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How to MinimizeDowntime and OptimizeYour SAP ERP UpgradeProjectRajesh GuptaDeloitte Copyright 2014Wellesley Information Services, Inc.All rights reserved.

In This Session Learn how to reduce the business downtime using upgradeoptimization tools and SAP Solution ManagerGet details of an SAP ERP upgrade system architecture, upgrade,and Unicode migrationGain effective ways to minimize downtime, such as choosing theright strategy and using as many parallel upgrade processes aspossibleGather tips for how to tune different components to make yourupgrade as efficient as possibleHear critical issues the project manager, architect, and Basisadministrator should be aware of before upgrading, migrating,and supporting the ERP instance1

What We’ll Cover SAP ERP roadmap and overviewSAP enhancement packagesSAP upgrade roadmap, project approach, and impactInfluencing factor to upgrade projectKey for successApproach to reduce business downtimeWays to optimize the upgradeLessons learnedWrap-up2

Introduction SAP ERP upgrades have undergone a paradigm shift from wherethey started. There have been a lot of changes in the way SAPERP upgrades are performed. Upgrading is a technical process performed on specificapplication features General arguments for an upgrade are driven mainly bybusiness and technology enhancementsMinimizing the business downtime is an important part ofplanning and executing SAP ERP upgrade projects3

SAP ERP and R/3 — Roadmap and OverviewProductBasis ReleaseSAP R/3 4.0BSAP Basis 4.0BSAP R/3 4.5BSAP Basis 4.5BSAP R/3 4.6BSAP Basis ExtendedMaintenanceEndsUpgrade to SAPERP 6 EHP7In cust.-spec.maintenance12-31-200312-31-2006 *YesIn cust.-spec.maintenance12-31-200312-31-2006 *YesIn cust.-spec.maintenance12-31-200312-31-2006 *YesSAP R/3 4.6CSAP Basis4.6D & 610In cust.-spec.maintenance12-31-200303-31-2013 *YesSAP R/3 Enterprise(R/3 4.7)SAP Basis620 & 630In cust.-spec.maintenance03-31-200903-31-2013 *YesSAP Basis 640In cust.-spec.maintenance03-31-201012-31-2013*YesSAP ERP2004 (ECC5)Source: SAP Product Availability Matrix http://service.sap.com/pam ** End of mainstream maintenanceDirect upgrade to ERP 6.0 EHP7 is possible as of SAP R/3 4.0B* Requires login credentials to the SAP Service Marketplace4

SAP ERP and R/3 — Release and MaintenanceStrategySource: SAP Master Guide5

SAP ERP 6.0 Enhancement Package Seven (ABAP) Enhancement Package 7 for SAP ERP 6.0 is based on SAPNetWeaver 7.4EHP7 for SAP ERP 6.0 consists of the following softwarecomponents: SAP Basis Release 740 SAP GatewayFoundation SAP WEB UIF 747 SAP AP 7.00(includes IPC) SAP BSFOUNDATION 747 MDG FOUNDATION747 MDG APPL 6176

What We’ll Cover SAP ERP roadmap and overviewSAP enhancement packagesSAP upgrade roadmap, project approach, and impactInfluencing factor to upgrade projectKey for successApproach to reduce business downtimeWays to optimize the upgradeLessons learnedWrap-up7

Enhancement Packs SAP enhancement packages include functional enhancements,industry-specific enhancements, and UI simplifications, alongwith Enterprise ServicesWith the introduction of Enhancement Packs and the evolution ofhow successive Enhancement Packs are applied, SAP hasestablished a successful method of applying new functionalityand fixesAs it relates to your upgrade, Enhancement Packs need to bereviewed to determine what components of an Enhancement Packshould be installed and activated based on businessrequirements8

Enhancement Package 7 for SAP ERP 6.0 The business functions you plan to use dictate what softwarecomponents need to be installed on the existing system instancesUpgrading to EHP7 updates the application-related softwarecomponents and the Basis (SAP NetWeaver) componentsSource: SAP SAP UI and SAP GWIND are CPU-intensive processes that addload on the hardware. CPU sizing activity needs to consider this.9

How to Handle Enhancement Packs with Upgrade Determine if you should bind your enhancement packs with yourupgrade or upgrade then apply the EHPIdentify any impacts with add-ons to determine your upgradeapproach Does an add-on have to be upgraded before an EHP? Does the EHP impact another component in the landscape?Install and activate only the Enhancement Pack components youneed to reduce your outage windowIf this is purely a technical upgrade, install the components you thinkyou will need without necessarily activating the component By installing the Enhancement Pack during the upgrade, it willreduce the amount of downtime required in the futureIncorporate regression testing for Enhancement Packs to coincidewith upgrade testing, paying specific attention to the impacted areas10

What We’ll Cover SAP ERP roadmap and overviewSAP enhancement packagesSAP upgrade roadmap, project approach, and impactInfluencing factor to upgrade projectKey for successApproach to reduce business downtimeWays to optimize the upgradeLessons learnedWrap-up11

Why Customers Undertake SAP Upgrade Projects Upgrading is a technical process performed on specificapplication featuresHere is the Value Proposition for an SAP Upgrade: Close functional gaps in existing environment and provideopportunities to have a measurable business impact in theareas of operational excellence and business strategy Benefit from the latest technology: Enablement of new andoptimized business processes and scenarios based on newERP core functionalities Reduce interfaces and costs: The new release protects your ITinvestment and mitigates risk, ensuring sustainability andreducing TCO Manage ongoing maintenance issues and costs12

Overview of Upgrade RoadmapSource: SAP13

Upgrade Tools Upgrade Dependency Analyzer Upgrade Dependency Analyzer is a high-level planning tool forupgrades; it does not cover all dependencies that are relevant forplanning an upgrade: https://service.sap.com/uda *SAP Upgrade Roadmap with SAP Solution Manager SAP Upgrade Roadmap with SAP Solution Manager provides tailoredaccess to specific upgrade information and project tracking capabilitiesSolution Browser Helps you discover new functionality across different SAP applicationreleases and respective SAP enhancement packages:www.sapsolutionbrowser.com/Solution Manager Pulse Check It is a free self-service which will help to identify the capabilities toinnovate business processes and optimally manage the entire solutionlandscape: https://service.sap.com/solmanpulsecheck ** Requires login credentials to the SAP Service Marketplace14

SAP Upgrade — Sample Approach Example: Landscape approach is a preferred method forupgradingCurrent ProductionLandscapeDEVEHP3QAEHP3PRDEHP3In PlaceUpgradeSystem CopyECC 6.0 EHP7Upgrade LandscapeSandboxECC 6.0 EHP7DevECC 6.0 EHP7QA2ECC 6.0 EHP7PRDECC 6.0 EHP71 Create Sandbox ECC with a copy of production upgrading to EHP72 Create Development ECC with a copy of production upgrading to EHP73 Create QA with a copy from Production upgrading to EHP74 In-place production upgrade to EHP7Current productive DEV and QA environments can be redeployed after Go-Live15

High Level — Upgrade PhaseSource: SAP16

Enhancement Package 7 Requirement — Tool The enhancement package installation requires the following tool: SAP Solution Manager (mandatory) You require at least one of the following versions of SAPSolution Manager: Solution Manager 7.0 EHP1, SPS23 or higher SAP Solution Manager 7.1, SPS05 or higherEnsure that the system landscape in SAP Solution Manager(SMSY) is correctly defined and up to dateSAP highly recommends installing Landscape Verification 1.0 SP1for SAP Solution Manager which helps you to maintain, verify, andcorrect system landscape data in SMSY17

Upgrade Project Approach Technical upgrade Focus on pure technologyupgrade Retain functionality used Review usage of customdevelopmentsFunctional upgrade New functionality to beimplemented as part of theupgrade, modification clearing Focus on reduction of systemcomplexityStrategic Enhancements Focus on functionality extensionand improvement Enablement of new and optimizedbusiness processes andscenariosSource: SAP18

Why Various Strategies Might Be Appropriate123Technical Upgrade with DeliveredFunctional Changes4Technical, Functional,and New ComponentsTechnical and FunctionalDriversDriversDrivers SAP support is expiring “soon” Replace enhancements and workarounds with newly availablefunctionality Implement “grand vision” Leverage new SAP functionality tomeet additional businessrequirements Combine initiatives into a single fundingrequest Limited resources required for upgrade Low risk of failure Limited funding Provide the minimum platform for futureprojects Industry-driven new businessrequirements Gain efficiencies by consolidating theupgrade and functionalityimprovements into a single projectUpgrade Estimates (Months)Upgrade Estimates (Months)Upgrade Estimates (Months)HIGH ( 8 months)HIGH ( 8 months)HIGH ( 8 months)MEDIUM ( 4 months)MEDIUM ( 4 months)MEDIUM ( 4 months)LOW ( 2.5 mths)LOW ( 2.5 mths)LOW ( 2.5 mths)LEVEL OF COMPLEXITYLEVEL OF COMPLEXITYLEVEL OF COMPLEXITY19

High Level — Impact of Upgrade Hardware Change in hardware (upgrade/patches/vendor)Operating System Minimum version and patch levelDatabase Change in database (upgrade/patches/vendor)Front end SAPGUI/IE compatibilityEnd user New screensBackup Validate the backup/restore/DR strategyNew transaction For example: ST03N, DBA20

Hardware Requirement for Unicode Conversionor Combined Upgrade and Unicode ConversionCPU: Average increase 10 30%Depends on transaction mix, MDMP, orsingle code pageModern processors showed 10%increase, older processors up to 30%RAM: Average increase 40 50%Reason: Application servers are based onUTF-16HardwareRequirementDatabase size: Average increaseUTF-8: 10% 10% is the observed maximum for largersystems (DB size 200), smaller systemsmight grow moreUTF-16: 20 60%Network load: 0%Almost no change due to efficientcompression21

Impact of Upgrade — Technology Hardware requirements of the new release Server, network, front end, storageSizing and system configuration for the new release Going Live – Functional upgrade checkPlanning of technical upgrade process Operating system, database, and SAP ERPPlanning a back-up strategy During the technical upgrade After release upgradeExecution of technical upgrade Development, quality assurance, and productive systems Training systemsActivities after upgrade Performance analysis, support22

Impact of Upgrade — Technology (cont.) Determine software requirements SAP industry solutions SAP country-specific versions Third-party products or add-ons Interfaces between SAP ERP and non-SAP software Operating system and database Communication protocols ESOA applications New GL UNICODE UNICODE if more than one code page is required23

What We’ll Cover SAP ERP roadmap and overviewSAP enhancement packagesSAP upgrade roadmap, project approach, and impactInfluencing factor to upgrade projectKey for successApproach to reduce business downtimeWays to optimize the upgradeLessons learnedWrap-up24

Factors Affecting Upgrade StrategyImport ofSubstitutionSet inProductionOperationSize tedDowntimeWindowArchiveMode ofDatabase25

Influencing Factors for Project Duration Strategy Technical upgrade vs. upgrade with new functionalityModifications Number of modifications which could be returned to SAP standard Number and complexity of modifications needed in the new releaseDocumentation Level and quality of documentation of business processes, customprograms, and modifications along with documentation for testingLast, but not least Hardware requirements Security adjustments Range of testing and training Customer or partner skills in upgrade projects26

Complexity and Timing of an Upgrade ProjectFactors influencing complexity and risk: Technical complexity ERP modifications (custom code) Interfaces and third-party applications Upgrade strategy Downtime cutover requirements Resources (constraints, skill levels) Stability of current environment SAP ERP functionality changes Level of knowledge in user community Organization changes/other initiatives Testing approach and resources Training requirements for end users Testing environment availabilityDrivesProject complexity Low Medium HighUpgrade Estimates (Months)HIGH (7-10)MEDIUM (4-6)LOW (3-4)LEVEL OF COMPLEXITY27

Factors Affecting Upgrade Runtime and DowntimeHard umbers ofModificationsUpgradeStrategy andReactionTimeUpgradeRuntime&DowntimeNumber ofDataStructureConversionsNumber ofInstalledLanguagesProductiveApplications/Add-Ons or ISNumber ofClients28

Planned and Unplanned DowntimeUnplanned DowntimeTechnology failureHW/OS failure – 20%Application failure – 40 %Human Error – 40%Planned DowntimeSystem and InfrastructuremaintenanceUpgrade, patches, andtransportBackup29

Third-Party Tool and Add-On — Evaluation andExecution In order to appropriately incorporate third-party and add-onimpacts, the following process should be followed: Identify and investigate all third-party tools and add-ons tocome up with a comprehensive list early Work with third-party tool vendors and SAP to ensure theirproducts work with ECC 6.0. An upgrade of the tool may berequired in addition to the SAP upgrade; test to confirm. Figure out the sequence of upgrade activities to ensure that anychanges made to the add-on product do no impact the upgradetimeline. This activity is critical when planning your outagewindow. Have the right resources focusing on the impacted areas toensure a smooth upgrade process30

Third-Party Tools and Add-Ons More and more third-party tools and add-ons impact the ability toupgrade to ECC