STORIES 2014@SAPServices #SAPServices

BUSINESS TRANSFORMATION

Evolve Faster

Close the gap between IT strategy and execution with our business transformation services. We can help align your people, processes, and technology to your corporate goals using transformation initiatives based on industry-specific best practices and expertise. Take advantage of our Value Partnership and let us help you deploy the latest technology innovations – so you can drive your company forward.

With SAP Business Transformation Services

SAP Value Partnerships — Powered by BTS Across industries and geographies, future business growth is enabled by technology driven innovation. SAP Value Partnerships gives you the business-driven framework, governance know-how, and deep knowledge you need to help your company achieve tangible business outcomes and growth. A dedicated team of strategic advisors with an in depth knowledge of your business and direct access to future innovations will be working closely with you throughout your transformation. SAP VPS delivers it in a framework that helps you tackle your challenges and goals with lower TCO and allows you to move your business forward faster than ever before.

Shortening Time to Value and Ensuring Strong Outcomes

LINK – Learn more about SAP Value Partnerships

Ausgrid operates one of the largest electricity networks in Australia, distributing electricity to the Sydney, Central Coast, and Hunter regions. The organization is committed to community safety and meeting the needs of a growing energy market by effectively maintaining assets, regularly upgrading infrastructure, and planning for future energy demands. To improve efficiency, increase output, and lower costs, the firm looked to SAP for a solution.

Ausgrid

SAP® Value Partnership Service Helps Ausgrid Switch On Productivity Gains and Add Measurable Value

Ausgrid now has reliable assets and makes sound replacement decisions

Objectives

• Meet new standards for safety performance in an era of heightened regulatory requirements

• Create new culture and capabilities around safety performance

• Deliver new capital works program to meet market demand, enhance system reliability, and minimize risk to network assets

• Reduce costs and improve asset utilization by being more efficient

Why SAP

• A long-term consulting engagement focused on realizing business benefits via the SAP® Value Partnership service

• Service led on-site by an SAP expert, acting as a trusted advisor

Company

Ausgrid (previously known as Energy Australia)

Headquarters

Sydney, Australia

Industry

Public sector

Products and Services

Electricity distribution, network asset management

Employees

6,000

Partner

Fujitsu Consulting

More Efficiency, Higher Output, and Lower Costs

WEBSITE www.ausgrid.com.au

Why SAP (continued)

• Established governance framework to align business and technology strategies and use technology to help deliver business outcomes

Benefits

• Improved efficiency, increasing output and lowering operational costs

• Improved asset reliability and replacement decisions

• Optimized processes to enable tangible business benefits and cost savings from technology and process improvements

Future Plans

• Continue focus on improving process efficiency and support for decision making

• Automate manual processes with the continuous improvement program the company has implemented

“ Ausgrid is very pleased to partner with the Business Transformation Services group of SAP Consulting in working toward enhancing business process efficiency and in realizing benefits from investments made in its SAP solution.”

— John Hardwick, Chair of Design Review Board, Ausgrid

L’Oréal

Supply Chain Transformation Success Achieved with the SAP® Value Partnership Service

L’Oréal has made cosmetics the focus of all its energy and know- how for nearly a century. To ensure the continuing success of its business, L’Oréal partnered with the Business Transformation Services group of SAP® Consulting in order to optimize and transform its overall supply chain management. The company leveraged the expertise provided by the SAP Value Partnership service.

L’Oréal successfully transforms its supply chain with SAP

Objectives

• Optimize L’Oréal supply chain and set up an integrated supply chain model

• Effectively manage the transformation

• Manage increasingly complex systems

• Get access to and leverage SAP’s knowledge about current and future solutions

• Transfer knowledge and adopt best practices

Why SAP

• Direct and prioritized access to innovations and expertise from SAP

• Commitment from SAP’s senior and executive management

Company

L’Oréal

Headquarters

Paris, France

Industry

Consumer products

Products and Services

Luxury cosmetics

Employees

65,000

Business and Process Expertise from SAP Leads Transformation

WEBSITE www.loreal.com

Why SAP (continued)

• Strong and flexible governance model to help ensure a continuous and stable involvement of SAP experts at all hierarchy levels

• Strategic advisory and quality assurance

• Program duration assurance and risk reduction

Benefits

• Assessed and evaluated the feasibility of the integrated supply chain solution design “and helped facilitate IT architecture decisions

• Ensured SAP road map complies with key requirements for supply planning, industrial logistics, logistics execution, and integration of supply chain cross-topics

• Developed a joint mid- and long-term road map for the supply chain with L’Oréal

“ I really like the SAP Value Partnership service – it is business focused and embraces our company culture. I also like how SAP challenges us to leave our comfort zone in an unprejudiced manner.”

— Yves Gouret, Supply Chain Program Director, L’Oréal

Südzucker

Finding the Sweet Spot Between Strategy and IT with Business Transformation Services from SAP

Developed around 600 BC, sugar processing meant heating cane juice and separating the syrup from the crystallized sugar. And, until the mid-19th century, sugar was a luxury item. In Germany, beets have been used to extract sugar for over 200 years. Südzucker AG continues the tradition, providing a broad range of crystallized sugar products for home use and special varieties for the consumer products industry.

As part of a high-level harmonization and standardization initiative, Südzucker had a plan to further tighten connections between business and IT. With help from the Business Transformation Services group of the SAP® Consulting organization, the company translated this strategy into a detailed implementation plan using SAP software and industry business best practices. With leaner, more efficient processes and lower IT costs, Südzucker is making life sweeter than ever.

Executive Overview

BUSINESS TRANSFORMATION

The Company’s Top Objectives

• Harmonize business processes, organizational structures, and IT

• Create a structured method of process documentation

• Examine processes for continued improvement opportunities

The Resolution

• Used the best-practice methodology for process and IT template design from the Business Transformation Services group of the SAP® Consulting organization

• Built a strategic road map for template creation in all business areas

• Established a plan for continuous governance and template improvement

Company

Südzucker AG

Headquarters

Mannheim and Ochsenfurt, Germany

Industry

Consumer products

Products and Services

Sugar, related specialty products, fruit preparations, and bioethanol

Employees

20,000

Revenue

€8 billion

WEBSITE www.suedzucker.de

The Key Benefits

• Simplified operations and rollouts, reduced manual effort for business users and demands on IT, and improved overall efficiency by standardizing and streamlining processes across the group and all business functions using a standard business and IT template

• Established a structured and continuous process optimization plan, including the creation of a business process management organization

• Created an internal group dedicated to master data management

“ The plan to first analyze our processes, establish an implementation and governance plan, and then implement the software accordingly seemed obvious. But really, it was revolutionary. Knowing exactly what we wanted up front simplified the implementation. And by optimizing business processes, we achieved significant savings.”

— Jakob Lang, Director of Organization and IT, Südzucker AG

1,190Processes documented and analyzed in detail across all business functions

75Business improvements realized

1 standardFor processes established across 7 group companies in 11 countries

Top Benefits Achieved

From industrial, to mobile, to renewable energy markets, people around the world rely on machines powered by Bonfiglioli Group. And with 10 production plants and sales operations in 80 countries, enterprise IT plays a crucial role in operations. By guiding value-based investment and operational best practices, the SAP® Value Partnership service helped Bonfiglioli transform IT from a maintenance-fulfillment group to an innovative and strategic player – the drive system for Bonfiglioli’s business.

Powering Up a New Era of IT Innovation with the SAP® Value Partnership Service

Bonfiglioli

Making IT the motor for Bonfiglioli with SAP® Value Partnership

Company

Bonfiglioli Group

Headquarters

Bologna, Italy

Industry

Industrial machinery and components

Products and Services

Gear motors, drive systems, and planetary gearboxes for industrial processes, automation, mobile machinery, and renewable energy applications

Employees

3,113

A Foundation for Value-Based, Strategic Innovation

Objectives

• Transform IT to ensure sustainable innovation

• Improve transformation planning to align business strategy and IT investment

• Evaluate IT enablement and costs at the start of project planning, estimating expected benefits when defining budgets and timelines and managing the IT project portfolio

• Establish best practices for program and project implementation and management

Why SAP

• Long-term, trusted advisor guiding key IT programs and investments

• Leading-edge innovation, technology, and consulting for SAP® solutions by SAP experts

WEBSITE www.bonfiglioli.com

Why SAP (continued)

• Strategic road maps aligning business and IT, enabled by the SAP Value Partnership service

• Expert guidance on best practices for solution implementation and program management

Benefits

• Strategic road map for innovative and scalable IT

• Value-based and structured decision-making to optimize IT investments for demand management, customer relationship management, and business analytics

• Optimization of IT operations, allowing more funding for innovation without increasing IT costs

• Skill enhancement for IT managers through better project management and governance

• More IT projects done on time and within budget

• More accurate demand planning, despite a 68% reduction in planning resources

• 50% faster evaluation of demand plan changes

Future Plans

• Further evolve IT to better support business strategy and the bottom line

• Continually examine IT projects and portfolio to ensure maximum return on investment

“ SAP Value Partnership gave us the guidance we needed to maximize on our IT investments. The key is to link IT decisions and business strategy, making IT a key factor in the transformation and growth of our business. We now have the road map to do that, and our IT department has the support and training to make it happen.”

— Tiziano Pacetti, CFO, Bonfiglioli Group

The Ismail Abudawood Trading Company (IATCO) needed to enhance the effectiveness of its planning for the many truck loads it regularly transports. The company also wanted to make related processes more transparent and improve the quality of the data it uses to calculate transportation costs. To achieve its goals, the company implemented the SAP® Transportation Management application.

Facilitating Effective Freight Planning by Using SAP® Transportation Management

IATCO

“ SAP software keeps us firmly on a road of aggressive growth across the region.”

— Hazem El Banna, CIO, Ismail Abudawood Trading Company

Company

Ismail Abudawood Trading Company (IATCO)

Headquarters

Jeddah, Kingdom of Saudi Arabia

Industry

Wholesale distribution

Products and Services

Consumer goods distribution

Employees

4,000

Revenue

US$2 billion

Partner

Business Transformation Services group of SAP Consulting

Gaining Visibility into Key Transportation Processes

Objectives

• Enhance planning effectiveness for truck loads

• Increase visibility into transportation process

• Improve data quality for calculating transportation cost

Why SAP

• Implementation of SAP® Transportation Management with clear and fixed scope

• Prototyping of solution prior to going live

Benefits

• Increased visibility into transportation and stock transfer orders made by 100 company trucks as well as the trucks of service providers

• Enabled delivery-based shipment integration with the SAP ERP® application

• Enabled transportation cost calculation process with high-quality data

WEBSITE www.iatcom.com

Resources

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