SAP Application Post-

Implementation Support.

March 2008

Mark Seele

©2006 Deloitte Touche Tohmatsu

Objective of Presentation
•To give an overview of SAP Application post-
implementation support
–Application Support Overview
–Staffing
–Benefits of outsourcing
–About Deloitte Application Management Services
(AMS)
–How a typical support model works

©2006 Deloitte Touche Tohmatsu

Most client’s focus is on going live,
however, post-implementation support
needs to be considered at the earliest
stage……….

Support Strategy

Staffing

Scope

©2006 Deloitte Touche Tohmatsu

Don’t under estimate the cost of
providing support…

Acquisition and implementation costs

constitute less than 30% of the TCO during a
5 year period

Gartner

©2006 Deloitte Touche Tohmatsu

Application Support
Overview
Typical SAP Application Support Objectives
• Rapid response to problems, changes requests, enhancements
• Reduce development, project lead time and maintenance costs
• Make good use of scarce resources by leveraging implementation,
operations and business process skills
• Reduce attrition costs for expert internal resources due to planned
career paths
• Decrease duplication of data and integration efforts
• Provide over all program management that is consistent across
projects & production systems
• Build on past experience
• Opportunity for business collaboration throughout enterprise
• Reduce support time/costs

Gartner
Date: 27 June 2006
Title of article: Gartner Looks at SAP ©2006 Deloitte Touche Tohmatsu
 The Application Lifecycle has 3 main
phases…

Plan Build Run

Strategic
Strategy, Continuous business Support operations
improvement, system and technical
direction and
Business development and infrastructure
governance
Processes projects

Tactical
Tactical

e
is lin
th
low
e be
rc
ts ou
u
a lly o Operational
c
T ypi

©2006 Deloitte Touche Tohmatsu

Typical activities in each phase…

Plan Build Run

•Align with service
•Programme delivery trends & Strategic
•IT Strategy
management business
requirements
Business
•Roadmap –
Processes •Project •SLA and contract
development
management ManagementTactical
and Tactical
maintenance

•Configuration •Incident
resolution
•Developments
•Change Operational
•Testing and sign Requests
off
………

©2006 Deloitte Touche Tohmatsu

Staffing
Considerations for Internal Staffing
•Superusers
•Business Analysts/Architects
•Business Process Owners
•Service Delivery Manager

©2006 Deloitte Touche Tohmatsu

Benefits of
outsourcing…
Benefits of Outsourcing Application
Management
• Staffing
– Allows clients to focus on core business
– Flexible: can increase or decrease support capacity required at relatively short
notice
– Resource recruitment, training and retention is managed externally
– No under utilised resources: only pay for percentage you need, not whole FTE
– Allows Architects/Business Analysts to focus on longer term plan and business
requirements, not incidents
– Intellectual Property is spread amongst support resources
– Access to skilled resources who have knowledge of new application developments
and trends
• Services
– Continuity of service
– Predictability of service and costs
– 24 x 7 availability (Call Centre)
– Service level management easier: arms’ length
• Processes
– Metrics and trends analysis and reporting
– Tried and tested support methodologies, procedures and processes for Deloitte
AMS and client use

©2006 Deloitte Touche Tohmatsu

How our
model works…
AMS Management Structure

Directors

Operations Service Delivery

Manager Manager

Development
Technical
Functional Call Centre (ABAP, BI,
(Basis & Security)
Workflow)

©2006 Deloitte Touche Tohmatsu

AMS Macro Processes
Application Management Services

Manage client
Manage change control Manage client support
relationships

Manage transition Manage Help Desk Manage functional Manage technical Provide end user
Maintain client services Manage client contact Manage IT services
process services support support education

Manage security Manage support of IT Facilitate end user

Plan transition Manage client contracts Maintain client interface Route support calls Manage developments
administration strategy education

Manage adherence to Manage escalation Provide call resolution Manage basis Manage SAP licence Maintain SAP
Transfer knowledge Manage configuration
service level agreement process (1st level) administration administration Knowledge Warehouse

Manage Provide process Manage basis Maintain Infrastructure

Support transition Provide client reporting
communications optimisation consulting enhancements support

Manage change control Provide call resolution Provide call resolution

Present client reports
process (2nd and 3rd level) (2nd and 3rd level)

KEY Macro process Process Sub process (Out of scope)

Customised to suit client requirements.

©2006 Deloitte Touche Tohmatsu

Components of our service offering

•Service Delivery
– Transition
– Availability Management
– Service Level Management
– Customer Relationship Management

•Service Support
– Service Desk
– Functional Services
– Technical Services

Governance in terms of change control

procedures and call management processes
©2006 Deloitte Touche Tohmatsu
 AMS calls are classified into
incidents and change requests
Incidents
• System incidents that
– Are not part of the standard
/ expected operation of the
defined service at the client
site
– Cause, or may cause, an
interruption to the service
– Cause, or may cause, a
reduction in the quality of
the service
Change Requests
• Enhancements
– An enhancement is any change from the original
state of the system as defined in the contract
– Change Requests/Work Orders are limited to a
maximum project size of 500 hours
– Implementation of new modules e.g. portals/CRM
– Additional Sites added to the system
– Additional fields to be added to an existing custom or
system report
– Request for version upgrade
– Change in legislation
– Product or Vendor Change
– Continuous improvement process reviews
• Projects
– A project is any work order that is not a break fix
problem or an enhancement i.e. over 500 hours.
• Training
©2006 Deloitte Touche Tohmatsu
Typical Service Levels
Priority Urgency Definition Response Time Maximum Resolution to
Agreed Target
Commencement Time
Time
1 Critical A critical client service is unavailable or very 90% within 30 90% within 1 90% within 4
seriously impaired by a problem. The impact on working working hour working hours
your business is severe with users having no
readily available alternative way of performing
minutes
their normal work, or there is a serious, adverse
business / financial impact. e.g. system
unavailable or unable to support critical business
processes on SAP such as payroll, month end,
execute production orders, dispatch final product.
2 High A non-critical client service is unavailable or 90% within 1 90% within 8 90% within 16
impaired by the problem. There is a minor impact working hour working hours working hours
on the client business. The Users are having
difficulty performing part of their normal work but
are able to do so through a workaround or can
undertake other work while the problem is being
rectified.
3 Normal A non-critical service is unavailable or impaired by 90% within 1 90% within 16 90% within 5
the problem. There is no direct immediate impact working hour working hours working days
on the client’s business. The client’s staff are
inconvenienced by the problem. The Users have
readily available alternative ways of performing
normal work
4 Change Request for variable work or enhancements 90% within 1 90% within 16 As agreed with
request requiring approval from the business. working hour working hours user

©2006 Deloitte Touche Tohmatsu

Service Window

Service Area Hours of service

Call centre 24 x 7

Functional and Technical 07h00 – 17h00 (GMT+2)

support

Standby services are available

©2006 Deloitte Touche Tohmatsu

Bucket Model
•Call Centre
–Based on number of calls received

•Functional support
–Based on number of modules x support effort required

•Technical support
–Security effort based on number of users
–Basis effort based on number of installations

•Management and Administrative overhead

–Typically 10% of bucket

©2006 Deloitte Touche Tohmatsu

Typical Bucket Guidelines
– The bucket of hours is a fixed quantity of INCIDENT support hours
for which the Deloitte AMS plans the required resource capacity to
meet the targeted Service levels
– Work done outside the bucket will be done on a “best endeavours”
basis
– The bucket consumption will be reported on, and will be jointly
monitored on a weekly basis
– The actual bucket size (hours), utilised in full or not, is billed every
month using the offsite or onsite rate applicable to all areas
– The bucket can be re-sized by mutual agreement every 3 months,
based on the average usage for the previous 3 months as well as
any planned scope changes, but the bucket may not be reduced by
more than 10% in a 3 month period
– The actual mix of support capacity by category is managed by
Deloitte AMS, unless the limit is exceeded by more than 50% in
which case, we may require a 6 week notice period.

©2006 Deloitte Touche Tohmatsu

About our Application
Management Services
(AMS)…
 About Business Process
Application Solutions (BPAS)
•BPAS is a Deloitte Touche Tohmatsu Group business unit
– BPAS forms part of the global network of outsourcing
services, founded in 1999
– BPAS was created in order to complete the Consulting
services offered by Deloitte to its clients, using a global
model defined to provide services from a network of
centres, both remotely or on-site from our suppliers’
installations.

©2006 Deloitte Touche Tohmatsu

 The AMS is part of the Business
Process Applications Solutions
(BPAS) Service Area
In order to adequately serve our clients we have a flexible dynamic organisation based on a cross-
functional model in which we combine the Industry dimension, which is responsible for contributing its
vision of the key industry aspects and managing relations with our clients, with the Service Areas
dimension, which shapes our professionals’ specialisation in the types of services we provide to the client.

INDUSTRIES

Consumer Financial
TMT&EU Business Manufacturing Public Sector
Services

AUDIT
SERVICE AREAS

FINANCIAL ADVISORY SERVICES

LEGAL AND TAX COUNSELING

CONSULTING BPAS
STRATEGY & OPERATIONS BUSINESS PROCESS AND APPLICATIONS
HUMAN CAPITAL SOLUTIONS
TECHNOLOGY ADVISORY
AMS AND BPO
ENTERPRISE APPLICATIONS
ENTERPRISE RISK SERVICES

This cross-functional model enables us to supplement our professionals’ skills in the various
Service Areas with the extensive industry knowledge that characterises our firm.

©2006 Deloitte Touche Tohmatsu

 About Application Management
Services (AMS)
Our distinctive value

AMS uses a client-oriented model
which forms a key part of our service
offering, guaranteeing direct contact and
close collaboration in the assumption of
end-to-end responsibilities in its
support.

We provide a team of multi-skilled
specialists who work at our Solutions
Centre, or on-site (if required)

AMS reduces service costs and
ensures quality service, thanks to the
implementation of quality methodologies
which are recognised worldwide.

The global nature of Deloitte’s service
provision due to the different industries
and service areas makes us more than a
mere technology provider: we offer a
distinctive range of services.
Our distinctive offer
• Flexibility and permanent availability of
specialised resources and multidisciplinary
teams.
• Easy-to-implement technological and
organisational solutions.
• Human capital policies which ensure high
stability of our resources.
• Unlimited service expansion capacity.
• Consolidated know-how based on both
domestic and international experience.
• Previous success in the applications
maintenance services (AMS) and development
operations.
• Effective methodology, tools and processes
which support implementation.
• Access service management processes which
minimise risk and ensure the quality of our
remote services.
• The global service offering of the Deloitte
Group.
©2006 Deloitte Touche Tohmatsu
Some AMS Facts
• The South African AMS
Centre supports
approximately 5000
application users (SAP and
Oracle / JD Edwards)
• Users are spread across
South Africa, the
Netherlands, Brazil,
Singapore, Australia, United
Kingdom and the United
States
• The Centre currently
handles more than 2200
calls per month.
• AMS Call Management tool
= ITSM
• ‘’Stack and Pop’’ process

©2006 Deloitte Touche Tohmatsu

Our AMS People
• The South African AMS employs a
professional team of around 120 people
• Several teams of 3 – 15 people work
across the spectrum of products and
services offered and functional areas/
business processes supported

Professional
certified consultants

Call Centre operators

Management

AMS staff
©2006 Deloitte Touche Tohmatsu
Some of our Clients

©2006 Deloitte Touche Tohmatsu

For further information, please contact
Darren Cherry
Deloitte & Touche (M.E)
City Tower 2, Suite 2001A
Sheikh Zayed road
P.O. Box 4254, Dubai
UAE
Tel :+971 (4) 332 2484
Fax :+971 (4) 332 2296
Mobile : +971 (50) 550 2835
dacherry@deloitte.com
www.deloitte.com

©2006 Deloitte Touche Tohmatsu

 Member of
Deloitte & Touche Deloitte Touche Tohmatsu