What challenges do you face when managing change in your SAP ERP system? What can you do to overcome them? Listen to Dr. Derek Prior, Research Director at leading analyst firm Gartner, explore changing trends in the SAP market and solutions to the ever-increasing challenges faced by SAP shops today. Dr. Derek Prior’s presentation will focus on challenges related to change management and testing, including: * SAP market trends & the change management challenges of the future * The need for Impact Analysis & “Best of Breed” tools * Analytics driven and cloud-based SAP testing * The evolving role of business key users

1. The new Challenges of SAP
Change Management
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Featuring:
Derek Prior, Research Director, Gartner
Oren Ezra, VP Product Marketing, Pananya

2. Optimizing Your SAP Change
Management Process
Derek Prior, PhD
Research Director, SAP
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2010 Gartner, Inc. and/or its affiliates. All rights reserved.

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The Speaker
• Derek Prior, Research Director:
- Gartner Analyst specializing in
infrastructure, architecture, life cycle
support and business benefit issues for
SAP customers
- 17 years at Hewlett-Packard,
10 years at Gartner, 5 years at AMR
- Has spoken at many SAP and SAP User
Group conferences around the world
- 1973 BSc (Tech), Sheffield University:
Chemical Engineering
- 1976 PhD:
Pollutant Minimization From Staged
Blue Flame Combustion
- Passionate about the Environment

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Key Issues
• How should you handle change management
of larger and more complex SAP system
landscapes?

5. The Nexus of Forces Impacts ERP, Especially
Disillusioned Users
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Big Data
Embedded analytics
In-Memory Computing
Information
It’s new!
It’s cool!
It’s cheaper!
It’ll solve all our IT
problems!
Users in charge
Cloud
ERP
Social Collaborative business processes
Multi-enterprise commerce
Mobile
24/7
Personalized
BYOD
Consumer-grade UI
App stores

6. The Evolution of ERP
Classicism clas¦si|cism /ˈklasɪsɪz(ə)m
• 1980s to early 1990s
• Classic “best of breed” applications
• Driven by market and user immaturity
• Happy users but integration and analytics nightmare
Modernism mod¦ern|ism /ˈmɒd(ə)nɪz(ə)m
• Mid 1990s to mid 2000s
• Megasuites rule, ERP land grab, centralized IT
• Driven by vendors, users increasingly frustrated
• Integration trumps agility and fit to requirements
Postmodernism post|mod¦ern|ism /pəʊstˈmɒdəˌnɪz(ə)m
• Late 2000s to today and beyond
• Suite deconstructed, Postmodern ERP emerges, megavendors not in control
• Driven by the Nexus and user disillusionment, users taking back control, SaaS
• New Hybrid ERP cloud integration, analytics and support challenges
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7. Postmodern ERP:
Hybrid Integration Strategies
Reduced on-premises core
ERP with Cloud extensions
Talent
Management Core HR
Core ERP
(Finance/Logistics)
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On-premises core ERP with
point extensions
Talent
Management
Travel Expense
Management
Core ERP
(Finance/HR/Logistics
)
CSI options to consider:
•Point-to-point
• (ERP vendor’s) on-premises
integration platform
• (ERP Vendor’s) iPaaS
CSI options to consider:
•iPaaS
•On-premises integration
platform
Shifting portfolio of cloud and
on-premises applications
Core HR
X
Procurement
X
Talent
Management
Core HR Core ERP
(Finance/Logistics)
X
CSI options to consider:
•iPaaS
•On-premises integration
platform
•Cloud Services Brokerage

8. The SAP Long Term Life Cycle
ERP Business Applications are just like any
other Enterprise Asset – they have a 20
year+ life cycle
DEPLOY EXPLOIT RETIRE
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PROCURE
Software
Selection
Time
Live
Initial
Implementation
Project
Benefits
Realisation
End of
Life
Phase
20% 80%

9. The SAP Life Cycle — EXPLOIT Phase
Year: 2 3 4 5 6 7 8 9 10 … 15 … 20 …
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Support –
On going
Innovation -
Project
Maintenance-
Project
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Hardware
Software
Depreciate
Replace
Replace
Depreciate
Steps:
Infrastructure:
6
1

10. General SAP Life Cycle Challenges
 Maintaining good system performance, availability, and business continuity
 Managing more complex SAP NetWeaver and SAP Hana infrastructures Risk
 Reacting quickly to new demands for SAP changes,
e.g., new processes, information, KPI's
 Proving and improving Business Benefits: ROI, T2B
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Business
Value
 Managing major SAP maintenance projects and their costs
 Controlling total life cycle costs for SAP projects spanning
many business units, instances and years
 Retaining your SAP expert resources TCO
1 2 3 4 5 6 7 8 9 10111213

11. General SAP Life Cycle Best Practices Summary
• You should have an “ERP Strategy” document
• You should measure realised ERP business benefits
• An SAP life cycle plan minimizes budget problems
• You need a truly great, business-driven, SAP COE retained
within your organization
• The Gartner Pace Layer research model helps you focus on
the business processes and systems that will truly
differentiate you
• Where possible: simplify, standardize, then automate your
SAP life cycle support processes
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Best
Practices
Changes

12. Maintenance of Complex SAP Landscapes
BW
ERP
Non
SAP
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PI
EP CRM
• SAP Business Suite means many production system landscapes
• E.g. one Gartner US client has 30 production system landscapes
• Business processes cross all of these, plus non SAP systems, e.g. eCommerce
• These landscapes have thousands of interfaces
• So how should you do SP/EhP application maintenance changes?
• And how should you handle functional enhancement projects?
• By application? By process? Critical processes first?

13. Five Different Types of SAP Change
Change Type 5 Large Business Project
Change Type 4 Small Business Enhancement
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Highly
visible to
Business
Managers
Invisible to
Business
Managers
("Below the
Water line")
Greatest effort
Required
Least effort
Required
More
functional
More
technical
Change Type 3
Change Type 2
Change Type 1
SAP Support Package
SAP Enhancement Package
Problem Resolution
Emergency Fix

14. The Full SAP Change Management Process
Impact Analysis
Full Impact? Effort/cost/risk?
Governance Process
Step 1
Step 2
Business benefit? Approved? Project?
Application Changes
Step 3
DEV/QA: Reconfigure, reprogram
Step 4
QA: Regression/Perf/UAT Tests, sign off
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Testing
Transport Management
QA: Move to PrePROD or PROD
Change
Requests
Step 5
Legend
DEV = SAP Development system
QA = SAP Quality Assurance/Test system
PROD = SAP Production system
Business
driven
Business
assistance

15. SAP Change Management Challenges
• “Why does it take you guys so long to change our SAP business processes”?
• “When can you change that Order Fulfilment Report”?
• “Did you say that 12 SAP systems would have to be changed, just for that”?
• “When can we roll out SAP ERP to Italy”?
• “Can you just change that …………”?
• “Why do we need a Dual Landscape with all those systems”?
• “HANA is so much faster, why can’t we just use that”?
Welcome to the world of
integrated SAP systems…
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16. The Full SAP Change Management Process
Impact Analysis
Full Impact? Effort/cost/risk?
Governance Process
Step 1
Step 2
Business benefit? Approved? Project?
Application Changes
Step 3
DEV/QA: Reconfigure, reprogram
Step 4
QA: Regression/Perf/UAT Tests, sign off
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Testing
Transport Management
QA: Move to PrePROD or PROD
Change
Requests
Step 5
Legend
DEV = SAP Development system
QA = SAP Quality Assurance/Test system
PROD = SAP Production system
Business
driven
Business
assistance
Automation Tools
with BIG payoff

17. SAP Change Management –
Facts and Best Practices
• Capture all functional enhancement requests accurately
• Release Management: most companies do 2 to 4 releases/year,
with planned downtime windows tied to business seasonality
• The SAP Software Update Manager (2011) includes Near Zero
Downtime Maintenance option to squeeze this downtime
• Evaluate EhPs within the Release Management planning process
• Effective Release Management requires excellent governance
• Evaluate new EhP functionality within smaller Business Process
Improvement projects
• Super user involvement for UAT is key
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Best
Practices
Changes
Fact: EhPs were meant to be small “Updates”, not large “Upgrades”
Fact: EhPs are cumulative and require a lot of testing work
Fact: SAP ties EhPs to SPs
Fact: SAP SPs can also contain product enhancements

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Recommendations
• Think SAP life cycle, not SAP projects 1 2 3 4 5 67 8 910111213
• Measure and continuously improve the business value
from your core SAP business processes
• Optimize the Impact Analysis and Testing steps in your
SAP change management process, automate where
possible – leveraging:
Impact Analysis
Governance Process
Application Changes
Testing
Transport Management
ERP

19. Driving Agility,
Ensuring Quality
In the SAP Application Landscape
Oren Ezra
VP Product Marketing
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20. Serving 1,000+ customers, in 60+ countries…
…directly, and via 100+ partners
Offices in USA, Germany, Japan, Israel
1M+SAP business processes tested in platform
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Panaya At a Glance

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SAP Projects in 2014

22. SAP Project Challenges
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PLAN
IMPLEMENT
& TEST
What to implement?
Which interfaces will fail?
What should we test?
Implement, unit test & fix
Write test scripts
Manually test & document
Update test scripts
What functionality might break?

23. SAP Projects: Faster, Lower Cost, No Risk
Fix
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Test Builder
generates
regression
test suite
Automated
Code
Remediation
cuts build
time
Integration
Testing
focused on
identified
interface
failures
Initial
Testing
User
Collaborative
Testing
accelerates
regression and UAT
Unit
Testing
30% Quicker Time-to-Market
40% Cost Savings
Zero Critical Go-Live Issues
Landscape
Mapping &
Assessment
Initial
Acceptance
Go-Live
Testing Testing
Integration
Testing
Traditional
With
Automation
Tools
Automated
Test Scoping
pinpoints
what to test
Go-Live
Impact
Simulation
identifies what
will break
Write
Functional Test
Scenarios
Prepare Test
Scenarios
Mapping &
Assessment
Impact
Simulation
performs
automatically
within 48-hr

24. Continuous Quality & Agility in Delivering SAP Change
Panaya Quality Management Cloud
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25. Change Impact Simulation
Landscape mapping & discovery
What will break
How to fix
What to test
Project delivery framework
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Collaborative Testing
Collaborative Test Execution
● Auto-capture test assets:
scenarios, defects, test
run evidence
● Accelerate manual testing
● Distributed across IT and
business
Test Management
● Scope, plan, assign
● Monitor progress &
coverage
● ALM integration
Cloud Wisdom
● Aggregates & analyzes millions of test activities
● Continually mines & makes available best practices in our SaaS
Simple
 Intuitive
 Seamless onboarding
 Built for business users
Smart
 Risk-based scoping
 No scripting
 Domain expertise, built-in
SaaS
 No hardware
 No software
 Non-invasive

27. 360-Degree Map of Your Satellite Applications
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28. Reveal Impacted Satellite Applications…
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29. …And impacted interfaces
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30. Change Impact Simulation
Know Exactly What will Break…
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…And What to Fix

32. Automated Code Remediation
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33. What to Test
Testing Tasks Automatically Generated
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Detailed Test Plan
Test Run evidence
automatically
generated 4
Capture SAP
Business
Processes 1
Test run evidence
Detailed
Test Plan
generated
with screen
shots
2 Capture SAP business processes
QA testers &
Superusers
perform
accelerated
manual testing
within SAP
3
Accelerated
Manual Testing
Collaborative Testing
34
Dashboards & Reports
Test Management 5

35. Increase Responsiveness to the Business
More Innovation, Less Maintenance
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Upgrade Functional
Release
Support
Pack
Functional
Release
Enhancement
Pack
Rollout to
New Site
IT Build
Business 30%
Testing
40%
IT
Testing
30%
Innovation
20%
Maintenance
80%
IT Build
60%
Business
Testing
25%
IT
Testing
15%
Innovation
30%
Maintenance
70%
Project Breakdown IT Budget Breakdown

36. Panaya Quality Management Cloud
www.panaya.com
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37. Th nk you!
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