Agenda SAP on the fast track CFO

www.pwc.com/ca/finance | Issue 7
CFOAgenda
SAP on the
fast track
Implementing SAP enterprise software
under a time crunch
CFOAgenda
SAP and the 80/20 rule
Enterprise software implementations, such
as SAP, have a reputation for being large and
complex under the best of circumstances. What
happens when the challenges of a large-scale SAP
deployment are exacerbated by time constraints,
like a deal closure? While tight timelines present
significant challenges, having a plan, staying
focused and engaging the right people can make
a fast-track implementation possible.
Today’s progressive CFO is often at the centre of an
organization and as a result, the finance function
has become a key partner to the business. The
CFO’s charter has expanded to include advising the
company on strategic planning, operating efficiency,
risk management, and ultimately, value creation.
All of this puts the CFO or VP Finance in a likely
position to sponsor large projects like an SAP
implementation. SAP enables businesses to better
manage their core processes and data, and because
CFOs understand the business strategy, they’re well
suited to make decisions and to drive such projects
forward.
The implementation of SAP software is typically a
significant operation that requires sizable change
within an organization. The whole process can
take years and often involves almost every business
function to complete the project successfully.
Sometimes, however, timing is constrained due to
business-critical deadlines or dependencies such as a
deal closure. In these cases it’s important to set clear
parameters up front in order to facilitate a fast-track
SAP project.
2 | CFO Agenda
Traditional SAP implementations can be highly
complex. Organizations can take years to implement
SAP because it takes time to configure and integrate
the software to other key systems. When timelines
are tight, an organization should focus on configuring
the elements that drive competitive advantage.
Staying focused on what really matters reduces the
time and cost of implementation.
CFOs are uniquely positioned to know what
these areas are—the 20 percent of business
processes considered absolutely critical to market
differentiation. That’s where it pays to spend time
and effort focusing on the configuration of SAP. For
the other 80 percent, standard industry templates
and processes, with minimum modifications, will
most likely be sufficient.
While the need to deploy rapidly may leave the bulk
of an organization’s functionality following standard
processes, there’s always an opportunity to expand
and enhance SAP functionality through additional
projects that fall beyond the initial deployment
project scope.
Tactics on a timeline
The CFO or executive leadership team sets
the rationale and strategy behind an SAP
implementation. Execution is tracked to timelines
and budget but to be successful, it requires buy-in
from across the organization. Deal-constrained
engagements have obvious opportunity costs and
are a prime example of rapid SAP implementations.
While all SAP implementations require the right
people who are empowered to make decisions, the
need becomes especially important on a shortened
timeline when decisions need to be made quickly.
In addition, the right mix of skills needs to be
coordinated efficiently with a team that will help
CFOs drive success under a time crunch. Industry
expertise is essential as well as an understanding of
business operations and IT.
The right advisor can help with all the challenging
aspects of an SAP implementation every step of the
way. A partner acting as a business integrator, as
opposed to purely a systems implementer, can assist a
CFO with a rapid SAP deployment thereby driving to
successful delivery of their strategic objectives.
Dealing with deal constraints
As a key stakeholder in deal negotiations, the
CFO is responsible for not only ensuring major
investments in technology, but also that wider
business initiatives deliver the value sought
from a deal.
Implementing SAP under a deadline driven by
a transaction brings a greater focus on project
execution. Stakeholders are forced to speed
up their decision-making process due to key
constraints in a transaction such as IT service
contracts, software migrations and resource
allocations. Under the pressure of a looming
deal-closure deadline, proper due diligence and
implementation can be extremely challenging.
Four pillars of successful and speedy
SAP deployments
In cases where SAP deployments need to happen quickly,
CFOs should focus on the following areas:
• Set expectations upfront – time constraints make it crucial
for the project focus and scope to be established, so everyone
agrees about what’s being delivered. Clearly articulating and
agreeing with business stakeholders as to what’s in and out of
scope and what the key project success criteria are is absolutely
critical. Building transparency into the project at the outset
ensures stakeholders’ expectations are met throughout.
• Stay focused on critical elements – use industry templates
to focus efforts on what’s most important, or what sets the
business apart. Document all opportunities but concentrate
efforts on those that can be delivered within the timeline.
This allows the project to stay on time and on budget and
helps prioritize future phases of the implementation.
• Knowledge – have the right mix of skills and business process
expertise on a project team that understands your business,
industry and priorities. Develop solutions that meet current
needs, but can be extended into the rest of the organization in
future. Bringing the right industry knowledge means processes
are efficiently designed, leading practices are implemented
and project delivery timelines are met with positive results.
• Relationship management – a trusted partnership with
shared objectives between the client and the consultant team
is critical to an SAP implementation project’s success. Having a
holistic understanding of the business and industry will result
in the best solution being put in place.
Issue 7 | 3
Who to contact
Samir Bishara
National Finance Effectiveness Leader
416 814 5730
[email protected]
Our CFO Agenda articles provide our
perspectives on the issues that keep Canada’s
as their roles within the enterprise continue to
evolve with changing market dynamics.
Alison Glober
Partner, Delivering Deal Value
416 687 8527
[email protected]
Duncan Nicholas
Partner, Enterprise Applications Leader
403 509 6611
[email protected]
Patrick Lamb
Partner, Consulting
416 815 5027
[email protected]
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