gaurav chakraborty 21 st feb’09 enabling business to scale new heights benefits of implementing...
TRANSCRIPT
Gaurav Chakraborty21st Feb’09
Enabling Business to Scale New Heights
Benefits of Implementing SAP
Agenda
SAP Overview
Solution Coverage
Benefits of Implementing SAP
Summary of SAP today
SAP AG in 2007 revenues: Rs 72,000 Cr More than 43,000 companies run SAP software Providing more than 25 industry solutions 43,772 SAP employees (December, 2007)
12 million users in 120+ countries team with us to… Integrate their business processes Extend their competitive capabilities Get a better return on investment at a lower total cost of ownership
Unique partner ecosystem More than 3,850 partners Overall more than 180,000 SAP partner certificates
More than 10% spent in R&D each year
SAP in India
Market Leader - 4500+ Customers
Country wide Offices , 7500+ Employees &
Growing
SAP Labs – R&D Centre at Bangalore &
Delhi
Mature India Localization & India Payroll
Customer Care Centre at Bangalore
Large & Leveragable Skill Base
Knowledge Services
SAP in India – Some Interesting Facts
No. 1 ERP
SAP Sales Office
SAP Sales Office
SAP Sales Office, Calcutta
SAP Support Office
SAP Labs
SAP Sales Office
SAP Global Delivery Center SAP Labs
SAP India Headquarters
11 out of 16 “Navratnas” run SAP
9 out of 10 most profitable and largest companies run SAP
24 out of 30 companies in Sensex run SAP
37 out of 50 companies in Nifty run SAP
36 out of 50 in ET 500 run SAP
21 of the top 25 brands in India run SAP
18 of the 20 companies listed in the BCG Global Challengers list run on SAP
25 out of the 40 Largest Indian Companies named by Forbes run SAP
7 out of the 13 Indian firms named by BusinessWeek in 'Asia's Hot Growth Companies' list run SAP
Solid Penetration … Hallmark of the Leader
Oil & Gas E&C Telecom IT ServiceAuto CPG
Agenda
SAP Overview
Solution Coverage
Benefits of Implementing SAP
General Ledger
Legal Consolidation
Accounts Receivables
Accounts Payable
Asset Accounting
Budgeting
Overhead Cost Controlling
Activity Based Costing
Cash Management
Treasury
Funds Management
Payroll
Check Printing
Parallel Accounting
Analytics
Expense Management
Billing
Financial Management
Profitability Analysis
Streamlines information control, analysis, and
delivery
Enables performance planning, measurement,
and management
Optimizes the financial supply chain
Most comprehensive, functionally-rich solution on
the market
Market-leading solutions and customers in all
industries
Reliable, proven business partner with solution and
industry expertise
Project Management
Initiation Planning & Approval
Project Execution Closing
Life-Cycle Data ManagementFull integration into the Document Management System of mySAP Life-Cycle Data Management; assignment of all various documents supported by all DMS functions (i.e. versioning, vaulting)
Project Initiation
Project Team
Project Estimation & Budgeting
Project Planning & Scheduling
Capacity Management
Project Procurement
Project Production
Project Costing
Project Document Distribution
Project Confirmations
Project Claims
Project Progress Tracking
Multi -Project Management
Project Archiving
Project Reuse
Project Base lining & Simulation
Project Status Management
Integrated Viewing / Maintenance All originals of assigned document masters can be viewed/maintained directly from the project’s maintenance environment.
Flexible Search/E-PublishingProject documents can be searched by various search engines and can also be published for external access on the Internet.
Project – EH&S
Procurement and Material Management
Initiation Planning & Approval
Project Execution Closing
ExecuteCheck deleverables of the supplier & sub contractor based on contracts & confirm using service entry sheets
Purchase Requisition
RFQ & Purchase Orders
Tendering
Supplier Evaluation & Blacklisting
Delivery Schedules
Approvals & Workflows
Service Masters
Warehouse Management
Goods Movements
Shelf Live & Status
Physical Inventory Audits
Quality Inspection
Supplier Payments
Knowledge Management
Contract Management
Supplier Collaboration
Define Define the project requirements. Select Source & complete detailing
MonitorMonitor progress & payments as per schedule.
Workflows
mySAP HR – A Total, Integrated HCM Solution
Workforce Analytics
91 pre-defined Key Performance Indicators
SAP Business Warehouse Integration
Relationship
Management
Expert Finder
Manager Self-Service
Employee Self-
Service
Employee Interaction
Center
Collaboration Tools
Workforce Planning
Workforce Cost & Headcount Planning & Simulation
Employee Succession Planning
Balanced Scorecard
Lifecycle Management
Career Planning
Recruiting and Talent Management
Shift Planning
Performance Management
Compensation Management
Learning
Training & Events Management
Skills/Qualification Management
Transaction Management
Organizational Management
Personnel Administration
Payroll
Claims , Loans
Time Management
Reporting
Global Employee Management
Maintenance Management
Work Force Management
Location & Asset Mapping
Maintenance Planning & Scheduling
Budgeting & Sanctions
Tools & Documents
Complaint Management
Warranty & AMC
Contracts & Subcontracting
Spares ManagementWork Clearance
Preventive / Predictive / Breakdown / Shutdown Maintenance
Valuation & Status Management
Mobile Device
GPS Interface
Equipment History
Meter Reading & Counter Based
Early Warning System
Objects Orders /
Notifications Costs Downtimes
His
tory
Time- / Material confirmation
Technical completion
Order settlement
Com
plet
ion
Internal / External resource- planning
Release / Print
Control / Execution
PM O
rder
Techn. Object Condition
description Item data Activities /
Tasks Priorities
Not
ifica
tion
E-Procurement Solution for 2 Envelope Bid
22
66
44
33 Consolidate
Requirement for project
Payment Gateway
EBP
11
Tender award
Bid Opening
and Comparison
Supporting
documents
Contractor - Upload Bid
Contractor –
Download tender
Publish
Requirements in portal
55
ERP
Reverse Auction
Tender fee payment
by Contractor
77
88
99
(Secure Network)
Enhanced Supply base
Reduced Spend
Country Chart Of Accounts
Schedule VI
Balance Sheet
EWT - TDS
Provisional Tax
Vendor Certifications
Annual Returns – Section 194A/C/D…etc
Income Tax Depreciation
CENVAT
Excise Invoice Capture & Post
Subcontractor Challans
CVD
Excise Bonds / LOU
Parallel Accounting
Analytics
Aging Analysis
Sales Tax – Octroi / Entry Tax
INDIAN REGULATORY COMPLIANCE
Excise Duty – BED , AED , SED
Security
User Authentication
Role / Group / Job / Position Access Control
Transaction Access
Process Access
Field Access
Firewall Protection
Encryption
Administration
Portal Security
Master Data Security
Access Effectivity
Time-Out
Multiple Access Locking
Mass Change
Transaction History
Digital Signature
Drag & Drop
Drag & Drop
Troubleshooting Authorizations
Transport of Security Related Objects
Integration with Organizational Management
Proven Implementation Methodology
Agenda
SAP Overview
Solution Coverage
Benefits of Implementing SAP
Typical Challenges across key business process in Industry
Illustrative KPIs
Enterprise Asset Management
Plant load factor Auxiliary power consumption Station heat rate Highest uninterrupted running days
Integrated Asset and Maintenance
Management
Project Planning, Scheduling &
Execution
Business Systems &
Applications Consolidation
Emerging IT Needs
Improved Visibility and
Analytics
Finance & Reporting Operating Margin (%) O&M cost per unit of generation (paisa/unit) Return on capital employed
Variance /earned value analysis of time and cost Resources expended per month in Rs. In Cr.
Project Management
Coal inventory turnover = Annual coal consumption/Average coal inventory Out of stock Index = No. of times out of stock/ No. of times requisitioned Planning efficiency index = No. of rush orders placed/ Total no. of orders Spare parts index = Avg value of spare parts inventory/ Avg Value of total inventory Obsolescence index = Value of non-moving items/Total inventory value
Area of Business
Sourcing & Procurement
Man-MW Ratio Generation (‘000 MU’s) per employees Turnover (Rs. Lakhs) per employee Employee Cost per unit of generation Training days per employee
Human Resource Mgmt.
Monitoring of human capacity
building initiatives
SAP can drive business value across Fuctions
Solution Enablers
Enterprise Asset Management
Standardizing on SAP will help free work management from tedious and manual data entry, improving productivity among workforce
Improved equipment and asset utilization Improved scheduling capabilities and resource utilization Decreased approval time through the use of automated workflow
Finance & Reporting Increase efficiency of reporting, consolidation and analytics Automate transactional finance activities which will greatly enhance decision support
capabilities Highlight the variance between actual and forecasted performance, allowing drill-
down capabilities to better understand potential issues and opportunities
Unifies project management, time tracking, financial data, and employee skills information in a portfolio management tool
Allows users to create project teams based on skills and availability, monitor progress on a project, track time, analyze results, and much more
Integrated project controls for management of distributed projects
Project Management
Greater visibility into forecast requirements and supplier capabilities will help enhance the effectiveness of materials management
XXX will be able to manage its supply chain more effectively with better planning and forecasting
Area of Business
Sourcing & Procurement
Utilizes resources more efficiently to fit organizational needs and lets users assign workers to appropriate jobs, projects and teams
Enable self service to provide timely access to information Provide a single place to access all standard HR transactions
Human Resource Mgmt.
Key SAP Solutions
SAP ERP• Plant Maintenance• Materials Management• Quality Management• Financials and Controls• Business Intelligence
SAP ERP• Project Systems• Materials Management• Quality Management• Document Management
SAP ERP• Financials and Controls• Business Intelligence
SAP ERP• Materials Management• Quality Management
SAP Human Capital Mgmt.• Succession Planning• Talent Mgmt.• Compensation Mgmt.• Employee Self Service
Business Benefits
Immediate Benefits
Project Management
Real-time tracking of key project activities and milestones Reduction in project coordination effort Better project execution visibility helps identify and eliminate potential bottlenecks
Enabling employees to manage/ track transactions in self-service mode has significant productivity benefits
Centralized payroll management has enhanced HR productivity - 9 FTE’s can now handle payroll against 40 – 50 earlier
45% reduction in books closure cycle time (from 16 to 11 days) Seamless reconciliation improved accounting efficiency Access up-to-date cost records System-enforced consistency in adherence to policies/ std. procedures across all
locations Management dashboard with complete overview of business in a single screen
powered by SAP BI
Area of Business
Finance & Reporting
Human Resource Mgmt.
Business Benefits
Immediate Benefits
Enterprise Asset Management 50% rationalization of asset item codes Complete visibility into asset maintenance history and spare parts movement Monitor overhauling and OPI (schedules, costs, material availability, sequence of
activities etc.) by leveraging SAP capabilities extensively Spares purchased cost reduction achieved through visibility of common spares
across plants and centralized PO process
Real-time visibility into cash-flows Uniform bills created for customers drawing power from various divisions/ locations
through centralization of commercial billing function Eliminated errors and revenue loss by standardizing plant level interpretation of
billing clauses and terms
Area of Business
Billings and Settlement
Lower procurement lead times Improved vendor collaboration enabled by streamlined workflows and standard
processes 40% rationalization of vendor base through code unification Consolidation of spend value by supplier help gain savings through “Preferred”
vendor discounts SAP Fuel Management application helped optimize spend by tracking procurement,
transportation and consumption trends accurately
Sourcing & Procurement
Typical Improvement Ranges for Power Generation Utilities
Reduced Auxiliary Consumption due to Improved Maintenance PracticesReduced Auxiliary Consumption due to Improved Maintenance Practices 7%7%
5%5%
Conservative ScenarioConservative Scenario
Likely ScenarioLikely ScenarioBusiness Function
Improved Asset Management and Maintenance EfficiencyImproved Asset Management and Maintenance Efficiency 12%12%
10%10%
Increased revenues through improvement in scheduled up-time and reduction in unplanned downtimes
Increased revenues through improvement in scheduled up-time and reduction in unplanned downtimes 3%3%
2%2%
Reduced Maintenance and Spare Parts Inventory Levels through better visibilityReduced Maintenance and Spare Parts Inventory Levels through better visibility 15%15%
10%10%
Enterprise Asset Management
Shortened Annual Close Process for Filling ARR with DERCShortened Annual Close Process for Filling ARR with DERC 12%12%
10%10%
Improved Finance Department ProductivityImproved Finance Department Productivity25%25%
20%20%
Integrated reporting/ analytics productivity improvementsIntegrated reporting/ analytics productivity improvements 12%12%
10%10%
Finance, Accounting and Reporting
Material and Services Rationalization, Standardization, and ConsolidationMaterial and Services Rationalization, Standardization, and Consolidation 20%20%
15%15%
Better Supplier Contract Negotiation due to Better Contract Handling EfficiencyBetter Supplier Contract Negotiation due to Better Contract Handling Efficiency 15%15%
10%10%
Reduced Procurement Spend on In-direct Materials (equipment and spares)Reduced Procurement Spend on In-direct Materials (equipment and spares) 10%10%
5%5%
Sourcing and ProcurementImproved planning and execution of employee redeployment program Improved planning and execution of employee redeployment program 25%25%
20%20%
HR Process Development BenefitsHR Process Development Benefits35%35%
25%25%
Improved Resource UtilizationImproved Resource Utilization35%35%
20%20%
Human Capital Management
Key benefit statements made by BPCL . . .
BPCL’s – Success with SAP Implementation
Kochi Refineries – Success with SAP Implementation
A large Gas Public Sector Co. – Success with SAP Implementation
TISCO’s experience with SAP. . .
13:20 – 18:07
Q & AThank you for your interest!