Steps For Implementing a SAP Center of Excellence

Now that I have outlined some background and objectives of the COE, it's time to put a plan in motion to set up the SAP-COE. Overall, the difficulty in implementing a COE will probably reside in how committed your organization is to its successful deployment - from a budgetary, resource, and process perspective.

That's why I believe Step 1 - realigning Business and IT is crucial to success. If you don't do step 1 right, you will be fighting an uphill battle the rest of the way. If realignment has resistance, or more generally, management is not committed, I would suggest putting together a strong business case, highlighting the benefits and cost justification. Strong project sponsorship is absolutely key.

Just to reiterate, without a SAP COE, you will lack the necessary support ecosystem - including resources, funding funnel, and governance body - and more importantly, the strategy and roadmap that are required to launch and sustain a successful support organization.

Let's explore the 7 steps to build a COE.

7 Steps for Establishing a COE

Step 1: Realign Business & IT After an SAP Implementation

In many companies, business and IT go their separate ways once the implementation project is "complete." This is a mistake. To get enduring results, the Business must drive the ongoing improvements needed for the SAP platform. It is the Business - supported by IT - that needs to identify the process changes, reporting for decision-making and end-user needs on an ongoing basis.

To that end, you need to re-examine the current mix of your post-implementation support team. COE's must include a mix of Process Owners - the "super-users" within the business community, functional application experts and technical experts for configuration and reporting. In addition, the team needs to include people focused on new initiatives, whether for additional rollouts or new modules, which will be inevitable, as business needs change.

Overall, The COE needs to be designed to break down the walls between IT and the business community, and establish a new way to provide sustainable support that remains business focused.

Step 2: Set up Governance

One of the most critical steps for COE set-up is establishing Governance for the support organization. The goal of governance is to provide strategic direction, as well as accountability, for all SAP initiatives. Governance also provides a framework for the Business Units to work collaboratively, and in unison with IT, enabling process standardization and business alignment across the enterprise.

Step 3: Define Functions and Organize the COE

No generic formula exists for the functions and roles that should be encompassed with the COE. At a minimum, you will need to map out the roles and responsibilities of The Executive Steering Team, PMO Group (Program Management), Support Services Team, and the SAP Power Users.

Some of the key roles and functions of the COE:

• Business Support - Business Analysts are part of the teams that form the COE, working together with the Applications teams to support the users

•Project & Implementations - Business Analysts are part of the COE organization, working side-by-side with the Applications teams to roll out new functionality

•Internal Marketing - COE coordinates participation in benchmark studies and other forums, whose results are used to drive the COE image internally

•Coordination of Development Requirements - All Development Requests are coordinated through the COE, as well as all messages to SAP

•Technical Support - Provided in conjunction with SAP Basis and Global IT Operations.

•Training - To transfer SAP knowledge to the user base

•Contract Management - Usually provided in conjunction with IT Global Operations

•Support Desk - COE interfaces directly with users and super users and to provide SAP support based on agreed upon service levels, which may vary by functional area and geography

•Information Management - COE is the central contact point for SAP related information, enhancements and new developments

Step 4: Implement Post Go-Live Process Analysis & Optimization as the Foundation for Continuous Improvement

Reclaim ownership of your SAP business processes. Too often, the "to-be" vision turns out to be a one time exercise done early in the implementation process and then is cast aside post-live. This needs to be re-visited as streamlined business processes are as important in the post-live COE as it was in implementation.

The COE should perform or coordinate a review of what is working and what is not. Typically, the 5 areas that companies should address are:

•Broken or flawed business processes
•Deficient system design and configuration
•Inability or unwillingness to use system - Manual work-arounds present
•Insufficient training
•Data Management issues

Step 5: Mobilize for Post Go-Live Organizational Change

The business should have a regular stream of improvement requests to support operational changes. Inability to deliver this will create frustration and a sense of stalling in the improvement process.

Your COE should provide guidance on how best to manage change within the context of your SAP platform. An effective COE has the appropriate knowledge, skill and time to evaluate alternatives and implications, estimate the level of effort required and provide the necessary testing, training and documentation. Changes must be made in a controlled way to ensure that the live environment is not put at risk -and implemented effectively to exploit the business benefits of the improvements.

And don't forget about the IT organization when addressing change management. The shift of "ownership" to the business has a dramatic impact on the role and function of your IT group.

Step 6: Marketing the COE

One of the most forgotten aspects of setting up a COE is the marketing effort to publicize and promote the services offered. Only after users are aware of processes and services available, can widespread adoption of the COE occur within the organization.

It would be a mistake not to expend the effort to launch an internal marketing campaign. The lifeblood and longevity of the COE depends on the perception and service it provides to its internal customers.

Step 7: Getting Started with Setting-Up Your SAP Center of Excellence

Where to begin? Ideally, planning for your COE begins before you go live with your SAP business platform. This way, continuity is ensured and the likelihood of matching your ROI expectations is increased.

If you are in the initial stages, budget for it now - it's a question of pay for it now, or pay for it later - and later has higher costs. If you are in the midst of implementation, raise the flag now and address it. But if you are already live, it's not too late. Take it step-by-step to identify and prioritize the areas to address.

Closing Thoughts

If you are an IT Director or CIO, I hope this two part series has stimulated the thought process for kick-starting your COE plans.

If you are an end user or power user feeling frustrated by the lack of support, or if you are a support analyst and feeling overworked or frustrated by lack of productivity, you need to take action now. You can start by forwarding this blog to your manager and getting his/her thoughts for taking the next step.

Note: Some of the aforementioned steps were developed by my employer, Diagonal Consulting. They have built a methodology, including tools and workshop courses for implementing a COE. Obviously, this blog has only scratched the surface. If you are interested in obtaining more in-depth information or require assistance on the COE front, I can put you in contact with Diagonal's COE expert.