Linking Analytics to Decision Making at ArcelorMittal South AfricaTobie OttoSenior Consultant SAP CoE, ArcelorMittal South Africa

Nick BellCEO: Decision Inc.@NickBellZA

Introduction- Tobie Otto- Senior Consultant SAP CoE, ArcelorMittal South Africa

- 35 years working at ArcelorMittal- MSc Computer Science

- Nick Bell- CEO, Decision Inc.

- Started BusinessIntelligent in 2008- Started Decision Inc through merger with BusinessIntelligent, Asyst

Intelligence and DigiQuill Productivity.- B Com (Acc) Hons

Introduction to ArcelorMittal South Africa- Company originally known as ISCOR Limited

- ISPAT ISCOR- Mittal- ArcelorMittal South Africa

- Highlights 2014 Financial Year:ArcelorMittal 2014 ArcelorMittal

South Africa

130 million tonnes Liquid Steel Production 4.5 million tonnes

245 000 Employees 12 000

US$ 6.5 billion EBITDA US$ 100 million

- Leader in global steel manufacturing for- Automotive- Construction - Sheeting for example roofing- Household appliances

Introduction to ArcelorMittal South Africa- BI journey started in 2007

- Solution consisted of at least 3 distinct products:- ETL (Extract, Transform, Load)- Data Warehouse- Presentation and Reporting

- Specialists / Consultants for each area / product

- 2008 World Wide Financial Crisis- Significant pressure on business

- Greater requirement for cost reduction- The business needed to become more efficient- BI was not adding the needed value- Reporting was very flat with limited insights provided to users

- Investment in IT- Focused on transactional processing systems and not BI- Improved business processes not necessarily supporting decision making

capabilities of users

Introduction to ArcelorMittal South Africa

- Strategic decisions during 2009- Build on very strong SAP environment and interfacing to MES layers- Start planning of SAP Consolidation

- 5 SAP clients, 4 SAP instances, 3 SAP Production servers (landscapes)- Decided to phase out current BI solution

- Planning and implementing 2010- Continued planning and implementing SAP Consolidation- Started phasing out BI solution

- Stopped all new development- Maintained one critical solution- Phased out development hardware landscape

- Pressure from business for consolidated reporting and BI was mounting

Introduction to ArcelorMittal South Africa

- Consolidation and BI Investigation 2011- Successfully completed SAP Consolidation including historical information- Started investigating alternative BI solutions to enhance consolidated SAP

environment

- BI challenges and needs- Faster and agile reporting- Near real time solutions with greater insights- Focus on trending and analytics- Risk of errors due to most analytics occurring in Excel development- Drastically reduce costs, complexity and time for solutions to reach

business

- But by then the door on our new BI solution was completely shut!

Introduction to ArcelorMittal South Africa“When one door closes, another opens

But we often look so long and so regretfully that we do not see the one which has opened for us”

― Alexander Graham Bell “When one door closes, another opens

But we often look so long and so regretfully that we do not see the one which has opened for us”

― Alexander Graham Bell

Introduction to Decision Inc.

- Decision Inc. engaged with ArcelorMittal South Africa through its business, BusinessIntelligent

- Proof of Concept completed within Human Resources- Outcome

- Rapid time to value- Greater analytical capability- Significant ROI potential

- Outcome of POC resulted in the purchase of QlikView as company analytics solution

Engagement Approach- Process of Engagement required us to understand how the business worked- Engaged with each business unit head and department- Process

- Understanding the current organizational structure and reporting- Reviewed the business areas needs- Understood the people within the area- Defined the decision making requirements of the organization

- Understood how they measured themselves- Defined the needs of different roles- Agreed success criteria’s- Mapped how their success impacts on the broader organization

- Key to success was providing the users with a better and more efficient way to complete their daily tasks at an operational level

Engagement Approach

Pattern Recognition

Emotional Tagging

DECISION

Experience Experience

Experience

Experience

11

Business Users and LOB Business Analysts Data Scientists

97% 3% 1%

Level of SkillNone Low High Expert

Engagement Approach

Engagement Approach

Engagement Approach

Engagement Approach- Iterative approach that enabled each business area to be provided with an analytics

capability- Areas were prioritized by the executives- Delivery was fast and focused- User requirements were prioritized- Training was provided to users

Engagement Approach- Key to success was the formation of a working group with executives in the

organization- Each business owner was invested in the success- IT provided users with the capability and support- Decision Inc. provided the framework for implementation and domain experience

- Business advisory- Technical execution and delivery- Project support- Training Business Owners

Decision Inc.AMSA SAP COE

Successes

Gaining Use in the Business- The projects gained great traction in the organization due to these teams alignment- Constant collaboration- Dynamic Relationship- Scope provided boundaries- Weren’t scared of change

Delivering Returns- Training provided an important step in the success

- Users understood the technology- Learnt to link their role to the decisions they needed to make- Provided a platform to discuss needs

Case Studies- Human Resources

- HR Shared Services changed reporting strategy

- Benefits- Efficient weekly and monthly reporting at the touch of a button- Insight to Master Data- Extensive drill down, analysis and selection capabilities- Exception or deviation reporting continuously available- Custom Reports (build your own report by choosing your own

dimensions and metrics)- Dashboards- Move from “flat” reporting to comprehensive analytical reporting

Case Studies – Human Resources

Case Studies – Human Resources

FEB 2015:

YTD 2015:

Case Studies – Human ResourcesException or deviation reporting:

Case Studies – Human ResourcesCustom Reporting

Case Studies - Procurement- Procurement

- Greater ability to manage spend- Purchase Order spend 2014: >R35 billion- Significant improvement in core commodities on contract- Greater management of non contract text orders- Ability to balance MM to FI to the cent- Saving of R 50 million in 2014 in non conforming contract spend- Comprehensive Vendor Evaluation model developed

Case Studies - Procurement

Case Studies - ProcurementSpend management per material / vendor over time period

Case Studies - Procurement

Case Studies - ProcurementVendor Evaluation – Score Cards

Case Studies - ProcurementPurchase order to Goods Receipt to Invoice

Case Studies - ProcurementContinuous Audit

Closing- Process continues to evolve- Business reporting and analytics needs continue to adapt- Focus on greater integration between processes

- Different departments at different levels of maturity- Key new focus is on strategic decision making

- Significant investment in Operational and Tactical capabilities- Collective R 100 million saving

- Focus on advanced analytics- Predictive modelling and scenario planning

Thank youQuestions?