copyright © 2003 americas’ sap users’ group mol hungarian oil and gas sap sem & bw projects...

Copyright © 2003 Americas’ SAP Users’ Group

MOLHungarian Oil and GasSAP SEM & BW ProjectsAngie Braun – Project Manager (MOL)

Hakan Irgit – Manager (Accenture)

20-May-2003

Introduction

TOP 5 QUESTIONS since arriving at ASUG . . .

What (who?) is MOL?

Did you really come all the way from Budapest, Hungary?

Where is Budapest, anyway?

You don’t have an accent. Are you Hungarian?

Has MOL implemented any SAP modules?

Introduction

1. What (who?) is MOL?

The largest company in Hungary About 11,000 employees Approx 4 billion USD / yr revenue

“The” Oil company in Hungary Upstream (they look for oil) Downstream (once it’ found, they make gasoline & stuff) Retail (they sell the it to people like you) Gas (what you use when you turn up the furnace) Petrochemicals (other stuff that we won’t get into)

Headquartered in Budapest, the capital city of Hungary

Company Profile

First significant oil and gas company in Central Europe to be privatised

Leadership in all domestic core business

Shares listed on Budapest and Luxembourg Stock Exchanges and traded on SEAQ (London)

Shareholding structure (approximate)

HungarianGovernment 25%

OMV 10%

International Institutional Investors 42%

MOL Treasury 5%

Domestic ordomestic

depositary 18%

Introduction2 & 3. Did you really come all

the way from Budapest, Hungary? Where is that, anyway?

Turkey

Spa

in

Ger

Fra

Eng

Located in Central Eastern Europe

Beautiful capital is Budapest (Bud-a-pesht)

Famous for Most Nobel Prize Winners Herend & Zsolnay

Porcelain Tokaji Wine Gulyas (known here as

Gulash) Unfortunate enough to experience 40 years of Communism,

but now Western and moving to EU Membership in 2004.

Introduction

4. You don’t have an accent. Are you Hungarian?

Actually, I have an American Mom, a Greek Dad, a Czech Husband and a Baby just born in Hungary

Been “in Oil” almost 20 years

16 for Conoco

3 for MOL

Been “in SAP” 6 out of the last 8 years

Introduction

4. Have you implemented any modules of SAP?

SEMSEM

R/3R/3

FIFI

COCO

AMAM

WFWF

IS-OilIS-Oil

MMMM

HRHR

SDSD

PPPP

IMIM

PMPM

BWBW

CRMCRM

PSPS

XIf SAP

sells it, … We got it!

Business Environment

Eat or be eaten!

Current CEE Business Environment . . .

Business Environment

Worldwide oil industry consolidation is felt in Hungary . . .

Turkey

Spa

in

Ger

Fra

Eng

Now a 70% owner in Slovnaft, Slovakian National Oil Company . . . Bidding for Unipetrol (Czech Republic) and for Ina (Crotia), . . . maybe later PKN (Poland)

Project Background

Implementing SAP R/3 was a step to build a foundation to prepare ourselves for future expansion.

NOT to be eaten…

Project Background

Past FutureNow

MainframeSystems

“New”Processes

UpgradedInfrastructure

SAP R/3With e-Business

MOL:

Top Competitors:

MainframeSystems

“New”Processes

UpgradedInfrastructure

SAP R/3

e-Business

More than a “Normal SAP” project . . .

Assessment and Planning

Detailed Design and Prototype

Delivery & Assimilation

Post Implementation Support

Phasing

HR

CRM

CORE

BW SEM

RETAIL

PM

Release 1 - HR

Release 2 – CORE SAPCRM, SEM&B/W

Release 3 – Retail andPlant Maintenance

JUNE 2002 DECEMBER 2002

Project and Journey Management

Three Stores PILOT LIVE

Technical and Basis Support

01/12

Change Management

Release 1: 01/12/2001Release 2: 01/06/2002Release 3: 01/12/2002

DECEMBER 2001

Go Live Dates

Project Plan

BW / SEM

What we didn’t know at the time . . .

SEM / BW would becomethe foundation

for our future expansion efforts

• Over 350 people on the project (250 MOL, 100 consultants)• 21 nationalities• English as the common language (but only about 10% spoke it)• 20+ full time translators• Basically “big-bang”

ManufacturingExploration

& ProductionAcquisition

& TransportStorage &

DistributionMarketing

Upstream Trading

PurchaseContract

Refining

Chemicals

Lubricants

Commercial

Retail

Non-Fuel Retail Products

Contracts & Procurement

Maintenance & Projects

Management & Financial Accounting

Human Resources

Supply Chain Management

Information Systems

Today’s Agenda

Project Description

Project Specifics

Project Phases

Business Capabilities Enabled

Future Development

Lessons Learned

Contacts

Q&A

Project Description

Business Intelligence (BI) implementation . . . The foundation. Goals were:

• Streamline MIS-related processes for ease of information analysis

• Improve corporate planning capabilities

• Enhance reporting and forecasting effectiveness

• Increase operating efficiency by cost reduction

• Improve decision making capabilities through access to higher quality information in logical formats

• Develop a long-term Business Intelligence strategy

Project Description

• SAP’s Business Intelligence suite, including BW, SEM BPS planning, BCS Consolidation and CPM Balanced Scorecards and Executive Dashboards were selected by MOL.

• These tools were released to the MOL decision maker community (SEM&BW users) of approximately 300 (out of 4000) through a series of phased releases which started August 1, 2002. These releases served as the foundation for MOL’s business intelligence framework.

Accenture teamed with SAP Hungary to deliver the implementation phase.

After the approval, the implementation was divided into phases.

Agenda

Project Description

Project Specifics

Project Phases


Future Development

Lessons Learned

Contacts

Q&A

BI Project Specifics

• 18 months

• Phase 1 – Divisional (a.k.a. Operational) Reporting & Balanced Scorecards

• Phase 2 – Corporate Reporting & Business Planning

• 18 MOL Employees

• 14 Accenture Consultants

• 6 SAP Consultants

Project Specifics

• Accenture’s Contribution• Point Expertise on

• Information Delivery Facility• Corporate Planning & Process Design• Data Architecture

• BI Project Management• Delivery Assistance

• Implementation of SAP BW• Implementation of SAP SEM BPS, CPM and BCS

• SAP’s Contribution• OSS Notes Support• BASIS• Reviews and solution Management Assessment Sessions• SAP SEM BPS, CPM and BCS support

Agenda

MOL Profile

Project Description

Project Specifics

Project Phases


Future Development

Lessons Learned

Contacts

Q&A

Phases

Divisional Reporting and Balanced Scorecards (Phase 1):

• Operational and management reports, focusing primarily on finance, controlling and sales

• Executive dashboard with a series of KPIs targeted towards the MOL’s upper level management.

• Data Architecture designed and built with SEM solution in mind.

• Successfully released at the end of July 2002.

PhasesCorporate Reporting and Business Planning (Phase 2):

• Integration between CRM and BW considering SAP’s future vision for its new dimension products

• The legal and management reporting is sourced from SEM-BCS, which will perform consolidation of the client group companies.

• SEM-BPS Planning solution supports bottom-up planning capabilities for parts of the MOL’s organization, including sales, inventory, capital expenditures, general balance sheet and KPIs.

• End to end financial planning (B/S & I/S)• Supported oil wholesale planning• Consolidation of Business Plan for multiple “planned”

ownership structure

• Successfully released at the end of December 2002.

Planning Module (BPS)

IM PCASD BCSCO-OM

CAPEX TKD TBOP/SALES



CAPEX TKD and LSZ external sales

General sales

Cost Balance

sheetFinancing

Actual vs. Plan

Plan

Actual

Data Warehouse (BW)

Standard Actual Cubes

SAP BCS

Data of Subsidiaries

Consolidated reports

CO-

PCA

Sales

CAPEX

OPEX

Trial

Balance

Actual data

BCS

reporting

SAP BW

SAP R/3

Plan data in SEM BPS

Load subsidiaries’ interface Automatic

elimination

Data load (rollup)

BCS

System

Manual elimination

internal (MOL) and external (MOL Group)

data

BCS Data Flow

Agenda

MOL Profile

Project Description

Project Specifics

Project Phases


Future Development

Lessons Learned

Contacts

Q&A


• Streamline MIS-related processes and systems

• Simplified, transparent, focused planning, forecasting and reporting process

• Further unify scattered present system landscape, keep interfaces on the optimum level, allow access to transactional data

• Spread full understanding and usage of KPIs based on global benchmarking data

• Improve planning capabilities

• Reduce planning cycle time by more than 50 %

• Enhanced preparation with top-down target setting following up by bottom up confirmation

• Enhanced integration of the planning system, replacement of legacy planning systems


• Enhance reporting and forecasting effectiveness

• Available on 6th day after month end

• Rolling forecasting

• Standardized reporting

• Focused and simplified KPI structures


• Headcount reduction to decrease overall cost of the function (49% headcount reduction realized over 4 years)

• Develop a long-term Business Intelligence strategy

• Foundation and standards for future integrations have been kicked off.

Agenda

MOL Profile

Project Description

Project Specifics

Project Phases


Future Development

Lessons Learned

Contacts

Q&A

Future Development–underway SEM- Improvement of Target Setting / Top Down Planning, Rolling Forecasting

Procurement (MM) and Human Resources (HR) BW reporting

Upgrade to BW 3.1 and SEM 3.2

Future Development Underway

SEMSEM-Top Down Planning, Balanced Scorecards and Management Cockpit:

• Analyze current BSC structure

• Allocate current KPIs to new BSCs

• Identify reporting requirments to support scorecard analysis

• Identify business requirements to use Management Cockpit

Forecasting• Approach to limit the planned line items

• Breakdown/ Allocate divisional KPIs across the reporting units – this forms the basis of what data is required.

• Propose the planning items to be planned with input from the business.

• Update forecasting with rolling forecast capability – based on reduced data set. (modifications to the layouts…)

HR reporting Conceptual Design:Analyze and finalize HR query requirements collected for the areas:

• Based on BW Strategy and standard business content• Headcount reporting • Personnel costs reporting• Labor transactions reporting • Training

• Reporting of headcount and personnel cost planning

MM reporting Conceptual Design:Analyze and finalize MM query requirements collected for the areas:

• Based on BW Strategy and standard business content• Goods Movement – Plant and Stocks • Purchasing Data• Purchasing Groups

BW

SEM & BW Upgrade:

• Started with:• SAP BW 2.1C

• SAP SEM – BPS 3.0A

• SAP SEM – CPM 3.0A

• SAP SEM – BCS 3.0A

• Oracle 8.1.7

• IBM Servers

• Now upgrading to latest versions:• SAP BW 3.1

• SAP SEM – BPS 3.2

• SAP SEM – CPM 3.2

• Oracle 9.1

Future Development–underway

Technical Upgrade

Agenda

MOL Profile

Project Description

Project Specifics

Project Phases


Future Development

Lessons Learned

Contacts

Q&A

Lessons Learned - Architecture• Holistic application architecture approach to handle:

• R/3 upgrade (EI), patches, etc

• BW/SEM upgrade, patches, etc

• Non R/3 system connections through EAI and/or ETL

• Define the system landscape early on• What system must be used for what

• What are the dependencies between multiple systems

• Transporting (between SAP systems) conception and discipline is essential.

• Define an approach for the batch schedule:• Whether an external scheduler will be used or not

• Whether BW and R/3 batch architectures will be integrated

• Work with your hardware vendor

• Business Go-live vs. Technical Go-live

Lessons Learned – BW & SEM Decide where to maintain your Master Data depending on

how much control you have over your R/3 system(s)

Build BW on BW platform (financials) Performance management – plan to control your actuals

Design for performance

Benefit twice from BW by building SEM on top.

Fix where needed – Do your fixes on the source system instead of building complex rules

Authorisations/locking must be part of SEM Architecture

Version Management is key – Financial Standards

Too detailed adds very little value - Benchmark from Day 1

Do not miss your planning deadlines. You miss a year!

Excel still lives!

Lessons Learned - Project

Have clearly defined and agreed business objectives

Transparent and well communicated processes focus on tangible, measurable benefits

Get business involved and build communication

Start small – vision to Growth & Benefit; do not underestimate meaning of change management

Use pre-delivered Business Content

Lessons Learned - Project

Don’t bite off more than you can chew

Start small – vision to Growth & Benefit; do not underestimate meaning of change management

Agenda

MOL Profile

Project Description

Project Specifics

Project Phases


Future Development

Lessons Learned

Contacts

Q&A

Contacts

Angie Braun: [email protected] www.mol.hu/english

Hakan Irgit: [email protected]

www.accenture.com

Köszönöm. Hello Szia !

Questions?

BPS - Improve corporate planning capabilities• Integrated master data - more reliable figures, less manual intervention has improved overall

discipline within the organization• One version of the FACTS - rather than plans on excel spreadsheets resulting in less

reconciliation• The business plan and cost center planning are aligned both on reporting unit level and

account hierarchies

BCS - Improve external and internal consolidation capabilities• Standardisation of the actual, plan and forecast consolidation method• Automation of the process – a single transparent system instead of manual consolidation• Structuring and spreading the knowledge around consolidation (Less mystery around

consolidation operations)• Standardization across Subs - the system will not load unstandardized data collection - where

before manual intervention meant less discipline within SUBS.

BW - Improve reporting capabilities• Streamline MIS-related processes for ease of information analysis

•Enhance reporting effectiveness •Improve decision making capabilities through access to higher quality information in logical formats


BW SEM Implementation – key advantages

Milestone

SOLUTION READINESS BUSINESS READINESS

KPI Reporting

Trial Balance

Core Sales

Capex

Opex

Consolidation

Gabor Czako Paul Manwell

TEST TRAINING

PHASE 1

Operational/

Improvements

PHASE 2

Technical

Readiness

Change requests

Development

Schedule

Performance testing

Comms

Cut Over

User

Mapping

Authorisation

Training

Schedule admin

Post Implement.

Knowledge

Transfer

TECHN.

Front End Back End Deployment

OUTSTANDING

DESIGN

Future Releases

Approaches

Standards

Procedures

Hajnalka Sagodi

Hakan Irgit

Team Structure

Std.

Actual

Plan

Multi

Plan vs. Actual vs. Forecast BW reports by company code (not

eliminated )

Plan / Forecast /Actual Reporting Multi-cube

Plan / Forecast cube

Actual cube

Standard Actual cubes

Consolidated Plan vs. Actual vs. Forecast BW reports by company code (eliminated) and for group

BCS Reporting

BCS Reporting cube with consolidated internal and external data

BCS

system

Execution of consolidation for all types of data (actual, plan, forecast - internal and external). Consolidated data is stored in different versions.

SAP BWSAP BW

SAP BCS

Corporate Reporting Model

CPMBPSBCS

BW

R/3

Strategic Enterprise Management (SEM)

(Data warehouse)

BCS / Business Consolidation System

(consolidation module)

• External and internal consolidation of actual, plan and forecast data

BPS / Business Planning and Simulation

(Planning Module)

• Sales Planning• Balance Sheet Planning• OPEX planning • Funding• CAPEX

CPM / Corporate Performance Monitor

• Level 1&2 KPIs

Integration between Systems

copyright © 2003 americas’ sap users’ group mol hungarian oil and gas sap sem & bw projects...

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