ITM260 - IT Charging ERP integrated SAP Solution Manager processes Public
Speakers Las Vegas, Oct 19-23 David Birkenbach, SAP SE Tobias Hauk, SAP SE Barcelona, Nov 10-12 David Birkenbach, SAP SE Tobias Hauk, SAP SE 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 2
Disclaimer This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent. 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 3
Agenda IT Management processes integrated in SAP ERP Financial Management IT Catalog Management Hands-on Demo Hands-on Exercise 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 4
Why IT Charging? Internal IT Provider It might be a part of your strategy to charge your IT costs via s and Projects to your internal customers / departments. You can affect the standardization and innovation of the IT services (by making services that have to be retired more expensive or promote innovative services) You can improve your reputation as a competitive IT provider" You can give the business units input for cost planning External IT provider or IT shared service center IT charging is a must have 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 5
Moving from IT as a cost center 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, independent on consumption of services. Hardware Software s IT Department Provides IT s as determined by the company Company ABC IT s Functional Units Cost charged via assessments without transparency 2012 SAP AG. All rights reserved. 6
to fair cost allocation to your business! 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 s IT Department Determines price, quality and variety of IT services to offer IT s Functional Units Usage based cost allocation ensures transparency on used IT Products 2012 SAP AG. All rights reserved. 7
Common charging models by Asset by Order IT-Financial Management Asset User Asset User IT-Costs Distribution Allocation of IT-costs based on dynamic or static allocation keys Customer Order Customer by User Allocation of all user-related IT-costs by User Customer User IT Financial Management by User Customer by Asset Allocation of all IT-costs with a direct asset relation Charges can consist of one-time and recurring charges by Order Allocation of order-related IT-costs (service requests, projects,...) Charges consist of one-time charges customer Distribution (totals) by Allocation of IT-costs, based on booked IT-services (including performance or usage based charges) 2012 SAP AG. All rights reserved. 8
Unique position of SAP to innovate an ERP for IT SAP Solution Manager is connected to the SAP ERP system via the CRM Middleware framework SAP Solution Manager supports any kind of IT process and Application Management Relevant objects for charging are available in SAP Solution Manager (s, customers, contracts, prices, products, ) based on SAP CRM Integration in SAP ERP landscape with CRM Middleware which is part of the standard delivery Integration in existing finance and controlling processes with a transparent feedback in the IT processes in SAP Solution Manager. 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 9
Integration of SAP Solution Manager with SAP ERP based on standard interfaces SAP Solution Manager SAP ERP IT Project & Portfolio Management Resources & Time IT Management Incident, Problem Management Change Management Order & Request Management SAP IT Infrastructure Management Hardware Asset Management CRM PPM / cpro Middle ware Time Management Payroll Controlling Customer s Project Systems Asset Management (MM) Billing (SD) 2012 SAP AG. All rights reserved. 10
SAP Solution Manager verified for ITIL Lifecycle Strategy Portfolio Management Financial Mgmt. for IT s Continual Improvement Transition Transition Change Management Asset & Configuration Management Release & Deployment Mgmt. Knowledge Management Design Level Management Catalogue Mgmt. Capacity Management Availability Management Design Strategy Operation IT Continuity Mgmt. Operation Event Management Incident Management Request Fulfillment Problem Management SAP Solution Manager is verified to support processes in all ITIL lifecycle phases SAP Solution Manager was the first IT Management tool that achieved the ITIL v2011 edition certificate for all 15 processes that can be certified by Pinkverify Crown copyright 2011 Reproduced under license from the Cabinet Office 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 11
Financial Management ITIL Lifecycle Phase: Strategy
Strategy Introduction to Financial Management General ITIL Approach The function and processes responsible for managing an organization s budgeting, accounting and charging requirements. Financial management for IT services secures an appropriate level of funding to design, develop and deliver services that meet the strategy of the organization in a cost-effective manner. SAP Solution Manager Solution: Pricing and Billing is provided by SAP ERP logistic module (SD) and the Billing Engine. The framework for planning and analyzing financial data and costs is provided by the Controlling Module of SAP ERP. This also includes the allocation of costs to services. Several service processes in SAP Solution Manager are collecting finance relevant data and transfer them to an connected SAP ERP system for further processing 2012 SAP AG. All rights reserved. 13
Strategy Integrations of Financial Management The Financial Management process is closely integrated with further ITIL processes : Catalog Mgmt. Portfolio Mgmt. Charging Price Cost Planning Available Funds Financial Management Effort for Change Execution Effort for Request Fulfillment Effort for Incident Resolution Change Management Request Fulfillment Incident Management 2012 SAP AG. All rights reserved. 15
Strategy Highlights of Financial Management Periodical billing of a service contract, based on a billing plan The service contract can be billed periodically based on a billing plan. Resource related billing of a service confirmation Based on the actual resource consumption documented in the confirmation, resource related billing can be performed. Tight integration into Controlling module (CO) The Processing in SAP Solution Manager is tightly integrated with the Controlling module in ERP. records in SAP Solution manager trigger automatic postings in the corresponding controlling object. Tight integration into cross-application time sheet (CATS, HR) The Processing in SAP Solution Manager is tightly integrated with the Cross-application time sheet in ERP. confirmations in SAP Solution manager trigger automatic postings in the corresponding time sheet of the service technician, and subsequently postings in the controlling object. Tight integration into Materials Management module (MM) The Processing in SAP Solution Manager is tightly integrated with the Materials Management module in ERP. confirmations for spare parts in SAP Solution manager trigger automatic postings in the corresponding controlling object. More Information: http://help.sap.com/saphelp_crm70/helpdata/en/1a/cbb533dfde4499965661e094154d9f/frameset.htm 2012 SAP AG. All rights reserved. 16
SAP ERP SAP Solution Manager ITSM Scenario with ERP integration User Customer Self s Mail Telefon Ticket Interface Walk-In INPUT CHANNEL Desk IT Demand Management Access Mgmt Incident Mgmt Request Fulfill. Level & Catalog Mgmt OPERATIONAL TASKS Application Mgmt Infrastructure Mgmt Problem Mgmt Workplace Mgmt Monitoring & Event Management Change Mgmt Configuration Mgmt Orders Contracts Asset & License Mgmt Procurement (SAP MM) Finance & Contr. (SAP FI & CO) Sales (SAP SD) IT Finance & Controlling 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 17
Manage IT- Management processes like an ERP Portfolio & Catalogue Management Define the IT- Portfolio & Catalogue User Front-End User orders IT-s from the Catalogue Request / Order IT receives Request/Order and performs as agreed Contracts IT-Charging IT charges each ordered or continuously used to Customer IT-Costing Calculate the price of IT-s IT registers each continuously used by Customer/User 2012 SAP AG. All rights reserved. 18
Manage IT- Management processes like an ERP Portfolio & Catalogue Management Strategy Catalogue User Front-End Request / Order Request IT-Charging Request Fulfillment User Requirements Offering Request Fulfillment One-time Charging by Order Contracts Request Request Fulfillment Contract Booked s IT-Costing Pricing IT Controlling Contract Booked s Recurrent Charging by 2012 SAP AG. All rights reserved. 19
Catalog Management ITIL Lifecycle Phase: Design
Design Catalog Management Approach General ITIL Approach ITIL Catalog Management aims to ensure that a service catalog is produced and maintained, containing accurate information on all operational services and those being prepared for operation. Catalog Management provides vital information for all other Management processes, such as service details, current status, and interdependencies of services. The service catalog is a database or structured document containing information about all live services, including those available for deployment. SAP Solution Manager Solution: The SAP CRM service (product) master data is used to depict the service catalog in SAP Solution Manager. The SAP CRM Product Hierarchy is used to depict a structured content framework for services in SAP Solution Manager Set types are groups of service attributes that semantically belong together, e.g. Price. Set types appear as assignment blocks on a service record. With set types you create customer-specific views of a catalog for particular business partners or target groups. Prevent certain customers from seeing certain services in the catalog. 2012 SAP AG. All rights reserved. 21
Example: s Structure in Catalogues Catalogue for Business offers s You can order (one-time service usage) s You can order Client Technology Application Management Definition / Criteria PC Installation One-time service usage Set-Up Client Copy Preparation Processing Post-processing Physical Move Selectable for Requests/- PC Return Hardware (Type) Hardware (Type) One-time service charges Software (indiv.) (indiv.) Price per service Based on Time & Material Orders (by user) Hardware (standard procedures) Project s Trigger for operational tasks Project Mgr. (h) Software Consultant (h) s You can book (continuous service usage) s You can book Client Technology Application Management Definition / Criteria Office Workplace Continuous service usage Email Individual Applications Data Backup Internet Access VPN Connection SAP Recurrent service charges Price per service Based on Time & Material Portal / ESS Based on consumption/usage User Licence Maintenance & Support User Licence s booked in Contracts Maintenance & (per customer/user) Support User License Contracts store SLA and other Travel Mgmt contract Mailbox information Extension VoIP Telephony Developer (h) E-Fax User Licence Hardware (Type) Mobile E-Mail (Smartphone) Maintenance & Support Selectable for order Not selectable for order 2012 SAP AG. All rights reserved. 22
Catalog Management Best practice process Business User Request Fullfillment Create IT Order Select offered Auto Dispatch to teams Approve Order Split Order (auto) Process tasks Complete Request Charge IT Screens Catalog Create Order Approve Order 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 23
Catalog Management IT enhancements in SAP Solution Manager 7.2 ITIL compliant process New Employee IT product definition Structure services in different catalog views Type: Catalog Product Order process Business Self Standard Laptop Type: ITSM Material Sales Order Approval procedure Order items: Material and/or Requests Bundle service packages Password Reset Type: Direct Request Laptop Delivery Type: ITSM Request / Guided Procedure Direct Requests TOP ranking specific questionnaire Request / Guided Procedure Integration in Incident Management Related IT as reference object Determination via category 2012 SAP AG. All rights reserved. 24
Catalog Management Request Fulfillment 2 alternatives Purpose Increase IT support productivity with standardized IT service delivery Quick and easy guidance with Work instructions Decision based dynamic fulfillment process Purpose Precise guidance of service processing in sequence Deliver the best solution in a timely manner (SLA based) Provide time and effort feedback for future cost calculations Checklist Enhanced functionality in SAP Solution Manager 7.2 Action & Condition Framework enabled, e.g. E-Mail Notifications Checklist Steps Enhancements Decision-Based, parallel processing Determination via rules, e.g. based on Categorization Partner determination Workflow notification Guided Procedure Generation of Operation tasks (transaction type) Time recording and SLA s in Operation tasks Guided steps with transaction references Define templates for semi automation Determination via rules, e.g. based on Categorization Similar framework as in Solman_setup 2012 SAP AG. All rights reserved. 25
ERP for IT Time Recording in IT Management Transaction Types Incidents Problems Requests Changes Operations Tasks Determination of IT service based on multilevel-categorization Time recording transfer of efforts into ERP CATS Billing via confirmations 2012 SAP AG. All rights reserved. 28
Use Case example 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 (, 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 2012 SAP AG. All rights reserved. 31
IT charging Use case 1: Recurring costs SAP Solution Manager E2E SAP ECC OTO Business User Catalog Cost Center Manager Order processor Request contract Task update Customer service Payroll admin Billing Due List Payroll admin Billing Document 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 32
IT charging Use case 2: Time & Material SAP Solution Manager E2E SAP ECC OTO Business User Catalog Payroll admin Billing Due List Cost Center Manager Order Payroll admin processor Request Time recording confirmations Billing Document 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 33
IT charging Use case 3: one time order SAP Solution Manager E2E SAP ECC OTO Business User Catalog Payroll admin Sales Order Cost Center Manager Order Payroll admin Billing Document 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 34
Demo Exercise Public
SAP TechEd Virtual Hands-on Workshops and SAP TechEd Online Continue your SAP TechEd education after the event! SAP TechEd Virtual Hands-on Workshops Access hands-on workshops post-event Starting January 2016 Complementary with your SAP TechEd registration http://saptechedhandson.sap.com SAP TechEd Online Access replays of keynotes, Demo Jam, SAP TechEd live interviews, select lecture sessions, and more! Hands-on replays http://sapteched.com/online 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 36
Further Information Related SAP TechEd sessions: ITM219 - Be prepared for ITSM and CHARM in SAP Solution Manager 7.2 (lecture) ITM205 - IT Management in SAP Solution Manager - a strategic overview (lecture) SAP Public Web http://wiki.scn.sap.com/wiki/display/sapitsm/itsm+wiki+-+it++management+and+charm+wiki+homepage SAP Education and Certification Opportunities Watch SAP TechEd Online www.sapteched.com/online 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 37
Simplify and Innovate with SAP Solution Manager Booth on the Show Floor Explore area -> & Support -> SS6 The new SAP Solution Manager 7.2 and how to get ready SAP Solution Manager and the cloud SAP Solution Manager and SAP S/4HANA Entrance Wednesday-Thursday 10:00am 6:00pm 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 38
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Thank you Contact information: David Birkenbach SAP SE Solution Management David.birkenbach@sap.com 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 40
Login information: Desktop Student (Share) ITM260 Start CRM_UI User: ANNA260-00 PW: solman User: ALEX260-00 PW: solman Exercise Hints: Page 5. only with IE, you have to refresh the browser in Step 9 ( Self Step1) page 8. Step 8 Save the order and then check the transaction history,. Page 11, step28 search for this string : *##*. In the script there is the 2 nd * missing Page 12, Step 36 Individual billing document is in the extend title menu. Click >> Page 27, Step 45 don t click edit, but click on More refresh Step 38 page 26. Please enter Actual Duration 2,5 and quantity 2. 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 41