Confiance Webinar Seneca Foods F I N A L

Business Transformation

WebinarMarch 10, 2011

Agenda• Seneca Foods Overview

• Seneca Foods IT Strategy

• Business Transformation Defined

• Business Transformation in Action

• Questions & Answers

Seneca Foods Overview• About Seneca Foods Corporation

Seneca Foods is one of the country’s largest processors of canned fruits and vegetables with manufacturing facilities located throughout the United States. Its products are sold under the Libby’s, Aunt Nellie’s Farm Kitchen, Stokely’s, READ, and Seneca labels as well as through the private label and industrial markets. In addition, Seneca produces canned and frozen vegetables, which are sold by General Mills Operations, LLC under the Green Giant label.

• Mission

“We feed the world safe and nutritious products

that are valued and enjoyed by families everywhere.”

• Vision

“We will continue to grow as a leader in the fruit and vegetable industry by remaining deeply rooted in our fundamental beliefs and through a shared commitment to those we serve.”

Mission

• Serve the Business– Reliable delivery of information technology services – Responsiveness to the needs of the business

• Protect the Business

– Secure our borders and data assets– Meet compliance needs

• Bring Strategic Value to the Business – Alignment to the business strategy and objectives– Predictable project delivery

Vision IT is the business

Business transformation enablement

Value-based business technology

Business / IT strategy aligned, done together

Optimized human capital

As part of the business, Information Technology is a service provider, providing value-based technologies and services that are fully aligned to support the operational needs and strategic objectives of the business.

Governance & Portfolio ManagementMaximize return on IT investment

Management &

Infrastructure

Strategic

Support & Maintenance

Transition State Desired State

Increase in strategic investments

Decrease in transactional maintenance

50%

45 - 50%

<5%

45-50%

20-25%

20-25%

Maximize ability to meet strategic needs and leverage platform.

Achieving Balance: Supporting Today’s Needs and Tomorrow’s Growth

Implementation Time Line

Incre

ase in

Cap

ab

ilit

ies

FY08 FY09 / FY10 FY11/12

Program Initiation

Scope• HR / Payroll• Financials • Cost

Management• Procurement• Order to Cash• Business

Warehouse• IT Infrastructure

Support• Break / Fix• Training• Governance• Process Models• Change

Management• Performance• Reporting• Master Data

• Stabilize Foundation

• Organizational Learning

Growth• Strategic

Alignment• Optimization• Priority Gaps• Analytics• Testing

Improvements• Upgrades• Company growthPreparation

• Building on Foundation

• Application Roadmap

Where We Are Going

Where We Are

Architectural Priorities• Business Process

– Just as important as technology– Strive for excellence, efficiencies– Process models documentation, learning

• Application– Support & Maintenance– Organizational Learning– Change Management, Governance– Strategic alignment / roadmap

Seneca Architecture

Business Process

Applications

Data & Information

Technology

• Data & Information• Master Data Management• Reporting, Analytics,

Measurement

• Technology• Business more reliant on

technology• Reliability, availability,

serviceability• Integration, performance,

optimization

• Process is Just As Important As Technology– High Impact Process Improvements– Long Term Competitive Advantage Opportunity– Scale Process to Accommodate Growth & Business Case Realization / Benefits

• Enables Risk Management / Business Continuity

• Align Business Processes to Application– Maximizes investment in SAP– Reduce time, effort, cost in defining, implementing, monitoring processes– Assists with software configuration of processes and automating sub-processes.– Greatly assists with changes, enhancements, projects.– Modeling process and requirements instead of programming.– Assists with Training, Operating Procedures

Strategic ObjectiveSupport SAP Platform, Business Growth and Profitability

By Implementing Business Process Management

• Tactical process efforts to enable strategic opportunities– Deliver value while building towards the strategic

• Journey Over Time – Using SDLC - Day-Day Project Work Processes

– Targeted Value Based Efforts – Critical Areas• Deductions, Brokerage

– Roadmap for BPM activities• What processes do we want to better understand, improve and invest in?

– Food Safety/Trace Recall, Planning, Brokerage, Deductions, Master Data• Application Portfolio Roadmap Alignment

– Enablement through Competency Center• ARIS Repository for all process initiatives• Management understanding of BPM• ARIS Express – no cost Visio

“Stractical” BPM

Confiance Transformation Framework (CTF)The Confiance Transformation Framework (CTF) is a comprehensive, structured approach to deliver business transformation. The Framework consists of four separate components: Design, Adoption, Governance and Realization, each with defined methodologies.

Together they form an iterative transformation roadmap to give an organization a prescribed approach for successful business transformation.

Adoption

DesignRealization

Governance

Transformation RoadmapProcess & Technology Discovery

Process Maturity

Process TrainingProcess Governance

Process Leadership Development

Transformation CoE

Process Ownership

Process Communication

Process Monitoring

Process Execution

Process Analysis

Process Technology

Process Measurement

Process Design

Process Strategy

Process Roadmap

Industry Frameworks

EA Strategy

EA Framework

Technology Standards

EA MaturityEA Training

EA Leadership Development

EA Communication

Technology Roadmap

Technology Governance

Technology Ownership

Portfolio Management

Application & Technology Rationalization

Capability Analysis

Master Data Management

Data Governance

Technology Principles

EA Metrics

EA Monitoring

Seneca Foods Transformation by Dimension• Design

– Use Automated Process Discovery (<30 days) to baseline enterprise process model

– Identification of process improvement opportunities – Identification of technical optimization– Integrated Business & IT view through reference models like SCOR,

SAP etc.• Adoption

– Implementation of BPM technology– Training, Mentorship & Elearning to drive organization enablement

• Realization– Structured approach to solve business problems through processes– Recommendations for technology optimization

• Governance– Process model governance

Phased Approach

Process Discovery

Process Profiling – Redocumentation

of SAP

ARIS Solution Manager

Integration

Build Repository

Create ARIS repository

Rationalize baseline processes

Create process architecture

Enable Process Harmonization

Establish framework for

process-based SAP

Use repository for stakeholder review & communication

Enablement & Adoption

Phase 1 Baseline Process Design

Results are categorized into • Business Process Findings

– Business Process Model– Process Oriented Configuration – SAP Solution

Manager– Identification/Validation of Process Improvement

Opportunities

• Usage Analysis– Organizational Structure & Organization Analysis– Transactional Analysis Use, User & User Group– Document Analysis– Technical Analysis– Authorization Analysis

Baseline Process Design

Process Profiling – Redocumentation of

SAP

ARIS Solution Manager Integration

Business Process Models discovered

Processes Level 1

Processes Level 2E2E View

Processes Level 3

Active (Tcode on top, frequency below)

SAP Usage• Transactions / Usage

The system is close to standard with 87%

59% of the reports not used during test period

Potential reduction of unused reports especially in consideration of a release change

• Reports

Baseline of transactions usage by module, type of technical processing, and by month.

Functionality AnalysisModule Description

BC Basis

CA Cross ApplicationComponents

FI Financial Accounting

MM Materials Management

CO Controlling

SD Sales and Distribution

LO Logistics

PP Production Planning and Control

PY Payroll

LE Logistics Execution

PA Personnel Administration

EC Enterprise Controlling

NO No Module allocation by SAP

BW Business Warehouse

PT Personnel Time Management

FIN Financials

SV Service

Standard functionality could likely be extended

ConditionProcessing

Customer inquiry/

quotationContracts Customer

order Billing

Industry typical functions No customer inquiry, no customer quotation High numbers of Contracts

Excellent: very few billing cancellations

Order to Cash Overview

Phase 2 Build Repository

• Rationalize Process Profiling content and generate baseline process documentation

• Create Process repository and structure within ARIS to house process content, utilize reference frameworks

• Connect existing high-level process content with defined Solution Manager and ARIS models to create multi-level process architecture, supplement as needed

Build Repository

Create ARIS repository

Rationalize baseline processes

Create process architecture

ARIS Enterprise Repository

ProcessesData Applications ProductsOrganizationStrategy Risk & Controls

Optional / targeted tocomplete detailed

processes

Deliver Products and Services

DeliverMakeSourcePlan Return

Level 1

Level 2

Level 3

Level 4

Deliver

EnableDeliver

DeliverEngineer-to-Order

Products

DeliverMake-to-Order

Product

DeliverStockedProducts

DeliverRetail

Product

GenerateStockingSchedule

ReceiveProduct atthe Store

Pick Productfrom

Backroom

StockShelf

FillShopping

CartCheckout

Deliver and/orInstall

Event

Function

Event

activates

Process interface

creates

Process interface

activates

XOR rule

Event

leads to leads to

AND rule

Event Event

leads to leads to

SAP function

Event

Function

Event

activates

Process interface

creates

Process interface

activates

XOR rule

Event

leads to leads to

AND rule

Event Event

leads to leads to

SAP function

Event

Function

Event

activates

Process interface

creates

Process interface

activates

XOR rule

Event

leads to leads to

AND rule

Event Event

leads to leads to

SAP function

BillingContracts Order Processing

CustomerInquiry

Account Processingin ERP

Billing in ERPContract Processing

in ERP

Contract ReleaseOrder Processing in

ERP

Credit MemoProcessing in ERP

Debit MemoProcessing in ERP

Entering Services inERP

Free-of-ChargeDelivery Processing

in ERP

In-House RepairProcessing in ERP

Inquiry Processingfor Internal Users inERP E-Commerce

Invoice CorrectionProcessing in ERP

Customer Returnsin ERP - Basic

Processing

Standard SalesOrder Processing in

ERP

MIGO_GI (GoodsMovement)

MB1A (GoodsWithdrawal)

Enter goods issuefor scrapping(optional)

SCOR, APQC, ITIL, Confiance CPG Best PracticesSupplement

Build

SAP Defined

Seneca Repository Meta-Model

Enterprise Process Model (EPM)

Core Processes

Managing Processes

Enabling Processes

Deliver Products andServices

Manage FinancialResources

Manage CustomerService

Manage Knowledge,Improvement, and

Change

Manage ExternalRelationships

Acquire, Construct,and Manage Property

Manage InformationTechnology

Develop and ManageProducts and

Services

Market and SellProducts and

Services

Develop Vision andStrategy

Develop and ManageHuman Capital

ManageEnvironmental Health

and Safety (EHS)

Type: Value-added chain diagram

Last change: Aug 17, 2010 3:05:55 PM

Name: Enterprise Process Model

Creator: system

Process View – ARIS

Technical View – SAP (Solution Manager)

Open sharedfolder and search

for back-updocumentation

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Print back-up

Enter reason codein SAP anddescription

Description is required formultiple codes, SAP only uses

a single code

Send paper copyto support

90% don't have back-updocumentation

Review CSL and/or Wesley for

back-updocumentation

Type: EPC

Last change: Sep 29, 2010 10:07:58 PM

Name: Resolve unsalable deduction

Creator: system

CLS

Wesley


found on...

Back-updocumentationnot found on...

Review customercontact

requirements

Customercontact required

Sales Personcontact required

Broker brokercontact required

Email check andcover sheet to

customer

Email check andcover sheet tosales person

Send back-up tospecialist

Invalid deductionprocessing

Update, route, &determine

deduction type

Unsalablededuction type

determined

Deductions Specialist


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SAPDeductions

Module

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Module



Deductionforwarded to

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UDM_DISPUTE(Dispute

Management)

Fully Integrated – SAP to Process

UDM_DISPUTE(Dispute

Management)

UDM_CUSTOMIZING (DisputeManagementCustomizing)

FI-CA: ManagingDisputes (DisputeManagement)

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SAPDeductions

Module



UDM_DISPUTE(Dispute

Management)

• Redocumentation of SAP synchronized into ARIS provides inventory of transactions being used mapped to SAP standard processes

• In ARIS, processes are captured and reuse SAP “building blocks” to create end-to-end process that includes SAP and manual activities

• ARIS and SAP are integrated to maintain a combined view and traceability from our processes to implementation and vice versa

Linkage

Phase 3 Enable Process Harmonization

• Create a published process repository for on-going collaboration and knowledge-sharing

• Create framework to incorporate process definition as part of SDLC

• Complete E2E review for Deductions Process

Enable Process Harmonization

Establish framework for process-based SAP

Use repository for stakeholder review &

communication

Deductions ProcessType: Value-added chain diagram

Last change: Sep 23, 2010 8:49:27 AM

Name: Deductions Process

Creator: system

Enter deductions in SAPUpdate, route, & determine

deduction type

Resolve slotting deduction

Resolve Pricing Deduction

Resolve damagesdeduction

Resolve inventory shortagededuction

Resolve bill back deduction

Resolve unsalablededuction

Resolve audit deduction

Resolve miscellaneousdeduction

Close out deduction

Supporting Processes

Vouchering customerpayments


Resolve accruals deduction

Main Process

Create DeductionsReporting

Incorrect MarketingPerformance Fund Process

Deductions Process Detail Example

Open sharedfolder and search

for back-updocumentation


found on...Back-up

documentationnot found on...

Print back-up

Enter reasoncode in SAP and

description

Description is required formultiple codes, SAP only uses

a single code


90% don't have back-updocumentation

Review CSL and/or Wesley for

back-updocumentation

Type: EPCLast change: Sep 9, 2010 2:33:26 PM

Name: Resolve unsalable deduction

Creator: system

CLS

Wesley


found on...

Back-updocumentationnot found on...

Review customercontact

requirements

Customercontact required

Sales Personcontact required

Broker brokercontact required


customer

Email check andcover sheet tosales person

Send back-up tospecialist


Update, route, &determine

deduction type

Unsalablededuction type

determined



Deductions Specialist Deductions Specialist




Sales person canprovide back-up

Sales personrequires

customer to...


Sales Person Broker


BrokerSales Person

Back-up documentation request Back-up documentation request

Customer

Customer Customer

BrokerDetermine ifback-up isavailable

Broker canprovide back-up

Broker requirescustomer to

provide backup


broker


Contactcustomer

Update deductionas invalid and

document

Customer isable to provide

back-up...

Back-Updocumentation



Based on specialists'knowledge of their customers

Sales Person



Contactcustomer

Sales Personcontactscustomer

Specialistcontactscustomer

Broker contactscustomer

Review back-uprequest


Customer

Customer isunable to

provide back-...


sent by...

Notify specialistthat back-up isnot available

Deductionupdated as

invalid



SAPDeductions

Module

SAPDeductions

ModuleDeductions Specialist


Deductionforwarded to

support

Close outdeduction

Resolve unsalablededuction

• High-level processes were decomposed to show workflow sequencing including:• Events (triggers)• Logic• Activities• Roles• Systems• Inputs / Outputs


• Process Architecture Enablement– Train process analysts to manage and maintain process

repository through a combination of classroom, mentoring, and e-Learning education

• Business Owner Enablement– Train business users to review and interpret processes within

the repository through demonstrations and e-Learning curriculum

– Management training and communication planning


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Confiance Webinar Seneca Foods F I N A L