Optimize your international roll-out strategy using SAP’s solutions & methodology for Small & Medium-sized Businesses

Jan Wildemauwe IT Development Department Manager, IT Center EMEA DAIKIN EUROPE NV

Ivan De Broyer Business Unit Manager SME EXPERTUM

SAP Lounge, BrusselsOctober 8-9, 2008

1. Daikin Europe NV

2. Expertum

3. Background

4. The case – Daikin Sweden

5. Conclusions

Agenda

Daikin Europe NV : Product Range

Residential

Light commercial

Large commercial

Applied Systems

Split 41.6%

Packaged & Sky Air 17.1%

FCU / Chillers 4.0%

VRV 23.5%

Others13.8%

Heating

Air cleaner

Refrigeration

Spare parts

Service

…

Figures based on FY2007

Daikin Europe’s Sales Presence

Representation/Sales OfficeAffiliate

“Daikin Leads the way”

Distributor/sales contactHQ Belgium

Daikin General Information

Daikin Industries Ltd ( Japan ) ( °1925 ) : Turnover F07 : 8,3 Bio € ( 36.000 staff worlwide)

Global Nr 2 in Air conditioning

Merger & Acquisition with OYL in 2006

Daikin Europe NV ( Belgium ) ( ° 1973 ) :

Turnover F07 : 1,9 Bio € ( 4.100 staff within EMEA)

target 2010 : 3 Bio Euro

Nr 1 in Airconditioning market, expanding to heating and refrigeration market.

Manufacturing plant : Ostend (Belgium) & Plzen ( Czech Republic )

Territory : EMEA

1. Daikin Europe NV

2. Expertum

3. Background

4. The case – Daikin Sweden

5. Conclusions

Agenda

Expertum

Founded in 2006 Team of +30 SAP Experts and Project Managers Mission: providing superior long-term customer & employee

value Offering expertise in the following domains:

Finance Supply Chain Management Business Intelligence Product Lifecycle Management Project Management Own SME Solution: Value4SME

New website: www.expertum.net

1. Daikin Europe NV

2. Expertum

3. Background

4. The case – Daikin Sweden

5. Conclusions

Agenda

Accelerate SAP R/3 implementationBackground

2000

2005

2005

2010

2010

Existing Sales companies Expand sales territory

Merger & Acquisitions

Smaller sales companies

Pan-European integrated systemStock integration

SAP R/3 – APO - BIOptimize Supply Chain

SAP CRMPre-sales / After-sales

SAP R/3 Accelerate start up of a new sales companies

Start with SAP R/3 - APO

Make standard DAIKIN business solution packages which can be implemented in a fast and cost effective way.

Big sales companies

12 months -> 6 Months -> 4 months ?

1. ASAP Focus Approach2. Pre-defined Implementation

Service Packages

Accelerate SAP R/3 implementationSAP Roll-out Context

Context

Constraints / Pain Points Goals

Daikin Affiliate Packaged Solution

Components:

Limited available DENV and Affiliates KU’s

Other key SAP projects / initiatives calling for same IT resources

Sales worried about long and expensive implementations

Plug-in/integrate all affiliates Process standardization

based on Daikin best practices

Accelerate roll-out planning Fast implementation with low

risk Reducing cost Provide solution that can

grow with the business Deliver quick & tangible

benefits

New sales company (takeover) have own local solution cheaper and known. Implementation cost too high and time too long for new started sales company

prefer PC solution. Each sales company has own specific processes!

1. Daikin Europe NV

2. Expertum

3. Background

4. The case – Daikin Sweden

5. Conclusions

Agenda

Stockholm

Malmö

Göteborg

Klippan

HQ OfficeRegional sales office

Warehouse

Symbols:

Project Scope – Daikin Sweden

Organization One single legal entity with HQ located in Solna (Stockholm). Two

regional sales offices: one in Göteborg and one in Malmö. One central stock location, from which deliveries to customers are

organized, located in Klippan, near Malmö. For this Daikin Sweden is working with a third party logistic provider:

Skoogs Akeri & Logistic A.B. 13 SAP Users

Legacy system was Microsoft Axapta system.

Project ScopeDaikin Affiliate Reference Model

DP

DemandPlanning

SNP

Supply NetworkPlanning

G-ATP

Global ATP

SAP SCM 5.0 SAP ERP 6.0

SD

Sales &Distribution

MM

MaterialsManagement

CO

Controlling

FI

Finance

SAP BI 7.0

XLS upload

GAIN

DENV processes

SD processes:

- Quotations - Sales Order processing- Outbound delivery processing- Pick/Pack- Post goods issue- Billing- Customer Returns- Consignment stock- Cross company buy-back

MM processes:

- Replenishment Planning (local)- Purchase requisition processing- Purchase and Transfer orders- Inbound delivery processing- Goods receipt- Invoice verification- Physical inventory- Stock transfers- Return to Vendor- Non stock purchasing

FI processes:

- G/L accounting- Accounts receivable- Credit control- Accounts paybale- Bank accounting- Stock accounting- Fixed assets accounting- Period end closing

CO processes:

- Cost Center Accounting- Internal Order processing- Profitability Analysis

G-ATP processes:

- Availability check- Product allocation check- Backorder processing

SAP GTS 7.0

BI reporting:

- Sales reporting- Stock reporting

Migration tools ready

Data cleansing Get the people ready

Focus for Project

Get the system ready

Targetweeks

Get the data ready

Migration tools ready

Data cleansing Get the people ready

Focus for Project

Get the system ready

Targetweeks

Get the data ready

ASAP Focus Project Approach

“Get the people ready instead of getting the solution ready”.“Get the people ready instead of getting the solution ready”.

Project results

ASAP Focus Project ApproachProject Phases

Evaluation Phase Site qualification for selected project approach Identify delta requirements Agree on roles and responsibilities Pre-project activities e.g. organize connectivity / team mobilization

Implementation Project Preparation Realization

Proto-type Demo Key-user Training Baseline Integration Testing Final Integration Testing …

Final Preparation Go Live & Support

Project Schedule

YearMonthWeek 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Project PreparationProject DefinitionProto-type SetupKick-off MeetingKey-user Training

RealizationProto-type DemonstrationSystem SetupDevelopmentsBaseline Integration TestingAuthorization SetupData ConversionsQA Cutover Dry RunFinal Integraton TestingEnd-user Training Preparation

Final PreparationEnd-user TrainingSystem PreparationData ConversionsPRD Cutover

Go Live and SupportOn site supportSupport 1st Financial ClosingPorject Closure

Local KU in OstendProject team in Sweden

April May June July August2008

Key Success Factors

Strong commitment and involvement from Steering Committee Members

No compromises on key principles of the ASAP Focus project approach… but managed flexibility to overcome unforeseen circumstances

An experienced implementation team of key-users, IT staff and consultants

A stable, complete and well documented business solution delivering proven benefits (e.g. including high quality end-user documentation)

Limited delta requirements and willingness to adopt the standard solution

Project Results

Go Live on 1st of July as plannedBusiness self-supporting after 2 weeks of on-site go live support

Project implementation lead time 3 months10% below budgetExtended scope implemented (with Asset Management)

Legacy system replaced Integration benefits with Daikin Europe operational

Further standardization and documentation Daikin Affiliate Reference Model delivered

1. Daikin Europe NV

2. Expertum

3. Background

4. The case – Daikin Sweden

5. Conclusions

Agenda

General Conclusions

Carefully qualify the sites for the selected project approach

Built-in contingency for unforeseen circumstances and manage with controlled flexibility

Work with an experienced team knowing well the business and the packaged solution to be implemented

Focus on “getting the people ready” from day 1

Continue to follow-up the benefit realization after implementation

Thank you!