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SAP Upgrade to ERP 6.

Deloitte brings you expert resources to help you lead the pack and realise how your SAP upgrade project fits into the bigger picture

Upgrade and reap the benefits now

The SAP ERP 6.0 (ECC6) upgrade revolution is here and while some companies perceive an upgrade to be a painful experience, we believe that it should be looked at as a stepping stone to realise more business value from current investments.

If youre not looking at and treating your Enterprise Resource Planning (ERP) system as an investment, then you are most likely not getting maximum benefit out of it

What is the upgrade to ERP 6.0 and why should it be done? ERP 6.0 is the latest technical upgrade to existing SAP ERP systems and many companies currently running instances of SAP R/3 4.6c, ECC5 and earlier versions will either need to extend their maintenance agreements, or upgrade to ERP 6.0 before the end of 2010. The benefits of upgrading to ERP 6.0 sooner rather than later are driven by cost saving and gaining competitive advantage. The competitive advantage of upgrading to ERP 6.0 is realised in the increased flexibility of your ERP. The constant changing business requirements means that a system such as SAP needs to adapt rapidly to the evolving business environment. If by the end of 2010 youre running an earlier version of SAP than ERP 6.0, maintenance costs would be significantly higher. Upgrades can take the form of a like-for-like upgrade with no additional functionality or components or they can include system enhancements and additional functionality. The like-for-like upgrade or ERP 6.0 technical upgrade is the lowest risk solution with the shortest implementation timeframe.

The ERP 6.0 technical upgrade is the implementation of the new software release as the foundation for all subsequent improvements. The impact of the technical upgrade in terms of a disruption on the business and business processes is very limited in that: Previously used business functions are retained i.e. like-for-like; Virtually no training needs to be performed. If a requirement for training does arise, it can usually be covered via an e-mail or training material posted on the intranet etc; Change management is limited to basic communication to keep the business informed about the upgrade; and Cut-over is limited to single days. The technical upgrade creates the platform to implement new functionality to give you a competitive advantage, whilst avoiding increased support costs.

Business challenges End-user productivity

SAP ERP 6.0 enhancements New application interfaces Updated role-based access Greater use of Adobe interactive forms Better planning and forecasting tools Greater ability to account for investments Improved product costing modules Automated allocations and balancing by multiple dimensions Segregation-of-duties testing automatically reported Enhanced contract accounting and collections

Reporting and performance management Benefits The benefit of upgrading to ERP 6.0 is indicated in the enhancements the new system has on existing functionality as well as new functionality. The table indicates these enhancements and the practical functionality of having them.
Source: www.sap.com

Accounting and financial reporting compliance

Talent attraction and retention Improved support for recruiters Improved online learning capabilities and support for knowledge management Enhanced performance management and objective setting capabilities Shared-services for HR Procurement Improved ability to operate a HR shared-services centre Improved purchasing self-services capabilities Enhanced services procurement Streamlined invoice management Improve order-entry processes Improved support for Internet sales Enhanced pricing and configuration Improved entry and speed of expense reporting Better travel planning and booking Pre-delivered support for managing corporate property and rentals Improved ability to import rules and regulations from third-party providers Support for occupational health documentation Enhanced ability to monitor dangerous goods and material Additional menu exits, user exits and BADI Audit management becomes part of the standard cross-application functionality

Sales and order management

Travel and expense management Corporate real estate management Environmental, health and safety compliance management Audit management

Why Deloitte? Deloitte has been a SAP Global Alliance Partner for Services since 1990. SAP has repeatedly recognised Deloittes practice as a leader in the field and in the last two years, Deloitte has won SAPs Global Pinnacle Award for three separate endeavours. Deloitte has delivered more than 1600 SAP projects worldwide, ranging from small niche implementations to large scale national and regional programs to global SAP enabled business transformation programs. Deloitte has a backbone of 6,900 dedicated SAP professionals, based in 25 countries around the world, and deep experience in the consumer business and beverage industries. Seventy percent of our SAP professionals have more than nine years of practical business and industry experience.

In South Africa, we have delivered some of the most complex and challenging SAP projects across multiple industries. In May 2008, Deloitte South Africa was awarded the prestigious SAP Partner Excellence Award, recognising our position as the premier SAP implementation partner in the country.

Our SAP services include Small, medium and large enterprise implementations Preconfigured solutions Niche solutions, including - Environment, Health and Safety - Master Data Management - Business Intelligence (SAP BW and BusinessObjects) Upgrade services Advisory services Quality assessments Deloittes global footprint ensures that there are always suitable skilled resources placed on every assignment.

Other upgrade related services: Pre-upgrade evaluation Deloitte can also assist your organisation by performing a technical evaluation of your businesses readiness for a SAP ERP 6.0 upgrade. Such a review typically includes an assessment of your current SAP landscape, functionality, sizing and the technical health of your system. Deloitte also offers services and expertise to assist your organisation with the following upgrade related activities: Server upgrade to 64 bit technology Business Intelligence (SAP BW) technical upgrade Enterprise Portal technical upgrade SAP XI technical upgrade

How Deloitte has successfully delivered ERP 6.0 upgrade projects to a number of clients in various industries. Our unparalleled experience in this area has helped us to develop an accelerated low risk approach to ensure a seamless migration to ERP 6.0. Our approach to upgrading is based on the ASAP (Accelerated SAP) upgrade methodology supported by the Deloitte project management principles. It consists of the following five phases:

Upgrade preparation
Preparation Initial planning and preparation for the upgrade.

Upgrade blueprint
Blueprint Detailed design and documentation of the upgrade activities per system component, functionality and data.

Upgrade realisation
Realisation Execute blueprint activities and upgrade the Test and Quality Assurance environments.

Production cut-over and support

Cut-over and support Cut-over of the production environment to the new upgraded ERP 6.0 solution and the support thereof.

Final preparation for cut-over

Final preparation Review and resolve all open issues from the realisation phase and prepare to apply upgrade to the production environment.

Contact details
Frank van Niekerk
Deloitte SAP service line leader Tel: Email: +27 (0) 11 806 5400 fvanniekerk@deloitte.co.za

Richard McWilliams
Director: Technology SAP Tel: Email: +27 (0) 11 806 5400 rmcwilliams@deloitte.co.za

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