implementing s/4hana in an agile greenfield · 2018-10-18 · implementing s/4hana in an insights...
TRANSCRIPT
International SAP Conference for Chemicals, Prague, October 17 th 2018
AGILE GREENFIELDIMPLEMENTING S/4HANA IN AN
INSIGHTS & LESSONS LEARNED
2
Safe harbor statement
The information included in this presentation is being provided for informational purposes only.
This presentation contains certain forward-looking statements, including assumptions, opinions and views of thecompany or cited from third party sources. Various known and unknown risks, uncertainties and other factors couldcause the actual results, financial position, development or performance of any of the ARLANXEO Group entities to
differ materially from the estimations expressed or implied herein. None of the ARLANXEO Group entitiesguarantees that the assumptions underlying such forward-looking statements are free from errors nor do they acceptany responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of
the forecast developments.
No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any
information, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to anyerrors, omissions or misstatements contained herein, and accordingly, no representative of any ARLANXEO Groupentity or any of such entity’s officers, directors or employees accept any liability whatsoever arising directly or
indirectly from the use of this document.
AGENDA
01 ARLANXEO overview and IT Roadmap
02 Future architecture and project insights
03 Lessons learned and Key Success Factors
04 Q&A
Background Global Set-Up Organization
▪ ARLANXEO: Joint venture formed
by LANXESS and Saudi AramcoStart-up April 1, 2016
▪ Shareholder agreement on change of ownership structure
▪ A world-leading synthetic rubber company: development,
manufacturing and marketing of high-performance rubber
▪ 20 plants in nine countries
▪ ~3,800 employees worldwide
▪ Global sales of ~3.2bn € in 2017, EBITDA of ~ 385m €
▪ Corporate Headquarters: Maastricht, Netherlands
Two business units
▪ Tire & Specialty Rubbers
▪ High Performance Elastomers
ARLANXEO is a key global player in the synthetic rubber market
4
A broad and innovative portfolio with a global footprint is offered by ARLANXEO
▪ Truly global footprint in all regions
featuring state of the art production facilities
▪ Proximity to major markets, especially
Asia including a strong recently built asset base
Cabo de SantoAgostinho, BR
Triunfo, BR
Duque de Caxias, BR
Dormagen, DEOrange, US
Singapore
Sarnia, CA Port Jérôme, FR
London, CA
Shanghai, CN
Pittsburgh, USFribourg, CH
Leverkusen, DE
São Paulo, BR
La Wantzenau, FR
Geleen, NL
Zwijndrecht, BE
Cologne, DE
Maastricht, NL
Changzhou, CN
Nantong, CN
TSR Production HPE Production
TSR Office HPE Office
Group HQ
Joint Production
Joint Office
▪ Broad and innovative product portfolio
for various rubber applications
5
6
ARLANXEO’s IT Roadmap enables the separation from LANXESS and future business growth for ARLANXEO
▪ Currently most applications are
provided within a SLA framework by LANXESS
▪ Separation to be completed by 2021
▪ S/4HANA as ERP Core in a standardized and cloudified
App Landscape
+IT Separation Digitization IT Roadmap Outcomes
▪ Beside workplace topics overall
digitalization framework focusing on core processes
▪ Production process maturity
▪ Supply chain & logistics
▪ B2B marketing & sales
▪ S/4HANA serves as digital
enablement platform
▪ Platform for lean group
function processes
▪ Harmonized businessprocesses
▪ Improved business partner integration
▪ Lean, future proof IT application architecture
7
ARLANXEO’S core business processes capabilities benefit from new solutions
Solution and IT Backbone
IT Support
Communication
Human Resources
Equipment
Process Template
STAR
Contracts & SLA &
License
Treasury
Infra-structure
Consoli-dation
CRM
ARLANXEO Core Processes built on S/4
Expected Benefits of the core
processes
Procurement
Production &
Plant
Maintenance
Sales &
Marketing
Finance & Consolidation
Master Data Management
Supply Chain Management
Multiple projects are running to manage the overall transformation complexity and to create specific value for ARLANXEO
Business Processes
▪ Leaner & harmonized business processes
▪ Standard S/4HANA business processes
Innovation
▪ Enhanced reporting and analytics
▪ Transparency due to real-time integration
▪ Information accessibility anywhere anytime
leads to better collaboration
IT Benefits
▪ Reduced number of applications
▪ Future-oriented IT landscape simpler to
maintain
Legal & Regulatory (e.g. GTS, EHS)
8
S/4HANA is at the core of a modern and standardized application architecture at ARLANXEO
ARLANXEOS/4HANA CORE
Label printOMS EH&S
emb. Analytics
emb. TM MDG
3rd party SAP
MeridianOpen Text
From a complex legacy landscape… … to the new
Custom Development
Transportation
Management
eBusiness Partner
Output
mgmt.
Procurement-Tools
Business Warehouse
SAP BW & SAP-SEM
Environment,
health and safety
SAP EH&S
CRM
Elemica
Automated Invoice
handling
InterCompany
Exchange Broker
SAP HANA Enterprise Cloud
SAP Label print
Master Data
Management
SAP MDM
Customer Complaints
Management
LANXESS
Central ERP
Global Trade Service
SAP GTS
…
Custom
Analytics
ApplicationsInternetportal –
Customer Order
BPC RTC
GTS
SAP BW/4HANAReporting
Fiori ApplicationsImprov ed UI
SAP BPCPlanning
Cloud Apps
CoupaeProcurement
ConcurTrav el & Expense
HybrisSales + CRM
RevalTreasury
ElemicaDigital
supply network
9
To achieve the benefits the S/4HANA project approach focusses on the future business processes based on current technology options
Project approach from IT point of view
Template based approach
Overall 2 years for Pilot Implementation + Roll-Outs
Latest Technology – Project Started on 1610, template built on
1709, upgrade to 1809 as part of pilot
Process approach (business view)
„Smart greenfield approach“, i.e. combination of proven
legacy processes with Accenture & SAP leading practice solutions
AGILE Template Design and Build
Close cooperation with business for processes
supported by state-of-the-art technology
Harmonization and
simplification of processes
Usage of S4/HANA
chemicals best practices
Setup of lean
system landscape
Agile
methodology
10
The timeline for all projects is mainly driven by the S/4HANA milestones
2017 2018 2019 2020
Deployment & further functionality
Reval
SAP Hybris Commerce Cloud for B2B
SAP Hybris Cloud for Sales & Service
Coupa
Pilot Implementation
SAP Master Data Governance
Template Design & Implementation
Roll-out Wave 1
SAP BW/4HANA & SAP Business Planning and Consolidation*
SAP S/4HANA Enterprise Management
Roll-Out Wave 2
SAP BPC Real-Time Consolidation (RTC)**
ERP - Digital Core
Master Data Governance
SAP Upgrade Upgrade from 1610 to 1709
CRM
eCommerce
Go-Live (Oct., 1st 2019)
eProcurement
STAR Process Template
Go-Live (Apr., 1st 2020)
Go-Live (Apr., 1st 2019)
Treasury and Risk Management
…
Analytics & Planning
Further ongoing projects
Upgrade from 1709 to 1809
Consolidation
*SAP BPC11.0, version for BW/4HANA and SAP BPC Optimized for S/4HANA are used depending on the different planning scenarios **as part of SAP Business Planning and Consolidation
11
ARLANXEO started with an agile approach and switched to waterfall for the implementation to leverage the strength of both approaches
Process scoping,
project planning
Iterative Template Design & Build
(Sprint 1 – 7)
Template
Integration Test
Template: Iterative Approach Implementation + Roll-Outs: Waterfall Approach
Local Fit/Gap Design
Build
Test
Deploy
Rapid and continuous business involvement
Early availability of a system, prototype new functions
Dual track set-up for multi-speed development
Data activities
Change Management
Requirements / Definition clear from Template
Most complexity covered in core model
Overlapping Roll-outs clustered by countries
Agile is a real change for the organization – it requires commitment & intensive coaching
SCRUM
KANBAN
12
In Sales & Marketing value is realized through the extension of cloud solutions and integration of E2E processes
Sales & Marketing
Major business impact:
▪ For settlement management (rebates
and commissions), now, 4-eyes-
principle possible w/o additional
programming and workflow settings
▪ 360° view on Business Partner brings
increased transparency for the
relationships to the BPs
eCommerce & CRM
Major business impact:
▪ The legacy web shop will be replaced by
a modern eCommerce Solution on
Hybris integrated with customer
relationship marketing and core SAP
S/4 (e.g. availability checks, pricing)
▪ Integration options with other sourcing
platforms of major customers
▪ Increased user experience for the
customer
Transportation Management
Major business impact:
▪ Usage of embedded Transport
Management offering better status
information for deliveries to customers
▪ Advanced and integrated
transportation functionalities
▪ Single source of immediate insights
▪ Logistics Business Network for carrier
integration still very new
Increased transparency on
Business Partners
Customer proximity and
service
Execute end-2-end TM
process in one single system
Process and solution impact
13
The value chain will also leverage a platform strategy to collaborate better with the supplier by streamlining real-time production processes
Sourcing & Procurement
Major business impact:
▪ Supplier integration with State of the Art
eSourcing platform (Coupa)
▪ Higher automation level in exchange of
commercial documents
▪ Mobile applications for purchasing
document approval and Procurement
Dashboard
▪ Replacement of complex custom built
SRM solution
Plant Maintenance
Major business impact:
▪ Full End-to-Process for Corrective
Maintenance within Fiori
▪ New Fiori App to create maintenance
requests
▪ Increased reporting capabilities
Supply Chain Management
Major business impact:
▪ Streamlined solution for Global Label
Handling
▪ Increasing planning capabilities with
new cockpit for material planners
▪ Flexible MRP processes across
organizational boundaries (e.g. plants)
instead of manual processes
▪ eWM was prototyped but switch
postponed to after project due to change
impact
Process and solution impact
Supplier Integration enables
new valueEnabling mobile workforce
Enrich existing processes
with digital accelerators
14
In the Finance and Reporting area we faster processes and enhanced user experience is brought to the end-user
Finance & Controlling
Major business impact:
▪ Flexible ledger approach and multiple
currencies for different GAAP requirements
▪ Streamlined redesign of chart of account
used for Legal Entities and Group
▪ Single P&L structure for financial and
management reporting
▪ Accelerated fast-close and reduced
recon. effort
▪ Group costing new concept & parallel group
valuation
Consolidation
Major business impact:
▪ More transparency and flexibility
through drill down possibilities
▪ Planning applications can be feed in
real-time with actuals leads to an
improved and accelerated planning
process
▪ Intercompany profit elimination not
required
▪ Modernized frontends to custom
development by using pre-delivered
FIORI content
Reporting & Analytics
Major business impact:
▪ Simplification of operational reports
and transfer to S/4 (reduction of scope
for Business Warehouse)
▪ State of the Art reporting solution
▪ Reporting between S/4HANA and
BW/4HANA in sync
Process and solution impact
Simplified structure and
accelerated processes
Real time BPC enables the
integration (BI+S/4) and simplifies planning process
Faster reporting and
improved User Experience
15
An integrated state-of-the-art compliance framework
EH&S / GTS
Major business impact:
▪ Most functions taken over from the legacy
system
▪ Replacement of custom developments in
EH&S
▪ Focus on simplification of existing solutions
to the required ARLANXEO scope
Master Data Governance
Process and solution impact
Complying with regulations
for safe operations
Simplified data governance
fitting the new org. structure
Major business impact:
▪ Reduction of process complexity (e.g.
number of approval steps) within
workflows
▪ Master data solution integrated in S/4
core system and with core processes in
S/4
▪ New and improved workflows in
material master creation
▪ User-friendly interface
16
Fifteen months into the program, we see some key lessons learned
S/4HANA isnot ECC 6.0
Evaluate legacy functionality vs.
the new
Agile is a major change
Needs training &
commitment
Newfunctionalities
Business Transformation
Maturity of applications
Evaluation of SAP
Manage the SAProadmap
E2E business
participation
Find right the balance
of the new
Prototype at a early
stage
17
The key success factors of ERP programs are still valid, but there are a few more to consider in an S/4HANA transformation
Drive business partnership with IT’s stakeholder and leverage SAP collaboration to increase the project‘s success
Manage
product
road-
map
Business
engage-
ment
New
skills
Best
practice
Customer
centric
Change
enablem
ent
Focus
on
standard
Gover-
nance
User
experi-
enceTechnology &
Ecosystem
People & Partners
Approach
Leadership
Agile
Operating
model
Value
drivenS4
experts
SAP