Collaboration with

Capgemini allows

BAT to confidently

proceed with

application

rationalization

program to drive

efficiency across the

business

The Situation

Big or small, everyone is looking for ways to increase efficiency and agility in the back office that allow them to respond quickly to market demands and regulatory pressures. In 2011, British American Tobacco (BAT) committed itself to a 50% reduction in its legacy application estate by 2017. This initiative complements the company’s “TaO” transformation program – the introduction of a fundamental above-market Target Operating Model (TOM) and the deployment of a global SAP template – with the strict aim of increasing responsiveness while simultaneously lowering the total cost of ownership.

The Solution

BAT is today the result of its many acquisitions, having acquired more than just new brands and new markets into its portfolio: It also has an equally diverse application portfolio inherited from the businesses in the end-markets in which it now operates. The TaO transformation program will implement the TOM, supported by the global SAP template, but the question remained: How to simplify the legacy estate?

in collaboration with

British American Tobacco Moves Forward with 5-year Application Reduction Target

Application reduction is one of three lead indicators for measuring IT’s success to the wider business. This initiative is responsible for driving us to not only meet the 5% reduction target in 2012, but to significantly exceed it.”

Justin AdamsGlobal Application Portfolio Management LeadBritish American Tobacco

the way we do itConsumer Products

Capgemini was invited to join the global architecture team, owners of the application portfolio, and help define best practices, leveraging many aspects of their proven WARP application rationalization methodology from the Application Lifecycle Services portfolio. A phased approach was adopted, following a proof-of-concept that defined a reusable toolkit to map TOM processes to the as-is application catalog. Four global regions were evaluated in turn during 2012 to produce a 5-year roadmap for each.

The Result

BAT is confident of the alignment between the TOM, which will drive efficiency into every corner of its business in the coming years, and the harmonized Global Application Portfolio that will support it. The 5-year reduction plan contains per-annum targets with continual review cycles to maintain the critical process-to-application alignment to ensure the 2017 target is always in sight.

How BAT and Capgemini Work Together

BAT had undertaken an application audit two years back that yielded a voluminous but incomplete catalog. With upwards of 2.5 million separate application-to-process relationships, the task of analysis was truly daunting.

The joint project team, centered on the Enterprise Architecture function, started by implementing Capgemini’s “Wide-angle Application Rationalization Program” (WARP) framework, from within which it would deploy the collateral needed to undertake the required analysis. WARP is Capgemini’s accelerated approach to rationalizing an organization’s application landscape. Once the framework was implemented and the approach was agreed upon, attention turned to the phasing of the individual regional assessments and to their placement in the TaO deployment schedule.

A proof-of-concept was trialed in the Asia Pacific region that included simultaneously training the attendees of a launch workshop in the TOM, and then immediately following this with the approach towards application-to-process alignment.

A four-week exercise ensued, with representatives from the various business functions and end-markets mapping their current business applications to the TOM. The mapping exercise was completed at different speeds according to the complexity of the business area under consideration. This staggering allowed the subsequent analysis to be built up in increasingly complex layers until a complete picture was produced.

The initial results were promising, if a little surprising, as they suggested a level of saving not previously expected in a region that was already regarded as efficient in its deployed estate. This suggested that as much as 30% of currently deployed applications might be capable of transferring their functionality to regional and global applications before subsequent decommissioning.

BAT defined the goals very clearly at the outset and worked collaboratively with Capgemini to utilize their existing methodology and only adapt where necessary for each stage of the project.”

Justin AdamsGlobal Application Portfolio Management LeadBritish American Tobacco

the way we do itConsumer Products

© 2013 Capgemini. No part of this document may be modified, deleted or expanded by any process or means without prior written

permission from Capgemini.

Rightshore® is a trademark belonging to Capgemini.

For more information on this project, please contact:success.story@capgemini.com

Justin Adams,Global Application Portfolio

Management Lead,

British American Tobacco

Capgemini Consumer Products & Retail Application Services Architecture and Technology SolutionsApplication Lifecycle Services WARP

Approved by

British American Tobacco p.l.c. is a public limited company which is listed on the London Stock Exchange and the JSE Limited in South Africa. British American Tobacco p.l.c. is incorporated in England and Wales (No.3407696) and domiciled in the UK.

More information is available at:www.bat.com

in collaboration with

About Capgemini

With more than 125,000 people in 44 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services.

The Group reported 2012 global revenues of EUR 10.3 billion.

Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws onRightshore®, its worldwide deliverymodel.

Learn more about us atwww.capgemini.com

The proof-of-concept complete, the analytical processes and the supporting toolset were then industrialized and applied to all the regions in turn and comparable results were received. In fact, in every region the results exceeded expectations.

The regional analysis is actively in use in the construction of transition roadmaps and architectures. This is driving the business case for change and achieving the goals laid down in the Global IT Strategy for the legacy reduction program to achieve:

• A single version of the truth• Lower total cost of ownership• Decreased risk of legacy “time bombs”• Ensuring ubiquity of services

With the first phase of the reduction program complete, BAT is in the position of seeing a clear roadmap for implementing a single application portfolio within its organization, and also realizing the full benefits of working in a truly collaborative partnership with Capgemini.

Justin Adams, Global Application Portfolio Management Lead for BAT, comments on the partnership as follows:

“BAT defined the goals very clearly at the outset and worked collaboratively with Capgemini to utilize their existing methodology and only adapt where necessary for each stage of the project. This allowed the team to operate in an agile fashion and absorb changes in scope and requirements without the need for major rework and still meet the deadline even when it was pulled forward by two months to meet a budgetary planning deadline!”

Nick Gill,Vice President,

Capgemini UK

Mark Davies,Lead Enterprise

Architect,

Capgemini UK