SAP Implementation process

Let's start with an example of a grocery mart. It's a greenfield implementation.

A grocery mart with 3 stores takes stocks from 10 vendors and sells them to retail customers.

This is a simple example of how SAP implementation is done.

The business owner talks to a SAP Consulting company.

Step 1: Project Preparation

SAP team talks to each department of the company to identify their pain points. This stage is called Project preparation.

Activities:

1. Assemble the Project Team:

   • Assign key roles:

     • SAP Project Manager.

     • Functional Consultants (FICO, MM, SD, HCM).

     • Technical Consultants (ABAP, Basis, BI).

     • Key Business Stakeholders.

     
     

2. Define Goals and Objectives:

   • Document business goals (e.g., automate inventory, improve financial tracking, unify sales data).

   • Set clear success criteria for the implementation.

     
     

3. Set Up the SAP Environment:

   • Install SAP systems (Development, Quality, Production).

   • Ensure infrastructure readiness: servers, databases, and access.

   
   

4. Develop a Project Plan:

   • Create a detailed timeline with milestones for each phase.

   
   

5. SAP Landscape Setup: Development (DEV), Quality Assurance (QAS), and Production (PRD) environments.

Step 2: Blueprinting

SAP team will prepare a Business Blueprint.

Activities:

1. Conduct Business Workshops:

   • Engage with Mart team to understand their current processes.

   • Identify gaps and challenges.

     
     

2. Document To-Be Processes:

   • Map business processes to SAP modules (e.g., inventory to SAP MM, sales to SAP SD).

   • Define workflows, approvals, and customizations needed.

     
     

3. Identify Master Data:

   • Create a list of master data requirements:

     • Finance: Chart of accounts, vendor, and customer data.

     • Inventory: Material master, purchase info records.

     • HR: Employee master data.

       
       

4. Finalize the Blueprint:

   • Document process flows, integration points, and reporting needs.

   
   

5. SAP Blueprint Document: Finalized business process document.

   
   

   

   Format of Business Blueprint

   
   
   
   

Step 3: Realization (Configuration and Customization)

Activities:

1. Configure Core SAP Modules:

   • SAP FICO:

     • Define chart of accounts, fiscal year variant, and payment terms.

     • Configure accounts payable and accounts receivable workflows.

       
       

   • SAP MM:

     • Set up material master, procurement types, and stock management.

     • Configure purchasing groups, vendors, and goods receipt processes.

       
       

   • SAP SD:

     • Set up sales orders, delivery processes, and billing types.

     • Define pricing conditions, tax rules, and customer master data.

       
       

   • SAP HCM:

     • Configure payroll, attendance tracking, and leave management.

     • Enable employee self-service portals.

       
       

   • SAP BI:

     • Create dashboards for sales, inventory, and financial reporting.

       
       

2. Develop Custom Enhancements:

   • Work with ABAP developers to create custom reports, workflows, and forms (e.g., custom invoice templates).

     
     

3. Perform Integration:

   • Integrate SAP modules (e.g., MM and FICO for procurement costs; SD and FICO for revenue tracking).

   
   

Step 4: Data Migration

Activities:

1. Prepare Data Templates:

   • Use SAP tools like LSMW (Legacy System Migration Workbench) or Data Services to prepare templates.

     
     

2. Cleanse and Validate Data:

   • Ensure data from existing systems is accurate and free of duplicates.

     
     

3. Upload Master Data:

   • Migrate master data into SAP:

     • Vendors, customers, and materials for MM and SD.

     • Employee data for HCM.

     • Chart of accounts for FICO.

       
       

4. Test Data Accuracy:

   • Verify data consistency in SAP systems after migration.

   
   

Step 5: Testing

Activities:

1. Unit Testing:

   • Test individual modules to ensure configurations work as expected.

     • E.g., Test a purchase order workflow in SAP MM.

       
       

2. Integration Testing:

   • Test end-to-end processes across modules:

     • E.g., Create a sales order (SD), update stock (MM), and track revenue (FICO).

       
       

3. User Acceptance Testing (UAT):

   • Allow Mart employees to test processes using real-world scenarios.

   • Gather feedback for adjustments.

     
     

4. Fix Issues:

   • Address any errors or gaps discovered during testing.

   
   

Step 6: Training

Activities:

1. Prepare Training Materials:

   • Create user manuals and step-by-step guides for each module.

     
     

2. Conduct Training Sessions:

   • Train employees on their specific roles in SAP:

     • Finance team for FICO.

     • Store managers for MM and SD.

     • HR team for HCM.

       
       

3. Enable Role-Based Access:

   • Assign SAP user roles and permissions based on job responsibilities.

   
   

Step 7: Go-Live

Activities:

1. Final Data Load:

   • Migrate live transactional data (e.g., open POs, pending sales orders).

     
     

2. Go-Live:

   • Switch to the SAP system for daily operations.

     
     

3. Monitor Performance:

   • Ensure all modules are functioning correctly during the initial phase.

   
   

Step 8: Post-Go-Live Support

Activities:

1. Provide Ongoing Support:

   • Address issues raised by employees during the transition period.

   • Refine configurations if needed.

     
     

2. Monitor System Performance:

   • Ensure system uptime and resolve technical glitches.

     
     

3. Review Project Success:

   • Compare actual performance with project goals.

   
   

Phases of SAP Implementation

Project Timeline

Phase	Duration	Activities
Preparation	1 Month	Team setup, project planning, and SAP landscape installation.
Blueprinting	1 Month	Business process mapping and documentation.
Realization	3 Months	Configure modules, develop customizations, and perform integrations.
Data Migration	1 Month	Migrate master and transactional data to SAP.
Testing	1.5 Months	Perform unit, integration, and UAT testing.
Training	1 Month	Train employees and assign system roles.
Go-Live and Support	1 Month	Launch the SAP system and provide post-go-live support.