NASA's SAP Implementation - NASACT

Where IFMP Competency No ERP Has Center Gone Overview Before:NASA’s SAP ImplementationAugust 23, 2004Donna L. SmithSAP Version Update Project ManagerManager, Business Process and Application SupportIntegrated Enterprise Management Program (IEMP) Competency CenterAgenda♦NASA Background & Future Direction♦The Need for Business Transformation♦IEMP: The Prime Enabler for OneNASA♦Initial SAP Implementation: Core Financial♦SAP Upgrade♦Competency Center6976.2Some Facts about NASA♦ Established in 1958♦ Primary mission areas are Space Operations, Science, AeronauticsResearch, and Exploration Systems• MSFC a key player in all areas except Aeronautics♦ Current major emphasis areas are:• Completion of the International Space Station• Completing and executing the plan to return to the moon and eventually tosend humans to Mars♦ Workforce: 19,000 Civil Servants and ~40,000 contractors6976.31

Integrated Enterprise Management Program (IEMP)established in April 2000...IEMP will re-engineer engineer NASA’s s business processes in the context of industry “bestpractices” and implement enabling technology to provide necessary managementntinformation to support the Agency’s s Mission.♦ Initiating and Sustaining Effective Business ProcessImprovements, not Implementing Software Packages, was theOverriding Objective♦ The Ultimate Beneficiaries are the Agency Program and ProjectManagers• Better decision data• Consistent information across centers• Improved functional efficiency and effectiveness♦ Enable One NASA with 10 Interdependent Centers♦ Restore credibility with external stakeholders6976.7Typical IEMP Project Structure (2000 – 2005)(SAP/Core Financial module project)IEMP Program Executive OfficerNASA HQCore FinancialProject SteeringCommitteeIEMP Program DirectorNASA HQAgency ProcessTeamCore Financial ProjectManagerMSFCImplementation ContractorIntegration ProjectManagerMSFCIntegration Contractor6976.8ERP Implementation Team CompositionSupport AreasNASA Subject Matter Experts (SME’s) andTechnical Experts from Across the AgencyImplementation Services - AccentureIntegration and Technical Services – ComputerSciences Corporation (CSC)Software and Services - SAPProject Management Support – Booz-Allen &HamiltonApproximateStrengthRanged from 50 to150601001186976.93

Core Financial Project ScopeAccountsAccounts ReceivableSAP Receivable MODULESSales SAP & MODULESPurchasingDistribution (SD)Sales Financial & Distribution Accounting (SD) SAP MODULE(FI)Financial Accounting (FI) Materials Management(MM)AccountsAccounts PayableSAP Payable MODULESStandardSAP MODULESCostMaterialsGeneralManagementCostMaterials ManagementLedgerManagementManagementSAP MODULE(MM)SAP MODULESAP Controlling MODULEFinancial (MM)Financial Accounting (FI)ControllingFinancial(CO)Accounting(CO)Accounting (FI)(FI)BudgetBudget ExecutionSAP Execution MODULESFunds SAP Management MODULES (FM)Funds Project Management Systems (FM) (PS)Project Systems (PS)ReportingSAP SAP Business Warehouse (BW) (BW)6976.10Core Financial Implementation:Pilot Center and Agency Rollout2000 20012002 2003'03FY '00 FY '01 FY '02FY FY '04Q 1Q 2 Q 3 Q 4Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 1 Q 2 Q 3 Q 4Contracts in placeAgency Design PhasePeriod ofUnderstandingAgency RolloutPlanningBegin Project ExecutionAgency Process Design DefinedAgency CommitmentFor PilotPeak WorkloadWindowPilot Center (MSFC)ImplementationPilot Center DesignCompleteTRR*Pilot Center Cutover10/2002End StabilizationWave 1: GRCUP**ImplementationReadinessWave 1 CutoverReview10/2002Wave 2: HQ, ARC, JSC, KSC UP** ImplementationEnd StabilizationReadiness Wave 2 CutoverReview2/2003Wave 3: DFRC, GSFC, LaRC, SSC UP** ImplementationEnd Stabilization*TRR = Test Readiness Review**UP = Understanding PhaseReadinessReviewWave 3 CutoverEnd Stabilization6/2003Agency CommitmentFor Rollout3/20046976.11IEMP Challenges♦ External pressure/scrutiny• NASA already a target of Congress, GAO, OMB, IG, etc.• Corporate financial scandal quickly raised the audit standard (see Sarbanes-Oxley)♦ eGov Mandate♦ Immaturity of ERP in the US Federal Sector♦ Learning to navigate the SAP Organization for Support♦ NASA ERP Inexperience• Contractor• NASA IT and business staff♦ Agency undergoing significant change♦ Unrealistic Expectations♦ Installing effective governance structure6976.124

What We Did Well♦♦♦♦♦♦♦♦♦♦Established clear governance structure with strong executivesponsorshipEstablished single instance strategyIntegrated right mix of NASA subject matter expertise (businessand IT) with consultantsFocused on rigorous project managementMinimized customizationEstablished central integration team and enterprise applicationintegration strategyPlanned and implemented information delivery strategy alongwith transactional system deploymentPlanned for long term sustaining support early in the projectBenchmarked early and oftenLeveraged independent IT research firm (Gartner) to validatecritical technology decisions6976.13What We Didn’t Do Well♦♦♦♦♦♦♦Allowed other business system initiatives to “fly under the radar”Implemented single instance, but maintained 10 businessoperationsTraining: inadequate, inconsistently delivered & didn’t certifyusersGovernance structure lacked representation from 2 key groups• Program/Project managers• ProcurementOverestimated demand for analytical reporting capabilitiesDidn’t catch data integrity issues (from legacy apps) duringconversionFailed to establish strong executive level relationship with primarysoftware vendor (SAP)A recent Gartner Research note on “Why Projects Fail” found the following:• A problem with organizational change management was cited in 45% of cases• In 31% of cases, respondents stated that the IT system was delivered and aused, but that thebenefits were not obtained6976.14Projects (Modules)♦ OPERATIONAL‣ Resume Management‣ Position Description Mgmt‣ Travel Manager‣ Core Financial / Data Warehouse*‣ ERASMUS‣ e-Payroll‣ i-View (IEMP Portal)*‣ Recruitment OneStop‣ Agency Labor Distribution System*‣ Project Management InformationImprovement (PMII)*‣ SAP Version Update *‣ Contract Management Module♦ UNDERWAY‣ e-Travel‣ Asset Management‣ Human Capital InformationEnvironment (Reporting)‣ Aircraft Management* SAP-enabled capability* SAP enabled capability6976.155

SAP Upgrade4.6C mySAP ERP ECC 6.0(upgraded to BW 3.5 March ’06)6976.16Summary Version Comparison= does not support functionality = 1 st generation code = 2nd generation w/correctionsSummary CriteriaSAP R/3 4.7,EA-PS 2.0mySAPERP 2004mySAPERP 20051. Support for federal reporting requirements (e.g. FACTS,SF-133, SF-224)2. Ability to interface with Central Contractor Register3. Ability to control timing of FM update for commitmentsand obligations4. Ability to “park” commitments and obligations andperform mass posting at later date5. Enhancements to split processor – removal of S200,multiple funding sources6. Budgetary Control System – new distribution functions,lower-level AVC checking, overall budget concept7. Budgetary Ledger Enhancements – S200 no longerneeded; BL postings enforced (FI/FM sync); simplerconfiguration8. Automated support for prior year upward / downwardadjustments9. Year end processing – no budget and document carryforward required10. Prompt Pay Act Enhancements – invoice returns, lostdiscount tracking, payment due date revisions6976.17DecisionSelection of mySAP ERP 2005 as the target version♦Most mature & robust functionality♦Foundation of future SAP Development♦Enhanced support for the update with SAP’s Ramp-UpProgram6976.186

5/17 - CMMService PackNOTE: Dates of CMM Service Packs and SAP Patches isapproximate. These dates can only be confirmed as thedate approaches.Data BWIntegration TestMigr. Extract6/21 6/266/13 – SIT 1 Delta TRR8/2 – Pass3 TRR8/79/7-9/8 –SIT 3 Delta TRRY.E. Year End Entries & Tech DataNewIntegration TestClose Financial Statement Update Migr.Close8/14 8/28 9/4 9/11 9/29Technical Updateand Data MigrationTest FY07 year end closeusing new system /proceduresAuditor Review &Audit-RequestedAdjustments10/20TechYear End CloseUpdate5/15 5/29 6/5CMM Internal5/10 – Pass 1 TRR Extract Validation& LoadCMM Internal CenterExtract ValidatioationValid-& Load6/12 6/19 6/26 6/307/19 – SIT 2 Delta TRR6/19 6/26 6/307/14InternalCMM CMMValidationExtract Load6/13 – Pass 2 TRRYear End Entries & Tech DataYear End CloseIntegration TestFinancial Statement Update Migr.6/146/26 7/10 7/17 7/24 9/16/6 - CMM S.P. 6/30 - CMM S.P.7/10-mySAP ERP Patch 57/10-Netweaver 2004s Patch 7 Go-Live SAP Patch Levels8/9 8/14 8/21 9/1Internal CenterExtractValidationValidation& LoadYear End Entries &Y.E.Tech DataFinancial StatementCloseUpdate Migr.Generation(using existing funds10/19 10/28 11/10 & documents)InternalExtractValidation& Load(using new funding)10/16 10/19 10/27SAP Version Update ProjectTimeline High Level MilestonesFY05SepOctOct '06Oct '07Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecFormulationBlueprintRealizationInitial Scope DocumentUpdated Scope DocumentFunctional & TechnicalEvaluationsEvaluation/DesignPrototype/Working SessionsCRPReview / FinalizeDesignPreliminary Design ReviewApplicationDevelopmentFinal PrepRelease 7.1 Go-LiveStabilizationInformation Delivery DevelopmentCritical Design ReviewTest (SIT / Performance /Release 7.1 Regression)Data Update Planning& PreparationTest Readiness ReviewOperational ReadinessReviewCenter Readiness ReviewsMock Data Update TestsCommunications & Change ManagementEnd User Procedures Development/TestTraining DevelopmentTraining Delivery6976.19Release 7.1 SIT Testing TimelineMonth Apr 30 May 31 Jun 30 Jul 31Sep 30EndingOct 31Nov 30Integration TestPass 16/15 7/14CMM Mock 2Integration TestPass 2Will finalize SIT 2 BWextract once SIT 1 BWextract has completedIntegration TestPass 3Production Close /SAP Version Update10/2 – 10/6CORRs1 st Draft of FinancialStatements to Auditors10/4 10/711/15 Final FinancialStatements to AuditorsGo Live(11/13)10/11 ORRGo Live (11/20)6976.20Current SAP Systems Environment♦ Financials• R/3 4.6c Going to MyERP 2005 (Patch 7) in October 2006 with Netweaver 2004s(Patch 4)• Solution Manager 3.2• 12,000 named users R/3; 4,000 measured actual in R/3; 400 concurrent• R/3 is 1TB actual size♦ Business Warehouse• BW 3.5• 12,800 named users in BW; 2,000 measured actual in BW; 170 concurrent• BW is 1.4TB actual size♦ Desktop Summary• Windows XP− GUI = v6.40 patch 18− HTML = IE 6+ (IE 7 testing is currently underway) or FF 1.0 Java 1.4.2+• Macintosh OSX 10.3+− GUI = Java 6.4 rev 4 or 6 with Java Run Time 1.4.2− HTML = FF 1.0 or FF 1.5 (conditional with potential performance issues)6976.217

4 way25K4 way25K8 way10K8 way10K8 way25K4 way15K4 way15K4 way25K4 way25K4 way25K8 way10K4 way25K4 way25K4 way20K4 way25K16 way15Kmsfc2716 way15Kapp01 app024 way15K4 way25K4 way15K4 way25KPost 7.1 Release Landscape (CMM, R/3, BW)SANDBOXDEVELOPMENTTEST STAGING PRODUCTION TRAINING YEAR END/6.1NEW Production LandscapeUS2CenterSandboxPrismCFG./SBXBQ2X01TEC SBX600AS1OCFO supp600LB1/LB2Perf. Lab600DEVBWDPrism DEV2TSTBT1Prism TSTQA1BW2Prism QA1PrismProd SuppP01600 ProdBWPPrism PRODas03 as04 as05P01 P01 P01 P01APP APP APP APPBWP BWPAPP APPSolution MgrSMPSM2TRNPrismTRN1BW3PrismTRN2BW SVU Training(BW3) will retireNov 30, 2006QA2PrismY/E SuppQA2IA1IAM SBX4.6C ReferenceSystemsAR1Archive SBXBI1D01100 Config120 ABAP150 SBX151 CMMBW14.6c/BW Referencesystems to retireJune 1, 20076976.22Realized ITAdvancementsIEMP Competency CenterAchieve efficiencies and operate effectively6976.23What is a Competency Center?♦ Competency Centers are a “best practice” organizational model forproviding sustaining support for Enterprise Resource Planning (ERP)systems like SAP♦ A Competency Center allows resources to be pooled and shared across allbusiness functions. This is critical for ERP systems which are highlyintegrated♦ A fundamental component of the Competency Center is the tightintegration of IT professionals and business professionals into a a singleservice-oriented unit♦ The Competency Center is built with a combination of expertise in anorganization’s business processes and expertise in the software thatimplements those processes♦ These skills are developed through the implementation projects and thenapplied to the long term sustaining support and continuous evolution ofthe new processes and system6976.248

IEMP Competency ModelUserInterfaceSupportBusinessProcessSupportAgencyCenterCompetencyCenterOLAApplicationFunctionalSupportApplicationDevelopmentSupportApplicationOperationsSupportOLAInfrastructureSupportHQ & NASA CentersIFMP Competency Center Infrastructure“An SAP Competency Center is a permanent center of expertise Service that supports Providersthe efficient implementation, enhancement, and maintenance of commonbusiness processes built around SAP” - Gartner6976.25IEMP Competency Center OrganizationModule ProjectsIEMP Competency Center(Office of the MSFC CIO)Business Process &Application SupportTechnicalArchitecture andOperationsApplicationDevelopment &Software AssuranceFinancialHuman CapitalandWorkforceApplicationTechnicalSupportProcurementInternal ControlsAndAuditHuman CapitalInformation EnvironmentModule Projects In-FlightAsset ManagementE-Travel ProjectProjectAircraft Management6976.26Backup6976.279

IEMP Server Virtualization Activities♦ IEMP applications are currently supported by 80+ Sun/Solaris instances and100+ Windows server instances♦ IEMP has implemented server “virtualization” techniques on both platforms• Reduces cost• Increases flexibility• Maximizes utilization of computing resources♦ Windows• IEMP has adopted “VMware” as a platform of choice for non-production Windowsserver installations• VMware Server is virtual infrastructure software for partitioning, consolidating andmanaging Windows environments• IEMP has 6 (IBM 366) Quad processors that hosting 60 Windows instances♦ VMWare• FY 07 strategic plan identifies 48 new VM instances− Windows− Linux♦ Sun• IEMP continues to extensively leverage the hardware “domain” capabilities of theSUN Enterprise class server platform• IEMP has implemented a pilot set of Solaris 10 instances with containers and willdevelop a more comprehensive rollout plan6976.28Realized ITAdvancementsInformation DeliveryProvide timely, consistent, and reliable information formanagement decisions6976.29Guiding Principles for IFMPInformation Delivery♦ Maximize value of information created within IFMP applications♦ Implement Information Delivery incrementally in sequence withIFM module delivery♦ Promote information quality and efficiency by utilizing a single,centralized BW instance♦ Deliver information via web technology♦ Drive information quality through the standardization of key dataattributes and reporting formats for Agency decision making6976.3010

Classification of Financial Reporting users at NASA• NASA financial informationrequirements are driven by five generalcategories of users:‣ Extended stakeholders such asCongress, OMB, the public, andbusiness partners‣ Senior Executives who requirefinancial information in order tomanage Agency and Center portfoliosof Programs and institutional services‣ Program/Project Managers whorequire financial information to monitorand act on indicators ofprogram/project financial performance‣ Analysts who work with detailedfinancial information to supplymanagers with detailed insight forbetter decision‣ Transactional Workers whoseprimary role is execution of financialbusiness processes on a daily basisExtendedSenior ExecutivesProgram/Project ManagersAnalystsTransactional Workers6976.31Why BW for NASA and Why in Parallel with R/3?♦ Wanted to define and implement a sound information deliverycapability from the outset of our ERP deployment• Without BW, would have created a large volume of ABAP reports• Would be difficult to break the cycle and move to BW after the fact• BW was SAP’s strategic direction for reporting♦ NASA didn’t have an existing Enterprise Data Warehouse♦ BW is tightly integrated with SAP R/3 transactional system• Predefined / extendible business content based on R/3• Data extractors, including delta change data extractors• Drill down support from BW query to R/3 transactional data.♦ All users that needed access to report information did not need accessto R/3 (non- transactional users)♦ The implementation of R/3 and future SAP modules created thepossibility of developing a NASA-wide data warehouse that couldsatisfy the majority of Business Intelligence requirements6976.32Application Development: ReportsReporting Decision TreeIdentify application area(s)Search in R/3 for the reportUse R/3 standard reportingYesDoes it exist?NoRequires currentday’s data?YesReview Business WarehouseDelivered business contentOperational/ManagementNoType of report?Transactional/ExternallyMandatedDevelop the report in R/3Does it exist?YesUse BusinessWarehouse contentAdvancedNoInfoset queryCreate custom transformationor databaseExecute theType of data?ABAP extractorlogic neededviewgeneric extractoraccessibleDefine custom BusinessWarehouse objectsA number of factors determine the best approach to resolve a Center reportingrequirement6976.3311

Current Status♦ Overall the BW Implementation has been very successful♦ Currently averaging 400-500 unique BW users per day, 1000 per weekand 1500 per month♦ We have enhanced our BW solution since go-live:• Integrated Non-SAP data sources• Added new and enhanced queries♦ Users are still adjusting to the new processes and learning to trustthe data♦ Recently selected 3 rd party tool (Actuate) to augment our BWimplementation for stronger formatted reporting capability72% User Developed KeyFigures70% 72%Schedule Jobs68%66%Formatted Reporting67%64%66% 65%64%Join SAP BW data &62%Non SAP BW60%AdHoc Reporting58%Requested Reporting Enhancements6976.34Integration Project (IT arm of IEMP)Roles and Responsibilities♦ Define and maintain the IEMP business and applications architecture• Work with Agency Process Teams to define business processes and points of integration• Facilitate resolution of issues across business processes• Provide meta-repository for NASA processes and data• Describe the “as-is” and “go-to” applications that automate the business processes definedwithin the business architecture♦ Define and maintain the technical infrastructure on which the applicationsarchitecture executes• Work with each module project to define technical requirements• Acquire hardware and infrastructure software for each project• Deploy and operate system environments during testing and implementation• Work with Agency CIO to ensure the IFM technical architecture is compliant with Agency ITstandards♦ Define and implement an integration backbone at all layers of the architecture♦ Define and implement an information delivery strategy♦ Plan and implement transition of each module to operations (CompetencyCenter)6976.3512