1. Copyright © 2003 Americas’ SAP Users’ Group Tips for planning and completing a successful SEM implementation Paul Halley Director, SEM Consulting Business Information Solutions (BIS) paul.halley@bisamerica.com

2. What We’ll Cover  SEM architecture & landscape options  Determining how to choose the best SEM implementation strategy for your organization  Staffing  Twelve practical tips for planning your future SEM implementation  Performance implications

3. The Architecture of SEM Extraction Retraction OLAP SAP BW Reporting SAP BW SAP SEM Non-SAP Systems

4. Landscape: Single or Multiple Servers? Option 1) SEM Data MartOption 2) SEM Application on BW SEM- BPS SEM- BIC SEM- BCS SEM- CPM SEM- SRM SAP BW OLAP engine External SEM sources SEM- BPS SEM- BIC SEM- BCS SEM- CPM SEM- SRM External SEM sources Third party OLTP SEM System BW Data Warehouse System SEM Application BW Data Warehouse System

5. Pros/Cons of Single or Multiple Servers  Option 1 - SEM Data Mart Pro - Allows main BW system to be upgraded at different schedule than SEM system. Helpful if business and IT do not often work harmoniously. Con – Performance is decreased slightly due to RFC between two BW systems Con – Extra servers are required (3 if using 3-tier landscape)  Option 2 - SEM Application on BW Pro – Less maintenance on basis side due to three fewer BW servers to maintain. Pro – Three fewer BW servers to purchase than Option 1 Con – Version dependency between BW and SEM requires users of Option 2 to upgrade BW and SEM at same time (no exceptions!)

6. What We’ll Cover  SEM architecture & landscape options  Determining how to choose the best SEM implementation strategy for your organization  Staffing  Twelve practical tips for planning your future SEM implementation  Performance implications

7. In What Order Should You Implement?  Why You Should Care  An SEM implementation can sometimes involve considerable BW configuration. Choose the wrong implementation order and you’ll either spend too much or not enough time on the BW “side” of an SEM implementation. Spend too much time:  SEM project will be delayed  BW development costs can spiral Spend too little time:  BW rework increases, SEM project delayed  Choose the right implementation order and you’ll find the right balance between implementing quickly and minimizing BW rework.

8. In What Order Should You Implement?  BW then SEM  Pros – Less rework once SEM project begins, standards have already been established, understanding of BW design is critical to SEM performance  Cons – SEM implementation is delayed, possible rework as SEM needs are unknown at this point, usually have technical BW staff implementing functional SEM  SEM then BW  Pros – SEM implemented fastest, excitement generated by SEM draws out more BW requirements  Cons – Highest amount of BW rework, as strategic BW design hasn’t been developed yet  Concurrent  Pros – Least amount of rework as BW design and SEM needs are developed at same time, functional staff work on SEM, technical BW staff work on BW  Cons – Slightly slower implementation time as strategic BW design is being determined during project

9. Decision Matrix BW First SEM First Concurrent SEM Critical to Operations (Cost Center Planning, Budget Prep, etc.) XX SEM Replacing Existing Tools in Satisfactory Condition X Many different data sources for SEM X Most data will be input via SEM-BPS X Critical for SEM to be live ASAP X SEM-BCS Implementation X Only use for SEM is Balanced Scorecard X BW to be Main Reporting Tool, Unsure of SEM’s Use XX

10. What We’ll Cover  SEM architecture & landscape options  Determining how to choose the best SEM implementation strategy for your organization  Staffing  Twelve practical tips for planning your future SEM implementation  Performance implications

11. Project Staffing  While SEM is technically a BW add-on, it is its own application. Furthermore, it is a business application, not a technical data warehousing application. Therefore, BW team members should be different from SEM team members. They should be different people with different skills (functional vs. technical)!  Resources in a typical first SEM project  40% Business users  20% IT (technical BW)  40% Consulting  Resources in a typical follow-on SEM project  70% Business power users  20% IT (technical BW)  10% Consulting (for support with new functionality)

12. What We’ll Cover  SEM architecture & landscape options  Determining how to choose the best SEM implementation strategy for your organization  Staffing  Twelve practical tips for planning your future SEM implementation  Performance implications

13. SEM Overall  Tip 1: Find out if you own SEM software (SEM is included in mySAP licenses). If you don’t own it, you’ll need to purchase a BW and SEM license (or one mySAP license) for each user.  Tip 2: Define end-user group.  Options: Small end user rollout Pilot projects Big bang  Recommendation: Consider a pilot project (for non- SEM-BCS projects). They have proven to be a successful option to rolling out SEM. Recommend one organizational unit/business unit with limited targets, limited users  Tip 3: If using consultants, use SEM consultants for SEM, BW consultants for BW. Interview them well, as configuring SEM infocubes is not the same as implementing SEM!

14. SEM-BPS  Tip 4: Decide well in advance on what will be planned/budgeted (document and be as specific as possible). SEM-BPS is a completely flexible and customizable set of tools…many implementations are delayed because scope plans aren’t specific enough.  Tip 4.5: Minimize Fox code and user exits as much as possible, as they are a maintenance headache!  Tip 5: Consider delivered planning applications (sales planning, financial planning, headcount planning, etc.). Are great examples of integrated planning that can be achieved via BPS. And if usable by you, they can speed up implementation.  Tip 6: Decide whether your existing planning/budgeting processes are to be left as-is or improved. During a software implementation is a good time to introduce new business processes, but doing so will slow down the implementation while “to be” processes are determined.

15. SEM-SM  Tip 7: Find out how closely your existing Balanced Scorecards fit the Kaplan/Norton model. The SAP BSC was built for this model, but slight variations can be accommodated. If you need new Scorecard content, you’ll want to start working on it before the SEM project begins.  Tip 8: If you already have BSC content, for your first BSC project I recommend choosing a business unit or highest level of organization and building less than 10 BSCs (preferably 3-5) for senior and executive management

16. SEM-PM & SEM-BCS  Tip 9: I recommend implementing MC via pilot project or phased rollout. User acceptance is terrific, so prepare to be bombarded with requests after the pilot’s go-live.  Tip 10: For Value Driver Trees, I recommend limiting your project to less than 20. The KPIs should be strategic in nature. If they’re not, you can be overrun by requests to build VDTs for all KPIs within your organization.  Tip 11: Decide what version of software to implement (BCS- R/3 based or BCS-BW based?) Your decision should take into account the timing of the start of your project. Implementing soon? Recommend BCS-R/3 based. Implementing late 2003+? Recommend BCS-BW.

17. What We’ll Cover  SEM architecture & landscape options  Determining how to choose the best SEM implementation strategy for your organization  Staffing  Eleven practical tips for planning your future SEM implementation  Performance implications

18. SEM- BPS  Performance considerations critical when you use BPS.  Be critical of use of Excel macros in planning layout  ABAP vs. Fox coding can operate up to 26 times faster!  Application design highly correlates with performance  See notes: 358529 (overview), 411725, 407563, 381022, 357537

19. SEM- SM/PM  Highly correlated to performance of BW  Queries and calculations behind scorecards and cockpits determine performance of SM/PM.  Caching available since SEM 3.0b

20. 7 Key Points to Take Home!  Limit scope for first project  You need function skills for SEM, technical for BW  An SEM-BPS project is a great opportunity to improve existing planning/budgeting processes  SEM performance = BW performance  SEM is quite possibly the only SAP application your executives will ever use  Building SEM infocubes does not equal implementing SEM  SEM is your best salesperson for increasing BW throughout your organization