'SAP R/3 implementation and Maintenance tips' By Santosh Karkhanis.
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SAP R/3 implementation
Case Study

About Santosh Karkhanis

 

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Electronic Industry- A world Leader

The Company:

  • One of the world's largest electronics companies
  • Headquarter in Europe
  • 262,500 employees in more than 60 countries
  • Sales: USD 41 Billion in 1996
  • Product Divisions: Lighting, Semiconductors, Components, Consumer Products, Professional Products & Systems, Software and Services.
  • World Leader: Lighting, Color TV, Electric Shavers and recorded Music (Polygram)

R/3 at one of the product divisions:

  • Implementation of globally standardized system in 120 sites, covering 60 sites.
  • Global Standardization.
  • Integral Supply Chain Management.
  • Investments in future information Architecture.
  • Managing Change is the Key issue.

Objectives to be achieved at the end of the SAP R/3 implementation

  • Integrated Supply Chain Management of goods, money and information, covering 80% of the turnover, supported by SAP R/3 system.
  • One common system, with local update for country specifics based on SAP R/3.
  • World-wide availability of on-line, real-time transactions 24 hours a day.
  • Consistent, reliable and accessible data within 2 seconds response time.
  • Plug and play infrastructure, including connectivity for customer and supppliers.
  • End-to end systems management control, based on common operating environment, central configuration and release control.
  • Measurable and comparable IT operation cost.

Major challenges

  • Different way of working, different processes.
  • No consistent data management/data ownership.
  • 4000 point to point interfaces.
  • 8000 connected end-users.
  • Different hardware platforms, from mainframe to Unix servers.

The IT strategy:

  • Yearly update of the IT strategy and IT master plan.
  • Global commonality (Processes, master data and way of working) drives uniform IT systems policy.
  • Business ownership of Re-engineering and improvements program, including IT projects.
  • Virtual networking within small business entities needs global information & data access, on line and real time.
  • IT becomes a critical business enabler.

The implementation Strategy:

  • Same processes companywide globally
  • Core Configuration by experts
  • Roll out of the core configuration worldwide in 5 years with minor configuration touches
  • Confirming 'Business Scenarios' worldwide to ensure minimum gaps in core configurations thus minimum change in configuration to suite local requirements and to ensure 'same process worldwide' policy.

Results:

  • The company has successfully implemented SAP R/3 in it's head office in Europe and few plans in different parts of the world in the first phase.
  • Global Rollout is going on successfully as per the plan.
  • Global rollout in all the plans and sales offices will be finished by year 2002.

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