Photo Credit: Rob McGowan
Breaking into new international markets signifies an exciting and transformational phase for any organization. Whether it involves assimilating another company or restructuring the existing business model, attaining financial visibility through the precise implementation of core ERP practices becomes crucial. Having navigated multiple end-to-end SAP deployments in international markets, I've distilled 10 key insights and core themes that will prove invaluable for those facing the challenge of either integrating a new entity or reshaping their current business framework.
Table of Contents:
1. Early Localization Efforts
Implementing SAP ERP in a new region requires a proactive approach to comprehend and tackle the diverse legal, regulatory, and compliance requirements unique to that area. Early collaboration with legal experts is instrumental in identifying potential challenges, particularly in areas such as data protection, taxation, and other compliance aspects. This diligent upfront work lays the groundwork for a smoother implementation process, minimizing surprises and delays.
SAP often provides localization packages, encompassing language installs that can prove invaluable. These packages offer a strategic opportunity to leverage standard code rather than resorting to extensive customizations to meet the specific needs of the country. Installing these packages and conducting initial testing in a sandbox environment not only aids in understanding localization features but also presents a chance to align with SAP's standard capabilities, reducing the complexity of customization and ensuring a more efficient, standardized implementation. This approach not only accelerates the deployment timeline but also enhances the long-term sustainability of the ERP system in the new international market.
2. Master Data Preparation
Recognizing the importance of maintaining clean and accurate master data, organizations should initiate master data efforts early in the project timeline. The timeless adage "garbage in, garbage out" resonates strongly, emphasizing the profound impact of data quality on both testing and production experiences. Real-life examples vividly illustrate the significance of meticulous master data preparation.
In my experience, I've found it highly beneficial to have complete master data sets available for our QA environment. This proactive measure not only streamlines testing processes but also ensures a more accurate representation of real-world scenarios, uncovering potential issues before they manifest in the production environment.
Moreover, designating a dedicated individual who will be intimately involved in the day-to-day management of this data cleansing effort is essential. Having a responsible owner for the data cleansing process not only fosters accountability but also ensures a more targeted and effective approach to data quality improvement.
Lastly, conducting testing on real master data sets serves as a critical step in uncovering potential issues that may arise during production. This proactive approach not only saves valuable time but also prevents avoidable challenges, ultimately contributing to a smoother and more successful SAP ERP deployment.
3. Initial Workshops and Workflow Mapping
Facilitating workshops to gain comprehensive insights into the existing is not just beneficial but critical for a successful SAP ERP implementation. This process goes beyond a mere understanding; it serves as the cornerstone for aligning SAP ERP seamlessly with these workflows, thereby minimizing disruption during the transitional phase. I often have multiple touchpoints throughout the beginning of a project to ensure that all workflows get uncovered. The more folks talk about their processes, the more they remember.
Active user involvement in these early stages is more than just a best practice; it's a strategic move that fosters a sense of ownership. This not only empowers the employees but also significantly enhances their adaptability to the new system, creating a smoother and more successful transition.
Equally significant is the mapping of these acquired workflows to SAP standard processes. The emphasis on adhering to standard capabilities, unless there are compelling reasons to customize, is a guiding principle. This approach ensures not only a more straightforward implementation but also aligns the organization with industry best practices.
In real-world scenarios, it becomes evident that customization may be necessary in specific instances. Understanding these scenarios and making informed decisions is crucial. This nuanced approach allows organizations to strike a balance between leveraging SAP's standard capabilities and tailoring the system to meet unique, business-critical requirements. By doing so, organizations can maximize the benefits of SAP ERP while maintaining flexibility to address specific needs efficiently.
4. Target Organization Structure and Prototype Building
Establishing the target organizational structure at the beginning of the SAP ERP implementation is a foundational step that significantly contributes to a smooth deployment. Building a prototype in a sandbox environment early in the process proves instrumental in identifying and rectifying configuration issues, ensuring a well-defined model that streamlines the deployment process, promotes efficiency, and minimizes unforeseen challenges.
Starting the prototype in a sandbox environment, rather than the development environment, is a strategic choice. This approach safeguards against potential issues arising from organizational structure changes, preventing any lingering bad configurations in the broader landscape.
As you define the organizational structure, it's crucial to pose key questions that will considerably impact the configuration. Questions such as the currency to be used, inventory ownership, number of locations, existence of employees, and their payment methods are pivotal considerations. To streamline this process, incorporating these questions into an initial questionnaire facilitates a more productive initial meeting. This enables you to propose a starting point for the organizational structure, opening avenues for dialogue on alternative decisions and uncovering potential challenges.
Some decisions related to the organizational structure should be finalized before coding commences. Altering these decisions later in the process can carry significant consequences. Therefore, proactively addressing these questions and decisions early on not only enhances the efficiency of the implementation but also minimizes the risk of disruptive changes as the project progresses.
5. RICEF Methodology
The RICEF methodology – Reports, Interfaces, Conversions, Enhancements, and Forms – serves as a guiding framework. This framework will assist you in identifying all the development needs of an implementation.
Reports: Not all reports need to be developed. I often try to see if there are standard SAP reports that will meet the need. In the event they do not, I may also have to involve data engineering / reporting teams outside of the SAP resources.
Interfaces are the most complex development item and often take the longest to complete. You are dependent on a third party to do work and test with you, so it naturally takes longer to complete. Where this is a risk area for a project timeline, I often spend more time upfront here identifying what interfaces will be needed. This can include internal interface to a CRM or in some cases it could be an external 3PL. It is important to identify all the key stakeholders and involve them as early as possible.
Conversions: In some cases, you may need to write a conversion program to automate the master data loads. The quantity of the data or the amount of transformation will necessitate whether writing the conversion program is more beneficial than manual entry. Many companies are now using third party workflow software to do these types of loads versus the LSMW approach.
Enhancements: You may have existing programs that meet most of the requirements and just need to be “tweaked”. A question to ask yourself here is whether taking a copy of the program and enhancing it makes sense or whether globalizing the program and having global regression testing makes sense. There are several ramifications to each which should be considered.
Forms: Take a catalog of all form outputs you will need. It is always best if you can utilize an existing layout. However, many times translation or other formatting changes are required. It is extremely important to document these changes and get approvals from everyone required before coding.
6. Test Your Printers
Before production, print everything you'll need directly to the actual production printer. It's common for developers to print only to the spool and review a PDF, but this practice will fall short. Translated characters, barcodes, margins, and other elements can all be impacted, requiring developers to revisit and make adjustments.
If a print server is in use, troubleshooting with the server owner may become necessary. However, discovering these issues in the production phase is both time-consuming and undesirable. Taking the proactive step of printing directly to the intended printer ensures that potential printing-related challenges are identified and addressed well before reaching the production environment. This practice not only saves valuable time but also contributes to a smoother and error-free transition when it matters most.
7. Full Deployment Cycle and Implementation Planning
Design a comprehensive deployment plan from development to production. Replicating production-like environments and maintain detailed documentation of the implementation plan enhance repeatability and mitigate risks. Depending on your environment strategy you may only have 1-2 times to practice your deployment. You want to leverage these opportunities to minimize risk to your approach and ensure a smooth transition. Some key learnings here are as follows:
Insist on full master data loads in the environment you conduct UAT.
Ensure that security profiles are documented and set up for each of the users to mimic actual production roles during testing. You will uncover security profile misses earlier on and avoid production issues.
Enforce the mantra that if it isn’t documented in the implementation plan, it didn’t happen. You want ALL steps documented to reduce the risk of personnel loss. I have had one deployment where I had almost half of the key resources change mid-project. Had we not had this detailed documentation, the project would have been significantly delayed. This documentation is also useful in providing key information in troubleshooting production issues. I always say, your implementation plan is GOLD.
8. Business Expert Involvement and Comprehensive Testing
Active engagement of process experts in the formulation of testing scripts and their active participation in the testing phase are indispensable components of a successful SAP ERP deployment. This collaborative approach is instrumental in guaranteeing that all processes undergo thorough testing, contributing to the system's overall reliability.
Leveraging a comprehensive testing plan not only serves to mitigate and minimize potential issues but also accelerates issue resolution when they do surface. The crucial question following any production issue is invariably, "Did we test it?" This inquiry not only validates the thoroughness of the testing process but also aids in identifying potential gaps, such as missed transports or issues arising from the deployment itself. Sometimes, the root cause may be related to master data rather than the code itself, emphasizing the importance of comprehensive testing in uncovering intricate issues.
Furthermore, involving process experts in script creation extends beyond a mere testing exercise; it serves as a valuable training opportunity. This dual-purpose engagement ensures that process experts become more proficient in the intricacies of the system and its processes, ultimately fostering a workforce that is not only adept at navigating the system but is also well-equipped to handle and address any challenges that may arise during and after the deployment.
9. Cutover Planning
The success of an SAP implementation extends beyond the capabilities of the SAP team alone. Establishing a robust cutover plan in collaboration with business leads is crucial for a seamless transition. Numerous tasks, ranging from license transfers and distributor notifications to financial reconciliation, closing processes, and inventory cycle counts, necessitate synchronization with technical activities. It is paramount that these steps are meticulously outlined in a plan accessible to the broader team.
Crafting a comprehensive cutover plan not only ensures alignment between technical and business tasks but also facilitates transparency and accessibility across all levels of the organization. Personally, I find value in creating a visual representation of the plan, making it easily consumable for team members at every organizational tier. This visual approach not only enhances clarity but also promotes a shared understanding of the intricacies involved in the cutover process.
10. Hypercare and Issue Resolution
Finally, best laid plans often go awry. Plan to provide hypercare to the team and be available for issue resolution. I like being onsite during the initial phase to be both collaborative in nature and efficient in resolution. You have hopefully done a great job avoiding all major issues, but inevitably there will be something that needs attention. Often it is just a training or security issue which can be resolved very quickly. Keeping folks productive is a great marketing opportunity for the success and adoption of the SAP implementation.
تعليقات