Task Force SAP Enterprise Support. On Boarding Document
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1 SUGEN/SAP Task Force SAP Enterprise Support On Boarding Document
2 Agenda 1. About SUGEN 2. Benchmark Program and Objective 3. Timeline 4. SUGEN Benchmarking KPIs 5. SUGEN Benchmarking KPI Customer Selection 6. Next Steps
3 SUGEN: Mission, Charter, Deliverables Mission: All Together Now Be a powerful, international voice that unites regional User Groups in an open, honest dialogue between members and SAP that ultimately drives the market towards excellence, innovation and success. Charter To be the Global Network of User Groups that will provide a collective view of strategic issues that need to be addressed by SAP Main Deliverables: Provide consolidated strategic influence priorities and User Group members to work with SAP to resolve them Provide an effective and efficient method for communication among User Groups and SAP and assure proper documentation of priorities Share Best Practices between Users Groups and SAP for the mutual benefit of all 3
4 SUGEN: Who We Are A united network of 12 User Group Communities across three continents UK SAP UK & Ireland User Group Netherlands VNSG Sweden SAPSA US and Canada ASUG Mexico and Central America ASUG Mexico Brazil ASUG Brazil France USF Spain AUSAPE Germany, Austria, Switzerland DSAG Middle East and North Africa SUG-MENA Japan JSUG Australia SAUG 4
5 SUGEN: How We Are Organized SUGEN Mike Stoko Chairman SAP Stefan Kneis Executive SAP Contact Matthias Herzog Vice Chairman Per Högberg Vice Chairman Oliver Hid Arida Director Customer Advocacy Norbert Nowak Director Global Communities Executive Sponsors (CEO): Henning Kagermann Leo Apotheker 5
6 SUGEN Enterprise Support Charter Governance Structure SAP Uwe Hommel Meinolf Kaimann Norbert Nowak Martin Risau Stefan Kneis Executive Steering Committee SAP SUGEN Uwe Hommel Matthias Herzog Operational Steering Committee SUGEN Matthias Herzog (DSAG) Andreas Oczko (DSAG) SAP Norbert Nowak Program Leader SUGEN Andreas Oczko (DSAG) Program Management Office Team Member Alessandre Galvao (ASUG Brazil) William Khalil (SUG-MENA - Middle East/North Africa) Tonnie van der Horst (VNSG Netherlands) Thomas Schierwagen (SAPSA Sweden) Alan Bowling (SAP UK & Ireland UG) Grahame Reynolds (SAUG Australia) Jutaro Shiraishi (JSUG Japan) Maiko Miyakawa (SAP Japan) Mario Guenter (DSAG) Jean Leroux (France, chairman) 6
7 SUGEN/SAP Enterprise Support Task Force Statement/Task: In November 2008 SAP has set up a joint team with SUGEN to establish Value Key Performance Indicators (KPIs) for SAP Enterprise Support. SUGEN and SAP will jointly evaluate the progress of these KPIs against customer value on a regular basis and adjust SAP Enterprise Support until the quality measures are achieved Expected Customer Benefits: Clear understanding of the value the Enterprise support brings to SAP customer base 7
8 Agenda 1. About SUGEN 2. Benchmark Program and Objective 3. Timeline 4. SUGEN Benchmarking KPIs 5. SUGEN Benchmarking KPI Customer Selection 6. Next Steps
9 Benchmarking Objective Benchmarking Objective: Benchmark should provide a baseline to assess the value for using and moving to mandatory Enterprise Support We need benchmarking for two purposes: First, solid benchmarking gives us the ability to quantify improvements over time for a specific customer by exercising the benchmark on a regular basis. Second, benchmarking will give our members the opportunity to benchmark their individual situation against peers and other companies. This allows to identify the areas where improvement must be achieved. Support the value proposition of SAP Enterprise Support and justify the investment of the customer
10 What is Benchmarking? What? Measure the current environment Allows to target what does and does not work well Allows to put evidence behind decisions Compare performance Why? Build a Business Case Assess value realization Prove success Enables continuous improvement Project the potential of best practices When? Before implementation of enhancements During business operations Continuous monitoring of efficiency
11 Benchmarking Methodology and Deliverables Gap to Qx & Average 1 Company-Specific Report Status of the company with regards to the defined KPIs Health check of systems and core business processes Potential for improvement Action plan Key Performance Indicators Best Practice Adoption 2 Tangible results through ES Improved business processes and systems by converting KPIs into business value Improved support processes to reduce TCO based on SAP Standards for Solution Operations 3 Benchmark Analysis Year to year analysis of customer improvements (selfcomparison ) Peer-to-per comparison (with other customers)
12 Benefits for Customers to participate in Benchmarking Gain insight into your business and IT Operations Lay out a business case for change Compare performance to other customers Assess value realization, year-over year Prove success
13 Agenda 1. About SUGEN 2. Benchmark Program and Objective 3. Timeline 4. SUGEN Benchmarking KPIs 5. SUGEN Benchmarking KPI Customer Selection 6. Next Steps
14 SUGEN/SAP ES Task Force 2009 Key milestones Year 2009 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CW Key Events / Milestones Develop Benchmark Program with SUGEN KPI Sign-off with SUGEN Customer Sign-off with SUGEN KPI Sign-off with SUGEN Customer Signoff with SUGEN Initial Benchmark with customer (Create Benchmark Baseline) Performing Enterprise Support Offering/Services Second Benchmark with customer First SUGEN benchmark results Conversion of KPIs into business value Communicate high level Benchmark Survey results First SUGEN benchmark results Sign-off on Result Communicate high level Benchmark Survey results
15 Agenda 1. About SUGEN 2. Benchmark Program and Objective 3. Timeline 4. SUGEN Benchmarking KPIs 5. SUGEN Benchmarking KPI Customer Selection 6. Next Steps
16 SUGEN KPI Benchmark Approach Key Message Benchmark should provide a baseline to assess the value for using and moving to mandatory Enterprise Support All KPIs will be measured in the customer SAP Solution Manager (EhP1 or close to latest SolMan) KPI changes are clearly related to Enterprise Support Acceptance criteria Goal is to decrease the SUGEN KPI Index by 30% within the next 4 years aggregated over the customers participating in the Benchmark Calibration of SUGEN KPI Index so that the achieved cost savings can be related to the price increase
17 SUGEN KPI Benchmark KPIs to be measured ES Value Drivers Business Continuity SUGEN KPI Increase number of days without an outage Description Increase availability of systems and core business processes unplanned downtime planned downtime Reduce mean time to resolve Accelerate customer incident resolution time Reduce overall incidents Reduce effort of total customer incidents Business Process Improvement Innovation& Protection of Investment Total cost of Operations Number of emergency changes Enhance system stability by reducing emergency changes Impact of change Reduce effort for post go live stabilization and optimization Number of failed changes Reduce effort due to number and Effort of changes to be backed out On current technology stack Number of redundant custom code/objects; functionality available on newer releases CPU Utilization and "overall power growth rate" Customer can profit from latest innovations in mainstream or extended maintenance for application and technology stacks Reduce maintenance cost by eliminating unnecessary modifications Decrease hardware costs (e.g. CPU) Storage Utilization and growth rate Decrease storage costs Run & Maintain work required for deploying support packages and enhancement packages Reduce total cost of deploying support packages / enhancement packages
18 SUGEN Benchmark KPI Index - structure KEY MESSAGE The SUGEN KPI measurements are provided to the benchmark customers by an Index, not per single KPI The SUGEN KPI Index is measured regularly as an aggregation of the benchmark Indices (KPIs) Goal is to improve 30% improvement (cumulative) of the SUGEN KPI Index within 4 years SUGEN KPI Index will be calibrated so that the improved support delivered over time will be related to the phased in pricing SUGEN Benchmark History / Trend Objective: Index decrease -30% within 4 years Year Total Minimal Improvement 4% 8% 10% 8% 30%
19 Agenda 1. About SUGEN 2. Benchmark Program and Objective 3. Timeline 4. SUGEN Benchmarking KPIs 5. SUGEN Benchmarking KPI Customer Selection 6. Next Steps
20 Criteria for customer selection KEY MESSAGE 100 Customers will be targeted by SUGEN for the Benchmark according to SAP ERP Release and Market Segment. (Enterprise Support Maintenance fee paid for 2009) Release EMEA Americas APJ SME ERP SME ERP SME R/3 Ent LE ERP LE ERP LE R/3 Ent Release EMEA Americas APJ Total ERP ERP R/3 Ent Total Total
21 Pre-requisites for Participation as SAP Enterprise Support Customer Technical Requirements: Customers agree to the terms of SAP Enterprise Support Customers provide and maintain remote access via a technical standard procedure as defined by SAP Customers provide a main contact person to work with SAP/SUGEN during the Benchmark Program (Customers establish and maintain a SAP certified Customer COE is preferred) Customers have installed, configured and be using productively, an SAP Solution Manager close to the latest patch levels for Basis, ABAP, and the latest SAP Solution Manager support packages (Solution Manager Enterprise Edition preferred) Customers activate SAP EarlyWatch Alert for the Production Systems and transmit data to Participant's productive SAP Solution Manager Enterprise Edition system
22 Pre-requisites for Participation as SAP Enterprise Support Customer Other Requirements Customers agree to support the Benchmark program over the next 4 years Customers agree to work in a joint effort actively with SUGEN/SAP and to answer the Surveys to its best knowledge Customers create together with SAP an action plan based on SAP s recommendation and findings Customers execute on the plan with the help of SAP Customers agree that SAP/SUGEN can use the data anonymously and publish the results of the Benchmark Survey aggregated and anonymously
23 Agenda 1. About SUGEN 2. Benchmark Program and Objective 3. Timeline 4. SUGEN Benchmarking KPIs 5. SUGEN Benchmarking KPI Customer Selection 6. Next Steps
24 Next Steps Assign Support Advisor Answer Benchmark Survey * Create Benchmark Baseline Analyze Results Create Action Plan with Customer * * Customer /SAP Execute the Action Plan Conduct second Assessment Analyze Results Create Customer specific Report * Customer action needed
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