Business Process Transformation with SAP HANA

This assignment delves into the concept of business process transformation leveraging the capabilities of SAP HANA. It encourages students to analyze various academic papers and real-world case studies, focusing on how SAP HANA empowers organizations to achieve efficient business intelligence through in-memory computing and advanced analytics. The emphasis is on understanding the transformative impact of SAP HANA on business processes, particularly within large-scale and distributed environments.

Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
ERP Implementation Proposal
Case Study of Auburn Winery Company (AWC)
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
Table of Contents
1.0 AWC System Analysis and Description......................................................................3
2.0 Available Facilities in SAP HANA Solution.................................................................4
3.0 Detailed Implementation Process: Transition, Strategy, and Timeline........................7
4.0 Four SAP Business Suites, Third-party Applications and AWC requirements..........10
5.0 Business Process Re-engineering (BPR) Functional Areas.....................................11
6.0 Training Requirements and Change Management Issues........................................12
7.0 ERP Adoption for Competitive Advantages..............................................................12
Cost Estimation........................................................................................................... 14
References..................................................................................................................... 16
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
1.0 AWC System Analysis and Description
Current information in AWC does not support new IS (Information System)
requirements, as the existing systems are out of date. Financial accounting system
DataAction that is used in Adelaide cannot support the marketing and sales. Peartree
module is used for tracking the inventory for glass bottling plant and the values are
converted to DataAction; however, for handling the vendor payments through the
accounting system. Proprietary SCM (Supply Chain Management) is run through
procurement branch and it was not integrated to other systems. Sales and marketing
office at Sidney has separate system for running proprietary logistics department with
shipping helps for wine.
Wineries in AWC store the data into individual network and PC connected grid
within a server; production data is stored to databases for individual wineries. The data
is passed to headquarters in Adelaide and company’s main database is consolidated.
Production planning is performed for each winery and inventory control is put into place
into excel based datasheets and no automation exists for production and billing
operations. DataAction is utilized only for internal accounting activities, billing and
invoicing for customers; DataAction can estimate the payrolls for workers and can
handle international sales merely.
Based on the above-mentioned system operation descriptions, the weaknesses
and limitations are realized in terms of operational costs, reliability, efficiency, security,
and data integrity aspects. Following table depicts the weaknesses;
System Elements Weakness
Aspects
Improvement Areas
Production Process Operational cost,
efficiency, and
security
The production process lacks in faster
delivery of products; yields more
operational cost, and provides lesser
automation
Accounting System Reliability,
security, and
Lacks in automation; considers different
departmental modules for overall billing
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
efficiency activities, and lacks in convenient
procedures
Supply Chain
Management
Operational cost Proprietary and consumes more cost for
excel based operations
Logistics
department
Reliability and
efficiency
Logistics operation is run in another distant
department causing time lack as all the
system software is out of date
Manufacturing and
business process
Operational cost Manufacturing process cannot be followed
with innovative business ideas and
packaging procedures
Billing and payment
module
Efficiency Payments are handled from different terms
such as vendor payments, internal
accounting, and payrolls
Table 1: Weaknesses exist for Current AWC Business Process
(Source: Created by author)
2.0 Available Facilities in SAP HANA Solution
In this part, the available tools and parts under SAP HANA are discussed and
how the tools can be better implementation aspect for considered case study of AWC.
The tools are depicted with additional images and detailed operational aspects;
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
Figure 2: Available Tools in SAP HANA Database
(Source: Lee et al. 2014, pp, 1170)
For case scenario of AWC, remote support tools will be effective for handling all
distant departments for integrated processes. The headquarter is at Adelaide for
finance/accounting, HRM, and procurement departments; glass bottle plant in Adelaide;
warehouse in Adelaide; sales and marketing department in Sidney; wineries at Barossa
Valley, in Renmark and in Clare (within 200 KM of Adelaide); and restaurant in Barossa
Valley. The useful tools and consoles are mentioned as following:
1. Business Objects Enterprise / BI Platform 4.0 can be connected to Solution
Manager 7.1
2. Business Objects Central Management Console (CMC)
3. SAP Backend System and SLT system can be connected to Solution
Manager 2.1
Solution Manager 7.1 can be used for proactive monitoring of the system based
on availability monitoring, and Solution Manager can provide alerts on host agent. The
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
alerts can be received from HANA database pre-rated and it can be obtained through
DBA cockpit framework. Moreover, the SLT can be monitored based on queues and
from SolMan 7.1 Host (Kale 2014). However, new release of Solution Manager versions
in SAP HANA can provide monitoring based on availability, alert results, and alert
metrics. Furthermore, SAP HANA can provide business intelligence monitoring based on
central system, overview, system, and detail monitoring. The central system status
overview shoes SAP BI solution; it is capable of monitor cross-system BW process and
single processes.
Figure 3: Monitored BI Objects and scenario based tools
(Source: Debortoli, Muller and vom Brocke 2014, pp. 291)
In an overall, SAP HANA does not only act as standalone data mart; however, it
can be integerated with other third-party business applications. For instance, SAP ERP
system may call SAP HANA accelerators for increase performance of core business
processes. The applications such as SAP BW can reside in SAP HANA; SAP HANA is
not only administrated as primary database (Otto et al. 2013). The management team
can ensure integration with existing IT Solution; the applications can be deployed in SAP
HANA with managed procedures. The SAP Solution manager supports SAP HANA; and
therefore, the personnel can manage in-memory database along with capabilities of
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
SAP Solution Manager (Dulabh 2014). The management team can easily leverage the
IT skills accordingly with learning process; the holistic approach can be used for building
and running solution as an entire package.
3.0 Detailed Implementation Process: Transition, Strategy, and
Timeline
In this section, SAP HANA implementation is described with all detailed steps,
strategy, and associated timeline for completion of the project. The implementation
project is segmented under different activities, milestones, and specific steps as well.
First phase: Project Initiation
The phase includes incorporation of initial planning about all activities and
preparation of planning document for realistic implementation approach (Barenfanger,
Otto and Gizanis 2015). The phase is conducted with relevant activities such as;
Determination of project scope;
Phase determination and time scheduling;
Team and stakeholder planning;
Definition of standards; and
Environment setup for project
Second phase: Preparation of Business Blueprint
The second phase includes realization of business process map, blueprint, and
operational details. The phase considered business processes and requirements that
should be met within the implementation process (Necas 2016). The phase purpose is
determined as following:
I. Understanding the entire business procedures, methods, blueprints,
process mapping, and SAP integration process
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
II. Detailed documentation preparation along with gathered requirements
(Keskinen 2017)
III. Business blueprint document preparation for meeting business
requirements of AWC; the agreement statement is kept for approval
from the organization AWC
IV. Definition of organizational structure and provide planning about change
management; Fit GAP analysis can be conducted for identification of
process maps accordingly (Kumar 2014). The Fit GAP analysis; four
steps can be followed as brainstorming, simulation, questionnaire-
based, and hybrid-type.
Third phase: Realization of business process reengineering
This phase states to match the business requirements with SAP HANA Business
Process Re-engineering (BPR); so that primary development module and components
can be tested in detailed manner (Marin-Ortega et al. 2014). The User Assistance
Training (UAT) should be provided from the developer team for separate departments.
Fourth phase: Final Implementation Steps
This phase is concentrated on executing all plans and conducting all related
activities regarding implementation SAP HANA in AWC systems. The steps include
detailed processes such as testing, end-user training, system management, and cross-
platform checking. The implementation stage is stated to be final; as it should reach
readiness of ‘go live’ in next stage (Ivan 2014). This phase should consider all critical
issues and problems that can occur during implementation process. The implementation
process includes transition stages from legacy to newly developed system. This
transition stage incorporates proper date for migration to SAP, inventory process
update, delivery process re-engineering, and invoicing (Hawking and Sellitto 2015). All
items in SAP can start work on SAP workflow bench; this administrating tool helps in
findings out potential flaws and integration gaps for modifications. This phase planning
considered migration of master data from legacy system to new SAP system; on
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
successful completion of this phase; AWC will be ready to run business processes in live
SAP HANA system.
Fifth phase: Go Live and Support Process
In this phase, the maintenance and support process, planning is prepared. Before
‘go live’ stage, the legacy systems are run until the systems get stable with newly
implemented SAP HANA System (Plattner and Leukert 2015). This phase is necessary
to conduct short-time pilot project considering stakeholder reviews, feedbacks, and
proper maintenance approaches.
‘Big Bang Approach’ and ‘Phased Approach’ are used mainly for ERP
implementation; the strategies are used for introducing new systems into organization.
In this project, ‘Big Bang’ Approach for ERP implementation is used as legacy system is
migrated to newly developed SAP HANA system (Horakova and Skalska 2013). On the
other hand, ‘phased’ approach is used when proper sequencing of activities are required
to be followed to introduce ERP along with replacing legacy system in gradual way
(Morgen 2014). Based on the mentioned milestones and activities; the realistic timeline
is prepared as in the following table:
Activities and Milestones Week
1
Week
2
Week
3
Week
4
Week
5
First phase: Project Initiation
Determination of project scope
Phase determination and time scheduling
Team and stakeholder planning
Definition of standards
Environment setup
Second phase: Preparation of Business
Blueprint
Mapping business procedures, methods,
blueprints with SAP integration process
Detailed documentation
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
Business blueprint document preparation
Fit GAP analysis
Brainstorming, simulation, questionnaire-
based, and hybrid-type
Third phase: Realization of business
process reengineering
Process redesigning
BPR and associated activities
User assistance training
Fourth phase: Final Implementation
Steps
Transition process
Detailed testing
Resolving critical issues
SAP workflow bench
Migration of master data
Fifth phase: Go Live and Support
Process
Pilot project and maintenance
‘Go Live’ and feedback based modifications
Table 4: Detailed Timeline for Implementation Activities
(Source: Created by author)
4.0 Four SAP Business Suites, Third-party Applications and AWC
requirements
Based on SAP business suites; four applications are considered for AWC
requirements meeting and achieving high-level deliverables of the project. The
applications are discussed as following:
Supply Chain Management: The Supply Chain Management (SCM) application
is appropriate for reducing cost and increasing innovation so that customer service can
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
be improved (Fleig 2017). SAP Supply Chain Management includes coordination,
planning, execution, and collaboration of stakeholders to reach entire SCM
empowerment to adapt the business goals into ever-changing activities in competitive
environment.
Customer Relationship Management: The Customer Relationship Management
application from SAP being a part of SAP HANA business suites, provides helpful
addressing to short-term initiatives (Plattner and Leukert 2015). The CRM provides
necessary opinions about decision-making and most importantly, it provides company to
achieve differentiated abilities for continuous innovation and development.
Enterprise Resource Planning: The SAP ERP provides essential functionalities
related to business processes and management of all processes under efficient and
tailored way. SAP ERP financial, human capital management, SAP ERP operations, and
corporate services offer the administration for meeting business goals and specific
needs as well.
Supplier Life Cycle Management: The Supplier Life Cycle Management
provides holistic approach for managing supplier and customer relationships. The
supplier life cycle management deals with supply base and it can determine the proper
mix of suppliers into SCM practice along with customer relationship (Christensen 2015).
The Life Cycle Management includes individual suppliers so that on-board continuous
development can be improved with supplier life cycles.
5.0 Business Process Re-engineering (BPR) Functional Areas
Business process re-engineering functional areas for SAP HANA are mentioned
to include rethinking and redesigning approach so that appropriate support can be
provided to organizational goals and initiatives to reach cost reduction. BPR starts with
high-level assessment of organizational mission, vision, and strategic goals along with
customer requirements (Harrison et al. 2014). The implementation process should
incorporate SAP for the organization in order to follow the concept of business
processes in terms of re-engineering over second phase. The SAP implementation
activity is followed with associated process re-engineering to all departments along with
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
GAP analysis. The GAP analysis can improve the entire process such as incorporation
of automation and instant evaluation of activities in terms of flawless execution.
6.0 Training Requirements and Change Management Issues
Training and change management processes are necessary for administering the
new system incorporation into practice. The training schedule and entire plan should be
prepared for the associated stakeholders as in how they can improve their learning and
entire work process (Spiri 2015). The training requirements suggest proper follow-up
with communication, stakeholder analysis, end-user training, and user assistance
training processes. The training management should be performed with all the depicted
terms and proper appreciation of activities. The training drills are mentioned as
following:
Stakeholder analysis: The stakeholder analysis is required to analyze the
activities of the stakeholders so that each stakeholder can be addressed with their work
process to adhere all responsibilities identified.
End-user training: The end-user such as support team, associates, and
management personnel should be included into the pilot project so that before ‘go live’
program, all the end-users can be properly trained to work in new system.
User Assistance Training (UAT): The User Assistance Training (UAT) should
be performed to the associated personnel who are in direct interaction with the SAP
system. They should provide proper assistance to the customers and users in
appropriate way.
7.0 ERP Adoption for Competitive Advantages
ERP implementation and adoption is major part of having competitive advantage
to the organization; in this case AWC conducting. The competitive advantages are
mentioned as in terms of having all relevant activities into practice. Listed advantages
are:
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
Efficiency: The efficiency in terms of ERP solution eliminates the process
repetition and it minimizes the requirement for manual crossover activities (Plattner and
Leukert 2015). The personnel do not need to follow all activities; they should follow the
streamlined activities and in easier way, the process can be accomplished. The
efficiency aspect required to collect data regardless of the working department.
Integrated information: The data and information sharing is uniform in all
departments without causing any disturbance into entire work activities. The information
can be easily shared among the stakeholders without hampering the data update,
modifications, and other related analysis activities (Hawking and Sellitto 2015). The
administration team can keep consistent data, accurate storage, and can integrate
instant access to database information as well.
Scalability: The structured ERP system follows scalable functions for additional
user and functional growth into the initial implementation of solution over the timeline.
The ERP should be able to facilitate the future business growth aligned with current
business goals and initiatives (Debortoli, Muller and vom Brocke 2014). The ‘future plan’
can be prepared as per scalable ERP implementation for SAP system integration with
suppliers. The customers in ERP can be served with more improved workflow.
Reduction of cost: Accurate and real-time information source, SAP HANA
package can reduce cost in terms of operational means and it can allow the
manufactures to manage operations. The ERP system can prevent the delays,
disruptions, with segmenting the information so that proper decision-making can be
performed.
Mobility: The advantage of ERP serves as providing access to a centralized
database from different access points at the workplace and work network (Lee et al.
2013). The workers from home, office premises, other branch; can easily access the
centralized database without any disruption. ERP provide mobile-friendly solution for
helping sales and marketing department to apply excel-based data into real-time
information.
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
Productivity: The productivity of SAP system can easily help the overall
productivity of the team and the management personnel so that processes could be
automated (Dulabh 2014). The users can follow more time to work over followed
projects and tasks so that the stakeholders can easily work for ease-of-use solution
design.
Cost Estimation
The cost estimation is performed for considering all aspects that are important for
AWC ERP implementation. The cost estimation is shown as following:
Costing
elements
2016 2017 2018 2019 2020
Implementation
Team
$
4,789.00
$
22,435.00
$
34,157.00
$
23,854.00
$
22,954.00
Hardware $
-
$
1,245.00
$
1,457.00
$
2,487.00
$
24.00
Software $
14,257.00
$
2,457.00
$
7,563.00
$
2,145.00
$
2,589.00
IV&V $
1,023.00
$
2,457.00
$
2,457.00
$
2,457.00
$
2,457.00
Facility $
117.00
$
258.00
$
235.00
$
314.00
$
354.00
Network $
214.00
$
352.00
$
-
$
-
$
-
PC $
178.00
$
201.00
$
-
$
-
$
-
Security $
298.00
$
736.00
$
736.00
$
736.00
$
736.00
O&M $
-
$
48.00
$
5,896.00
$
9,014.00
$
11,457.00
Contingency $ $ $ $ $
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
1,842.00 2,365.00 4,256.00 2,789.00 2,457.00
Total $
22,718.00
$
32,554.00
$
56,757.00
$
43,796.00
$
43,028.00
Table 5: Complete Cost Estimation for SAP ERP Implementation
(Source: Created by author)
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Integrated Information System Proposal [Date: 05.10.17] Auburn Wine Company
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