Enabling Business to Scale New Heights
Gaurav Chakraborty
21st Feb’09
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 More than 10% spent
Providing more than 25 industry solutions in R&D each year
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
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
11 out of 16 “Navratnas” run SAP
SAP Support Office
SAP Labs
SAP Sales Office
9 out of 10 most profitable and largest
companies run SAP
24 out of 30 companies in Sensex run SAP
No. 1 ERP 37 out of 50 companies in Nifty run SAP
SAP Sales
SAP Sales Office,
36 out of 50 in ET 500 run SAP
Office Calcutta
21 of the top 25 brands in India run SAP
SAP Global Delivery Center 18 of the 20 companies listed in the BCG Global
SAP Labs Challengers list run on SAP
SAP Sales Office
SAP India Headquarters
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 Auto CPG Telecom IT Service
Agenda
SAP Overview
Solution Coverage
Benefits of Implementing SAP
Financial Management
Analytics General Ledger
Legal Consolidation
Parallel Accounting
Accounts Receivables
Billing
Accounts Payable
Expense Management
Asset Accounting
Check Printing
Budgeting
Payroll
Overhead Cost Controlling
Funds Management
Activity Based Costing
Treasury
Profitability Analysis
Cash Management
Streamlines information Most comprehensive,
control, analysis, and functionally-rich solution
on the market
delivery
Market-leading solutions
Enables performance and customers in all
planning, measurement, industries
and management
Reliable, proven business
Optimizes the financial partner with solution and
supply chain industry expertise
Project Management
Project Reuse Project Initiation
Project Team
Project Archiving
Project Estimation & Budgeting
Project Status Management
Project Planning & Scheduling
Project Base lining & Simulation
Capacity Management
Multi -Project Management
Project Procurement
Project Progress Tracking
Project Production
Project Claims
Project Costing
Project Confirmations
Project Document Distribution Project – EH&S
Integrated Viewing / Life-Cycle Data Management Flexible Search/E-Publishing
Maintenance Full integration into the Document Project documents can be searched by
All originals of assigned document Management System of mySAP Life-Cycle various search engines and can also be
masters can be viewed/maintained Data Management; assignment of all published for external access on the
directly from the project’s various documents supported by all DMS Internet.
maintenance environment. functions (i.e. versioning, vaulting)
Initiation Planning & Project
Closing
Approval Execution
Procurement and Material Management
Knowledge Management Purchase Requisition
RFQ & Purchase Orders
Supplier Payments
Tendering
Supplier Collaboration
Supplier Evaluation & Blacklisting
Contract Management
Delivery Schedules
Quality Inspection
Physical Inventory Audits
Approvals & Workflows
Shelf Live & Status
Goods Movements Service Masters
Warehouse Management Workflows
Define Execute Monitor
Define the project requirements. Check deleverables of the supplier & sub Monitor progress & payments as per
Select Source & complete detailing contractor based on contracts & confirm schedule.
using service entry sheets
Initiation Planning & Project
Closing
Approval Execution
mySAP HR – A Total, Integrated HCM Solution
Lifecycle Management Workforce Planning
Career Planning Workforce Cost & Headcount
Planning & Simulation
Recruiting and Talent
Management Employee Succession Planning
Shift Planning Balanced Scorecard
Performance
Management
Compensation Relationship
Management
Management
Learning Expert Finder
Training & Events Manager Self-Service
Management
Employee Self-
Skills/Qualification
Management Service
Employee Interaction
Transaction Center
Management Collaboration Tools
Organizational Management
Personnel Administration
Workforce Analytics
Payroll
Claims , Loans 91 pre-defined Key
Time Management Performance Indicators
Reporting SAP Business Warehouse
Global Employee Management Integration
Maintenance Management
Equipment History Work Force Management
Location & Asset Mapping
GPS Interface
Maintenance Planning & Scheduling
Early Warning System
Budgeting & Sanctions
Meter Reading & Counter Based
Tools & Documents
Mobile Device
Complaint Management
Valuation & Status Management
Warranty & AMC
Preventive / Predictive / Breakdown /
Techn. Object Shutdown Internal /
Maintenance Time- /
External Material Contracts & Subcontracting
Condition Objects
description resource- confirmation
Work Clearance Orders /
Spares Management
planning Technical
Item data Notifications
Release / completion
Activities / Costs
Print Order
Tasks Downtimes
Control / settlement
Priorities Execution
E-Procurement Solution for 2 Envelope Bid
1
Publish
Consolidate
3 Requirements in portal 2 Requirement for project EBP
Tender fee payment
by Contractor
Payment Gateway Contractor – ERP
Download tender 4
5 6
Contractor - Upload Bid Supporting
documents
7
(Secure Network)
Bid Opening
Reverse Auction and Comparison
8 Enhanced Supply base
Tender award
9 Reduced Spend
INDIAN REGULATORY COMPLIANCE
Analytics Country Chart Of Accounts
Schedule VI
Parallel Accounting
Balance Sheet
Sales Tax – Octroi / Entry Tax
EWT - TDS
Aging Analysis
Provisional Tax
Excise Bonds / LOU
Vendor Certifications
CVD
Annual Returns – Section
Subcontractor Challans 194A/C/D…etc
Income Tax Depreciation
Excise Invoice Capture & Post
Excise Duty – BED , AED , SED
CENVAT
Security
Transaction History User Authentication
Role / Group / Job / Position Access Control
Mass Change
Transaction Access
Digital Signature
Process Access
Multiple Access Locking Field Access
Time-Out Firewall Protection
Encryption
Access Effectivity
Master Data Security Administration
Portal Security
Troubleshooting
Drag &
Authorizations
Drop
Transport of Security
Related Objects
Drag & Integration with
Drop
Organizational Management
Proven Implementation Methodology
Implementation Methodology
Agenda
SAP Overview
Solution Coverage
Benefits of Implementing SAP
Typical Challenges across key business process in Industry
Area of Business Illustrative KPIs Emerging IT Needs
Project Management
Variance /earned value analysis of time and cost
Resources expended per month in Rs. In Cr. Project Planning,
Scheduling &
Execution
Enterprise Asset Plant load factor
Management Integrated Asset
Auxiliary power consumption
Station heat rate and Maintenance
Highest uninterrupted running days
Management
Finance & Reporting Operating Margin (%) Improved
O&M cost per unit of generation (paisa/unit) Visibility and
Return on capital employed Analytics
Business
Systems &
Sourcing & Procurement Coal inventory turnover = Annual coal consumption/Average coal inventory
Applications
Out of stock Index = No. of times out of stock/ No. of times requisitioned Consolidation
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
Monitoring of
human capacity
Human Resource Mgmt. Man-MW Ratio building
Generation (‘000 MU’s) per employees initiatives
Turnover (Rs. Lakhs) per employee
Employee Cost per unit of generation
Training days per employee
SAP can drive business value across Fuctions
Area of Business Key SAP Solutions Solution Enablers
Project Management SAP ERP Unifies project management, time tracking, financial data, and employee skills
• Project Systems information in a portfolio management tool
• Materials Management Allows users to create project teams based on skills and availability, monitor
• Quality Management progress on a project, track time, analyze results, and much more
• Document Management Integrated project controls for management of distributed projects
Enterprise Asset SAP ERP
Standardizing on SAP will help free work management from tedious and manual
Management • Plant Maintenance
data entry, improving productivity among workforce
• Materials Management
Improved equipment and asset utilization
• Quality Management
• Financials and Controls Improved scheduling capabilities and resource utilization
• Business Intelligence Decreased approval time through the use of automated workflow
Finance & Reporting SAP ERP Increase efficiency of reporting, consolidation and analytics
• Financials and Controls Automate transactional finance activities which will greatly enhance decision support
• Business Intelligence capabilities
Highlight the variance between actual and forecasted performance, allowing drill-
down capabilities to better understand potential issues and opportunities
Sourcing & Procurement
SAP ERP Greater visibility into forecast requirements and supplier capabilities will help
• Materials Management enhance the effectiveness of materials management
• Quality Management XXX will be able to manage its supply chain more effectively with better planning and
forecasting
Human Resource Mgmt. SAP Human Capital Mgmt. Utilizes resources more efficiently to fit organizational needs and lets users assign
• Succession Planning workers to appropriate jobs, projects and teams
• Talent Mgmt. Enable self service to provide timely access to information
• Compensation Mgmt.
Provide a single place to access all standard HR transactions
• Employee Self Service
Business Benefits
Area of Business Immediate Benefits
45% reduction in books closure cycle time (from 16 to 11 days)
Finance & Reporting
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
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
Human Resource Mgmt.
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
Business Benefits
Area of Business 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
Lower procurement lead times
Sourcing & Procurement 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
Billings and Settlement
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
Typical Improvement Ranges for Power
Generation Utilities
Conservative Scenario
Business Function Likely Scenario
Enterprise Asset Management Finance, Accounting and Reporting
Reduced Auxiliary Consumption due to 5% Shortened Annual Close Process for Filling 10%
Improved Maintenance Practices 7% ARR with DERC 12%
Improved Asset Management and 10% 20%
Improved Finance Department Productivity
Maintenance Efficiency 12% 25%
Increased revenues through improvement in 2% 10%
scheduled up-time and reduction in Integrated reporting/ analytics productivity
unplanned downtimes 3% improvements 12%
Reduced Maintenance and Spare Parts 10%
Inventory Levels through better visibility 15% Human Capital Management
Improved planning and execution of 20%
Sourcing and Procurement employee redeployment program 25%
Material and Services Rationalization, 15% 25%
Standardization, and Consolidation 20% HR Process Development Benefits
35%
Better Supplier Contract Negotiation due to 10% 20%
Improved Resource Utilization
Better Contract Handling Efficiency 15% 35%
Reduced Procurement Spend on In-direct 5%
Materials (equipment and spares) 10%
BPCL’s – Success with SAP Implementation
Key benefit statements made by BPCL . . .
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&A
Thank you for
your interest!