Managing Information Technology

Case Study III-6 • BAT Taiwan: Implementing SAP for a Strategic Transition 493

User Acceptance Testing

System Testing

User Training

Detail System Design & Prototype

Details Requirement Study

Kickoff Meeting

(Sept 26)

Confirm Business Blueprint

(Oct 24)

Complete UAT

(Nov 10)

Present Prototype (Oct 11)

SAP System Configurations & Development

8 weeks’ Duration

MAIN TASKS

December 29, 2000

Project Kickoff

SAP Functional Overall Training

System Go Live

Rollout Stage: Data Conversion

January 2, 2001

Reports Design & Form Layout

25Sep 02 Oct 09 Oct17 Oct 23 Oct30 Oct07 Nov 13 Nov

Development Stage Completed

EXHIBIT 5 Work Plan and Milestones for Phase 1

because Taiwan had not had to deal with accounts payable,
accounts receivable, or inventory in the past.

They added a lot of value. When we needed to

decide how we wanted to configure something, they

would say, “The BAT way is this.”

— Mr. Lee, Project Co-Lead, BAT Taiwan

They knew the alternatives and the impact on the user

and the actual process. For example, online approval

of a purchase order sounds good, but they asked,

“Who will approve it when the person is out of the of-

fice?” because someone must go into the system to

do it. [Singapore implemented online approval, but it

was not effective—so in the end it was not used.]

APSS could advise us on these issues.

— Major Project Manager, APN IT

The APSS people knew BAT’s processes. They

asked us to review the blueprint. I had worked with

Oracle systems and knew how to link modules—

Materials Management and Finance.

— FI/CO Team Member, BAT Taiwan

The initial configuration was really good. We

worked really hard. The APSS team understands our

operations and our industry. Also, they spoke my

primary language [Mandarin].

— MM/SD Team Member, BAT Taiwan

Because BAT Taiwan had no experience with

direct distribution, help was sought from some workers

at the distributor. Some configuration was also done to

take into account the expected future changes in govern-

ment regulations regarding the payment of taxes that

would affect product pricing, as well as the key accounts

that would be introduced in a future phase. These

changes could be activated when needed. A prototype

was ready by the third week.

Scope Change: Moving Forward Phase 2

In October, the project leaders recognized that some of the

Phase 2 changes would already be done in the initial

configuration, so it might be possible to move Phase 2 for-

ward. They believed that Phase 1 could be completed

easily within the eight week period and that the team had

the resources to also complete Phase 2 by January, 2001.

They consulted with the APSS Applications Manager, the

Head of IT at APN, and the other project team members,

and it was agreed to move Phase 2 forward. A revised

proposal was prepared by APSS, and the phase was

renamed 1A to signal that the Phase 1 resources would

continue on the project team, rather than have a totally

different implementation.

Changing the schedule for the two-phase imple-

mentation greatly increased the risks of the project from

both an IT and a business perspective. Phase 1A included

the two requirements that were specific to the Taiwan