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Join Dan Wilhelms, president of Symmetry Corporation, as he discusses a new business model for managing your outsourced SAP support. Whether you have turned to outsourcing to augment in-house staffing or to take full control of your SAP environment, you have probably run up against the limitations of traditional support models.There has always been a trade-off between access to support in a crisis, cost, and service quality.•Domestic consultants on short term contracts are exorbitantly expensive, and still face challenges when it comes to knowledge gaps and accessibility. SAP is complicated and one person can’t be expected to know everything or be available 24 hours a day, 365 days of the year.•Time zone differences, call center queues, and the lack of knowledge transfer between new consultants as your support ticket "follows the sun" have earned off-shoring a reputation (whether deserved or not) of being the cheap and nasty alternative.Communications and SAP related technologies have changed since these models were developed. Your budget has changed. So why haven’t your SAP support options changed?
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21st Century ERPIT in the New World
Dan WilhelmsPresident – Symmetry
February 17, 2010
Download the presentation recording with audio from the Symmetry Knowledge Center
www.sym-corp.com/knowledge-center
Implementation Support
SAP Certified Hosting
Basis AdministrationSAP Security
Upgrades & Project s
We provide lifecycle support for:Any SAP applicationAny platform combination
Symmetry offers an alternative to traditional support services:
QualityAffordability Accessibility
About SymmetrySymmetry delivers flexible, high quality solutions that help reduce the total cost of ownership and enable high-performing, secure, stable SAP environments
Established in 1996
Based in Milwaukee, WI.
100% focus on SAP technology
Introducing
Dan WilhelmsPresidentSymmetry Corporation
Agenda
Challenges for IT in the 21st CenturyYesterday’s AlternativesToday’s OpportunitiesA Call for Change –The Manifesto for 21st Century ERP service
A New Definition of QualityAccess and Communication Attitude Technical SkillsA Business Approach to Managing SAP systemsThe Hosting Option
Recipe for Winning ERP in the 21st Century
Challenges for IT in the 21st Century
IT no longer the darling business sector30 year love affair with IT ended badly
Miracle initiatives became expensive boon dogglesY2K“Dot bomb era”Cost of maintaining existing applications exorbitant
IT losing its strategic seat in the boardroomIT increasingly viewed as a cost center instead of the engine of competitive advantageReduction in CIO positionsIT moved under CFO as “administrative”
Challenges for IT in the 21st Century (con’t)
Internal IT organizations are stressedYear 2000, 2002 and 2009 recessions saw IT staffing pared to a minimumSurviving IT staff
Overwhelmed, under trained, under appreciated“Don’t come to management for money”
Maintenance and upgrades deferredNew initiatives scrutinized like never before
No resources for driving innovationDistrust, animosity between IT and business units
“My management told me to ‘just keep the lights on’ and we’ll start talking about projects next year”
Changing Face of Internal SAP Staffing
Original SAP implementation teams dispersedMoved back to business unitsMoved onOriginal integrator gone - with pleasure
“2nd generation” phenomenaNew to SAP – discovery that SAP isn’t just another app on the netDidn’t live through the original implementationFighting the competency gap every dayNo preparation for the world of nuance and application specific knowledge needed for SAP
“Our long time Basis admin retired. We’re trying to cross train our networking guy into SAP, but there’s a lot to learn”
Challenges for IT in the 21st Century (con’t)
IT integrators have ill-served the rapidly changing needs of their clients
Clinging to traditional full-time, on-site time & materials consulting
Resume and a rateMarket flooded by contractors competing mostly on priceLack of accountability – caveat emptorFraud of empowerment
Challenges for IT in the 21st Century (con’t)
IT integrators have ill-served the rapidly changing needs of their Clients
SAP integrator solutions in reality a cobbled up mix of:Brokered-in, lowest bidder independent contractorsProject Managers more focused on margins than resultsUntenable mixes of on-site and off-shore resourcingUnrealistic timeframes and deliverablesLiberal overage charges – project overruns
“Our integrator had a Basis consultant on-site for 6 months. Our systems were a mess and there were constant communications
issues. We couldn’t wait for them to leave”
Challenges for IT in the 21st Century (con’t)
IT hosting vendors have been no betterDefensive, SLA based service
Focus on minimal performance objectivesReactive, trouble-ticket based service
“We’ll fix it after its broken”Endless nickel & dime incremental charges
You pay for escalationsImpersonal, luck of the draw support
A new stranger every 8 hours in far flung call centersDeath by change control
Inflexible, single speed responsiveness - slow
Yesterday’s Alternatives
Traditional options for SAP SupportInternal support
Limited head countLimited breadth of knowledgeHuman limitations – turn-over, sick leave, vacations, etcFighting the competency gap every day
Domestic integratorsOn-going operational support a sideline, at bestOriginal consultants moved onSupport provided “When I get back to my hotel”No business model for effective internal escalationExpensive, hourly rate based
“If it’s not a full time, 6 month, on-site consulting engagement, my integrator doesn’t want to talk to me”
Yesterday’s Alternatives
Traditional options for SAP supportOffshore support
Hourly rate is half of the equationLanguage, time zone and continuity of care issues
Hosting vendorsNon-SAP centric – “We’ll support any app!”Shared infrastructure means compromised servicePricing models out of date with modern technology
“My management sees ½ the hourly rate, but I see the job taking at least twice as long with twice the hassle. Where’s the win?”
SAP Customers Faced with a Dilemma
Staffing an internal world-class SAP technical support organization is not feasible
Especially for SME’s, expecting 24 x 7 coverage from a lone, 8 x 5 SAP administrator is not viable
Burn-outCompetition for employment
Lack of expertise in best practices for SAP administrationDeveloping broad, deep internal expertise on all facets for SAP Management bandwidth for overseeing arcane SAP technical operations
Competence, time commitment, hassle factorSAP technical (Basis) administrators too often high maintenance, prima donnas
SAP Customers Faced with a Dilemma
Out-sourcing or out-tasking to traditional IT vendors is not feasible
Not cost effectiveSupport from far flung strangers problematic at bestLack of continuity in a crisisEndless incremental charges
“We were down. Our users were up in arms. And every few hours I had to re-explain our issue and re-establish
connectivity to yet another stranger”
Today’s Opportunities
21st century connectivityUbiquitous high speed, private wide area networkingCosts plummeting
Server and infrastructure technology better, faster, cheaper
SAP servers half the the cost twice the performance of just 3 years agoRedundancy and embedded fail-over baked-inEverything moving to common browser interface
Apps on demandAccess anywhere, no longer tied to the desktop PC
Today’s Opportunities
Complete abstraction of location and data accessSoftware as a Service (SaaS or Cloud Computing)
Seamless access to remote supportFractional ownership of a world-class teamReduces the need for travel24x7 proactive monitoring services
A Call for ChangeThe Manifesto for a 21st Century ERP service
Support Quality = Access and Communication + Attitude + Technical Expertise
Access and Communication
One-call access to a dedicated support team Dedicated resources know you and your systemsDay to day personal interactionNo walls – direct access to dedicated resources via cell phone and home phone numberSupport becomes personal
US BasedCommon time zonesLanguageCultural context
Access and CommunicationBacked by a deep & broad Community of Knowledge
No single person can possess the deep technical knowledge required to solve every issueIdeal arrangement has the primary support specialist linked to a larger group of full-time SAP expertsTightly knit support teamsBusiness model to support fluid, seamless escalationsDay to day intimacy with instant access to experts in the broad range of SAP technology
24x7 coverage gets personalInstant person-to-person, 24x7 access to dedicated supportAllows for continuity of care – constant, consistent contact with the dedicated team saves time and money
No random assignment of support calls
Attitude
Costs manageable and affordable for the clientLeveraging client’s own resources and capabilities Contracts allow for flexibility, a spirit of give and takeEvery support call should not be a cost/benefit dilemma
Instantaneous access to deep expertiseOptimal leveraging of all resources available Avoid the “you do it or we do it” mentalityEscalation to senior resources included in flat monthly fees
Partnership that creates a win-win situationMutual focus on optimally running systems, not roles or responsibilitiesClient and service provider agree on:
Objectives, deliverables, schedule and terms
Attitude
Mostly fixed price fee structuresAvoiding the blame game
When a problem is solved in a timely manner, at no incremental cost, there is very little left to argue aboutSpirit of give and take to mutual satisfaction
Client receives good value for the costVendor makes a fair profitKnowledge and understanding of your systems and business grow over time
Technical Skills
“It takes a village” to run SAPNo one person can possibly know all aspects of SAPRequires a coordinated team with complimentary and over lapping specialtiesThe support organization must have experienced consultants on staff and availableCollective knowledge of every aspect of SAP functionality and operationsIn-depth knowledge of SAP applications and their business use is an absolute necessityMust keep up with the constant changes and updates to the technology
A Business Approach to Managing SAP systemsPersonal, proactive management
Dedicated day to day support specialistsDaily health check assessments supported by comprehensive automated monitoringDedicated Client Manager overseeing operationsDirect dial to primary support – individual cell phone, home phone numbers
Integral access to a world-class SAP technical support organizationOrganizational and contractual model to enable rapid escalation to specialized expertiseManaged repository of best practices and lessons learnedClear focus on SAP, not “we support anything”Large dedicated team with specialized expertise in nearly all aspects of SAP technical operations
A Business Approach to Managing SAP systems
Ad hoc adviceE.g. “Our CFO talked about profitability analysis today. What’s it take to implement SAP’s Business Intelligence application?”Access to Client Managers who oversee several SAP projects – broad perspectiveBecome a trusted advisor on strategic directions
Strategic insightKnowledge gained from large client base actively managed and shared for benefit of all clients.Cost of discovery mitigated – Best practices and lessons learned by one benefits all – business processes in place to insure disseminationProductized service offerings – don’t have to reinvent the wheel
The Hosting OptionA true, 21st century SAP support services provider will also offer hosting
Extend the partnership to the entire technology stackProviding a complete, seamless solution and accountability
True understandingBecause the provider understands the art and science of managing SAP environmentsDelivers a level of excellence that comes with a singular focus
Outstanding service and securityOffers a safe locationRedundancyResources and approaches to provide the client with the best configurationAvailability and cost to meeting specific needs
Recipe for Winning ERP in the 21st CenturyLeverage 21st Century technology
Reduce on-going IT infrastructure costsIncrease systems performanceReduce cost per transaction IT support costs
Partner with 21st Century ERP service providersEasy to do business withPragmatic, flexible, “there when you need it” supportCost effective “no surprises” fee structures
Win-win fixed pricingExceed client expectations
Not merely live up to SLASynergistic, not adversarial relationshipGrowing knowledge and understanding of your systems and businessShared focus on achieving the results
Recipe for Winning ERP in the 21st Century
Achieve an optimal mix of internal and external supportInternal, “serve the business” customer facing supportDeep out-sourced expertise in back end SAP technical operations
Convert more IT budget dollars from keeping the lights on to supporting more business innovation
Download the presentation recording with audio from the Symmetry Knowledge Center
www.sym-corp.com/knowledge-center
Dan WilhelmsEmail: [email protected]
