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Copyright © 2011 Sasol All Rights Reserved. Functional Excellence and Enterprise Architecture The Open Group Johannesburg Conference March 15-16, 2011

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Copyright © 2011 Sasol All Rights Reserved.

Functional Excellence and Enterprise Architecture The Open Group Johannesburg Conference

March 15-16, 2011

Copyright © 2011 Sasol All Rights Reserved. 2

Content

Introduction

EA for Functional Excellence

Functional Excellence

Conclusion

Copyright © 2011 Sasol All Rights Reserved. 3

Chapter 1: Introduction

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The requirement

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Chapter 2: Functional Excellence

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Functional Excellence Video

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Sasol share price

11 Jul 2008: $147/barrel

>R500/share

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Functional Excellence Strategic imperative

The Mandate Reduce overall functional

cost by xx% from the FY10

budget base by end June

2011

(GEC, June 2009)

The Result Position Sasol for future

success, providing benefit to

all stakeholders and ensuring

business sustainability

though “one Sasol way” of

doing business

Group

Business

Success ∑BU Excellence AND ∑Function Excellence =

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Functional Excellence The prize

1

1

1 1

One

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Chapter 3: EA for FE

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People Systems Equipment

Complexity Activity

Resources

-xx%

= Effectiveness

> Efficiency

Simple Standard

Other

Shared

Fundamentals Reduce functional costs by xx% by June 2011

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EA OD (Org Design)

We took a simple view The organisation consists of…

People &

Skills

Technology

& Assets

Culture Process

Structure

Strategy

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Manifested in... Meet the FE Core Team

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...point the car

in the right

direction!

EA in Sasol Effectiveness!

Doing the

right things

Business processes link the organisational resources to the objectives

Business processes deliver objectives

Objectives are derived from strategy

Efficiency!

Doing things

right

...make the car

go faster!

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Process Opportunities Process to identify savings opportunities

?

Focus on 3 Levers:

1. Eliminate work

2. Improve efficiency

3. Reduce cost of work

Eliminate work by

removing or

reducing objectives (eliminate processes)

Seek process

efficiency

improvement

opportunities Identify

opportunities to

reduce the cost of

the work

Always check

for sustainability

Question validity of process drivers

Keep asking why, why, why

Simplify, Optimise,

Standardise

Leverage economies of

skill and scale, etc

Removing objectives

leads to elimination

of processes!

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Outcomes Process statistics

Global

Template!

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Lets get technical SAP Optimisation

Optimisation of SAP systems in Sasol

• Reduced SAP systems in Sasol Managed impact to running business

•Enabled Functional Excellence, including Shared Services One Sasol Way

Simple l Standard l Shared

•Enabled future growth Standard platform (global SAP template)

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Lets get even more technical Positioning ARIS vis-à-vis Solution Manager

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Chapter 4: Conclusion

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Lessons learnt

• Drive from the very top

• Add value and be seen to add value

• Be pragmatic and focus on the essential

• Define & stick to the principles

• Strong, committed, skilled, experienced multi-

disciplined team (FUNCTIONAL, EA, PMO, OD, CM, WFT,

Training, SAP/ET, Business Case, Risk)

• Resource capacity

• Manage the risks

• Focus on Sustainability

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Functional Excellence Reaching new heights

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Lessons learnt

****

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Conclusion