Electronic Industry- A world Leader
• The Company:
• R/3 at one of the product divisions:
• Objectives to be achieved:
• Major challenges:
• The IT strategy:
• Implementation Strategy
• Results
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.
