Implementing SAP BW

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    Implementing SAP BW

    with SourceCode Inc.

    Version 2.0 March 2006 2006 by SourceCode, Inc.

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    2006 by SourceCode Inc. Washington D.C. * New York * Mumbai info@sourcecodeinc.com

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    TABLE OF CONTENTS

    INTRODUCTION ........................................................................................................................3

    WHY SAP BW?............................................................................................................................4

    BW IMPLEMENTATION APPROACHES..............................................................................5

    TIME DIMENSION - IMPLEMENTATION APPROACHES............................................... 6

    SCOPE DIMENSION - IMPLEMENTATION APPROACHES ............................................7

    IMPLEMENTING SAP BW OFFSHORE: FACTORS AFFECTING IT ........................... 11

    REASONS FOR OFF-SHORING.............................................................................................15

    BW IMPLEMENTATION: THE ONSITE OFFSHORE MODEL ....................................16

    GL OSSARY ................................................................................................................................19

    REFERENCES............................................................................................................................19

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    Introduction

    In today's competitive business environment, the need to make faster, more informed decisions at all

    levels in the organization has never been more important. However, the information to make these

    decisions is often not readily available and accessible. The result is countless hours spent obtaining,

    organizing and analyzing information to understand your business and make better, more informed

    decisions.

    Companies who recognize that information is a key part of building a competitive advantage have

    embraced data marts, data warehouse and business intelligence solutions. These environments become

    the focal point for the organization's information needs by storing integrated, accurate, historic and

    detailed data for use across the enterprise. They enable transformation of raw data into applied strategicknowledge, up the Information Value Chain.

    Figure 1: Information Value Chain

    When properly implemented, a data warehouse acts as a foundation for all information distribution and

    reporting needs, thus providing an entire organization a "single version of the truth." Through direct

    access to this data, business intelligence solutions minimize the time spent gathering data and maximizethe analytical capabilities. A data warehouse that is cross-functional and core to business strategy will

    best position an organization for maximum results.

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    Key Characteristics of a Data Warehouse

    Solves a critical business problem

    Adds value beyond the mere collection of data

    Aligned with stated business strategies and advances business strategy in a measurable way

    Integrates key business processes, initiatives and capabilities

    Enables business innovation by leveraging cross-departmental data (previously unattainable)

    Integrates back-end analytical applications

    Business models drive data warehouse solution

    Integrates metadata across the data warehouse environment

    Key Success Factors of a Data Warehouse Strategy

    Strong internal collaborative sponsorship

    An environment that provides the highest level of cross-functional/cross-organizational data

    sharing

    Application of rigorous data quality standards and improvement

    Follows an architectural framework (blueprint)

    Incorporates an architecture/methodology that allows a repeatable process for designing and

    implementing data warehouses and data marts

    Why SAP BW?

    According to the Gartner Group, organizations that are pursuing a SAP ERP strategy with a high volume

    of transaction data processing in SAP, the logical choice for a decision support environment is SAPs

    complimentary tool Business Information Warehouse. The Gartner Group estimates that By 2008, more

    than 80% of SAPs R/3 installed base will implement BW to meet their operational focused decision

    support needs (0.8 probability).

    SAP BW is all about meeting the reporting needs of the various role-players in an organization. It is a

    central reporting tool that tightly integrates with online transaction processing systems like SAP R/3, at

    the same time also pooling in data from other internal and external information sources.Traditionally, BW

    implementations have focused on providing information owners with consolidated data, varying from a

    day to a month. However, going forward, newer versions of BW will be supporting real time updates from

    the OLTP system with latency reduced to almost a minute. With this new trend, BW implementations may

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    soon need to adopt a different strategy. The BW system could then act as a single point for all reporting

    needs, both operational and analytical.

    SAP BW shouldnt be viewed as a stand-alone data warehousing implementation, but one that can act as

    the foundation of the organizations business intelligence architecture. SAP BW can act as a hub for all

    closed-loop analytical applications, feeding and receiving data to other analytical applications like SAP

    SEM, CRM and APO. When integrated with portals, it can form the basis of a collaborative Web based

    business intelligence framework.

    BW Implementation Approaches

    Organizations implementing SAP solution suite can be categorized into two classes:

    Brown Field Approach

    These organizations have already implemented R3 and are looking at BW for leveraging the benefits

    across the organization through better decision support.

    Green Field Approach

    These are organizations which do not have an existing enterprise wide integrated transaction processing

    system in place but are looking at faster realization of benefits by parallel deployment of R3 and BW.

    Brown field implementations are relatively easy to structure since the OLTP deployment has already

    taken place and therefore the inter-linkages are less complicated. There are however certain limitations of

    such implementations which are discussed in subsequent sections.

    From a Green field implementation perspective, there are multiple parameters involved in terms of

    structuring the BW implementation vis--vis the R3 implementation schedule. Green field implementations

    obviously have their own set of challenges.

    Structuring Dimensions

    There are two key dimensions involved in structuring BW implementations:

    Time Dimension

    Scope Dimension

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    Time Dimension - Implementation Approaches

    The following three approaches can be structured based on time dimension:

    Parallel Implementation

    Lagged Implementation

    Deferred Implementation

    Parallel Implementation

    R3 Implementation and BW Implementation projects are executed in parallel.

    Key Success Factors:

    Program & project management

    Quick resolution of issues on a day to day basis

    Client team training and understanding of SAP (R3 as well as BW) before initiating the projects

    Comprehensiveness and clarity of business process owners in simultaneously articulating the

    requirements on the process as well as reporting aspects

    Lagged Implementation

    R3 Implementation and BW Implementation projects are mapped in such a way that there is phase-lag

    between the two implementations. Therefore, start of BW blueprinting is linked to end of R3 blueprinting

    phase and so on.

    Key Success Factors:

    Clarity in articulation of reporting requirements

    Capturing all possible business processes and reporting scenarios during blueprinting phase

    Quick resolution of issues during each phase

    Program & project management

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    Deferred Implementation

    R3 Implementation and BW Implementation projects distance each other by a considerable time period.

    Therefore, BW implementation in such cases would be initiated after R3 implementation has been

    completed and has been operational for quite sometime.

    Key Success Factors:

    Maintaining the organization-wide initiative and momentum gathered during R3 implementation

    Change management

    Keeping the ABAP related report development effort to minimum during the R3 implementation

    Ensuring that R3 implementation takes into account the data modeling issues for BW

    implementation, at least from a broader perspective

    Scope Dimension - I