Part 1 of 3
Is There a Difference Between an SAP Center of Excellence, SAP Competency Center, or SAP Expertise Center?
A while back, Michael Done and I were talking about his SAP Green Book– thriving after going live with SAP [FN1]. As the conversation progressed, it was obvious to both of us that although he has been advocating for an SAP Center of Excellence for quite some time, few companies had succeeded in creating one.
Our conversation started a lengthy thought process about our careers with SAP projects, at numerous companies, across several industries, and in a number of Fortune companies (as well as small- and mid-sized companies). Over the years, a few companies have done well at developing SAP Competency Centers, but only a couple have ever succeeded in developing an SAP Center of Excellence.
Most of what we see is IT-centric and service delivery driven, and not business-centric and value delivery driven.
You might ask, “What is the difference between an SAP Competency Center or an SAP Center of Excellence?”
Do Things Right, or Do the Right Things?
In Peter Drucker’s Theory of Business from 1994, he discusses the changing business world and how to stay competitive. He describes the two types of paradigms: doing things right, or doing the right things [FN2].
During the course of an SAP implementation, there is a focus on doing things right. (At least, this should be the focus.)
What Does It Mean to Do Things Right?
You as a customer assume that SAP as a company has done the right things already in the form of the application depth and breadth, so your job in implementing the software is to do things right. You can see this embedded in the techniques, templates, methodologies and tools used to ensure that the ERP system is properly implemented. Frequently doing things right entails the following:
- following the SAP ASAP methodology (or some version of it),
- doing some research on successful projects,
- preparing your company with the right committed resources,
- ensuring interdepartmental cooperation,
- selecting the right implementation partner with the right consultants,
- correctly using the pre-project RFI and RFP processes,
- etc.
For a whole list of numerous success criteria from the academic literature, please see the post on The Top 5 ERP Success Factors by Project Stage from 22 Critical Success Factors.
Doing the Right Things for Your SAP Project After Going Live
This is very different than what you need after the system is live. Once your system is up and running and the consultants are rolling off the project, you need to change direction. At this point you have a couple of options. You can develop an SAP Center of Excellence or an SAP Competency Center.
While little information or literature exists on these two approaches, we will try to carve out the differences seen over the years, and then attempt to develop a basic starting model for the Center of Excellence.
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See the entire series on creating an SAP Center of Excellence:
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Toward an SAP Center of Excellence or SAP Competency Center – PART 1
Explaining the differences between an SAP Competency Center (sometimes referred to as an SAP Center of Expertise and an SAP Center of Excellence). As Peter Drucker wrote, either Do Things Right or Do the Right Things.
Toward an SAP Center of Excellence or SAP Competency Center – PART 2
A more complete and thorough explanation of the differences between the SAP Competency Center (or Expertise Center) and the SAP Center of Excellence (or the Business Transformation Center). An understanding the operating differences and how the Competency Center is focused on reactive processing of things such as help desk tickets, problem resolution, data correction, and knowledge transfer.
Toward an SAP Center of Excellence or SAP Competency Center – PART 3
Business model application of steps, techniques, and methods to produce an SAP Center of Expertise or an SAP Business Transformation Center. The major business transformation steps on moving from an SAP Competency Center to an SAP Center of Excellence.
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[FN1] If you have not yet seen or heard of his book please consider purchasing it here: http://www.michaeldoane.com/The_SAP_Green_Book.html . You can also see a copy of his white paper on this topic, and on his book here: http://www.michaeldoane.com/uploads/Thrive_After_Go_Live_DA.pdf
[FN2] Drucker, P. “The Theory of Business,” Harvard Business Review, September / October 1994, pp. 95-104.
