SAP ERP ROLL-OUTS

Roll-out implementations of SAP ERP systems involve a transfer of the SAP ERP template implemented in one of the Group companies to another company belonging to the same Group. Recently, SAP ERP roll-outs have enjoyed a growing popularity due to relatively lower implementation costs.

 

Cost savings in the roll-out type implementations of SAP systems are achieved mainly thanks to:

- using business process models applicable to the entire group of companies; in this way, time-consuming processes of designing the solutions individually for each company are avoided,
- making use of a tested SAP ERP implementation based on the existing production system operated in a given country or on a SAP template built according to the set of best practices collected in a number of countries where the Group companies are located,
- centralization of the technical infrastructure and support functions,
- transfer of know-how between Group companies using the same solution which additionally facilitates implementation of the project.
Corporate roll-outs, however, pose a number of potential threats which need to be analysed at the stage of planning the implementation:

 

Specificity of the legal system in the country where the roll-out is planned
The legal and accounting regulations which have impact on the business processes must be taken into account in the planned SAP ERP solution. Of particular importance are the tax laws and the regulations pertaining to the generated accounting documents and records, such as invoices, correction notes, etc.

Specificity of the business environment in the country where the roll-out is planned
When transferring a business model, attention should be paid to country-specific elements which need to be modified. The economic situation of a country or the generally accepted business principles may make the use of a SAP template difficult or even impossible.

Technical conditions
The establishment of a centralised IT function providing services to numerous countries usually results in a limited possibility for customising the SAP ERP system to match the specific needs of individual markets. Remote contacts with a competence centre based in the Head Office location may turn out to be insufficient.

Knowledge transfer
A short deadline and a very tight schedule characteristic of SAP roll-outs is usually a barrier on the way to free transfer of knowledge between the system users. An additional limitation is the lack of substantial support from the local market consultants who have complete and proven knowledge of the business and legal environment specific for a given country, gained and tested in the course of numerous successful SAP implementations.

All those problems can be avoided by employing a local consultancy firm which will be a source of information about the terms of business and applicable laws in force in a given country. When participating in SAP ERP roll-outs, HICRON always recommends performance of a Gap Analysis prior to the commencement of the design stage. Such an analysis allows for optimum scoping of the project and for identification of the gap areas where the template should be modified to meet the local requirements. The project management approach adopted by HICRON is a guarantee of producing a reliable implementation schedule and an action plan which will facilitate execution of the entire SAP ERP.