6 Steps to a Successful

Centre of Excellence

www.limelightsolutions.co.uk
© 2017 Limelight Solutions – All rights reserved


WHAT IS AN SAP COE?

It is important to understand the purpose of an SAP Centre of Excellence (COE). For many companies, the COE
provides business and application expertise to support the organisations global or domestic SAP implementation. This
is done by designing new processes, optimising existing processes, managing complex implementation projects,
providing user support and training, and keeping the complex SAP system landscape up and running as the business
require it (usually 24/7.) In addition, the COE typically helps optimise the use of all SAP products implemented in a
cost-effective manner, contributing to the overall Company’s success. It typically involves operational support,
application management and enhancements, infrastructure management and change management.

Key functions and benefits of the typical SAP COE

• A unique platform for creating global SAP solutions

• A standard vehicle for deployment of SAP best practices

• A central point of contact for all SAP related matters

• Development of strong competencies in all SAP areas

• Enhancing the value of the SAP Solution – More standardisation and better integration

• Improvements in User Productivity

• Reduced Cost of SAP Operations (TCO)

• Improved retention of key SAP personnel

• Improved Service Levels

Without an SAP COE, you will lack the necessary support ecosystem – including resources, funding funnel, and
governance body – and more importantly, the strategy and roadmap that are required to launch and sustain a
successful support organisation. If you are unable to sustain an ERP implementation, it is likely you will be re-
implementing an ERP in 5-10 years’ time.

www.limelightsolutions.co.uk
© 2017 Limelight Solutions – All rights reserved
Page 2 of 8


FIRST THINGS FIRST…

The first hurdle is to regain the best practices that were most likely employed pre-live. Once you go live, there is no
reason to abandon the core success factors that were pertinent to the implementation. For example:

• Aligning business owners with IT

• Identifying value-added and non-value-added processes

• Benchmarking results against initial ROI projections

• Simplifying SAP instances

• Developing infrastructure and enhancement standards and procedures

• Committing to ongoing training and knowledge transfer

• Institutionalising change management

Step 1: Realign Business & IT After an SAP Implementation

In many companies, business and IT go their separate ways once the implementation project is “complete.” This is a
mistake. To get enduring results, the Business must drive the ongoing improvements needed for the SAP platform. It is
the Business – supported by IT – that needs to identify the process changes, reporting for decision-making and end-
user needs on an ongoing basis.

To that end, you need to re-examine the current mix of your post-implementation support team. COE’s must include a
mix of Process Owners – the “super-users” within the business community, functional application experts and
technical experts for configuration and reporting. In addition, the team needs to include people focused on new
initiatives, whether for additional rollouts or new modules, which will be inevitable, as business needs change.

Overall, The COE needs to be designed to break down the walls between IT and the business community, and establish
a new way to provide sustainable support that remains business focused.

Step 2: Set up Governance

One of the most critical steps for COE set-up is establishing Governance for the support organisation. The goal of
governance is to provide strategic direction, as well as accountability, for all SAP initiatives. Governance also provides a
framework for the Business Units to work collaboratively, and in unison with IT, enabling process standardisation and
business alignment across the enterprise.

Step 3: Define Functions and Organise the COE

No generic formula exists for the functions and roles that should be encompassed within the COE. At a minimum, you
will need to map out the roles and responsibilities of The Executive Steering Team, PMO Group (Program
Management), Support Services Team and the SAP Power Users.

Some of the key roles and functions of the COE:

www.limelightsolutions.co.uk
© 2017 Limelight Solutions – All rights reserved
Page 3 of 8


• Business Support – Business Analysts are part of the teams that form the COE, working together with the
Applications teams to support the users

• Project & Implementations – For small and large changes to the SAP systems

• Internal Marketing – COE coordinates participation in benchmark studies and other forums, whose results are
used to drive the COE image internally

• Coordination of Development Requirements – All Development Requests are coordinated through the COE, as
well as all messages to SAP

• Technical Support – Provided in conjunction with SAP Basis and Global IT Operations.

• Training – To transfer SAP knowledge to the user base

• Contract Management – Usually provided in conjunction with IT Global Operations

• Support Desk – COE interfaces directly with users and super users and to provide SAP support based on
agreed upon service levels, which may vary by functional area and geography

• Information Management – COE is the central contact point for SAP related information, enhancements and
new developments

Step 4: Implement Post Go-Live Process Analysis & Optimisation as the

Foundation for Continuous Improvement
Reclaim ownership of your SAP business processes. Too often, the “to-be” vision turns out to be a one-time exercise
done early in the implementation process and then is cast aside post-live. This needs to be re-visited as streamlined
business processes are as important in the post-live COE as it was in implementation.

The COE should perform or coordinate a review of what is working and what is not. Typically, the 5 areas that
companies should address are:

• Broken or flawed business processes

• Deficient system design and configuration

• Inability or unwillingness to use system – Manual work-arounds present

• Insufficient training

• Data Management issues

Step 5: Mobilise for Post Go-Live Organisational Change

The business should have a regular stream of improvement requests to support operational changes. Inability to
deliver this will create frustration and a sense of stalling in the improvement process.

Your COE should provide guidance on how best to manage change within the context of your SAP platform. An
effective COE has the appropriate knowledge, skill and time to evaluate alternatives and implications, estimate the
level of effort required and provide the necessary testing, training and documentation. Changes must be made in a

www.limelightsolutions.co.uk
© 2017 Limelight Solutions – All rights reserved
Page 4 of 8


controlled way to ensure that the live environment is not put at risk – and implemented effectively to exploit the
business benefits of the improvements.

Step 6: Marketing the COE

One of the most forgotten aspects of setting up a COE is the marketing effort to publicise and promote the services
offered. Only after users are aware of processes and services available, can widespread adoption of the COE occur
within the organisation.

It would be a mistake not to expend the effort to launch an internal marketing campaign. The lifeblood and longevity
of the COE depends on the perception and service it provides to its internal customers.

Getting Started with Setting-Up Your SAP Centre of Excellence

Where to begin? Ideally, planning for your COE begins before you go live with your SAP business platform. This way,
continuity is ensured and the likelihood of matching your ROI expectations is increased.

If you are in the initial stages, budget for it now – it’s a question of pay for it now, or pay for it later – and latter has
higher costs. If you are in the midst of implementation, raise the flag now and address it. But if you are already live, it’s
not too late. Take it step-by-step to identify and prioritise the areas to address.

Overall, the difficulty in implementing a COE will probably reside in how committed your organisation is to its
successful deployment – from a budgetary, resource, and process perspective.

www.limelightsolutions.co.uk
© 2017 Limelight Solutions – All rights reserved
Page 5 of 8


5 KEY ROLES IN YOUR COE

Running alongside the 6 steps above, organisations need to ensure they have the right people/roles and
responsibilities within the COE. These will vary depending on your SAP COE structure and budget, but will generally fall
into one of four categories: Leadership, a Core Team, an Extended Team, and then Project Team(s). Funding a large
COE might not be feasible to start; typically, a small team is formed to begin with growing in tandem with the
organisation’s investment and the COE’s perceived value.

When reviewing the positions/roles below look past the titles and align to the descriptions – titles vary by organisation
and often the same role may have many titles

Leadership
All good SAP COE’s need strong leadership. Depending on the size of the team this may be split into a few roles, but
predominantly the responsibilities are as per the below.

Head of SAP Centre of Excellence

Often a relatively senior leader, the head of the SAP Centre of Excellence is the figurehead of the COE. Responsible for
the day to day management of the COE, this role takes control of the lifecycle of the SAP system. They ensure regular
operations run smoothly, maximising uptime, and ensure updates and upgrade are applied in a timely manner. They
drive innovation into the organisation through controlled projects and enhancements and ensure all standards are
defined and adhered to. Typically, the role reports into an appropriate corporate senior leadership team/board. An
important role of the head of the COE is that of demand management. During the lifecycle of any SAP solution there
will be a high demand for change and innovation. Priorities must be set and controlled through this role.

Core Team
This team handles the day to day operations and relatively small-scale change/enhancements and improvements to
the SAP solution. They own and improve the current SAP build, define best practices through the current solution and
contribute to the definition of the Centre of Excellence methodology.

SAP Solution Architect

The Solution Architect understands the entire solution end to end. Often with a high degree of knowledge of SAP, they
understand the high-level business processes and how these are embedded within the technology. They understand
the inputs and outputs of each of the SAP modules and how they interlock together. It is also likely they understand
the integration points into for the overall system. Typically, they understand the ‘flow’ of information from any
upstream stream, into SAP, through the various modules, and then either into finance or out to the finance system.

SAP Analyst(s)
Typically aligned to a process area, module or functionality, these are the SAP experts. They understand the detail,
monitor the processes running in their sphere of expertise and seek to maintain and improve the BAU solutions.
Typically, they have an external interest in their area and should be aware of the ‘latest developments’ in the areas

www.limelightsolutions.co.uk
© 2017 Limelight Solutions – All rights reserved
Page 6 of 8


they specialise in. When large projects are commissioned these people are typically seconded to the project team for
the duration. This assists the transition from project into BAU.

Business Process Architect

This role is sits alongside the SAP Solution Architect and looks at the overall business from a process angle. They are
responsible for the strategic target operating model that SAP operates within and, when improvements are
available/suggested, consider the business processes to reflect the new ways of working. They understand the
operational aspects of the business and the processes both inside and outside SAP. They liaise with senior managers,
capturing the new innovative ideas and suggestions from within the business functions, bringing them back to the
team as requirements to build upon and validate. They control the expectations of the business and help work with
them to define/redesign working practices for the new improvements.

Subject Matter Expert(s)

Subject matter experts will form part of the core team should the COE be large enough. Typically deployed ‘in’ the
business, they are responsible for working closely with business teams to ensure SAP and the business and working in
harmony, whilst constantly analysing the current operational model. They understand the detail within their business
area and, reporting into the Business Process Architect, spot improvements and weaknesses (cost, quality,
effectiveness, efficiency and failure) in the current systems/processes. Typically, this then results in creative ideas and
suggestions/tweaks to improve the solution at the front line. They should be able to define the outputs from the
changes in terminology the business unit understand – feeding into the business case for each iteration of change.
Although not a technical specialist, the Subject Matter Expert will have a firm understanding of system concepts
relating to the SAP application.

Extended Team (dependent on size)

The Extended team will probably only exist if the Centre of Excellence is of sufficient size and complexity. They work
alongside the core team within their subject matter expertise. When the extended team does not exist, these roles
normally form part of the core team.

Test Analyst(s)
Being experts in testing, the test team work closely with the business and core team to define all test scripts and
scenarios for all test cycles. It is beneficial if the test team have a broad spectrum of process expertise so they are able
to cover the majority of the business processes with ease.

Infrastructure Analyst(s)
As the level of innovation and architecture becomes more complicated (cloud, external gateways, integration points
etc.) it may be pertinent to have a networking/infrastructure analyst. This role ensures the safe and secure
connectivity of all components touching the SAP estate.

BASIS/DBA Lead(s)
Depending on any agreement with third party suppliers, it may be beneficial to have members of the team responsible
for the database technology and technical components around SAP. This role is about maintaining stability and

www.limelightsolutions.co.uk
© 2017 Limelight Solutions – All rights reserved
Page 7 of 8


ensuring the database platform operates at its optimum. They will monitor all the components of SAP (normally
through SAP Solution Manager) and spot and address any weaknesses before they become issues.

Security and Authorisations Analyst(s)

As your SAP estate grows it will become increasingly important to ensure roles and authorisations are appropriate.
Segregation of duties is a key feature of any audit and roles should be appropriately built to prevent users from
processing the full business process end to end. This role works with the core team and project team to define and
build roles and authorisations for the SAP solution.

Project Team
The project team is a temporary structure in place to deliver SAP projects into the organisation. The project team will
likely include a Project Manager, SAP Architect(s), SAP Analyst(s) and perhaps specialist business process experts. They
may be staffed by an external solution provider, but will always involve some of the internal Centre of Excellence
team. The project team typically report into the Head of the COE. They are responsible for the day to day deliverables,
scope and delivery of project outcomes according to the best practices and methodology determined by the COE.
Typically, the projects are bigger change and require some business transformation in conjunction with the
technology.

Relationships between the SAP COE and other parts of the business
As strong as the staff described above will be, they will not know everything about everything in the business. This is
where the creation of close collaborative relationships comes in. Building these relationships will begin with the Head
of the SAP COE and how he or she will reach out to business managers and specialty groups in the various
departments. This initial collaboration will require a lot of care as the SAP COE brings together technical resources
with SMEs from the business areas to form the collaborative team needed for SAP success.

A Little About Us….
Limelight Solutions is an SAP partner. We are known for delivering remarkable projects and
many big brands trust us with their SAP projects. We have a passionate belief that game-
changing projects should be available to everyone. Our core principle is no project should take
over 6 months and should give an attractive ROI. We created an accelerator that facilitates this.

We offer a free strategy sessions to talk through your SAP journey and give great
advice and guidance where relevant. If you are open to gaining some of our
valuable insight click the button below and book in some time with us.

Book a session

www.limelightsolutions.co.uk
© 2017 Limelight Solutions – All rights reserved
Page 8 of 8