SAP Global Template Demystified: Process Design

We’ve talked about the fact that an SAP Global Template is so much more than process design. At the same time, you can say that it is nothing without a solid and sound process design at its core! This is where consulting expertise, business knowledge, and SAP software product experience intersect, where these different components must merge to form a beautiful piece of art. (For a refresher on this topic, please refer back to our earlier blog post, “Why Experience Matters on Your Road to S/4HANA.”)

Advice on SAP Global Template Process Design

When it comes to process design in the context of an SAP Global Template, I want to talk about some of the main concepts that come to mind:

  • Organizational Model – It is imperative to not only align the organizational model with the available structures in SAP (company codes, profit centers, etc.) but, also, to shape it in a way that creates templates. These structures need to be at the core of the building blocks to describe what an operating company vs. a holding company looks like, to distinguish the difference between a complex operation vs. a site business. They allow you to categorize the elements of your business fleet to identify the right starting point once the next acquisition or greenfield operation comes along.
  • Business Functionality – SAP has an extremely large portfolio of business functionalities. You need to be able to identify what is important for your company! Once you’ve established the core components of your business design, group them around the building blocks of your organizational model to establish the go-to pieces of your Lego puzzle! That allows you to start from a pre-built structure instead of starting from a single brick. As I’ve frequently said in previous blog posts, you need to avoid reinventing the wheel!
  • Level of Standardization – Part of the concept of the SAP Global Template is moving from having continued design discussions (“Business Blueprint”) to focusing on rolling out a pre-designed solution that needs to be adopted (“Fit-Gap”). It represents the shift from rehashing the basics to simply stating the obvious–if you are a business in the fleet, you need to comply with the direction that the overall enterprise takes. This will be the biggest factor for saving money in your SAP deployments, and, with it, the best guard against the useless over-customization of your SAP system that to this day plagues many companies out there.
  • Solid Documentation – We need to talk about the complexity of business design in relation to the short span of the human memory. If you do not document what you agreed upon, you have already lost the battle! Coming to conclusions in those endless blueprint sessions is a thing that you do not want to jeopardize afterwards! Simply write down what you agree on, put it in swim lane diagrams, freeze if in business design templates, lock it into configuration documents. In other words, put it in writing to save yourself from the hassle of doubting your memory as time passes! I agree, this is not the most enticing topic, but–by far–it is one of the most important, as many executives have had to learn the hard way! 

Allow me to come back to the question of standardization of the business design in your SAP Global Template. You need to talk about and agree on the rigidity of that design when it comes to systems configuration. Which parts would you allow to be changed by a given local business and where would you draw the line to defend the given corporate design? I find it very helpful to partition your functionality and master data into different categories that are aligned with said level of rigidity:

  • Mandatory, not changeable – These settings and functions are not up for debate. All parts of your business fleet have to adopt them as they are laid out, without any changes. You need to defend these elements with tooth and nail, as they are the pillars of the overall SAP design. Examples are foreign currency handling, supply chain handling, or production process elements that must follow a corporate design.
  • Mandatory, but expandable – You may allow the local business to extend certain pieces of your design in a way in which the result still fits within the corporate vision. Think, for example, about an organizational model where the local business wants to establish a more granular cost center structure than the one given by the template. Adding another marketing cost center or a more detailed work center structure in the production does, in its nature, not deviate from the overall design. It still complies with the spirit of the business design. I would caution you to still look out for Trojan design horses. When appropriate, be lenient in granting these requests.
  • Local – You will never be able to standardize everything. There will be local tax requirements, cultural “need to have’s” related to doing business in a certain country, the one-off odd (but hugely profitable) business in the portfolio–all legitimate reasons why design may need to deviate in a region, country, or line of business. Where advisable, don’t fight it, rather support it. Just make sure that the local deviation stays as the exception, not as the mainstream practice!

This brings us to the conclusion of today’s post about Business Process Design. In our next chapter of the Global Template series, we will talk about technical SAP Systems Environments. As always, thanks for your valuable time today! If you have questions about Global Template that you’d like to see addressed in future posts, we invite you to reach out via Twitter.

SAP GT Demystified: SAP Model Company

This may be a strange thing to open with, but stick with me… Laziness–at least a bit of it–can be a good thing. In my view, a healthy dash of laziness coupled with a pinch of procrastination usually leads to the quest of searching for the simplest solution, therefore fostering efficiency. And several great minds have talked about the fact that depicting the solution to difficult problems with simplicity is an expression of deep understanding.

SAP Model Company Business ModelTo avoid falling for the urge to reinvent the wheel during SAP implementations, isn’t there a way to utilize previous learnings, other people’s experiences? That’s where the SAP Model Company comes into the picture. It can be the seed or foundation for your SAP endeavor based on two flavors:

SAP Model Company by Industry 

The focus rests on the industry that the company operates in, be it Chemicals, Pharmaceuticals, Mining, or in another vertical altogether. All of them have best practices that are unique to the specific industry, which set them apart and require years of experience on the part of the SAP implementer. The respective SAP Model Company has that experience already “baked in” and can be a guiding light in the maze of the vast SAP functionality.

SAP Model Company by Line of Business 

These model companies are based on a department or part of any generic enterprise, like Finance, Shared Services, or Supply Chain Planning. They help you by putting a baseline into the sand that is rooted in the best practices and the experience collected from thousands of successful SAP implementations.

SAP Model Company Building Blocks

Photo credit: SAP

 

I also want to encourage you to watch this helpful 2-minute video from SAP, which lays out a compact and precise vision of the SAP Model Company.

Now, you might be wondering, how does it relate to a Global Template? Well, even a Global Template can benefit itself from a template. As I pointed out earlier, a little laziness could be the secret sauce in your Global Template recipe!

After having covered the basics, let me share my personal view of the SAP Model Company:

Don’t ignore a valid accelerator. (In some regards, your business needs are not as unique as you think!)

Of course you think your business is different than others. The common rules don’t apply, and certainly no one else could dictate how your business is run. Really? What would be wrong in learning from the findings that thousands of successful world class businesses have made? Why not gain from their experience? Don’t be arrogant when it comes to a helping hand–the SAP Model Company deserves a thorough thought!

Use it in a way that is suited for your business.

You may be a smaller company that can use the template as is. A typical example would be a Venture Capital firm that bought an idea and operationalizes it with the help of the world-class SAP software. While not having the appetite to overinvest in IT capabilities, use of the SAP Model Company gives reasonable assurance that you’re on the right track.

Or, you may represent a large-sized company that only uses it as a seed to tailor their own template. Think long and hard about what the right way is, as it will be nearly impossible to turn around for a complete do-over at a later stage!

Even if you think it does not fit, it will still have value.

Should you decide not to use the SAP Model Company for your Global Template or SAP deployments, you can still learn from it. There is so much experience there that it can serve at least as a guiding light! Analyze and understand the pieces and functionality that are utilized in the SAP Model Company that is most relevant to you, your industry, and your line of business. Use that knowledge as an accelerator, as well as a logical boundary for implementing what’s truly needed.

Have your own Global Template in mind!

While the SAP Model Company is a good starting point, never get lazy in your thinking! Have your strategy and road map in mind and assess how it furthers your goals, makes life easier, and helps bring value to the business. Let me state the obvious–while your business is probably not vastly different from some others in the field, a “one size fits all” solution will not be appreciated. Now is the right time to do cherry-picking, to shed the wasteful or flashy “bling” and create a solution that fits like a well-tailored suit! 

This brings us to the end of today’s post on SAP Model Company. In our next chapter of the Global Template series, we will talk about Business Process design. As always, thanks for your valuable time today! If you have questions about Global Template that you’d like to see addressed in future posts, we invite you to reach out via Twitter.