Gaurav Chakraborty 21 st Feb’09 Enabling Business to Scale New Heights Benefits of Implementing SAP

Gaurav Chakraborty21st Feb’09

Enabling Business to Scale New Heights

Benefits of Implementing SAP

Agenda

SAP Overview

Solution Coverage


Summary of SAP today

SAP AG in 2007 revenues: Rs 72,000 Cr More than 43,000 companies run SAP software Providing more than 25 industry solutions 43,772 SAP employees (December, 2007)

12 million users in 120+ countries team with us to… Integrate their business processes Extend their competitive capabilities Get a better return on investment at a lower total cost of ownership

Unique partner ecosystem More than 3,850 partners Overall more than 180,000 SAP partner certificates

More than 10% spent in R&D each year

SAP in India

Market Leader - 4500+ Customers

Country wide Offices , 7500+ Employees &

Growing

SAP Labs – R&D Centre at Bangalore &

Delhi

Mature India Localization & India Payroll

Customer Care Centre at Bangalore

Large & Leveragable Skill Base

Knowledge Services

SAP in India – Some Interesting Facts

No. 1 ERP

SAP Sales Office

SAP Sales Office

SAP Sales Office, Calcutta

SAP Support Office

SAP Labs

SAP Sales Office

SAP Global Delivery Center SAP Labs

SAP India Headquarters

11 out of 16 “Navratnas” run SAP

9 out of 10 most profitable and largest companies run SAP

24 out of 30 companies in Sensex run SAP

37 out of 50 companies in Nifty run SAP

36 out of 50 in ET 500 run SAP

21 of the top 25 brands in India run SAP

18 of the 20 companies listed in the BCG Global Challengers list run on SAP

25 out of the 40 Largest Indian Companies named by Forbes run SAP

7 out of the 13 Indian firms named by BusinessWeek in 'Asia's Hot Growth Companies' list run SAP

Solid Penetration … Hallmark of the Leader

Oil & Gas E&C Telecom IT ServiceAuto CPG

Agenda

SAP Overview

Solution Coverage


General Ledger

Legal Consolidation

Accounts Receivables

Accounts Payable

Asset Accounting

Budgeting

Overhead Cost Controlling

Activity Based Costing

Cash Management

Treasury

Funds Management

Payroll

Check Printing

Parallel Accounting

Analytics

Expense Management

Billing

Financial Management

Profitability Analysis

Streamlines information control, analysis, and

delivery

Enables performance planning, measurement,

and management

Optimizes the financial supply chain

Most comprehensive, functionally-rich solution on

the market

Market-leading solutions and customers in all

industries

Reliable, proven business partner with solution and

industry expertise

Project Management

Initiation Planning & Approval

Project Execution Closing

Life-Cycle Data ManagementFull integration into the Document Management System of mySAP Life-Cycle Data Management; assignment of all various documents supported by all DMS functions (i.e. versioning, vaulting)

Project Initiation

Project Team

Project Estimation & Budgeting

Project Planning & Scheduling

Capacity Management

Project Procurement

Project Production

Project Costing

Project Document Distribution

Project Confirmations

Project Claims

Project Progress Tracking

Multi -Project Management

Project Archiving

Project Reuse

Project Base lining & Simulation

Project Status Management

Integrated Viewing / Maintenance All originals of assigned document masters can be viewed/maintained directly from the project’s maintenance environment.

Flexible Search/E-PublishingProject documents can be searched by various search engines and can also be published for external access on the Internet.

Project – EH&S

Procurement and Material Management

Initiation Planning & Approval

Project Execution Closing

ExecuteCheck deleverables of the supplier & sub contractor based on contracts & confirm using service entry sheets

Purchase Requisition

RFQ & Purchase Orders

Tendering

Supplier Evaluation & Blacklisting

Delivery Schedules

Approvals & Workflows

Service Masters

Warehouse Management

Goods Movements

Shelf Live & Status

Physical Inventory Audits

Quality Inspection

Supplier Payments

Knowledge Management

Contract Management

Supplier Collaboration

Define Define the project requirements. Select Source & complete detailing

MonitorMonitor progress & payments as per schedule.

Workflows

mySAP HR – A Total, Integrated HCM Solution

Workforce Analytics

91 pre-defined Key Performance Indicators

SAP Business Warehouse Integration

Relationship

Management

Expert Finder

Manager Self-Service

Employee Self-

Service

Employee Interaction

Center

Collaboration Tools

Workforce Planning

Workforce Cost & Headcount Planning & Simulation

Employee Succession Planning

Balanced Scorecard

Lifecycle Management

Career Planning

Recruiting and Talent Management

Shift Planning

Performance Management

Compensation Management

Learning

Training & Events Management

Skills/Qualification Management

Transaction Management

Organizational Management

Personnel Administration

Payroll

Claims , Loans

Time Management

Reporting

Global Employee Management

Maintenance Management

Work Force Management

Location & Asset Mapping

Maintenance Planning & Scheduling

Budgeting & Sanctions

Tools & Documents

Complaint Management

Warranty & AMC

Contracts & Subcontracting

Spares ManagementWork Clearance

Preventive / Predictive / Breakdown / Shutdown Maintenance

Valuation & Status Management

Mobile Device

GPS Interface

Equipment History

Meter Reading & Counter Based

Early Warning System

Objects Orders /

Notifications Costs Downtimes

His

tory

Time- / Material confirmation

Technical completion

Order settlement

Com

plet

ion

Internal / External resource- planning

Release / Print

Control / Execution

PM O

rder

Techn. Object Condition

description Item data Activities /

Tasks Priorities

Not

ifica

tion

E-Procurement Solution for 2 Envelope Bid

22

66

44

33 Consolidate

Requirement for project

Payment Gateway

EBP

11

Tender award

Bid Opening

and Comparison

Supporting

documents

Contractor - Upload Bid

Contractor –

Download tender

Publish

Requirements in portal

55

ERP

Reverse Auction

Tender fee payment

by Contractor

77

88

99

(Secure Network)

Enhanced Supply base

Reduced Spend

Country Chart Of Accounts

Schedule VI

Balance Sheet

EWT - TDS

Provisional Tax

Vendor Certifications

Annual Returns – Section 194A/C/D…etc

Income Tax Depreciation

CENVAT

Excise Invoice Capture & Post

Subcontractor Challans

CVD

Excise Bonds / LOU

Parallel Accounting

Analytics

Aging Analysis

Sales Tax – Octroi / Entry Tax

INDIAN REGULATORY COMPLIANCE

Excise Duty – BED , AED , SED

Security

User Authentication

Role / Group / Job / Position Access Control

Transaction Access

Process Access

Field Access

Firewall Protection

Encryption

Administration

Portal Security

Master Data Security

Access Effectivity

Time-Out

Multiple Access Locking

Mass Change

Transaction History

Digital Signature

Drag & Drop

Drag & Drop

Troubleshooting Authorizations

Transport of Security Related Objects

Integration with Organizational Management

Proven Implementation Methodology

Agenda

SAP Overview

Solution Coverage


Typical Challenges across key business process in Industry

Illustrative KPIs

Enterprise Asset Management

Plant load factor Auxiliary power consumption Station heat rate Highest uninterrupted running days

Integrated Asset and Maintenance

Management

Project Planning, Scheduling &

Execution

Business Systems &

Applications Consolidation

Emerging IT Needs

Improved Visibility and

Analytics

Finance & Reporting Operating Margin (%) O&M cost per unit of generation (paisa/unit) Return on capital employed

Variance /earned value analysis of time and cost Resources expended per month in Rs. In Cr.

Project Management

Coal inventory turnover = Annual coal consumption/Average coal inventory Out of stock Index = No. of times out of stock/ No. of times requisitioned Planning efficiency index = No. of rush orders placed/ Total no. of orders Spare parts index = Avg value of spare parts inventory/ Avg Value of total inventory Obsolescence index = Value of non-moving items/Total inventory value

Area of Business

Sourcing & Procurement

Man-MW Ratio Generation (‘000 MU’s) per employees Turnover (Rs. Lakhs) per employee Employee Cost per unit of generation Training days per employee

Human Resource Mgmt.

Monitoring of human capacity

building initiatives

SAP can drive business value across Fuctions

Solution Enablers


Standardizing on SAP will help free work management from tedious and manual data entry, improving productivity among workforce

Improved equipment and asset utilization Improved scheduling capabilities and resource utilization Decreased approval time through the use of automated workflow

Finance & Reporting Increase efficiency of reporting, consolidation and analytics Automate transactional finance activities which will greatly enhance decision support

capabilities Highlight the variance between actual and forecasted performance, allowing drill-

down capabilities to better understand potential issues and opportunities

Unifies project management, time tracking, financial data, and employee skills information in a portfolio management tool

Allows users to create project teams based on skills and availability, monitor progress on a project, track time, analyze results, and much more

Integrated project controls for management of distributed projects

Project Management

Greater visibility into forecast requirements and supplier capabilities will help enhance the effectiveness of materials management

XXX will be able to manage its supply chain more effectively with better planning and forecasting

Area of Business


Utilizes resources more efficiently to fit organizational needs and lets users assign workers to appropriate jobs, projects and teams

Enable self service to provide timely access to information Provide a single place to access all standard HR transactions


Key SAP Solutions

SAP ERP• Plant Maintenance• Materials Management• Quality Management• Financials and Controls• Business Intelligence

SAP ERP• Project Systems• Materials Management• Quality Management• Document Management

SAP ERP• Financials and Controls• Business Intelligence

SAP ERP• Materials Management• Quality Management

SAP Human Capital Mgmt.• Succession Planning• Talent Mgmt.• Compensation Mgmt.• Employee Self Service

Business Benefits

Immediate Benefits

Project Management

Real-time tracking of key project activities and milestones Reduction in project coordination effort Better project execution visibility helps identify and eliminate potential bottlenecks

Enabling employees to manage/ track transactions in self-service mode has significant productivity benefits

Centralized payroll management has enhanced HR productivity - 9 FTE’s can now handle payroll against 40 – 50 earlier

45% reduction in books closure cycle time (from 16 to 11 days) Seamless reconciliation improved accounting efficiency Access up-to-date cost records System-enforced consistency in adherence to policies/ std. procedures across all

locations Management dashboard with complete overview of business in a single screen

powered by SAP BI

Area of Business

Finance & Reporting


Business Benefits

Immediate Benefits

Enterprise Asset Management 50% rationalization of asset item codes Complete visibility into asset maintenance history and spare parts movement Monitor overhauling and OPI (schedules, costs, material availability, sequence of

activities etc.) by leveraging SAP capabilities extensively Spares purchased cost reduction achieved through visibility of common spares

across plants and centralized PO process

Real-time visibility into cash-flows Uniform bills created for customers drawing power from various divisions/ locations

through centralization of commercial billing function Eliminated errors and revenue loss by standardizing plant level interpretation of

billing clauses and terms

Area of Business

Billings and Settlement

Lower procurement lead times Improved vendor collaboration enabled by streamlined workflows and standard

processes 40% rationalization of vendor base through code unification Consolidation of spend value by supplier help gain savings through “Preferred”

vendor discounts SAP Fuel Management application helped optimize spend by tracking procurement,

transportation and consumption trends accurately


Typical Improvement Ranges for Power Generation Utilities

Reduced Auxiliary Consumption due to Improved Maintenance PracticesReduced Auxiliary Consumption due to Improved Maintenance Practices 7%7%

5%5%

Conservative ScenarioConservative Scenario

Likely ScenarioLikely ScenarioBusiness Function

Improved Asset Management and Maintenance EfficiencyImproved Asset Management and Maintenance Efficiency 12%12%

10%10%

Increased revenues through improvement in scheduled up-time and reduction in unplanned downtimes

Increased revenues through improvement in scheduled up-time and reduction in unplanned downtimes 3%3%

2%2%

Reduced Maintenance and Spare Parts Inventory Levels through better visibilityReduced Maintenance and Spare Parts Inventory Levels through better visibility 15%15%

10%10%


Shortened Annual Close Process for Filling ARR with DERCShortened Annual Close Process for Filling ARR with DERC 12%12%

10%10%

Improved Finance Department ProductivityImproved Finance Department Productivity25%25%

20%20%

Integrated reporting/ analytics productivity improvementsIntegrated reporting/ analytics productivity improvements 12%12%

10%10%

Finance, Accounting and Reporting

Material and Services Rationalization, Standardization, and ConsolidationMaterial and Services Rationalization, Standardization, and Consolidation 20%20%

15%15%

Better Supplier Contract Negotiation due to Better Contract Handling EfficiencyBetter Supplier Contract Negotiation due to Better Contract Handling Efficiency 15%15%

10%10%

Reduced Procurement Spend on In-direct Materials (equipment and spares)Reduced Procurement Spend on In-direct Materials (equipment and spares) 10%10%

5%5%

Sourcing and ProcurementImproved planning and execution of employee redeployment program Improved planning and execution of employee redeployment program 25%25%

20%20%

HR Process Development BenefitsHR Process Development Benefits35%35%

25%25%

Improved Resource UtilizationImproved Resource Utilization35%35%

20%20%

Human Capital Management

Key benefit statements made by BPCL . . .

BPCL’s – Success with SAP Implementation

Kochi Refineries – Success with SAP Implementation

A large Gas Public Sector Co. – Success with SAP Implementation

TISCO’s experience with SAP. . .

13:20 – 18:07

Q & AThank you for your interest!