Business Transformation - SAP Driven Business Transformation

Context

A multi-billion subsidiary used over 100, largely unconnected, IT solutions to manage the business.   The lack of integration resulted in very poor customer service and expensive periodic financial reconciliations.  Maintaining so many systems required an exceptionally large budget. Finally, any business model improvements and strategic imperatives were suffocated by an unflexible IT architecture.

Solution

Starting with a blank sheet, all key business challenges, goals, processes and roles were mapped.  A full audit of existing systems was carried out.  The possibility of replacing with SAP was assessed in terms of interoperability, licensing, functionality and so on.  An SAP driven business transformation was initiated involving all functions and levels.

Benefits

Benefits included:
  • Common master data definition allowing for full and proper customer interaction
  • Accurate period end financial closes
  • Completely revised and updated sales and distribution channel structures
  • Tighter forecasting (sales and MRP)
  • 3rd party supply chain partners were integrated into new architecture – new data flows resulted in improved customer service, speed and inventory management. Integrated product lifecycle (sales through to service)
  • Newly defined chart of accounts and period-end financial processes supported new business models
  • Custom code was limited on a strict cost/benefits basis
  • Areas affected: Finance & Accounting (FI), Controlling (CO), Purchasing (PO), Supply Chain Management (SCM), Materials Management (MM), Sales & Distribution (SD), Human Reesources (HCM), Real Estate Management (RE),