Das ERP für die IT: Ihre Betriebswirtschaftliche Sicht auf die IT mit dem SAP ERP und dem SAP Solution Manager

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1 Das ERP für die IT: Ihre Betriebswirtschaftliche Sicht auf die IT mit dem SAP ERP und dem SAP Solution Manager Tobias Hauk Product & Solution Management SAP Solution Manager Die IT-Welt ist nicht genug: SAP Solution Manager macht ITIL möglich! 15. Oktober, Hotel Scandic Emporio,Hamburg

2 Moving from IT as a cost center A1 Traditionally, IT is treated as a cost center or an internal service. Cost centers in FI/CO are used to allocate IT costs to different parts of the organization: IT cost center collects all costs needed for delivery of services to business Costs are charged via assessments without transparency Usually costs are charged per user for each employee in the company, indepent on consumption of services. Hardware Software Services IT Department Provides IT Services as determined by the company Company ABC IT Services Functional Units Cost charged via assessments without transparency 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 2

3 Slide 2 A1 This is only about motivation? Typical: sum of all costs divided by number of people Author;

4 to fair cost allocation to your business! A2 It would be better to define models which allow a kind of IT Cost absorption which depends of IT Usage Company ABC IT tailors differentiated IT services and products Costs are charged via an usage based cost allocation concept to the consumers of the individual services IT is not a cost center anymore, but provides valuable services to functional units. The consumer of the services is charged based on the usage of the provided services Hardware Software Services IT Department Determines price, quality and variety of IT services to offer IT Services Functional Units Usage based cost allocation ensures transparency on used IT Products 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 3

5 Slide 3 A2 "better world prinzip" Author;

6 SAP Solution Manager and SAP ERP play well together 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 4

7 How does this relate to SAP Solution Manager and SAP ERP? SAP ERP for Your Business SAP Solution Manager as your IT Management Suite Financial Management & Controlling Demand, Project, and Portfolio Management Service, Application, and Project Portfolio Management Project Management IT Reporting Risk and Compliance Management Marketing and Sales; Customer Satisfaction Sourcing Budget Effort & Cost Asset IT Service Management Services Catalog (Service Design & Delivery) Incident Management Change Management Configuration Management Dashboards Human Resources Purchase Order Working Time SAP Infrastructure Management Hardware, Network, Operating System and Database Infrastructure Assets and Inventory 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 5

8 Integration of SAP Solution Manager with SAP ERP based on standard interfaces SAP ERP SAP Solution Manager Time Management Payroll Controlling Customer Services Project Systems Asset Management (MM) Billing (SD) Middle ware CRM IT Project & Portfolio Management Resources & Time IT Service Management Incident, Problem Management Change Management Service Order & Request Management SAP IT Infrastructure Management Hardware Asset Management PPM / cpro Software Asset Management (Licenses) 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 6

9 ERP for IT - Step by Step approach Establish IT cost model Gather & Assign Costs Calculate & Charge Costs Differentiate Costs from Projects Operations ( incl. service fulfillment) Define IT Service Portfolio Contains all IT service products Basis for usage based cost calculation Type of Costs Hardware, Software - Acquisition & Maintenance Time - Expense Indirect costs (Energy, Buildings, ) Internal Provide cost transparency Multiple departments inside one organization External cost accounting Charge for IT services Customers or subsidiaries 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 7

10 Costs in Projects Cost depend on scope of project (Derive IT Requirements from Business Requirements) Needed Budget is determined by effort estimation for implementation (time & expenses) Additionally project related direct investment costs for hardware, software, have to be considered Direct resource assignment (staffing) is done Overall costs have to be covered by project sponsor(s) IT Portfolio and Project Management Business Requirement Portfolio Project Change Design Mgmt. Build Mgmt. Test Mgmt. Major Release Build Execution Test Execution Release & Deployment Management Deployment execution Application Lifecycle Management 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 8

11 ERP for IT - IT Project & Portfolio Management Typical Situation IT organization need a tight connection between business innovations and related IT projects There is often a missing link between the innovation, related business and IT requirements, costs, as well as software changes. Approach Systematic management of IT portfolios with ITPPM Integration of ITPPM with cprojects and SAP Solution Manager to link ITPPM, IT Service Management, and ALM Management of time and resources with cproject Integration into FI/CO Benefit Profound basis for planning of IT innovations Traceable process from business requirement to realized software change Clear tracking of scope, time and budget 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 9

12 Creating the link from cpro to ERP 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 10

13 Integration of projects into ERP Time Recording in Solution Manager Change Document Time Recording in CATS 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 11

14 Costs in Operations Service Products for IT Services need to be modeled Recurring Costs for Hardware, Software, (maintenance/leasing) have to be calculated Investment costs for service driven demand (end user laptops, mobile devices, ) have to be covered by requestor (cost center) Effort is demand driven by recurring activities, service requests & incidents Price per service have to be calculated based on demand projection Conflicting resource requirements with Projects can be circumvented by establishing maintenance projects IT Service Management Service Order / Request Enhancement Request Minor Release Urgent Change Incident Problem Request for Change Business Process Operations Application Operations Infrastructure Operations Service Catalog CMDB Operations Tasks Run SAP like a Factory 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 12

15 How to come to an operational cost model? Service Software All licenses required to run the service (maintenance/leasing) Hardware All dedicated hardware investments required to run the service (maintenance / leasing) Software Hardware External Services Time & Expenses External Services includes consulting services, as well as IT services Time & Expenses needed for recurring operational activities as well as incidents and service request fulfillment Datacenter Overhead Datacenter costs for facilities, energy, cooling,.. Overhead Management, HR, Controlling, 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 13

16 Create Service Portfolio as basis for a service catalog Establish a service portfolio and service catalog as a basis for costing: Which services are provided by IT? What is the scope of each service? Define service requests for each service with fulfillment targets Define Service Level Agreements with customers Define prerequesites for each service (hardware, software, licenses) Provided Standard Services - New Standard Mail Account (Mo-Fr, 8-17, 3d) - Extend Inbox Capacity (Mo-Fr, 8-17, 3d) - Error resolution (Mo-Fr, 8-17, 8h) - Extend server capacity (internal) Service Levels My first service: - Availability of Service (24x7, 0-24, 99,5%) - Mean time between failure (3 month) Prerequisites Mail Server (Software & Hardware) Network Internet Access Spam Gateway 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 14

17 Model IT services using IT products in SAP Solution Manager Extension of Service Request Management to model an IT Service Catalog Allows modeling of complex services that consist of multiple products which are delivered in scope of a service New Employee Type: Catalog Product Predefined product categories for: Catalog End User view on IT Services in a service catalog Material Physical delivery (from stock or ordered products) License Delivery of licenses (integrated in License Management) Services Delivery of services (supported by Service Request, Guided Procedures & Tasks) Open for further service type (like User Requests for IDM Integration) Standard Laptop Type: ITSM Material Windows 7 License Type: ITSM License Laptop Delivery Type: ITSM Service SAP User Type: User Request Purchase Request License Call-Off Service Request / Guided Procedure User Provisioning 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 15

18 Publish defined IT services in service catalog Catalog integrated in SAP Solution Manager End User Self Service Portal Shop based on WebChannel (pricelist component) 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 16

19 ERP for IT - Integrated time recording with ERP for cost planning Typical Situation Transparency missing on where time is spent during operations No clear assignment of needed effort to IT Services Approach All time recordings are either done for projects or ITSM transactions (incident, problem, change, operations task, service request) Based on assignment of IT products to transactions time recording is transferred to CATS and then to FI/CO Benefit All direct and indirect costs for one IT product can be collected in FI/CO Existing functionality in FI-CO (Product Costing CO-PC) can be used price determination Invoicing can be done with SD Profit Accounting can be used for analysis by customer or product 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 17

20 ERP for IT - Time Recording in IT Service Management Service Transaction Types Incidents Problems Service Requests Changes Operations Tasks Determination of IT product based on multi-level-categorization Time recording Specific Assignment Block to record your time efforts directly in the tickets 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 18

21 ERP for IT - Service Confirmation for data transfers to ERP Transaction type service confirmation Available within SAP Solution Manager Linked to the corresponding tickets Allows the recording of Service Products and Material Products Creation Automatically when saving the service transaction Automatic submission to ERP via CRM middleware 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 19

22 Use Case 1 How to deal with IT Projects & Operations costs Example of a mid-market customer: Projects are managed with cpro To each project task, a CO object is assigned Manual time recording is replicated each night into CATS (Cross Application Time Sheet) Overbooked times have to be manually approved (not standard) From CATS the time recordings are transferred monthly to the respective CO objects and then billed according to cost center or subsidiary Time for delivered services and recurring tasks is manually recorded in tickets and monthly transferred to CO Each IT Product/Service has an own CO object Calculation of service price per year 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 20

23 Use Case 2 How to differentiate costs for IT services Billable services are ordered via a service order from service catalog (with an assigned price) Time is recorded manually for all request type transactions Each service is assigned to an IT product (Service, Material, License) Each IT product is assigned to an object in CO Other costs are assigned to each IT product in CO Billing is done based on consumption of services Price calculation is done in CO-PC based on all costs defined in the IT service cost model 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 21

24 Summary SAP Solution Manager provides an ITIL certified tool framework to model all IT management processes from projects to operations. CRM By applying the cost allocation approach from your business to your IT products, IT can provide financial transparency and move towards fair usage based cost allocation. Middle ware With the integration of SAP Solution Manager and SAP ERP, you can achieve full transparency of plan and actuals of projects and operations SAP AG or an SAP affiliate company. All rights reserved. Public 22

25 Thank you Contact information: Tobias Hauk Senior Product Manager SAP Active Global Support 2013 SAP AG or an SAP affiliate company. All rights reserved.

26 Appendix Slides that are out

27 SAP Solution Manager and SAP ERP play well together ERP covers Financial and Controlling, Planning and Budgeting that will become more and more relevant for IT to further improvement SAP Solution Manager covers core IT processes like Build und Run Ideal landscape should have these two as core applications and additional integrated applications for special purposes Both cover 80% of the core IT processes 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 25

28 SAP Solution Manager and SAP ERP play well together 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 26

29 ERP for IT - Service Catalog, Order and Fulfillment Management Typical Situation Typical service orders comprise multiple IT products (services, material & licenses) with different follow up delivery processes Amazon catalog like UI is needed for End Users Approach Model complex IT products using product dependencies in SAP Solution Manager Provide product/services catalog in SAP Solution Manager Integrate WebShop with SAP CRM WebChannel SD Integration with SAP ERP or 3 rd party Supplier FI/CO Integration with SAP ERP for product cost calculation Benefit Single Point of Access for End User Gather costs and charge services in ERP based on IT product model Transparency and comparability of delivered services 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 27

30 How does this relate to SAP Solution Manager and SAP ERP? ERP for Your Business IT Management Suite Financial Management & Controlling Demand, Project, and Portfolio Management Service, Application, and Project Portfolio Management Project Management IT Reporting Risk and Compliance Management Marketing and Sales; Customer Satisfaction Sourcing Budget Effort & Cost Asset IT Service Management Services Catalog (Service Design & Delivery) Incident Management Change Management Configuration Management CIO Dashboards Human Resources Purchase Order Working Time SAP Infrastructure Management Hardware, Network, Operating System and Database Infrastructure Assets and Inventory 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 28

31 Deliver IT services using guided procedures in SAP Solution Manager Guided Procedure integrated in Service Request Guided Procedure for Definition and Execution Support Task for Processors in Guided Procedure 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 29

32 Demo Integration of Service Catalog, Service Order, Service Request and Operations Task with Time Recording 2013 SAP AG or an SAP affiliate company. All rights reserved. 30

33 Service Order Integration in SAP ERP 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 31

34 ERP for IT - Hardware Asset Management Typical Situation Financial Asset information is maintained in ERP (contracts, vendors, warranties) Physical Asset information is maintained in multiple Infrastructure CMDB s No single source of truth containing all asset information available Approach Auto-discovery of IT infrastructure with SAP IT Infrastructure Management Automatic assignment of infrastructure devices to applications in SAP Solution Manager (LMDB / ibase) Mapping of ERP Assets (financial information / deduction / warranties) to physical information (installed software, hardware...) Benefit Real impact analysis possible (from business process to IT infrastructure) Incident, Problem & Change Business Process Applications Infrastructure Monitoring & Alerting Single source of truth for hardware assets containing technical and financial information 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 32

35 ERP for IT End-to-end asset lifecycle management process Physical Steps Add serial number Plug in device Manual Mapping CI/IBase Purchase Requisition Purchase Order Goods receipt Equipment creation N SAP ERP Asset creation Service Order Ibase synchroniz ation Notification and pickup Auto Mapping? Y Confirm service request SAP Solution Manager CMDB Auto discovery 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 33

36 ERP for IT - Software Asset Management Typical Situation Accurate number of purchased licenses is often missing Assignment of licenses to end users or business units is not transparent Hard to create software license balance sheet to identify potential cost saving or missing licenses Approach Software license and contract Management with SAP IPM Automatic discovery of installed software and calculation of licenses with SAP Infrastructure Management Creation of an online software license balance sheet Integration for purchasing and billing of licenses with SAP ERP Contract Management Manage Contract Assign Provision Assign PO to Contract End Contract Duration License Management Take License to Inventory Create License Audit Report Show up License usage Archive License Order License Catalogue Management Maintain License models Maintain SW-Article Export SW-Article Maintain Installation Key Benefit Transparency as basis for license purchasing & contract negotiations Decrease license purchase costs, through reduction of over-capacities Assign used licenses to servers, business partners for billing Minimize risks, through identification of under-licensing 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 34

37 License Management with SAP Solution Manager & SAP IT Infrastructure Management SAP Solution Manager 7.1 & SAP IT Infrastructure Management Auto Discovery of IT Infrastructure Objects Auto Discovery of installed software and automatic calculation of software packages Mapping into SAP Solution Manager (ibase and Business Partners) ERP integration for asset management (Maintenance contracts, vendors, ) Discovery of as-is situation for landscape & licenses SAP IPM Modeling of license contracts, software articles and license usage rights License call-off process and calculation of usage based license charge ERP integration for financial management (purchasing licenses, cross charging) Modeling of to-be situation for licenses Provides license pool for license balance sheet 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 35

38 Data Model & Data Exchange Business Partner CMDB Object As Is License Situation License Open Select Microsoft Office 2010 Users & functions Configuration Items License Box Version Microsoft Visio 2010 SAP IT Infrastructure Management Software Vendor (Supplier) To Be License Situation Contract Compare Usage Rights Metric Country Language Software Balance Sheet on license distribution and usage 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 36

39 Software Balance Sheet License Contracts from IPM Overall License contingent in IPM Overall License contingent in IPM Detected License Usage in SAP IT Infrastructure Management Rating of the license situation More licenses detected than bought compliance issue Less licenses used than distributed Saving potential More licenses detected than assigned Saving potential Link to license information in IPM Link to list of clients where the license is assigned Link to list of clients where the license is installed 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 37

40 Integration Scenario with SAP ERP SAP Solution Manager 7.1 SAP IT Infrastructure Management IPM IT Service Management License Contracts Service Order License Call-Off Detected & Installed Hardware License Contigent Configuration Items (iobjects) Installed License Detected Software SAP ERP Purchase Order Hardware Assets Software Assets Invoicing 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 38

41 2013 SAP AG or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see for additional trademark information and notices SAP AG or an SAP affiliate company. All rights reserved. Public 39

42 2013 SAP AG oder ein SAP-Konzernunternehmen. Alle Rechte vorbehalten. Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durch SAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden. Einige der von der SAP AG und ihren Distributoren vermarkteten Softwareprodukte enthalten proprietäre Softwarekomponenten anderer Softwareanbieter. Produkte können länderspezifische Unterschiede aufweisen. Die vorliegenden Unterlagen werden von der SAP AG und ihren Konzernunternehmen ( SAP-Konzern ) bereitgestellt und dienen ausschließlich zu Informationszwecken. Der SAP-Konzern übernimmt keinerlei Haftung oder Gewährleistung für Fehler oder Unvollständigkeiten in dieser Publikation. Der SAP-Konzern steht lediglich für Produkte und Dienstleistungen nach der Maßgabe ein, die in der Vereinbarung über die jeweiligen Produkte und Dienstleistungen ausdrücklich geregelt ist. Keine der hierin enthaltenen Informationen ist als zusätzliche Garantie zu interpretieren. SAP und andere in diesem Dokument erwähnte Produkte und Dienstleistungen von SAP sowie die dazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und verschiedenen anderen Ländern weltweit. Weitere Hinweise und Informationen zum Markenrecht finden Sie unter SAP AG or an SAP affiliate company. All rights reserved. Public 40

43 The Grid Headline area White space Drawing area 2013 SAP AG or an SAP affiliate company. All rights reserved. Public 41

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