The document discusses improving SAP ERP processes at a company. It summarizes recently completed activities and Q1 continuous improvement initiatives, including order to cash optimization and inventory management. It then discusses IT demand management, categorizing IT requests, and automating the purchase order approval process to streamline procure to pay workflows. The overall goal is to leverage SAP features to transform key business processes and improve productivity.

1. SAP ERP GOVERNANCE MEETING
JANUARY 2017

2. PRESENTATION TITLE | MAR 2016 | PAGEPRESENTATION TITLE | MAR 2016 | PAGE 2
2016
RECENTLY COMPLETED ACTIVITIES
• Customer Statement Mass Emailing capabilities for A/R Invoice pulling all of the AP contacts
• Foreign Currency - Resolved F/X issues using the GL Module (Finance)
• Avatax Integration – Na identified a bug which required a patch and applied to production (Finance)
• Developed a new Sales Order validation rule for duplicate PO warning (Customer Service)
• Authored a How To Print A Refund / Credit Check for a Customer (Finance)
• Authored a How To for handling JV/JE attachments using the Activity feature (Finance)
• Trained team on new SAP features - from 8.8 to 9.2 version: Customer Service, Operations and Finance
• Streamlined the physical inventory process (reduce time with printing labels and extract/input of data) and
simplified the standard cost update and inventory valuation process
• Developed a RMA enhancement for improved controls and created a Trunk Stock Transfer Report, and
Daily Booking Report (Finance / Operations)

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2017
Q1 CONTINUOUS IMPROVEMENT INITIATIVES
Order to Cash Optimization
• Get accurate information on pricing, products, customers, and contracts in real time – to help us hit our sales
targets and delivery KPIs.
• Manage the order-to-cash process seamlessly, across the organization. Track and manage order
generation, and processing by streamlining and automating the billing cycle management processes.
Inventory & Warehouse Management
• Improve operational efficiency by controlling material movement and warehouse operations – from inbound
activities to order fulfillment.
• Automate delivery processes (directed put away) and optimize the procurement process through intuitive user
interfaces and item catalogs or categories.
• Reduce manual labor and increase overall operational efficiency (deploy cycle counts) Improve Inventory
Control, enable Reverse or Cancel a PO Receipt

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2017
CONTINUOUS IMPROVEMENT INITIATIVES
• Demo / Evaluate Integrated Shipping Software (Print labels, Tracking, USPS,UPS & FedEX)
• Demo / Evaluate Purchase Requisitions - to create multi-tier approval procedures and advise
management of buying requests using email notifications and electronic approvals
• Advance inventory management using Material Requirement Planning (MRP) , creates
recommendation for purchase orders and production orders based on the current status of
transactions in the system (using S&OP forecasts)
• Review Goods and Services receiving (2 way & 3 way match) within a business group. The person
conducting receiving affirms that ordered items are correct, in good condition, and in accordance
with requirements of the PO.
• Simplify the COA, organized hierarchically representing assets, liabilities, equity, revenues, cost of
sales, expenses, financing, and other revenues and expenses (organize our accounts in a logical
fashion to improve our accounting (FP&A) processes

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IT Demand Management – What is it?
To manage, planning, production and delivery, any properly run business has to be able to
balance orders for its products and services (i.e., demand) with its ability to produce them in terms
of resource and scheduling constraints (i.e., supply)
• Demand for IT Solutions originates from the business in the form of ideas or opportunities, with
high-level information on timing, costs and benefits.
• A structure process to forecast. plan, build, fulfill and support IT Products and Services.
• It involves capturing, reviewing, rationalizing and prioritizing business demand based on a ROI
mechanism to identify and approve the right demand with the best ROI to grow Avinger.
• It’s about applying “Manufacturing Principals” to convert Business “ASKs” into IT Products and
Services

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IT Demand Management: Why is it required
IT faces similar challenges as manufacturing companies to fulfill customer demand for products
and services. It is laden with issues of capacity and load imbalances and the challenge of working
changing requirements.
• Deliver the right Products and Services that yield the best ROI to grow our business.
• Periodically review and realign business demand for IT services and reassess IT capacity to
fulfill needed services.
• To establish a funnel to capture all business demand and periodically review and prioritized all
the requests.

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IT Demand Management: What’s the process
• IT requests submitted / entered in Teamwork
• Request / Failure
• Category (Business Systems, Network, Sys Admin, Helpdesk…)
• Business Unit or Business Process Owner (E Staff)
• Submitted By
• Priority, Date, Categorization
• Status
• Time (duration/release date)

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IT Support Triage Process
• Create a Help Desk for all IT Requests (resulting actions documented)
• Creates knowledge base
• Invest in tools that prevent/help correct problems
• application support, code migration management
• Help Desk Support
Level I - novice or generalist (user guide, how to)
Level II - super user
Level III - expert
Level IV - vendor

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IT Demand Categorization
U Category Description Priority Criteria Source
25%Resource
investment
Sustaining
Break-Fix
P1-Critical or P2-high
or
Minor
Enhancements
Priority 1
Failures, Minor Enhancements & Admin
• Failures (P1-Critical, P2-High)
• Minor Enhancements < 80 hours effort
• Data/User Administration Issues
• Delivered on demand or per release calendar
Helpdesk
Incidents
75%ResourceInvestment
Project Projects Priority 2
Business transformation initiatives
• Time to implement > 2 months
• Cost > $ 50K
Annual
Operating
Planning
Enhancement Enhancement Priority 3
Process/Employee Productivity
Enhancements
• Prioritized Enhancements & Failures (P3-
Medium, P4-Low)
• Time to Implement < 3 months
• Cost > $10K < $50K
• Delivered on monthly “Release Train”
Monthly
Business
Prioritization
Reviews

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Release Calendar

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Next Steps
• Identify business challenges (pain points) or opportunities for improvement
• Stabilize Business Systems Environments (training, develop super users)
• Deliver key commitments (SLAs)
• Rationalize Enhancement / Project Demand
• Launch Process Improvement Focus Teams
• Next Review: Q217

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SAP B1 Procure to Pay Process
Efficiently managing purchasing process is critically important for our business. The ability to
streamline workflow and minimize delays in purchase orders and approvals is essential. But one
of the biggest obstacles in the purchasing cycle is getting the purchase order approval in the first
place!
The PO approval process involves manual routing and paper shuffling that’s slow and error-prone.
Using workflow automation technology, we can convert that manual process into fast and efficient
automated routing and approval.
At Avinger purchases require multiple levels of authorization that are built around unique business
rules and departmental structures – especially if the value of the PO exceeds a designated
amount.
This can result in delays and manual communication being pushed through the organization as
the PO is passed around until it finds the appropriate department or manager(s). This can
obviously stifle company productivity ... and potentially delay shipments to customers if we do not
get the material or inventory we need in time.

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Automating Purchase Order Workflows
For example, we might decide that orders over $2,000 require approval by one person and orders
over $5,000 require a two-person approval. If the purchase order requires a second approval, the
workflow automation system simply repeats the steps with the updated information (i.e. 1st level
approval complete) and automatically notifies the second person.
Once the automated routing and approvals are complete, the SAP Business One user that
originally entered the purchase order is automatically notified of the updated status, including all
comments.
Once a purchase order has begun its journey in the ERP system, SAP Business One does a great
job of automating and streamlining the rest of the process. But it is often the PO approval that is
required before that process even starts that really holds things up.
Manual approvals and paper chasing are killing productivity at our company, Our goal is leverage
the out of the box features and transform the P2P process