1. Getting to the Finish Line: How to Increase Your Chances of Success When Turning on Your New SAP System
April 7th 2011
Brenda McCue & Jeff Boone
Ace Hardware Corporation [

2. Agenda Introduction Overview of Ace Cutover Framework for Projects
Early Strategic Plans
Detailed Cutover Plans
Cutover
Controlled Hypercare
Key Take Aways

3. Introduction About Ace Hardware
Founded in 1924 by a small group of Chicago hardware store owners, Ace changed the retail landscape by allowing individual stores to purchase merchandise in bulk to save money and buy at the lowest possible price.
Each Ace store is independently owned and operated by local entrepreneurs – hard-working, passionate business owners who are involved with and, many times, reside in the communities where their stores are.
4,400 Ace stores around the world
We are your local hardware store and we are a part of your community.

4. Introduction SAP at Ace Hardware
First SAP implementation in 2008 – “Build the Foundation”
Implemented Order to cash processes (SD, MM)
Core ordering applications still tied into legacy systems
Second SAP implementation in 2010 – “Business Transformation”
Implemented core financials (FI/CO) and purchasing (MM)
Chart of Accounts, Accounts Receivable, Accounts Payable, Inventory
Improved the Order to cash processes (SD, Vertex, FSCM)
Sales Order, Credit, Delivery, Interfaces with our legacy DMPS/WMS
Implementation partner - IBM

5. Introduction Today’s goals What do we mean by “Cutover”
Business Process
Technical Implementation
Organizational Transition
Importance of the Go Live Checklist
Executing the Go Live Checklist can be a project itself

6. Agenda Introduction Overview of Ace Cutover Framework for Projects
Early Strategic Plans
Detailed Cutover Plans
Cutover
Controlled Hypercare
Key Take-Aways

7. Overview SAP Go Live Checklist Excellent tool
Tells what needs to be done, but not how to get it done

8. ACE’S CUTOVER FRAMEWORK
Overview
Using a disciplined project management method to implement SAP systems should lead to a boring Go Live and Hypercare
Early strategic plans
Detailed cutover plans
Cutover time period(s)
Controlled Hypercare
BUSINESS
PROCESS
ACE’S CUTOVER FRAMEWORK
Certification of new Business Process
Business Shutdown
Controlled Start
TECHNICAL
IMPLEMENTATION
Technical Components
Time Installs to new Business Process
Contingency plans
User Access and IT Controls
ORGANIZATIONAL
TRANSITION
Training
Change Management
Cutover Management

9. Overview Key Aspects of Ace’s Cutover Framework
Can be used for large complex programs of work or smaller scale projects (smaller projects can scale down the steps executed that are not necessary)
Driven by the Go Live Checklist
Integrates key project work streams: business process, technical implementation, organizational transition, internal controls
Provides the roadmap and descriptions of each unit of work which must be accomplished
Supports an integrated team concept

10. Overview Internal Controls Disciplined Project Management Early
Strategic Plans
Detailed
Cutover Plans
Controlled
Hypercare
Cutover
Strategic Rollout plan
Certification of testing
Conversion Validations
Metric Reporting
Bus & Tech Validations
Technical Strategy
Detailed Cutover Plan
Execute Cutover Plan
Defect & Issue Mgmt
Org Impact Assessment
Org Change Mgmt
Issue Management
Transition to Operations
Training Strategy
Training
Internal Controls
Disciplined Project Management

11. Agenda Introduction Overview of Ace Cutover Methodology for Projects
Early Strategic Plans
Detailed Cutover Plans
Cutover
Controlled Hypercare
Key Take Aways

12. Early Strategic Plans Early Strategic Plans Internal Controls
Detailed
Cutover Plans
Controlled
Hypercare
Cutover
Strategic Rollout plan
Certification of testing
Conversion Validations
Metric Reporting
Bus & Tech Validations
Technical Strategy
Detailed Cutover Plan
Execute Cutover Plan
Defect & Issue Mgmt
Org Impact Assessment
Org Change Mgmt
Issue Management
Transition to Operations
Training Strategy
Training
Internal Controls
Disciplined Project Management

13. Early Strategic Plans
Cutover activities occur throughout the life of the project.
Many project team members and non-project team members participant in cutover activities at different stages of the project.
It is critical to begin implementation planning steps early in the project.
The activities listed in the “Early Strategic Plans” section should be done in the initial stages of the project.

14. Strategic Rollout plan
Early Strategic Plans
BUSINESS PROCESS
Business Shutdown & Controlled Start
Define scope and sequencing of core system functions
Do we implement everything in one “big bang”, or can we implement “chunks” of functionality over time?
Determine the level of risk that can be managed
How can we implement a new GL and close the books for the prior year at the same time?
Determine any key obstacles for the implementation
Do not make any system changes during the yearly convention as significant orders are placed and cannot be impacted
Strategic Rollout plan

15. Strategic Rollout plan
Early Strategic Plans
TECHNICAL IMPLEMENTATION
Technical Components
Determine if there are new hardware/software technologies
When we purchased FSCM, there were additional technical components required to connect the software (XI proved to be a technical challenge before, during, and after cutover
Determine technical direction as a result of the rollout plan
Once the rollout strategy was set, the technical team made design decisions based on the roll-out (versions of BAPI programs included code changes for specific releases).
Strategic Rollout plan
Technical Strategy

16. Early Strategic Plans ORGANIZATIONAL TRANSITION Change Management
Determine if there are significant impacts on the organization that need special consideration
Do we need a central team to maintain master data as this would lead to new teams and roles for HR to define and recruit to fill
Do the new process changes eliminate current roles or require new roles to be defined?
Training
Determine how end users will receive training and what communications are necessary
How many people will need to be trained?
Do we use external training resources or do we use a train-the-trainer approach?
Do we use classroom training or web training or a combination?
Org Impact Assessment
Training Strategy

17. Agenda Introduction Overview of Ace Cutover Methodology for Projects
Early Strategic Plans
Detailed Cutover Plans
Cutover
Controlled Hypercare
Key Take Aways

18. Detailed Cutover Plans
Early
Strategic Plans
Detailed
Cutover Plans
Controlled
Hypercare
Cutover
Strategic Rollout plan
Certification of testing
Conversion Validations
Metric Reporting
Bus & Tech Validations
Technical Strategy
Detailed Cutover Plan
Execute Cutover Plan
Defect & Issue Mgmt
Org Impact Assessment
Org Change Mgmt
Issue Management
Transition to Operations
Training Strategy
Training
Internal Controls
Disciplined Project Management

19. Detailed Cutover Plans
Detailed planning activities occur many weeks before the actual implementation.
You will need to dedicate project team member(s) to managing the detailed cutover plans and activities up to 8 weeks before the implementation (depending on the size of the project).
Non-project team members also participate in the cutover activities.

20. Detailed Cutover Plans
BUSINESS PROCESS
Certification of New Business Process
Final testing activities to certify the systems (QA Certification)
Difficult business process transitions may require a test run (“Mock test”)
Business Shutdown & Controlled Start
Define business cutover steps/impacts
Certification of Testing
Detailed Cutover Plan

21. Detailed Cutover Plans
TECHNICAL IMPLEMENTATION
Technical Components
Potential new hardware/software changes may require a test run to ensure system stability (“performance test”)
Technical installations may require a test run (“Mock test”)
Time Installs to New Business Process
Define technical cutover steps/impacts
Align the technical installs to the best timelines surrounding the defined business impacts
Contingency Plans
Define risks that could impact the implementation. Build contingency plans for those risks identified as critical.
Define back-out strategies and plans
User Access and IT Controls
Define and set up security requirements
Certification of Testing
Detailed Cutover Plan

22. Detailed Cutover Plans
ORGANIZATIONAL TRANSITION
Cutover Management
Discuss any special cutover security requirements
First , draft high-level implementation plans for review. Then build the detailed steps into a project plan (at minute increments if necessary)
Communicate cutover plans to all people impacted
Logistics planning for project team support activities necessary during the cutover and hypercare time periods (issue mgmt and escalations, coverage schedules, etc.)
Change Management
Training for support teams for new support activities
Training
End User Training materials, final training schedules, logistics for training classes, end user communications
End User Training and communications
Detailed Cutover Plan
Org Change Management
Training

23. Detailed Cutover Plans
Example – High level plan

24. Detailed Cutover Plans
Example – Detailed plan

25. Agenda Introduction Overview of Ace Cutover Methodology for Projects
Early Strategic Plans
Detailed Cutover Plans
Cutover
Controlled Hypercare
Key Take Aways

26. Cutover Cutover Internal Controls Disciplined Project Management Early
Strategic Plans
Detailed
Cutover Plans
Controlled
Hypercare
Cutover
Strategic Rollout plan
Certification of testing
Conversion Validations
Metric Reporting
Bus & Tech Validations
Technical Strategy
Detailed Cutover Plan
Execute Cutover Plan
Defect & Issue Mgmt
Org Impact Assessment
Org Change Mgmt
Issue Management
Transition to Operations
Training Strategy
Training
Internal Controls
Disciplined Project Management

27. Cutover
The actual implementation “cutover” time period could take one day, one week, or several weeks. There can be one or many cutover time periods for a project.
Your dedicated cutover leads will manage/control this process.
Non-project team members also participate in the cutover activities.
STICK TO THE PLAN
No “Cowboying”

28. Conversion Validations
Cutover
BUSINESS PROCESS
Business Shutdown & Controlled Start
Execute steps in the cutover plan
Validate system conversions
Document any one-time cutover or conversion activities
Execute Cutover Plan
Conversion Validations

29. Conversion Validation
Cutover
TECHNICAL IMPLEMENTATION
Technical Components
Execute steps in the cutover plan
Validate and double-check all installs (last run of old systems & first run of new systems)
Contingency Plans
Execute back-out plans or contingency plans (if needed)
User Access and IT Controls
Use cutover security
Implement user access to the system
Document any one-time cutover or conversion activities
Time Installs to New Business Process
Work with business staff in War Room to validate systems as they are activated or conversions are completed
Execute Cutover Plan
Conversion Validation

30. Cutover ORGANIZATIONAL TRANSITION Cutover Management Change Management
Validate steps in the cutover plan are executed
Co-locate the project team to a central location to expedite reaction time to issues (WAR ROOM)
Monitor issues and risks
Follow issue escalation processes in place with the support teams
Status reporting and communications to all impacted staff
Change Management
Provide assistance to end users as systems are activated and users are given access
Execute Cutover Plan
Issue Management

31. Agenda Introduction Overview of Ace Cutover Methodology for Projects
Early Strategic Plans
Detailed Cutover Plans
Cutover
Controlled Hypercare
Key Take Aways

32. Controlled Hypercare Controlled Hypercare Internal Controls
Early
Strategic Plans
Detailed
Cutover Plans
Controlled
Hypercare
Cutover
Strategic Rollout plan
Certification of testing
Conversion Validations
Metric Reporting
Bus & Tech Validations
Technical Strategy
Detailed Cutover Plan
Execute Cutover Plan
Defect & Issue Mgmt
Org Impact Assessment
Org Change Mgmt
Issue Management
Transition to Operations
Training Strategy
Training
Internal Controls
Disciplined Project Management

33. Controlled Hypercare
Once systems become active, system defects can cause chaos quickly if there is no clear escalation path
You must have a formal escalation path for everyone impacted by the changes (project team and support teams, end users, external touch points, etc.)
There must be formal structures in place to make decisions in a timely manner
Hypercare should last for a pre-determined amount of time with resources co-located in a central place

34. Controlled Hypercare BUSINESS PROCESS Controlled Start
Continue to execute steps in the cutover plan to monitor systems are functioning as expected
Monitor business metrics to ensure issues are found and resolved quickly
Follow issue escalation processes in place with the support teams
Work with technical teams to rank and prioritize business critical defects to be fixed
Bus & Tech Validations
Metric Reporting
Defect & Issue Mgmt

35. Controlled Hypercare Example - Daily Status Activities in Hypercare
All meetings to be 30 minutes in duration !!
Time
Type
Purpose
Responsible/Attendees
8:00am
Report
Operations review (i.e. jobs not run, etc)
IT Ops Lead, IT SE Lead
9:00am
Meeting
Emergency incident review
Close incidents and changes from prior day
Call out significant incidents remaining open
Cutover Lead, IT Ops Lead and Prod Services Lead, IT Director, IT SE Lead
9:30am
Key Incident/Defect Review
- Review key incidents/defects and prioritize
Cutover Lead, IT SE Lead, Business Leads
3:00pm
Business metrics complete
- Send business metrics for the day to cutover leads
Metrics report lead, Metric owners
4:30pm
Business Impact review
Review Business Metric report (including incident/defect metrics)
Review PMO escalation list
Cutover Lead, IT Director, Business Owners, PMO
8:00pm

36. Controlled Hypercare
Example - Business Metrics Reporting for Order to Cash cycle

37. Controlled Hypercare
Example - Metric results for Order to Cash cycle

38. Controlled Hypercare TECHNICAL IMPLEMENTATION Technical Components
Continue to execute steps in the cutover plan to monitor systems are functioning as expected
Follow issue escalation processes in place with the support teams
Manage defects and implement fixes in a controlled manner (follow release management processes to ensure controls are followed)
Bus & Tech Validations
Defect & Issue Mgmt

39. Transition to Operations
Controlled Hypercare
ORGANIZATIONAL TRANSITION
Cutover Management
Continue to validate steps in the cutover plan are being executed to monitor systems are functioning as expected
Co-locate the project team to a central location to expedite reaction time to issues (WAR ROOM)
Monitor issues and risks
Follow issue escalation processes in place with the support teams
Status reporting and communications to all impacted staff
Change Management
Follow up with End Users, provide sandboxes for ongoing training
End User Training and communications
Bus & Tech Validations
Transition to Operations

40. Agenda Introduction Overview of Ace Cutover Methodology for Projects
Early Strategic Plans
Detailed Cutover Plans
Cutover
Controlled Hypercare
Key Take Aways

41. ACE’S CUTOVER FRAMEWORK
Key Take Aways
Using a disciplined project management method to implement SAP systems should lead to a boring Go Live and Hypercare
Early strategic plans
Detailed cutover plans
Cutover time period(s)
Controlled Hypercare
BUSINESS
PROCESS
ACE’S CUTOVER FRAMEWORK
Certification of new Business Process
Business Shutdown
Controlled Start
TECHNICAL
IMPLEMENTATION
Technical Components
Time Installs to new Business Process
Contingency plans
User Access and IT Controls
ORGANIZATIONAL
TRANSITION
Training
Change Management
Cutover Management

42. Key Take Aways These methods can be applied to any project
Cutover management is a project within itself
War room tactics are critical to success during the implementation
Stick to the Plan
No Cowboys
A controlled business start is critical to success immediately after implementation
A controlled process to manage defects and business issues is critical to success for the months and years after implementation

43. Questions?

44. ]
Thank you.