SAP S/4HANA AS THE IT FOUNDATION FOR DIGITAL TRANSFORMATION AT LANXESS - September 8, 2020 - TAC Events
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SAP S/4HANA AS THE IT FOUNDATION FOR DIGITAL TRANSFORMATION AT LANXESS September 8, 2020
BACKGROUND AND HOUSEKEEPING
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after the webinar
INTRODUCING TODAY’S SPEAKERS
Erik Hellemans, Managing Director – European SAP
Chemicals & Natural Resources Lead, Accenture
Mark Carlson, Solution Specialist, Chemical Industry
Business Unit, SAP
Ralf Petersohn, Vice President Global IT Program
Management, LANXESS Germany GmbH
Falko Tschöke, Global Program Management Business
Process Transformation, LANXESS Germany GmbH
ACCENTURE – SAP PARTNERSHIP IN CHEMICALS
Accenture and SAP have a longstanding track record in co-development, co-innovation and co-delivery of SAP Industry Solutions for Chemicals.
CO-DEVELOPMENT CO-INNOVATION CO-DELIVERY & JOINT GTM
SAP and Accenture working together to Accenture developing Accenture IP that Joint delivery leveraging Integrated Delivery
accelerate development of SAP IP complements SAP standard products Frameworks
From 90s: SAP Best Practices for Chemicals Industry assets across the different stages of Joint S/4HANA delivery on large & mid cap
(BP4C) for R/3 & ECC the Intelligent Enterprise journey integrated Chem clients
with SAP Model Company Europe:
#15
2017-2018: Unique partnership on BP4C for
S/4HANA Chemicals 1610 & 1709 as
foundation for SAP Model Company
Growth market
North America #7
#10
Sharing success stories on various forums
Brochures Videos
Support to S/4HANA Cloud Consortium clients
2020: Next Gen Industry Plays, S/4 Cloud SAP & Accenture.com Webinars
Copyright © 2020 Accenture All rights reserved. 4
WHERE ARE YOU IN YOUR SAP S/4HANA TRANSFORMATION JOURNEY?
Go to www.menti.com and use the code 77 01 06 8
INTERNAL Transformation powered by SAP S/4 HANA at LANXESS FIT | Future Integrated Template Falko Tschoeke & Ralf Petersohn Cologne, August 2020
LANXESS –
A GLOBALLY OPERATING SPECIALTY CHEMICALS COMPANY
Milestones of transformation
Specialty chemicals company
Sale of chrome chemicals business
Spin-off from Bayer in 2004
Specialty chemicals portfolio: plastics, rubber, intermediates IPEL acquisition
and specialty chemicals
Sale of ARLANXEO to Saudi Aramco
Global success story
74 sites worldwide Phosphorus Chemicals (PC) acquisition
Approximately 14,300 employees in 33 countries
Global sales of EUR 6.8 billion in 2019 Chemtura acquisition
Current IT Landscape Clean & Disinfect (C&D) acquisition
Two major R/3 ERP systems
High number of satellite systems Foundation of ARLANXEO
Business Unit specific and regionally adapted process
landscape Energizing Chemistry!
LANXESS INITIATED A GROUP-TRANSFORMATION PROGRAM
“FIT” IN 2018 TO SUPPORT VISION AND STRATEGY
LANXESS
Strategy
LANXESS will be LANXESS will follow a LANXESS will have
faster and more agile flexible portfolio strategy competitive cost
than the competitors and is M&A active structures
FIT (Future Integrated Template)
to support LANXESS strategy and lay foundation for digital transformation
FIT IS A LANXESS GROUP-WIDE PROGRAM FOSTERING DIGITAL
TRANSFORMATION AT LANXESS
Future – We design the target
process and IT landscape…
means Future Integrated
Template referring to the design and Integrated - …with an end-
to-end view integrating processes
build of the future process and system
and tools (“one solution”)…
landscape of LANXESS
Template - …to establish a
standardized & governed set of
processes and IT applications!
WHAT IS / COULD BE THE MAIN DRIVER FOR YOUR COMPANY’S SAP S/4HANA
PROGRAMME?
Go to www.menti.com and use the code 77 01 06 8APPROACH
OVERVIEW
11FIT IS STRUCTURED TO ENABLE E2E PROCESS IMPROVEMENTS ALONG THE DIGITAL CORE &
RELEVANT INTERFACES
GROUP-WIDE HARMONIZATION
GOVERNANCE Consideration of Steering & Reporting, Business Rules & Governance
Principles as well as Operating Model implications. The main goal is to
Ensure strong top management support from both Business and
simplify, harmonize and standardize the E2E processes across the LXS
IT for the agile delivery and Greenfield approach. This is not an IT
landscape.
program but a Business Transformation – Business & IT need to
lead this initiative.
BENEFIT CASE
Value management supports the program from inception
to realization. A value realization was defined to ensure
E2E PROCESSES &
investments are in line with benefit case and value
realized across the entire value chain.
DRIVE TO STANDARD
Definition of target processes based on SAP standard. Re-
designed business processes to fit S/4HANA instead of
modifying the system. Simplified E2E processes unlocking
automation potential based on group-wide standardization.
TOOLS & METHODOLOGY
Set up integrated collaboration infrastructure and agile delivery
tools. Cross-stream collaboration and agile ways of working ensure
steady progress and early product awareness.FIT IS COVERING END-TO-END ASPECTS OF ALMOST THE ENTIRE VALUE CHAIN PUSHING CLIENT &
EMPLOYEE EXPERIENCE
Order-to-Cash
Record-to-Report
Transport Management
Source-to-Pay
Integrated Business Planning
Asset Management
Warehouse Management Plan-to-MakeFIT FOLLOWS AN UPDATE TIMELINE BASED ON COVID19 IMPACT INCLUDING
NORAM AND DE ACTIVITIES
Go-Live Go-Live
NORAM GERMANY
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021
Process
ProcessDesign
Design Template Build
Pilot
Mobilization
I-Test UAT Mig,
NORAM Build T 2.0 UAT Hypercare
Test Training
Forms, Interfaces
Fit/ Build I- Hyper
UAT Mig, Training
Gap Localization GERMANY Test care
FIT/GAP Build I-
Mexico Loc. Mexico Test
FIT/GAP Build I-
India Loc. India Test
Template IBP Demand Pilot IBP Rollout Demand Wave 2 IBP Rollout Demand Wave 3
IBP Rollout S&OP PilotGENERAL DECISION BASED ON THREE SIMPLE STEPS; FIT REPRESENTS
PROCESS STANDARDIZATION & NEW S/4HANA
START
NO
YES
Should we go for
Live with process group-wide process
inefficiencies,
limited time-to-
standardization?
integration and
mediocre usage Should we go for
of system NO ONE ERP system YES
and push group-
Live with many wide usage?
interfaces,
unharmonized tools Should we go for
and inconsistent data
NO S/4HANA instead of YES
structures
NO our
staying with
Live with limited usage of R/3?
Push
existing functionalities
and expenditures into
FIT
system with limited
horizonFIT HAS CHOSEN A DEDICATED APPROACH SUPPORTED BY A PROGRAM ORGANIZATION TO
MANAGE THE OVERALL SCOPE
Program organization
Technological scope
Joint Program Management
Digital Core: S/4 HANA of Business Managers (dLX)
Add-on solutions: SAP-TM, SAP- and IT
eWM,
7 End-to-End Process
SAP-PPM, SAP-FSCM, OpenText, >> ~250 colleagues Streams (Order-to-Cash, Plan-
Approach Documentum
Cloud Solutions: ARIBA, IBP, LBN involved with significant to-Make, Source-to-Pay,
Logistics & Inventory, Asset
Greenfield-approach, time-spent in FIT Management, Record-to-
supported by Industry
Process Model & agile “dual
ProgramFIT ALSO RELIES ON A DEDICATED CHANGE MANAGEMENT & ENABLEMENT APPROACH THAT
FOSTERS ACCEPTANCE
End-to-end change management
and training journey at FIT
LANXESS
We also established a dedicated LANXESS
transformation journey to support the
impact of the greenfield S/4HANA
implementation. This includes:
Stakeholder management from C-level
to end user
Communication from leadership,
program members and mass
communication including events and
digital formats
Organizational alignment (user
mapping etc.)
Training from concept, to preparation,
material development and Train-the-
Trainer
Virtual training executionTECHNOLOGY
& IT FOUNDATION
18FUTURE IT READINESS SUPPORTED BY S/4 HANA
Better user experience Technology enabler of LANXESS portfolio
strategy
More integrated data set
Continued access to technology innovation
Processing power & speed
Better insights from integrated data
Analytics & machine learning
Opportunity to further improve LANXESS ERP
Improved functionality & automation solution & usage
Open architecture
Increased process efficiency and speedIN ADDITION TO THE DIGITAL S/4 CORE, FIT IS ALSO CONSIDERING ESSENTIAL INTERFACES AND
SOLUTION REALIZING VALUE
FIT Optimizer „Satellite projects“
SYSTEMS OF RECORD
IBP MDG
Marketplace
M&A
INNOVATIO New TM EHS
Shared
INNOVATION Steering
N Service
EWM GTS
Center Internet of Things
APIs Sustainable EBITDA
Improvement
ARIBA GLM
SIMPLIFICATION DIGITAL PP/DS OneSource
ERP CORE Digital Transformation & DIGITAL
ERP CORE SIMPLIFICATION CORE Business
Enablement CORE OpenText DMS
Applications
Blockchain
IQOS SFSF
Mobility Industry Analytics/
Big Data
FIORI Launchpad Concur
Augmented
Reality SolMan
Artificial
Intelligence Internet
of Things DDP
SYSTEMS OF INNOVATIONBENEFIT CASE &
VALUE
REALIZATION
22THE FIT BENEFIT CASE IS ALIGNED ACROSS THE ENTIRE VALUE CHAIN AND PROMISINIG FOR
EARLY VALUE REALIZATION
FIT BENEFIT CASE VALUE FRAMEWORK Reduce margin leakage
Increase throughput and fulfilment levels
New products and (micro-) services Identify cross- and upsell potential
Competitive
Improved customer experience Positioning Revenue New products and (micro-) services
Establish supply chain E2E visibility Insights
Improve customer experience Increase process efficiency and productivity
Increase customer loyalty Decrease production waste and scrapping
OPEX Decrease warehousing costs
Improve time-to-insight & Decrease IT maintenance costs
Speed Better maintenance through IoT
real-time data access
Operational process cycle reduction
Faster, more efficient recall process Qualitative Quantitative
(I/C volumes) Benefits Benefits
Reduce implementation cycle times Agility
Faster execution of structural / org. changes
Dynamic pricing and rebate management CapEx
Decrease hardware investment
Reduce M&A integration costs
Improve data and process Quality
consistency
Reduce manual error rate Risk Working Decrease inventory levels
Manage- Capital Improve management of aged and
Simplify Security ment slow moving material
Enhance Compliance Decrease MRO stockVALUE IS BEING CREATED IN ALL PROCESS AREAS ESTABLISHING BENEFITS FOR ALL
DEPARTMENTS AND USERS
Standardization, harmonization Transparency & Creation & execution of a better Additional process- & system
& process governance data availability for steering & plan improvements
reporting
Corporate-wide master recipe standard Integrated scheduling & ME system Exception based planning Shop-floor integration
Feasible production / procurement plan Detailed plan / optimization approach MRP run & detailed scheduling in S/4 E2E service procurement process
New role-based SAP Fiori apps Traceability Provision of accurate inventory levels Overhead Management
Tailor-made Bad-Actor Fiori App Quality inspection stock RealTime Maintenance Plan Scheduling Stock in transit concept for IFRS15
Criticality analysis Improved stock reporting PPDS improves planning reliability Warehouse cockpit & other eWM tools
Implementing business rules Implementation of PPM Introducing SAP FSCM Advanced ATP (Available-to-Promise)
Ariba Sourcing Reduction of order cycle Warehouse monitor Utilization of Sales Contract functionality
Fixed Assets Accounting Parallel ledgers in General Ledger Wave management Third party collaboration
CO-PA in Profitability Analysis Extending the Product Costing Imbedded Transport Management E2E service procurement process
IM & eWM implementation Interfaces to 3rd Party Logistic Providers Embedded FSCM
New Business Partner Concept Track and Trace on Handling Unit level Automated delivery creation in TM
Full integration of TM Providing “in-system” workflows
Fully integrated pricing management
Interface to Ocean Insights dataWHAT IS / COULD BE THE BIGGEST CHALLENGE YOUR COMPANY FACES WITH A
SIMILAR TRANSFORMATION JOURNEY?
Go to www.menti.com and use the code 77 01 06 8LESSONS LEARNED
26WE HAVE MADE SOME LESSONS ALONG THE WAY THAT WILL TRANSLATE INTO KEY SUCCESS
FACTORS FOR UPCOMING TASKS
Key Success Factors Challenges (besides COVID19)
11. Top Management support and clear priority to the program 11. Remote Pilot Go-Live in NORAM
22. Strong Process Managers with >80% capacity for the 22. Change of mindset to “Best for LANXESS” instead of “Best
program working jointly in “FIT Campus” and having for BU” and support of greenfield-approach
mandate to take decisions within the program
33. Balancing degree of automation and usability with SAP
33. Intensive Stakeholder Management standard
(e.g. monthly BU/GF Head Updates), exhaustive training
approach, partnership & collaboration attitude in FIT 44. Integration and maturity of SAP solutions
streams
44. Consequent, subsequent RICEFW management following 55. Interdependency management to on-going related projects
agile approach (Program Increments) and developments (MDG-implementation, EHS, GTS, GLM, Infrastructure
with approval instance Projects)
55. Implementation of „framework“ aspects (e.g. Business Rules, 66. Post-Merger Integration of systems and processes as part
KPI set) and set-up of long-term Process Governance of NORAM Pilot, today´s process diversity and ~3.000 users
in scope for PilotCOVID19 HAS BEEN MANAGED ACTIVELY WITH VIRTUAL WORK, AGILE DISCIPLINE AND
VIRTUALIZATION OF ENABLEMENT
Virtual Work Agile discipline Virtual enablement
Quick shift to mix of remote work Utilization of agile work enablers Push for virtual end user trainings
and limited onsite presence e.g. JIRA and Confluence to steer with limited onsite classroom
progress exposure
Investments into virtual work Continuation of agile framework “Virtualization” of training material
enabler e.g. spark boards, e.g. with support of Scrum Masters including (virtual) classroom material
infrastructure etc. and e-learnings / simulations
Intensification of virtual Execution of virtual PI Planning with Virtual “train-the-trainer” including
information sessions e.g. bi-weekly more than 150 participants support on how to conduct virtual
All Hands Call and information training sessions
sessionsTHANK YOU FOR YOUR ATTENTION
ralf.petersohn@lanxess.com
erik.hellemans@accenture.com
falko.tschoeke@lanxess.com
mark.carlson@sap.comYou can also read
