DAP IS Program Management

1. DAP IS Program Management February 2007

2. Agenda • Introduction/Background • DAP IS Program Management within DAP • DAP IT Governance Model – IT Boards • WoW and role of IT Boards/DAP IS Program mgt. • AOP process • Process for managing portfolio and on-top-off AOP initiatives • Status monitoring and tracking progress on delivery/financials • Monitoring and managing the IT progress • Way of Working with respect to: • Projects • Change Requests

3. Introduction/Background • DAP IS (Information Services) has the aim to improve & support the DAP Business by providing adequate integrated IT enabled solutions that increase business effectiveness and efficiency. • Key success factor for DAP IS is the alignment between the business strategy & processes and the solution/support IS is delivering. To ensure this alignment Program managers are assigned with DAP IS. • The role of the Program manager has changed over time due to changes in DAP and changes in the WoW between the business and DAP IS. Key responsibilities of the Program Manager are: • Ensure alignment between business and IT strategy • Identify improvement opportunities and drive the improvement process • Monitor & manage program/projects within DAP IS (On-time/budget) • Ensure/facilitate adequate and transparent financial Program management (AOP/Budgets etc.) • This presentation describes the most important Structures/WoW and process regarding Program management to ensure this is transparent and clear for all stakeholders involved.

4. Agenda • Introduction/Background • DAP IS Program Management within DAP • DAP IT Governance Model – IT Boards • WoW and role of IT Boards/DAP IS Program mgt. • AOP process • Process for managing portfolio and on-top-off AOP initiatives • Status monitoring and tracking progress on delivery/financials • Monitoring and managing the IT progress • Way of Working with respect to: • Projects • Change Requests

5. DAP Business Strategy Business Process Strategy IT Strategy/Planning and demand management • Business Strategy and programs • Business Process Owner • Business transformation IT strategy/ architecture IT strategy/ architecture Focus area of Program management IT demand management IT demand management • Fit in IT architecture • Drive SAP unless • Allocation towards programs IT service delivery IT programs IT programs • Business/IT alignment via Program mgt. • IT supports the business (IT as enabler) • IT portfolio management / AOP • Projects/Support on business cases IT running operations • Delivery of IT new projects/roadmaps against time/budget DAP IS • Delivery of IT running operations against SLA/budget DAP IS Program Management within DAP Program management is the link between the DAP business community and IT delivery/services Ensuring alignment between Business Strategy & Processes and IT Programs & Support

6. 10 DAP IS Program Management within DAP Program mgt. covers all IT related Projects & Support for all entities/functional areas within DAP. Regular alignment between Business and IT is in place (via IT Boards) to ensure effective service delivery in line with strategy and adequate/transparent management of Projects/Programs (Progress & Financials).

7. DAP IS Program Management within DAP Within DAP IS Program management is divided in 2 main areas, Commercial and Industry. • Commercial Program • Program manager: Otto te Walvaart • Areas: • SAP support for NSO’s/RDC’s and SCSC • SAP support for Sales & Marketing • Supply Chain Management • Finance (e.g. Best in Finance) • Industry Program • Program manager: Henk Postma • Areas: • R&D • IPC’s and SC’s • Manufacturing and Purchasing • HRM

8. Agenda • Introduction/Background • DAP IS Program Management within DAP • DAP IT Governance Model – IT Boards • WoW and role of IT Boards/DAP IS Program mgt. • AOP process • Process for managing portfolio and on-top-off AOP initiatives • Status monitoring and tracking progress on delivery/financials • Monitoring and managing the IT progress • Way of Working with respect to: • Projects • Change Requests

9. DAP IT Governance Model – IT Boards IT Boards are installed for key Functional Areas. Main tasks for the IT Boards are: • Ensure alignment between business and IT strategy; • Monitor & manage progress (delivery/Finance) of IT delivery in line with Plans; • Track business case realisation and guard scope of projects • Define IT AOP for upcoming year(s); • Ensure correct prioritization of projects within Portfolio; • Arrange funding for the projects within the IT Program DAP IT Governance Structure • Jan van Leeuwen • Jan van Loon Finance IT Board R&D and Supply IT Board Marketing IT Board Supply Chain IT Board Sales IT Board Sales Board Growth: Sales Board WE & NA: Sales Board ISG: Note: X-domain topics/issues will be managed via Jan van Loon and Jan van Leeuwen

10. WoW and role of IT Boards/DAP IS Program mgt. Overall Characterises of the DAP IS Governance Model: • The IT Board consists of Business representatives and the DAP IS Program manager. Chair of the Board is always a DAP responsible business manager, who is also the owner of the IT Roadmap for respective functional area • The IT Board covers all IT related projects/issues within the functional area of the respective IT Board. A project or initiatives is always linked to one of the IT Boards • Projects are in principle always initiated/created by the individual businesses (e.g. Functions/BU’s) with a focus on business improvement. In this process DAP IS will support the business by: • Providing business knowledge/expertise on process improvement through IT enablement • Creating business cases for process improvement projects • Translating business improvements into concrete IT enabled solutions/improvement projects • Managing the overall program of IT enabled business improvements for DAP • Managing the process of the actual delivery/implementation of the defined improvements • All demand for IT enabled solutions within DAP will be incorporated in the DAP IS Program-Plan. Projects will however only start after formal approval of the IT Board (on scope/timing/budget and funding).

11. WoW and role of IT Boards/DAP IS Program mgt.Role Descriptions • Role of the IT Board Chairman • Ensure alignment between Business Strategy and IT strategy • Support the controlled/managed process for business improvement via IT enabled • Guard the financial process (AOP/Budget/Funding/Savings/Business Cases) • Set priorities in the Project portfolio to ensure IT is aligned with Business Focus • Arrange funding for projects & initiatives within scope of the respective IT Board • Role of the DAP IS Program Manager • Ensure alignment between Business Strategy and IT strategy • Facilitate the IT Board (and ensure alignment with other Boards/initiatives if required) • Ensure a controlled/managed process for process-improvement with respect to: • Identification of improvement potential & IT enabled solution design • Actual delivery and progress management for delivery of IT enabled solutions • Financials (AOP/Budget/Funding/Spend/Savings/Business Cases) • Manage delivery of the Program in line with plans (Time/Budget/Scope & defined priorities) • Role of JvL and JvL in the IT Governance Model • Monitor the overall status and progress of the DAS IS Program • Review project requests and decide on project approval (within and on-top-off AOP) • Set priorities in case of dependencies cross IT Boards

12. IT Roadmap update IT Strategy WoW and role of IT Boards/DAP IS Program mgt.High level timeline: Aligning IT Boards with IMC/Strategy agenda Time-line DAP IMC/Strategy Timing IT Boards Potential extra IT Board SC Potential extra IT Board R&D IT Board(s) IT Board(s) IT Board(s) IT Board(s) IT Board(s) IT Board(s) IT Board(s) IT Board(s) IT Board(s) Note: IT Boards can be scheduled more frequent in case business/issues/projects etc. demand that

13. AOP process • One of the key roles of the IT Board (& Program mgt.) is to translate the Business Strategy into clearly defined improvement projects, to be included in the AOP. • High level view of AOP process for IT Project Portfolio: • Program mgt. will create a first draft Program-Plan & AOP based on the plans available and the understanding of business strategy, improvement opportunities and needs. (Note: all projects/initiatives are linked to the respective IT Board) • The draft Program-Plan & AOP is presented/reviewed in the respective IT Board • The IT Board finalizes the draft plans (Scope, Timing and Funding of the projects) • Updated Program-Plan & AOP are submitted/presented to DAP Management for approval • After review/finalization of the Program-Plan & AOP, IT Boards are informed about the final AOP and Program-plan by the Program manager • It is the responsibility of the Program mgr. & IT board to ensure delivery within AOP1 Note 1: AOP = AOP + agreed on-top-off budgets as mentioned on next slide (situation 2)

14. Process for managing portfolio and on-top-off AOP initiatives During the year IT Boards monitor & manage the actual execution of the Program Plan. In this process IT Boards can be faced with 2 kinds of deviations: • Projects within the IT Program (of the respective IT Board) deviate from the plans as included in the AOP. Deviations can be in scope (incl. # of projects), timing and or budget for projects. In case these deviations can still be covered within the original AOP amount, the IT Board has the authority to re-prioritize and re-allocate budgets. • Projects deviate from the plans as included in the AOP (like situation 1) but can not be covered via the AOP budget of the respective IT Board. This can be the result of new projects which were not foreseen but should be executed (e.g. ESPRIT/Re-structuring of DAP/BIF-RPO). In these cases the IT Board needs to arrange funding (either via direct business case or via re-allocating/adding budgets). These changes will always have to pass JvL/JvL for approval before start of the project.Note: After approval of an on-top-off AOP project/budget by JvL/JvL, the project will be included in the overall Program Plan. Program mgr. & IT board will thereafter be responsible for delivery of the project within approved budget.

15. Status monitoring and tracking progress on delivery/financials In the IT Board status & progress are regularly monitored for both solution delivery and financials (Budget/Spend). Structure is identical for all IT Boards and includes AOP/Approved Budget/Actuals and ETC to ensure completeness of annual overview. Deviations from plan (delivery/financials) are to be managed within the IT board. In case of escalation JvL/JvL are to be involved.

16. Agenda • Introduction/Background • DAP IS Program Management within DAP • DAP IT Governance Model – IT Boards • WoW and role of IT Boards/DAP IS Program mgt. • AOP process • Process for managing portfolio and on-top-off AOP initiatives • Status monitoring and tracking progress on delivery/financials • Monitoring and managing the IT progress • Way of Working with respect to: • Projects • Change Requests

17. Monitoring and managing the IT progress Within DAP several Tools/mechanisms have been installed to ensure adequate and transparent monitoring and management of IT delivery. Next to IT boards: • DAP IS uses a Program and Resource-planning tool which contains plans, financials & resource allocations. It’s available for all involved stakeholders. • Progress & status (Delivery/Financials) are available for all projects on intranet • Project Progress reports are distributed for all key projects to increase focus

18. Agenda • Introduction/Background • DAP IS Program Management within DAP • DAP IT Governance Model – IT Boards • WoW and role of IT Boards/DAP IS Program mgt. • AOP process • Process for managing portfolio and on-top-off AOP initiatives • Status monitoring and tracking progress on delivery/financials • Monitoring and managing the IT progress • Way of Working with respect to: • Projects • Change Requests

19. 10 DAP IS Way of Working: Projects vs. Changes Within DAP IS, changes to the IT systems can be divided into 2 categories: Projects and Change Requests. The key difference between the 2 categories is the IT complexity and workload involved.

20. Schedule Schedule Project Project Yes Yes DAP IS Program DAP IS Program Effort > 10 Effort > 20 Management Management Mandays ? Mandays ? - - Commercial Commercial - - Industrial Industrial No No Change Request Change Request DAP IS Program Mgt. DAP IS Program Mgt. based based Solution Solution Delivery Delivery Program Management within DAP IS - WoW with respect to creation of IS projects • Projects are managed via DAP IS Program management. • Projects are aligned with business and managed through the SAP IT Board’s • Projects are aligned with the business and are: • Covered in the IS AOP or… • Are on top-of AOP. (Based on business case business can request additional support from IS (on-top of AOP). This will be funded separately by the business) • After agreement on project initiation DAP IS Program mgt. Will take the initiative to start up the IT project. • Program mgt will present project within IS • Program mgt. Will jointly with CC/Middleware/Infra (Team leads) staff the projects and define scope/timeline/budget IS Project organizations Etc.

21. Change Requests Yes Yes DAP IS Program DAP IS Program Effort > 10 Effort > 20 Management Management Mandays ? Mandays ? - - Commercial Commercial - - Industrial Industrial No No Change Request Change Request DAP IS Program Mgt. DAP IS Program Mgt. based based Solution Solution Delivery Delivery Program Management within DAP IS - WoW with respect to Change Requests • Change request are created by the business (Key Users) • Change request are to be managed with the AOP budget for Changes • Change requests will be reviewed and prioritized by IS. Priority setting and planning is aligned with the business (if necessary via domain IT Boards) • Planning, Progress and financials for Change requests will be reviewed on a monthly basis via the IS management team to ensure adequate focus and cost control. Program management will facilitate the process of planning priority setting for the Change Requests IS Organization Etc. Infra SM SCE Middleware F&A