SAPience UserDay 2015 TheValueChain UMICORE sap_building_blocks

Umicore: materials for a better life …

SAP: business processes and building blocks

for a better life!

Agile and lean SAP rollouts in a global context

Kurt Blaton

Partner at TheValueChain

1

Joris Peeters

Head of Business Applications at

Umicore

SAPience.be User Day ‘15

SAPience.be User Day ‘15 2

AGENDA

About Umicore

Application context and challenges

Global template What & why Implications Business process library – offering a packaged solution

Rollout approach Synergies in the roll-out model and project phases Global vs local processes Showcase approach

Lessons learnt & key messages

Umicore, global leader in …

4

Automotive catalysts for passenger cars

Key materials for rechargeable batteries used in

portable electronics and hybrid & electric cars

Germanium substrates and other materials which are

used in new photovoltaic technologies

Recycling precious metals from old mobile phones,

laptops, electronic scrap and spent catalyst material

Key megatrends for Umicore

5

Resource scarcity

Renewable energy Electrification of the automobile

More stringent emission control

Umicore global presence

14,074 people in 86 industrial sites in 2014

North America

936 people

14 industrial sites

South America

1,128 people

5 industrial sites

Africa

1,282 people

3 industrial sites

Asia/Pacific

3,034 people

29 industrial sites

Europe

7,694 people

35 industrial sites

Turnover € 8.8 bn Revenues € 2.4 bn


AGENDA

About Umicore





Umicore SAP system architecture

Evolution ... not revolution

BWP SAP P14 JIM

EP

Standalone (no STAIRS integration)

SAP PRD

SAP COP

SAP P63

SAP Business One

PMR

BP

ZC

CSM

RBM

MM

TFP

UBR

Open ERP

Oracle AD EOM

BW0

P02 P12

ASP UCP

P58 P66 plus SAP PI, SAP Portal,

MDM-SRM, APO, SolMan, ...

SAP UMP (version ECC 6 EhP 6 SP5)

(a.o. STAIRS)

SAP SRM

(Indirect procurement)

SAP HRP

Cognos (Hermes)

TM PMC PEM AC UMS

BIP

SAP Portal

Umicore SAP Applications portfolio

Re-use potential

10


AGENDA

About Umicore





An agile, cost efficient and flexible IT solution to support growth

• Internal growth (ex.: volumes)

• External growth (ex.: acquisitions, mergers, greenfield sites,…)

Global standards and common solutions

• Facilitating the exchange of best practices between BU’s and sites

• Facilitating ‘sharing’ of activities cross sites

• Facilitating reporting needs

Global visibility and transparancy on operations

• Global suppliers, customers and material master data

• Common information delivery standards

• Value of completeness, speed and quality of global information

• Inter- & Intra-company (legal entity) activities

Formalized risk management

Simplified and renewed IT landscape

• Scattered system landscape

• End-of-life of systems

Why? Need for …

Global template program

3 major angles

1. One single SAP solution

• Design through re-engineering (industry best practices) where valuable

• Documentation of BPL (Business Process Library) via 4-level process model

on MS SharePoint

• SAP system and all interlinked applications (direct and indirect)

2. Centralized master data concept and governance

• Clear central business ownership

• Clear governance rules (e.g. D&B matching for all customers and vendors)

3. Clear IT and business process ownership

• For project and support

• IS domain owners per process

• Business domain owners per business unit (remains challenge)

Business Process Library

Using central SharePoint

14


AGENDA

About Umicore





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Build Business Process Library (BPL) • Based on SAP Best Practice principles

Use showcase system to demonstrate available functionalities

Deploy Rapid Implementation Methodology • Show pre-configured process scenarios

• Perform fit/gap analysis

• Implement

Solution Change Advisory Board (SCAB) • Manage deviations with business & IT domain owners

Build business solution with processes from Umicore Business Process Library • Global template vs local solution

Re-use pre-documented processes • Configuration guides, process overview scenario’s, process functional descriptions

Key objectives

Speed up implementation process

Key objectives

Control the solution lifecycle

By strict governance of Business Process Library

• Dedicated process domain owners (IT and business

responsibility)

• Clear and aligned documentation

• Business process changes, - enhancements, - extension

controlled via Solution Change Advisory Board

By appliance of master-slave principles

By controlled change & release management

Synergies to realize

Concept proposal

• Consolidation of common business requirements will be achievable which will have a direct

impact on the business spending for process improvements and rollout of Global AC.

• Planning will be realistic. Sites with business criticality and urgent demand need not wait

for other sites to complete rollouts.

Planning and

prioritizing

• Reduction in effort incurred for individual impact analysis of gaps, where the Template

Management team can solve together for the cluster sites.

• Consolidation of local changes can be proposed at the Fit-Gap phase for similar requirements

from other cluster sites. Cost of development will get shared by the sites in these cases.

• Provides sufficient time for ‘re-training and data cleansing’ to sites which require them.

Fit/Gap and

scoping

• Planning of concurrent development and customization in same global objects can be

successfully done without affecting the delivery timelines.

• Integration and Regression test cycle for each release will be scheduled, where during the

regression test phase all changes moving to production will be tested and validated.

Consolidated regression test will reduce the cost of each rollout.

Realization

• Manual version management risks will be reduced as movement of changes in same objects

can be planned together.

• Additional effort for post live system monitoring can be combined for the cluster sites, which will

reduce the monitoring effort.

• Stability of the template can be enhanced with less frequent movement.

Deployment

Rollout strategy: clustered rollouts

Concept proposal

19

FACTORS ADVANTAGES

Pilot

Rollout Cluster 1

Rollout Cluster 2A

Rollout Cluster 2B

Re-training, change management & data cleansing

Fit/gap Realization Test Deploy

Commonality of business processes

Geographical proximity

Business readiness

Commonality of legacy system landscape

Economies of scale (realization and testing)

Shared costs (project mgmt, realization, testing, …)

Faster rollout

Approach & methodology

Global template, local solution

Approach: define ‘core’ solution template

Template consists of aset of inter-related business processes and

their supporting SAP functionalities


Template

The major process flows of the industry type/company will be

incorporated into a “core” template

“Complete”

solution

for

specific site

“Core”

business

template

“Local” enhancements

Enhancements

Can cover additional locally required functionality via strictly controlled

change request procedure

Accelerate & reduce implementation

Focus on core processes that make you different

Umicore SAP Process Library:

packages providing

preconfigured business

processes and project

accelerators to stream-line BU

implementations

Traditional

project

Adjustments

within project

Standard

system

ASK Model

As-is / To-be

SCAB

Standard

system

With Umicore

SAP Process Library

Adjustments

within project

Umicore

SAP

Process

Library

SHOW Model

Fit / Gap

Identified gaps from

Umicore Process Library


AGENDA

About Umicore





Key Messages (1/2)

There is more common SAP in your business processes

• Business specific process library

• Show cases => SAP and process training starts here!

• Identification template gaps vs. local specifics

• 80% rule (good enough principle, cost awareness

Invest in an agile and focused IT core team

• An international scope does not mean a large and complex team structure

• Define team roles in an international context

• Define application governance principles

• Define documentation principles

• Create synergies and re-use knowledge through focused teams – authorizations,

data migration, stock migration


Key Messages (2/2)

Make change management within the business part of

the IT program / project

• Business needs to take the ownership

• IT core team can facilitate agenda, meetings, follow-up

◦ Identify, describe, remediate

Define and specify business involvement

• High involvement during fit/gap gives a no-surprise environment

• Usage and availability of detailed user test scripts

in all stages of the project

• Change leads / key users / end users

◦ Training focused on “work instructions”

◦ Classical training – only on request

Master data readiness

• It is worth to start a parallel project on master data and

master data centralization


With a 100% focus on SAP-centric environments, we OPTIMIZE THE WEAK LINKS in your value chain, improve your organization’s overall PERFORMANCE, and ACCELERATE VALUE creation.

+70 experienced SAP consultants

Best practices and E2E solutions

Process efficiency • Ready-to-use process optimizers • Cloud solutions • User experience • Process orchestration & integration • Targeted customised software

Application & system management

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2

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Questions?


Thank you!


Presentations & Public Speaking

SAPience UserDay 2015 TheValueChain UMICORE sap_building_blocks