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CEPSA Digital Transformation Strategy and HANATop Priorities in Oil&Gas and Chemicals
Miguel Canteli. February 2016.
CEPSA Today. Business Priorities
Digital Strategy
Migration to HANA in Memory (CEPSA/SAP Project)
3
WORLD WIDE BUSINESS
Cepsa Today
Cepsa | Migration to Suite on HANA | February 2016
Industrial plants
Industrial plants and assets in developement
Explorationand Production
Refiningplant
Petrochemicalplant
COLOMBIA
PERU
BRAZIL
ALGERIA
CHINA
MALAYSIA
KENYA
ABU DHABI
SURINAM
THAILANDIA
INDONESIA
LIBERIA
CANADA
4
OUR ACTIVITIES
Cepsa Today
Cepsa | Migration to Suite on HANA | February 2016
EXPLORATIONAND PRODUCTION
PETROCHEMICALS
GAS AND POWERDISTRIBUTIONAND MARKETING
TRADING
REFINING
5
LEADERS IN…
Cepsa Today
Cepsa | Migration to Suite on HANA | February 2016
• We are world leaders in producing rawmaterials for biodegradable detergents(LAB) and account for 15% of the world'scapacity
• With the production of the Shanghai plant,Cepsa will become the world's secondlargest producer of phenol/acetone.
• We are also leaders in the Spanish aviationfuel market.
• We have developed processes, in the areaknown as EOR/IOR, which allow us torecover on average an extra 20% ofcrude oil from fields.
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PETROCHEMICALS
ProductdiversificationGlobalization
Maximize downstream added value
TRADING
Marginoptimization
Geopolitical & Markets Risks
BUSINESS CHALLENGES
Cepsa Today
Cepsa | Migration to Suite on HANA | February 2016
EXPLORATIONAND PRODUCTION
Cash flowasset value
High riskoil price
REFINING
Efficiency andflexibility
Margin volatiltyvalue
optimization
DISTRIBUTIONAND MARKETING
Client focusIntegratedbusiness
High volumesLow margins
GAS AND POWER
Energy poolsinergies
Regulatedmarkets
Safety and Environment
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BUSINESS PRIORITIES
Cepsa Today
Cepsa | Migration to Suite on HANA | February 2016
PETROCHEMICALS
Productionglobalization
Increase Downstream added value
Integration
Technologicalleadership
TRADING
Marginoptimization
Geopoliticalinstability
EXPLORATIONAND PRODUCTION
Cash flowasset value
High riskoil price
REFINING
Efficiency andflexibility
Margin volatiltyvalue
optimization
DISTRIBUTIONAND MARKETING
Client focusIntegratedbusiness
High volumesLow margins
GAS AND POWER
Energy poolsinergies
Regulatedmarkets
Safety and EnvironmentCONSISTENT BUSINESS INTEGRATION AND DIVERSIFICATION
SAFETY AND EFFICIENCY
Cepsa Today. Business Priorities
Digital Strategy
Migration to HANA in Memory (CEPSA/SAP Project)
9
IT STRATEGIC OBJECTIVES
IT Strategy
Cepsa | Migration to Suite on HANA | February 2016
PETROCHEMICALS
Productionglobalization
Increase Downstream added value
Integration
Technologicalleadership
TRADING
Marginoptimization
Geopoliticalinstability
EXPLORATIONAND PRODUCTION
Cash flowasset value
High riskoil price
REFINING
Efficiency andflexibility
Margin volatiltyvalue
optimization
DISTRIBUTIONAND MARKETING
Client focusIntegratedbusiness
High volumesLow margins
GAS AND POWER
Energy poolsinergies
Regulatedmarkets
Safety and Environment
CONSISTENT BUSINESS INTEGRATION AND DIVERSIFICATION
SAFETY AND COST
INFORMATION SECURITY AND EFFICIENT SHARED SERVICES
GLOBAL AND DIGITAL PROCESSES
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DIGITAL ARCHITECTURE
IT Strategy
Cepsa | Migration to Suite on HANA | February 2016Gartner & MIT Report: “Cepsa. Raising the performance
of the IT organization and increasing reuse levels”
E&P SUPPLY MANUFACTURING LOGISTICS RETAIL FINANCE MARKETING SHAREDSERVICES
Business processesReuse common processes across all Business Units and Corporate
Vertical Value Chain Integration
TechnologyReuse
com
mon
tech
nolo
gie
sacr
oss
the
valu
ech
ain
Horizo
nta
l Soft
ware
Layer
Inte
gra
tion
Portals / User access
Collaboration / Virtual Teams
Content and KnowledgeManagement
Business Intelligence and Data Management
Application and ProcessIntegration
ERP-HANA
Component Repository Web Services Development
Data Base Access
OS and Security
IT COMPONENT CATALOG
BUSINESS PROCESSCATALOG
11
FRONT OFFICECONTENT
MULTICHANNEL
DIGITAL APPLICATION PLATFORM
IT Strategy
Cepsa | Migration to Suite on HANA | February 2016
BACK OFFICETRANSACTIONAL
MIDDLE OFFICEDECISION
AUTOMATED
COLLABORATIVE
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DIGITAL INTEGRATION PLATFORM
IT Strategy
Cepsa | Migration to Suite on HANA | February 2016
REALTIME AND MULTICHANNEL
NEW WAYS OF WORKING AND SOCIAL
PREDICTIVE ANALYSIS
13
DIGITAL INTEGRATION PLATFORM
IT Strategy
Cepsa | Migration to Suite on HANA | February 2016
REALTIME AND MULTICHANNEL
NEW WAYS OF WORKING AND SOCIAL
PREDICTIVE ANALYSIS
Cepsa Today. Business Priorities
IT Strategy
Migration to HANA in Memory (CEPSA/SAP Project)
15
CEPSA ERP PLATFORM
Migration to HANA in Memory
Cepsa | Migration to Suite on HANA | February 2016
IS-OIL
Finance
FI
Sales and Distribution
SD
MaterialsManagement
MM
Human Capital
Management
HCM
PlantManagement
PM
SuppliersRelationship
Management
SRM
IM FSCM
QMJVA
SuccessFactors
ServiceNow
SuppliersPortal
Business Objects
BO
Business Warehouse
BWBusiness
Planning and Consolidation
BPC
Travel and Expenses IS-Utilities
IS-U
IS-Retail
IS-R
16
CEPSA HANA MIGRATION PROJECT
Migration to HANA in Memory
Cepsa | Migration to Suite on HANA | February 2016
• One single SAP integrated instance for all business areas (IS-Oil), with more than 2.800 users
• Large database size and complexity, high level of customization
• Business continuity to be improved
• Cepsa Board fully committed
• HUAWEI selected as infrastructure partner
• PANAYA code cleaning and testing tools
• Migration from ECC 6.0 EHP4 to ECC 6.0 EHP7 on HANA
• Project scheduled from May 18th to November 8th
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SAP HANA VALUE PROPOSAL
Migration to HANA in Memory
Cepsa | Migration to Suite on HANA | February 2016
SAP HANA value
proposal3
1
2
4
5
CASH MANAGEMENT
• Centralized bank account management• Real time bank position• Improved cash position forecast• Cash management dashboard
USER INTERFACE• New simplified user interfaces• Mobile applications
OTHERS IMPROVEMENTS• IBP Integrated Business Planning: ERP and BPC
database unification
SIMPLE FINANCE• Business processes improvement: SAP Accounting• New reports accesed via web or mobile devices
SUITE ON HANA• In-memory technology• Improved performance (transactional, batch processes)
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PROJECT KEY VALUES
Migration to HANA in Memory
Cepsa | Migration to Suite on HANA | February 2016
40.673objects
Reports
Roles
Transactions
Interfaces
Jobs
Queries
User exits
…
4.089 changes
Software
changes made
to ensure
successful
migration
1.910tests
Functional tests
to ensure proper
functioning of
SAP applications
on HANA
75% databasereduction
75% database
reduction from
7,9 a 2,1
terabytes
+110people
Over 110
technical
resources
involved in
migration process
+20.000hours
More tan
20.000 working
hours
19
ARCHITECTURE
Migration to HANA in Memory
Cepsa | Migration to Suite on HANA | February 2016
ECC6 EHP4
HANAECC6 EHP7
Heterogeneousmigration
< nov 7, 2015 > nov 8, 2015
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ARCHITECTURE
Migration to HANA in Memory
Cepsa | Migration to Suite on HANA | February 2016
OceanStor S5500T96Tb storage
2x FC 16Gb/sSAN switches
HUAWEI RH 8100 6TB
MAIN
SAP HANA PRODUCTION
OceanStor S5500T96Tb storage
2x FC 16Gb/sSAN switches
HUAWEI RH 8100 6TB HUAWEI RH 5885 1TB
DISASTER RECOVERY
QUALITY AND DEVELOPMENT
HUAWEI IN MEMORY INFRASTRUCTURE
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ARCHITECTURE: DISASTER RECOVERY
Migration to HANA in Memory
Cepsa | Migration to Suite on HANA | February 2016
Data
base
Applic
ation
Vie
w
CPDA
EPC-00 EPC-00 IS 1- 00
TST-02
SRV02767
SRV02367
SRV02267
EPC-ASCS-00
EPC-PAS-01
SRV02787
EPC-DI-06
EPC-DI-04
SRV02220
SRV02207
SRV02206
EPC-DI-03
EPC-DI-01
EPC-DI-02
SRV02202
SRV02203
SRV02219
EPC-DI-05
EPC-ASCS-00
EPC-PAS-01
SRV02787
TST-ASCS-00
TST-PAS-01
SRV02387
IS 1-ASCS-00
IS 1-PAS-01
SRV02287
CPDB
Private network Mirror network Backup network Service network
22
PROJECT PLAN OVERVIEW
Migration to HANA in Memory
Cepsa | Migration to Suite on HANA | February 2016
Project executed according to the plan initially established with no significant deviations
Kick-off and project preparation18 April
1
April2015
May June July August September October November
Infrastructure installation21 April18 May
2
Cycle 1: HANA + EHP7 Migration25 May15 June
3
Test code changesDR testing and volumes7 September2 October
6
Cycle 2: HANA + EHP7 Migration7 August4 September
5
Functional testing and code changes16 June6 August
4
Development environment migration to HANA5 October2 November
7
HANA go-live and support8 November…
9
Production environment migration to HANA6 November -8 November
8
Finished In progressGo-live
23
April2015
May June July August September October November
PROJECT PLAN IN DETAIL
Migration to HANA in Memory
Cepsa | Migration to Suite on HANA | February 2016
Kick-off
Infrastructure
Downtime
acknowledgement
Cycle 1
07/08/15Soft Freeze - No new
projects
Phase I: Preparation
Cycle 1: EhP7 + HANA (SPDD Adjustment
included)
SPAU/HANA enab Functional Testing
Phase II: First migration cycle
Cycle 2
02/10/15
Phase III: Second migration cycle
Hard Freeze
Cycle 2: EhP7 + HANA + SPDD
Go-Live
08/11/15
Phase IV: Prod migration
HANA Development
Phase III – Dev migration
SPAU/HANA enabFunctional Testing
Phase: V
Custom Code (Analysis /Workshop)
Execution (VTO / BPPO)
System Administration
GLS
SPDD
DR/HA
DR/HA
Hard Freeze - No DEV system
Dual Development
Preparation (VTO / BPPO)
DR
24
RISK MANAGEMENT AND CONTINGENCY PLAN
Migration to HANA in Memory
Cepsa | Migration to Suite on HANA | February 2016
Downtime too highPotential high downtime thatmay not fit with the go-live weekend
• Performed several technical migrations in order to optimize the process• Archiving information in order to reduce downtime
Remote connectionRemote connection availability of outsourcingservices to HANA environment (virtualizedvia Citrix)
• An alternative channel was provided for remote connection in case of main channel failure
Integrated cutover planLack of coordination of activities among thedifferent teams involved in migration
• A single migration plan shared by all the teams was prepared• Consolidation of this cutover plan before migration
The current SAP production environment could be activated again if for some reason would not have been possible to complete the migration within established plan (go / no go decision on Sunday November 9 at 15:00)
Main risks in production migration
Main contingency plan
25
NEXT STEPS
Migration to HANA in Memory
Cepsa | Migration to Suite on HANA | February 2016
• Migration to Suite on HANA
• SAP BPC for Planning and Consolidation
• SAP Business Warehouse (BW)
• SAP IS-Utilities
• SAP IS-Retail
• Simple Finance and Cash Management proof of concept
FUTURE
THANK YOU
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