Horst Burtscher, Head of Corporate ICT & Digital Process

Support, Neutrik AG

Christian Arzner, Head of Management Consulting, itelligence AG

itelligence World 2019 – Let‘s transform! Design your future.

24. Oktober 2019

A2: SAP S/4HANA Transition -

Neutrik’s strategischer Ansatz von der Ist-Situation

über den Business Case zu S/4HANA

2

Initial SituationBusiness Model

National

Agents

Rental

OEM

Distributors

NTC

NUK

England

NAG

Schaan

CAG

HAD

NFR

NVG

NUK

NUS

PRO

NIN

NHK

NJP

Rental

OEM

Distributors

Rental

User

OEM

12 Neutrik Companies worldwideMarket Brands and Products

Major shipments

Customers

NLQ

China

Initial SituationProcess / Application Matrix

3

Customer Service &

Support

Supply Chain

Management

Master Data

Management

Financial

Management

Human Resource

Management

Technology & PLMGlobal Usage

(w/o NFR, NLQ, NIN)

ERP 6.0 (EHP5)Add-on:

PDA*, MES*

PCALC4ERP*

CRM 7.0 (EHP4)SAP PI 7.1

SAP GW (Fiori)

SAP CS

NLQ

SunLike

ERP

Other

Peripheral

Systems

CI_LOG

Fink time

systems

*) implementation in work

Market Touchpoints www.neutrik.com

*

NFR ERP

Out of Scope

Processes of Strategy & Operational Management (except Reporting), Human Resource Management, EH&S, IT Management;(for the «itelligence scope» Lead2Order/Marketing was excluded)

IT Systems: SAP ERP for India

4

Program ScopeOverall

Organization

• Customer touchpoints

• All locations of Neutrik

• Group Management,

Managing Directors,

Process Manager,

Key User, User and IT

• Vendor Integration

• Template for future

M&A

IT Application

• CAD (Data)

• SAP CRM

• SAP ERP

(incl. NFR, NLQ)

• Add-ons

• Configurators

• Middleware

• PIM

Process

• Definition and

reengineering of

business processes

Neutrik wide

• Implementation

processes and metrics

• Reduce cycle times

• Raise reliability

• Some HR functions

Master Data

• Product

• Material (Sales,

Supply, Finance)

• BOM, Routing

• Mechanical attrib.

• Electrical attrib.

• Design (2D, 3D)

• Compliance doc.

• Contact and Customer

• Supplier, Assets

Roadmap Development

5

Initial

Situation

Target

Processes

Identify IT

Solutions

Migration

Path

Roadmap

finished

• Low business processorientation and missing process stability

• 15 year old SAPlandscape with individual setup per company

Neutrik defined a dedicated program as one of five strategic targets in 2018

• Definition of future processes started in February 2019

• Internal know-how combined with external process consultants

• High focus on required improvements

• S/4HANA Readiness check

• Fit & Gap analysis –Neutrik processes to S/4HANA Digital Core

• Check of SAP Add-ons – possible scope to business case

• Support for best-of-breed approach

• Compare Green with Brownfield

• Fundamental change required

• Process Harmonizationand IT Standardizationlead to Greenfield

• 7 projects for implementation identified

Program defined• Target processes • Improvements• Migration Path• Schedule• People activated• Budget• Risks

Implementationreleased from the board of directors in October 2019

The workshops were organized driven by end-2-end processes linked

to corresponding line of businesses:

Quote2Cash: SAP LoBs: Revenue & Sales

Procure2Pay: SAP LoB: Sourcing & Procurement

Plan2Produce: SAP LoBs: Supplic Chain & Manufacturing

Record2Report: SAP LoB: Finance & Controlling & Reporting

Idea2Offering: SAP LoB: R&D/Engineering & Master Data

Request2Fulfill: SAP LoB: Service

Plan2Execute: SAP LoB: Asset Maintenance

Neutrik Processes aligned to LoB

6

Identify IT Solutions:

1st workshop: Understand

business processes,

challenges and desired

improvements

2nd & 3rd workshops:

Advise suitable SAP

solutions with system

demos.

3 architecture workshops:

Advise future-proof

application &

infrastructure

architecture in

combination with

existing system

landscape

Migration path: Show off pros & cons greenfield vs. conversion

Drive decision making for solution scope and migration approach by

consolidating achieved process & solution insights.

Rollout approaches: Pick the most suitable rollout approach among different

options like: “Big Bang”, “Geographical”, “Functional”, “Organizational”

Mixture of functional / geographical and organizational considerations

Future Application ArchitectureProcess / Application Matrix

7

Customer Service &

Support

Supply Chain

Management

Master Data

Management

Financial

Management

Technology & PLMERP for global Usage

Add-ons / additional functions:

Variant configurator,

Advanced product returns,

Sales & operations planning,

PDA/MES and PP/DS for production

data and planning,

SAP PLM, Master data tool,

customs solution

Other Systems

Warehouse: CI_LOG

Integration: SAP SCI, ecosio

Presence time systems

SAP HR for NAG/CAG

Market Touchpoints www.neutrik.com

CRM for all

Subsidiaires

Mgt. Reporting Financial Consolidation

Vendor Invoice

Mgt., Archiving

CAD

8

ScheduleOverall Schedule for Implementation Projects

Project 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06

ERP Wave 1, NAG, NUK 1) □ □ □ □ □ □ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ♦▬▬▬▬▬

ERP Wave 2, NTC, NHK, NJP □ □ ▪ ▪ ▪ ♦▬▬

ERP Wave 3, CAG, NVG/HAD □ □ ▪ ▪ ▪ ♦▬▬

ERP Wave 4, NUS, NFR, PRO □ □ □ ▪ ▪ ▪ ♦▬▬

ERP Wave 5, NLQ □ □ □ □ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ♦▬▬

CRM Scope 1 - all locations □ □ □ ▪ ▪ ▪ ▪ ▪ ♦▬▬

CRM Scope 2 - all locations □ □ ▪ ▪ ▪ ▪ ♦▬▬

CRM Scope 3 to be defined 2)

Legend Remark

□ Prepare, Blueprint, Fit&Gap

▪ Realize & Deploy

♦ Go Live (1st of month)

▬ Live (Hyper care)

1) Includes global template2) Additional topics like

eCommerce are not defined

yet and not part of scope

and budget

20232019 2020 2021 2022

The detailed planning for the projects may change after blueprint

of first wave (not touching the overall program duration)

NFR and NLQ don't have SAP today (extended training …)

Neutrik evaluated itelligence for the roadmap development

Experiences with itelligence

Professional project management with high reliability and the

right moderation for getting decisions

Broad and deep knowledge for the SAP solution portfolio

High understanding for Neutrik needs

Transparent and detailed offering documents

Collaboration with itelligence

9

Thank you for your attention10