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ERP Implementation Coca-Cola Hellenic

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Coca-Cola Hellenic, one of the largest Coca-Cola bottlers worldwide, has started a three year long project to substitute all legacy systems with a SAP implementation called Wave 2, in order to ...

Coca-Cola Hellenic, one of the largest Coca-Cola bottlers worldwide, has started a three year long project to substitute all legacy systems with a SAP implementation called Wave 2, in order to maximize efficiencies in use of resources and apply common best practices and polices accross the group.

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ERP Implementation Coca-Cola Hellenic ERP Implementation Coca-Cola Hellenic Presentation Transcript

  • Group Project Zoi KarakostaOperations & Information Management Stathis SimeonidisInstructor: Prof. Papadopoulos
  • What is ERP ? Corporate / Enterprise-wide information systems Highly complex Aggregate information from entire company or outside it Automate processes from all functions Modular Information Systems Available in the Market Incorporate Best Practices from other companies Customization needed to fit to own company Comply with international standards
  • History of ERPMRP is the initial effort Early 60sSoftware application that generates planning MRPand scheduling materials for complex MRP becomes the fundamental concept usedmanufactured goods 1970s in production managementSAP company is born 1972Five German engineers begin the company MRP evolves into MRP IISAP for producing and marketing standard Distribution Management Activities 1980software for integrated business solutionsHRM 1988 MRP becomes ERPHuman Resource Management is developed The term ERP is coined when MRP II is 1990 needed to cover areas likeEuro Engineering, Finance, and ProjectIntroduction of Euro, many companies take 2000 Managementthis opportunity to use ERP (because ofdisrupted legacy systems) 9/11 triggers a drop in demand for new ERP 2001 systems.ERP becomes internet enabled 2002 Services Oriented Architecture (SOA) allows different systems to communicate one another 2004
  • Scope of ERP systems Manu- Sales & Human Accounting Finance Traditional Systems facturing Marketing Resources Vendors Customers Business Business Business Business Business Vendors Processes Processes Processes Processes Processes Customers Vendors Customers Production Accounting Finance CRM HRM Systems Systems Systems Systems Systems Manu- Accounting facturing Enterprise Systems Enterprise System Vendors Business Processes Customers Vendors Business Processes Customers Enterprise–wide Business Processes Vendors Customers Human Sales & Finance Resources Marketing
  • Why ERP ? Changing economic & business environment Economic outlook drives for efficiencies Maintain competitive advantage Eliminate duplicate efforts and Leverage Best Practices Increased need for unified on-time information and user interface Business alignment towards strategy & Control towards standards (IFRS, SOX, etc.) Quick decision support Sharing & integration of management information with partners
  • Advantages & Disadvantages1. Accounting applications (integration of costs, profit and 1. Potential failure in utilizing the system properly could makerevenue information of sales in a granular way) the company less efficient in the long run2. Easy alterations in manufacturing 2. High costs - Only large corporations can access these benefits3. The company keeps better track of their products which are offered by this technologyproduced with a higher level of quality 3. Continuous training of employees4. High Employed Security 4. ERP has a number of limitations (the success is fully5. ERP in logistics strengthens the cooperation between dependent on how employees utilize it)suppliers, companies and clients 5. Hard to customize.6. Efficient cash management 6. Making the necessary changes may make the company less7. Quality control support (Internal auditory procedures and effective in the marketproviders) 7. ERP vendors may charge additional license fees8. Improved Financial Information 8. ERP technical support has been questioned
  • Challenges of ERP Needs a clear understanding of the organization and how it does things Clear documentation of Business Processes & Legacy Systems Scope defined in detail Implementation brings a lot of change & resistance ERP packages may need customization to fit but also Organization has to adapt to it (organization changes) Expenses of implementing are high – so is the risk Implementation is resource-intensive
  • Critical Success Factors Clear understanding of strategic goals, expectations and deliverables Top management support, engagement and participation Engagement in excellent project management (define the objectives, develop work plan) Business driven implementation directed by business requirement (not by IT dept.) Top-notch implementation team (detailed project plan and full availability of all necessary resources) Absolute data precision (invalid data can have a negative domino effect) Thorough training and extensive education (giving 10-15% of the total ERP implementation budget for training provides 80% chance of success.) Specific performance measures. (Evaluation criteria must be included from the early beginning)
  • Implementation ProcessReview Review the pre-implementation processes (how the company does things now) Get Trained Get extensive training on the selected software package Plan the Establish project team, plan, milestones, risks and contingency plans Project Define Gaps Set up a process for gap analysis & assessment Test solutions Consult extensively the end-users Document Processes Roll-out Improve Continuously
  • Vendor selectionFunctionality ERP Market ShareModularity – Customization Possibilities - % of processescovered – Best Practices of Industry TechnologyCompatibility with the existing infrastructure VendorReputation – Nb Of installations in industry and area –Successful track record of its partners SupportAfter-implementation support level Costs
  • Company Profile €1 billion EBITDA 42,000 employees 90 Coca-Cola Hellenic is one of the largest bottlers and vendors of The brands Coca-Cola Company’s products in the world, and the largest based in Europe, spanning over 28 countries and serving 560 million people. Coca-Cola Hellenic was formed in 2000 as a result of the merger of the Athens-based Hellenic Bottling Company and the London-based 28 Coca-Cola Beverages countries
  • Implementation in CCHCoca-Cola Hellenic has selected SAP as its ERP VendorWill replace a legacy system BASIS, designed by TCCC for all its vendors worldwideSince 2004, it used the Accounting & Finance Module only of SAP, called Wave 1The total implementation, that will replace all legacy systems is called Wave 2Started in Czech & Slovakia operations, will phase in all countries until 2014Major release in established countries Italy & Greece on 01/01/10
  • Goals of implementation SAP Wave 2 is a complete end-to-end business tool that will allow CCH to standardize all systems & processes applying the same technology in all divisions. Significant investment in SAP Wave 2, introducing new and more effective methods to optimize productivity and performance throughout the organization. SAP Wave 2 Platform allows CCHellenic to provide excellent customer service by improving our customer-centric procedures such as inventory management and invoicing accuracy. With the installation of SAP Wave 2, business developers have access to various critical customer information such as:  Transaction History  Promotion Activities  Product Availability …through their handheld devices that enable more competitive customer service. Projected benefits $53 - $109 million
  • Enterprise Process Map Product & Customer Key Account Promotion Segmentation Wholesaler plan Pricing Financial Financial Evaluation Management Management Field SalesBusiness Field sales Territory/ In Store Integr. Order Distribution Settlement MonitoringPlanning Sales, Marketing & Distribution plan Visit Plg. Execution Mgmnt Mgmnt Billing Survey (Business Intelligence) Channel / Category Monitoring Finance Management Plan and Strategic Route Treasury Corporate Reporting Promotion Plan Planning Treasury Cash Mgmnt Customer Cash Mgmnt Profitability Market-to-Cash Financial Demand Financial Accounting Operational Planning Accounting Reporting / KBI Weekly Dem. & Production Product Warehouse Supply Mgmnt Execution. Quality management Haulage Supply Network Planning Manufacturing & Haulage Fleet Mainten. Controlling Controlling Group Reporting / KBI Financial Period End Planning Period End Closing Closing Forecast-to-Deploy Capital Vendor Procurement Receiving Accounts Corporate & Vendor Budget RFA Process Procurement Mgmnt Mgmnt Mgmnt Payable Management Reporting Monitoring Procure-to-Pay Equipment Equipment Equipment Equipment Equipment demand planning Asset Management Placement Maintenance Refurbishment/ Disposal Monitoring Asset Management Human People Recruit- Org.Mgmt Compen- Resource Planning Human Resource Management Recruit-To-Retain ment & Admin sation Performance & Development
  • Change Management Document processes Define Gaps Assess / Implement Build knowledge Transfer knowledge (train) Use knowledge
  • Implementation Process Set up Project Define Project Define and Establish Prepare Team Plan finalize Scope Milestones Define Key Users Gap Analysis / Assess / Approve Assess Evaluate Solution / Critical Change Requests changes personnel Allocate external Monitor Test solution Provide Implement & internal Implementation provided Feedback resources Define Define cut-off Minimize Roll – out Halt change process period and Contingency Plan (in case of functionality Phase in until stabilization failure)
  • Preparation Special / separate project team per country:Set up Project Team Project management office + Extracted Operational Users Freeze general scope before kick-off Define andfinalize Scope Only critical details implemented laterDefine Project Highly detailed plan (who, when, what) Plan Extends after the go-live Establish Important dates where certain events take place Milestones (kick offs, trainings, set-ups, unit tests etc.)
  • Assessment Evaluate existing solution provided in software lab-testsEvaluate Solution (UNIT TESTS)Define Key Users Users with operational knowledge join consultants / Critical Access to specialized training personnel Champions as reference for user queries Toll-Gate Define distance from toll-gates The level of readiness to Gap Analysis /Change Requests Create requests for implementing major organizational change alterations in template solution concerning People, Process and Technology.Assess / Approve The project committee approves/rejects change changes requests based on priority and importance
  • ImplementationAllocate external Allocate all external & internal resources (people, & internal computers, rooms, consultants etc.) to be available resources according to the change plan Continuously monitor and test according to the schedule MonitorImplementation the provided solution and anticipate change needed in the organization Test solution The final solution must be tested by both provided project team but also champions & key users Provide feedback in order to decide if will Provide Feedback be included in the next roll out phase
  • Roll - Out A given time before the go-live, change requests are not Halt change process longer accepted and any gap identified is left out of the scope. Define cut-off A short time before the go-live, only important and major period and changes occur in the system and priority and focus is Phase in given only to critical operations. Define The project plan must have some kind of contingency planContingency Plan (in case of (pen and paper, overtime budget, backup systems) failure) for every critical process. After go-live, focus is given in critical operations such Minimize as order taking, production and distribution until the functionalityuntil stabilization system is declared stable by the committee.
  • Expectations of Change Project Implementation Timeline Preparation Go Live Phase Recovery With a stable environment, the benefits of SAP can be Much work to Immediately after Once people The go-live event obtained, such as prepare going become is both an end efficiency, effectivfor new systems and live, performance, comfortable using and a beginning. eness business processes. productivity and the system and all and morale usually the bugs are transformation. declines as people worked out, then adapt to the new the environment system and processes. stabilizes.
  • ConclusionIn the Czech Republic, Slovakia, Italy and Bulgaria, hand- In Poland, Bulgaria and Romania, automated dispatching ofheld electronic devices allow the delivery drivers to products results in faster delivery and optimized routeproduce customer invoices at the time of delivery, reducing planning, to help meet specific customer requirements.invoice inquiries and improving cash flow.In Austria and Italy, a SAP-driven vendor management In Bulgaria, a specialized customer order entry process andinventory system allows exchanging electronic inventory keyboard have helped Customer Service specialists reduceinformation with large customers and plan the the time required to take a product order by 25%-30%.replenishment of their warehouses.
  • Thank You!Group Project Zoi KarakostaOperations & Information Management Stathis SimeonidisInstructor: Prof. Papadopoulos