Alf Bjarne Kaasen
Finance
SAP S4 HANA ProjectNorsk Hydro
A resource-rich, global aluminium company
• Global provider of alumina, aluminium and aluminium products
• Leading businesses along the value chain; raw materials, energy, primary metal production, aluminium products and recycling
• 13,000 employees involved in activities in more than 40 countries
• Market cap ~NOK 100 billion/USD 11 billion
• Annual revenues ~NOK 82 billion (2016)
• Included in Dow Jones Sustainability Indices and FTSE4Good
PrimaryMetal
RolledProducts
Energy
Bauxite &Alumina
Extrusion joint venture
With robust positions across the value chain
(4)
Engaged in the entire aluminium value chain
Bauxite Alumina Energy Primary Casting Products
Rolling
Extrusion
Recycling
Recycling
(3)
Bauxite Alumina Energy Primary metal Casthouse Rolled products Extrusion Solutions Recycling
A resource-rich, global aluminium company
(4)
A complete aluminium company
• Primary aluminium production in Norway, Germany, Qatar, Slovakia, Brazil, Canada, Australia
• 10 TWh captive hydropower production
• European #1 in rolled products
• 50% partner in Sapa, world leader in aluminium extruded profiles
•Remelting in the US, European recycling network
• Technology and R&D centers
Primaryaluminium
2.1million tonnes
Robust positions along the entire value chain
Europe’s
#1aluminiumcompany
World’s
largestaluminarefinery
Highqualitybauxite
10 TWhhydropowerproduction
Global
top 10aluminium
smelter
Largesthot rolling
mill outsideChina
Marketleader Asiain primaryfoundryalloys
Longposition in bauxite and
alumina
Bauxite & Alumina
Primary aluminium
Rolling mills
Remelters
The vision of One – S/4 HANA Enterprise ManagementFuture SAP solution harmonization can be viewed in 3 layers
5
TCO driven
Business driven
Business driven
SAP Solution layersValue
Hydro Business requirements
Current processes /System setup
SAP IndustryBest practice
• Efficiency
− Transform to value-added work
− Business planning improvement / Rolling forecast
− Process simplification and harmonization
• Insight & analytics
− Improve reporting capabilities, also for end users
− Information on mobile devices – anywhere, anytime
• Compliance & security
− ICFR improvements
− Segregation of duty
6
Expected benefits from Finance stream
Assumption: Greenfield will allow to realize higher value in long term, while
brownfield investments can be allowed given positive business caseHigh level recommended roadmap approach
7
High
Time
Low
Busin
ess V
alu
e
2017 2025
AS IS
“Brownfield”
“Greenfield”
• Investments in AS IS solutions acceptable provided positive
business case within remaining timeframe
• Business Case = + immediate business value + reusability in greenfield – investment in brownfield
Lost value
• Reduced harmonization and
simplifications• Lost efficiencies of common
business processes
• Lower flexibility in responding to
business changes• Higher cost of future changes due
to lower standardization
• Reduced alignment with
Digitalization and Industry 4.0 initiatives
• “History luggage” and compromises
on TO BE due to brownfield approach limitations
• IT operations costs savings
Main phases in SAP S4 roadmap
(8)
Plan & Prepare
Principles
2016
Pre-Study
Finance and
Roadmap
Foundation
Analysis & design
Proof of Concept
(PoC)
PilotImplementation
Template
To be decided Planned
TCMSImplementation
Foundation & Structures
2017 �
Plan & Prepare
Implementation
TCMSUpgrade
Template Roll-out
202X
High level plan
BCM CM BAM IHC
TRM BI FI
Strategic alignment process
9
Technology
People
Processes
Prestudy Design Implement Roll out Realize benefits
Business Area Vision
Realized
Run change management
Optimize processes
Build digital tools
(10)
• Continue improvements drive.
• Capture commercial opportunities
• Extend technology and innovation lead
• Turn leading HSE/CSR position into competitive advantage
• Deliver on fast-developing
customer demands
• Capitalize on strong climate position over time
• Further strengthen relative industry position
• Enhance market positions and
high-grade portfolio
• Mature selective growth projects for when time is right
Hydro’s aspiration for higher value creation
Hydro improvement drive
continues at full pace
A solid platform for building
an even stronger HydroHydro aims to be climate
neutral by 2020
11
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