Session 3503: KARL STORZ: Cloud integration for ERP and SuccessFactors

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Orange County Convention Center Orlando, Florida June 3-5, 2014 Session 3503: KARL STORZ: Cloud integration for ERP and SuccessFactors Donna Leong-Cohen and Michael Pitisci

What we ll cover Learning Points About KARL STORZ SAP and SuccessFactors Journey Overview of Project Scope Implementing SuccessFactors in a Hybrid Landscape Overview of SAP Rapid Deployment Solutions Demo Benefits and Challenges Lessons Learned

LEARNING POINTS How did rapid-deployment solutions (RDS) help KARL STORZ integrate on premise SAP ERP HCM with SuccessFactors Business Suite? How we structured our project to achieve success with implementing a talent hybrid model? Learn about our challenges and benefits Learn from our mistakes

BEST PRACTICES Leverage the SAP Talent Hybrid integration Rapid Deployment Solution (RDS) package as a starting point to avoid re-inventing the wheel

Who is KARL STORZ? Global organization specializing in MIS Solutions Instruments Optics Camera Platforms Integrated Technology Solutions

Who is KARL STORZ? WORLD S LARGEST Manufacturer of Reusable Surgical Endoscopy Products Toronto Goleta Los Angeles Mexico City Stockholm Copenhagen Tuttlingen Vianen Brussels Paris Charlton Miami Madrid Rome Cape Town Buenos Aires Schaffhausen Vienna Lebanon New Delhi Singapore Moscow Beijing Tokyo Shanghai Guangzhou Hong Kong GLOBAL MANUFACTURER

KARL STORZ North America

The Integrated Operating Room Medical device control OR1 Essential NEO Technology Platform Telepresence FULL HD Video

Previous State Summary Countries Industry Global Medical Device Employees US, Mexico, Canada, S. America, Germany, Switzerland, Estonia 2,000 (US), 7,500 (Global) IT Footprint HR IT Current State SAP ERP (ECC6.0), SAP HCM (ECC6.0, EHP6) NA, SAP HCM (TBD) Germany, SAP PI (Germany only) SAP HCM OM, PA, PM, ECM, ESS, MSS, KRONOS, BENETRAK, ING, Active Directory, ADP Payroll, Apple One Payroll, ALE to ECC, SuccessFactors LMS, Employee flat file interface from SAP HCM to SuccessFactors LMS KARL STORZ has implemented SAP HCM in US and Germany, including performance and compensation management KARL STORZ has SuccessFactors learning already implemented Implementation of SAP Performance Management has challenges o Issues with SAP EPortal o Tools to assist managers with process o Integration with goal setting and development plans

Long Term Strategy Seeking a positive user experience that achieves global alignment with an integrated Talent Management system Foundation has been laid with SAP HCM SAP HCM as the core system LMS is already a SuccessFactors product. HR and Organization Learning & Development (OL&D) agreement that we want SuccessFactors in our future. Short term (begin work in 2013; go live in 2014): Succession & Career Development Performance Management & Goal Setting. Longer term (beyond 2014): Compensation and Recruiting 10

Why SuccessFactors? Why SuccessFactors? SAP product Less IT configuration support User maintained Ability for modules to exchange and build on data Succession tracking ability and reporting capabilities Bring employees closer to their HR data Integration of HR Talent- LMS 11

Needs Analysis Challenges Performance Management SAP Portal compatibility with desktop configuration Lack of notifications to support manager/employee interactions Workflow issues problems with portal refresh for changes made through the SAP GUI Development plans tracked off line Lack of system integration tools for managers and employees to track performance and development Developing processes on a changing system landscape SFSF seen as best decision in order to develop new programs without losing current investment and data history Succession Planning Very manual processes for career development and succession planning process and lack of integration between regions Difficult to control latest data versions within the process and keep track of all the data changes Lack of transparency of employee information between organizations if movements occur No integration between career development and learning for training programs Reconciliation of results between manual documents is very challenging High risk of data inconsistencies as data collection is a very manual process Our Needs Simple Flexible Support Global processes One integrated process Focus on Employee Leverage existing SAP HCM Core System Maintain LMS functionality New/Fresh interface easy to update Adherence to Best Practices

Our Journey 1. Business wanted SuccessFactors Talent Suite 2. Selected SuccessFactors Talent Hybrid Model from attending SAP RDS Hybrid Integration Sapphire 2013 session 3. Selected Implementation Partner - Coeus Consulting 4. Conducted 2-3 days onsite best practice SuccessFactors process workshops to map out detailed process flows and BPDs 5. Phase 1 Project Team Kick Off 6. Iteration 1 - Coeus team built best practice configurations 7. Continue with Iteration 2 and 3 and Testing 8. Production Cutover (Phased) 9. Go-Live

Overall Project Scope Geographic Scope Current US Employee Population (2000 employees) Future-Mexico, Canada, South America, Germany, Switzerland, Estonia Phase 1 Succession, CDP Phase 2 2013-2014 Annual Appraisal Process (goal setting, appraisal) Process begins 11/1 Business Scope Under Consideration Compensation Management Recruiting Priority: SAP Talent Hybrid Integration Succession, Employee Profile, CDP Single Sign On LMS Connector Role Based Permissions Performance Management (Phase 2) Goal Management (Phase 2) SAP ECC6 SAP Portal SuccessFactors BizX/LMS SAP HCM SAP Portal SFSF BizX/LMS HCM/SuccessFactors Module Scope System Scope 14 Coeus Consulting, Inc.

Landscape Map Before Core Employee Data ECC (SAP ERP FI etc.,) SAP HCM (NA USA, Canada, MX) SuccessFactors LMS

Landscape Map (NA) After On Premise Test (STAGE) BizX LMS Cloud Dev QA SAP ERP HCM SAP NW Process Integration (PI) Middeware On Premise PROD BizX LMS Cloud PROD SAP ERP HCM SAP NW Process Integration (PI) Middeware 16 Coeus Consulting, Inc.

Our Team Structure Legend: Engagement/QA Manager Program Executive Sponsor: Stakeholders KARL STORZ Program Sponsors SAP RDS Early Adoption Team Coeus Overall Program Manager RDS Package Owner: Markus Trapp RDS Integration Succession & Career US Organizational Change Learning (LMS) Integration Project Manager Integration Project Lead Project Manager SuccessFactors Delivery Lead Program Change Manager LMS Work stream Lead SAP Basis Team Member SAP HCM Integration Consultant HR/OD Business SME: SuccessFactors Delivery Team: Training Team LMS Team SAP PI Team Member SAP PI Tech Consultant Business Leaders Communications Team SAP HCM Analyst SAP HCM ABAP Consultant Security SME SAP ABAP Analyst Change Agent 17

Project Timeline KARL STORZ Proposed Timeline Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Project Prep {3 weeks} Realize (Finalize Design, Config and Development) {7 weeks} Verify (Integration & UAT Testing) {6 weeks} April 7th Go-Live Launch (Migrate to PRD) {3 weeks} RDS Integration + Succession & Career Project Project Prep {3 weeks} Realize (Finalize Design, Config and Development) {12 weeks} Verify (Integration & UAT Testing) {8 weeks} Oct 6th, Go-Live Launch (Migrat e to {4 weeks} Performance Management Project 18

Implementation Process

SAP Rapid Deployment Solutions (RDS) SAP Rapid Deployment Solutions (RDS) Fast Quickly address specific needs Gain fast time to value with seamless rapiddeployment tools, embedded best practices Speed end-user adoption with guides and educational materials Simple Clearly priced services and project time frames help ensure a predictable outcome Modular yet integrated solutions help ensure long-term landscape integrity Support across all environments (onpremise, mobile, and cloud) leveraging the cloud to accelerate projects and deployment

SAP Rapid Deployment Solutions (RDS) Software Quickly address the most urgent business processes Preconfigured Content SAP-supported best practices, templates, and tools make solution adoption easier Enablement Guides and educational material speed end-user adoption Service Fixed scope and price provide maximum predictability and lower risk

What s in the RDS for Talent Hybrid Integration? Software SAP Netweaver Process Integration Content SAP Netweaver PI integration configuration guides SAP HCM and SuccessFactors Integration Configuration Guides Example Extension Guides Services Web services configuration for the integration add-on Deployment of content Configuration of SAP HCM and PI Customer-specific extensions (5) Optional: Migration support for add-on upgrade Enablement Testing Scripts Business Process Flows Business Process Documentation Quick guides Enhancement guides

Employee and Organizational Data SAP HCM Add-on Transfer of SAP ERP HCM basic employee data to SuccessFactors SAP ERP HCM NetWeaver Process Integration (V4.7) SuccessFactors Talent Suite Personnel Administration <WSDL> Employee & Organizational Data <WSDL> Employee Data What s included? Business benefits Initial transfer of basic employee data, including personnel administration data for actions, organizational assignment, personal data, and communications data Initial transfer of organization management data (object for central person) and configuration tables (time zone and personnel area address information) Transfer of changed data records following a processdriven event such as a hire, rehire, termination, transfer, or change of personal employee data Data integration using SAP NetWeaver Process Orchestration as middleware instead of costly homegrown file-transfer mechanisms Faster processing based on delta handling and a reduced volume of transferred data Security of transferred data according to security governance protocols 23

BIZXPERT METHODLOGY MAP

DEMO SAP HCM and SuccessFactors Employee Data Integration Demo

CHALLENGES CHALLENGES: Technical Project requires knowledge in SAP NW PI Initial SAP NW PI version 4.7 installation lacked RDS documentation which required in house SAP basis to work closely SAP RDS early adoption program Business Resource availability during testing phases Integration of HCM data between SAP HCM and SFSF Biz-X and LMS work stream teams Integration: Designing a Talent hybrid model that will support additional SFSF phases as well as impending global requirements, e.g., conflict of user ids using central person Impact of data feeds from DEV and QAS environments to one SFSF Staging environment

CHALLENGES CHALLENGES : Integration: Alignment of new and existing processes with SAP HCM SuccessFactors integration functional specification development Changes to business processes to adjust to SAP NW PI data transfer from flat file format General Project: Coordination of priorities across the multiple work streams so as not to impact concurrent efforts

BENEFITS BENEFITS: SAP RDS SAP RDS package helped accelerate the project with HCM best practice configurations with initial set up of SAP HCM, SAP NW PI and SuccessFactors Coeus Consultants on project also involved with SAP RDS co-development activities which led to exclusive involvement in SAP s RDS early adoption program SAP RDS early adoption program support during the installation of SAP NW PI V4.7 Technical Leverage SAP NW PI integration tool for other areas of the business besides HCM SAP NW PI interface allowed for rapid prototyping to respond to changes to the functional specification SAP NW PI Tool easy to use and configure Ability to resubmit an individual record if the transfer from SAP HCM to SFSF failed Screening of data on SAP HCM side to ensure successful loading of data to SFSF SuccessFactors more flexible and easy to develop pick list values, change fields, add new fields

BENEFITS BENEFITS: Project Management Tools provided accelerated program management activities (project plan, process documentation, testing plans, test scripts, cutover plans etc., ) Shared resourcing model with Coeus allowed KARL STORZ business team to take ownership from the beginning making it easier for knowledge transfer transition Parallel work streams allowed for a phased go-live approach Team meeting attendance higher as well as improved participation since meeting focused completely on activities for that work stream Remote working structure allowed for reduced project costs in terms of travel for consultants and employees and flexible working arrangement - work at your own pace

Lessons Learned Project Preparation: Identify the right business resources from the beginning of the project as the owner for designing and developing the solution who are best suited to adopt the ongoing production support role Make sure you assess current expertise while assigning new skills to support SFSF long term Clearly identify responsibilities of team members for lateral processes Underestimated the amount of work required for existing modules Recommend an impact analysis is performed Realization: Make sure all work streams are aligned and agree on the HCM data that will be integrated and transferred over to SuccessFactors from SAP HCM Review SAP HCM SuccessFactors integration design specifications with all parties involved early and get their sign off during the Realize phase to avoid changes later Develop end to end business process integration testing to understand impacts early

Lessons Learned Testing: Ensure end to end testing scenarios are clearly mapped out and tested during the Verify phases with the right parties involved Testing that required end to end participation should be owned by one work stream Impact to the business not limited to new functionality ; experienced impacts to existing functionality importance of regression testing If possible perform SAP HCM SuccessFactors data integration testing on a fresh copy of Production as this will help identify any data issues earlier

KEY LEARNINGS Understand how KARL STORZ leveraged best practices to implement the integration between SAP HCM and SuccessFactors What s required from an implementation perspective to implement a talent hybrid model Understand the implementation methodologies used Learn from our experiences!

THANK YOU THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 3503 For ongoing education on this area of focus, visit www.asug.com

Thank you Thank you Contact information: Donna Leong-Cohen, email: dleong@coeus-consulting.com phone: +1 510 967 1908 Michael Pitisci, email: michael.pitisci@karl.storz.com phone: +1 508 784 0138