1. Unlocking the Value from Implementation & Delivery
R Ramki, SAP India

2. Agenda
Are we investing in the right IT initiatives that are aligned with our organization’s goals?
Are we realizing the full value potential of these investments?
What governance, empowerment, business involvement and change management competencies are required to ensure value is achieved?
How do we enforce benefit commitments with the same passion that we drive budget commitments?

3. Value Realization Plan
Value Creation and IT
When it comes to Value Creation, only 20% of the organizations get all the value
17%
Only 17% of organizations have a formal business case for their IT Projects
Business Case 0%
100%
20%
Only 20% of organizations get measurable value from their IT initiatives
Value Realization 0%
100% 5%
Only 5% of organizations had any plans to realize the value in their business case
Value Realization Plan 0%
100%
Source: SAP Value Engineering analysis of 1,609 completed business case engagements

4. Joint Business and IT initiatives drive 2.5x more value
How do Companies Realize Value?
Joint Business and IT initiatives drive 2.5x more value
Joint IT and Business Driven Initiatives
20%
2.5X
More
Value
IT and Business Units Disconnected
Improved Productivity %
Increased Value 8% 2%
Investing in IT
Improving Management Practices*
Investing in IT while Improving Management Practices
* Key performance improvements i.e. Lean Manufacturing, Performance Mgmt., Six Sigma.
Source: “When It Lifts Productivity”, The McKinsey Quarterly, 2004 Number 4

5. Alignment of Operational Drivers is Key to Achieving Value
Linking Vision to Value
Alignment of Operational Drivers is Key to Achieving Value
Value
Technology
Metrics
Business Processes
Strategy
Vision

6. Value Management Lifecycle
On-Time, On-Budget, On-Value
Value Lifecycle
Business Need
“Capture Value”
Investment Approval
“Investment Justification”
“Implement the Solution”
Go Live

7. 1 Value Discovery Finalize scope and project objectives
Baseline current performance
Build the business case
Identify key value drivers and KPIs
Why should we do this?
How should I execute?
What proof of success is available?
What issues do I face today?
4 key elements of a great business case

8. Measuring Drives Time-to-Value
Measurement Is Essential to Improve Time-to-Value
On-time or Better
11%
On-time or Better
73%
No Measurement of Value
Measurement of Value
Programs that measure quantitative benefit attained
Measurement drives benefit attainment
Source: 230 participants in ASUG/SAP Value Realization Survey Findings, 2006

9. Highest Value Achieved From IT Investments2
Highest Value Achieved From IT Investments
Value Realization
Organization-wide mission clarity
Implement and Design for value
Design governance model
Define KPIs to track
Communication and change management
Training

10. Design to Value
Discipline requires a solid methodology; otherwise adoption drops as project continues
Mission
Alignment
& Readiness 1
Project
Preparation 2
Business
Blueprint 3
Realization 4
Final Prep 5
Go-Live
75%
63%
61%
45%
47%
38%
30%
28%
25%
23% 4% 7%
Scope driven by ROI
Project goals documented for guiding principles
Business case translated to design strategy
Consistent KPI development for operational improvement
Design checked against business case
Ownership for benefits assigned before go-live
Maturity Level 3 – 4
Maturity Level 1 – 2
Adoption of Value Realization
Source: ASUG/SAP Value Realization Survey Findings

11. Governance Model
Executive Sponsor provides overall direction while PMO and CCC support unit-level roll-outs/ users
Executive Sponsor/ Project Sponsor
Executive Sponsor
CMD/ Chairman of Board
Central Project Sponsor
Director/ Board Member
Respective Project Sponsor for Unit
Unit Heads
Steering Committee
Data Lead
Central Process Managers
Infrastructure Manager
Project Manager
Change Manager
Data Manager
Data Lead
UNIT - 1
Central Core Team (PMO)
Customer Competence Center (CCC)
Process Owners
Production
Material
Sales
Project Manager
Support
Roll-out Manager
User
Key User
Business Application Support
Infrastructure Support
Service Desk & 3rd Level Support
Functional
Tech.
Change
Team Lead + Member
Data
Training Manager
Functional Leads
Technical Leads
UNIT - 2
AS ABOVE
Functional Team Members
Technical Team Members
UNIT - N
Template Management
AS ABOVE
Roll-out Management

12. Identify Process-specific KPIs and Owners
Tracking KPIs
KPIs are measured continuously:
During Business Blue-print Phase
Before Go-Live
6 Months Post Go-Live
Every 6 Months Thereafter
Identify Process-specific KPIs and Owners 1 2
Track Performance
KPI Owners Adopt Control Measures
Show-case Value Realized
Baseline KPI During Blue-print
Benchmark with Leaders 3

13. Change Management is the bridge from the ‘old’ to the ‘new’
Communication and Change Management
Change Management is the bridge from the ‘old’ to the ‘new’
Fewer and Lower Resistances
Every transformational project brings changes for the employees involved, which frequently leads to different kinds of resistances
Higher Readiness for Change
Change Acceptance
Adoption of best practices
Lower customization
Stakeholder Management
Top Management Commitment
Strong Project Management
Continuous Monitoring
Robust Governance
A+ People Engaged
Communication
Communication from Executive Sponsors to Show Commitment
Communication Plans
Communication Material
Training
Training Needs Analysis
Training Material
Skilled Trainers
Change Management Roadmap
Structure, plan and control all roll-out related change management activities

14. 3 Value Optimization Suppliers Customers
Continuously measure performance
Identify further improvement opportunities
Define action
Leverage best practices
Continuous training

15. Value Management is the next generation of Change Management
Value Management is a Journey
Value Management is the next generation of Change Management
Value
Management
Value Portfolio
Planning
CEO / Board
CIO and IT are seen as a critical business partner delivering real tangible value. CIO reports directly to CEO
All project are measured based on: On TIME, On BUDGET and On VALUE
Fewer projects and more effective IT spend - few business applications and clear master data standard with high BI adoption
Mandatory Business Case
CxO
Great alignment between CIO and other CxOs
Regular review of all IT requests - a transparent value based prioritization process
A balanced view of all IT investment and a clear alignment with the overall strategy
Reactive IT
CFO
Collaborative approach to business case justification
Projects are analyzed one at a time
A disciplined approach to IT investment
Business Partner
Business / IT Relationship
Governance
Results
Budget Owner
IT services the business based on budget allocation and first-come first-serve basis
Users provide budget and have a big say in solution selection
On-time and on-budget is the only focus

16. Value Management is the next generation of Change Management
Success = Real Change
Value Management is the next generation of Change Management
Vision
Communi-
cation
Skills
Tools
Incentives
Action Plan + + + + +
= Real Change
Communi-
cation
Skills
Tools
Incentives
Action Plan + + + + +
= Confusion
Vision
Skills
Tools
Incentives
Action Plan + + + + +
= Rejection
Vision
Communi-
cation
Tools
Incentives
Action Plan + + + + +
= Fear
Vision
Communi-
cation
Skills
Incentives
Action Plan + + + + +
= Frustration
Vision
Communi-
cation
Skills
Tools
Action Plan + + + + +
= Slow Change
Vision
Communi-
cation
Skills
Tools
Incentives + + + + +
= Chaos

17. Thank You