Effective reporting in SAP: Help your CFO make more timely decisions and sharpen your company’s competitive edge
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Effective reporting in SAP: Help your CFO make more timely decisions and sharpen your company’s competitive edge

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ABB moved from seven ERPs to just one version of SAP in nine months. Previously the different methods of reporting created a culture of dependence on spreadsheets and manual intervention. Getting away ...

ABB moved from seven ERPs to just one version of SAP in nine months. Previously the different methods of reporting created a culture of dependence on spreadsheets and manual intervention. Getting away from this to understand that there is one version of the truth in SAP is a huge change management exercise, and one that few conquer well. Andrew Marshall and Martin Smith from ABB will share the approach they used to give their business confidence that SAP produces reliable reporting data without manual intervention. After going live in December 2009, they have invoked an approach to continuously improve and optimise their processes with SAP. Now the CFO’s ambition is to complete reporting on day three. If you want a fresh, people-focused approach to get the most from your SAP’s reporting capabilities, attend this session.

Andrew Marshall, General Manager Shared Accounting Services, ABB UK

Martin Smith, FICO Systems Architect, ABB UK

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Effective reporting in SAP: Help your CFO make more timely decisions and sharpen your company’s competitive edge Effective reporting in SAP: Help your CFO make more timely decisions and sharpen your company’s competitive edge Presentation Transcript

  • Martin Smith and Andrew Marshall – ABB UK Help your CFO make more timely decisions and sharpen your company‘s competitive edge© ABB GroupOctober 25, 2010 | Slide 1
  • Agenda Brief overview of ABB ABB UK SAP Transition experience ERP Landscape Implementation process overview Challenges Tangible benefits What does this mean for the CFO? Critical success factors What would we do differently? Single item generating most improvement© ABB GroupOctober 25, 2010 | Slide 2
  • Power and productivity for a better worldABB’s vision As one of the world’s leading engineering companies, we help our customers to use electrical power efficiently, to increase industrial productivity and to lower environmental impact in a sustainable way. www.abb.com© ABB GroupOctober 25, 2010 | Slide 3 View slide
  • Introduction Martin Smith FI/CO System Architect, ABB UK 4 years with ABB SAP Project Responsible for: Roles and Authorisations, SOX, UAT Andrew Marshall General Manager, Shared Accounting Services, ABB UK 14 years with ABB SAP Project Responsible for Single sets of Master Data Compliant and reconciled transition of legacy financials Member of “One Simple ABB” concept team© ABB GroupOctober 25, 2010 | Slide 4 View slide
  • Power and automation are all around usYou will find ABB technology… orbiting the earth and working beneath it, crossing oceans and on the sea bed, in the fields that grow our crops and packing the food we eat, on the trains we ride and in the facilities that process our water, in the plants that generate our power and in our homes, offices and factories© ABB GroupOctober 25, 2010 | Slide 5
  • ABB UK and Ireland Overview Part of ABB Group >$32Bn Revenues 100 countries / 117,000 employees 12 main locations across the UK and Ireland >5,000 Customers 2,200 employees £650m revenue in 2009 Over 5,000 customers Head offices: Daresbury and Dublin Currently 2 shared service centres Moving to 1 centre from Jan 2011 SAP in UK BaaN in IE (current transition to SAP)© ABB GroupOctober 25, 2010 | Slide 6
  • Some ABB Customers© ABB GroupOctober 25, 2010 | Slide 7
  • ABB UK SAP Transition Experience© ABB GroupOctober 25, 2010 | Slide 8
  • UK ERP Landscape – 2006 2006 Supported Age Issues LP PA DM PS PP Revs % of System Oracle 32% 10 Yrs Totally unsupported Vax Mfg 10% 26 Yrs Bespoke (1 expert) JD Edwards 7% 10 Yrs Old AS400 Agresso 8% 7 Yrs Sanderson Mfg 5% 4 Yrs Unstable Baan 32% 8 Yrs Old Version (4c4) Vixen 5% 16 Yrs Limited support One Simple ABB Project 2008 Revs % LP PA DM PS PP SAP 100%© ABB GroupOctober 25, 2010 | Slide 9
  • GB ERP and F&A – Pre SAP Finance Operations HR Payroll ABACUS Credica AMF Open Uptime Comp SCOT Agresso G Ceridian IN Vixen NT PWA Payrite OU A CC Sanderson Excel Ernie ET HE Open Accs DSVax Oracle Ceridian EA SPR Oracle Ceridian L CE Edwards Excel Ceridian EX JD© ABB Group Baan PWA CeridianOctober 25, 2010 | Slide 10
  • GB ERP and F&A – To be Finance Operations HR Payroll ABACUS Credica BASWARE Comp SCOT MySAP Ceridian© ABB GroupOctober 25, 2010 | Slide 11
  • Implementation Process Overview NOT Finance or IS lead project Designed as business-wide project Each business was stakeholder – full engagement UK Management team (board) = STECO Defined and dedicated team for UK Plus business support teams 1:1 relationships with SAP consultants Module by module Ring-fenced project – entirely divorced from day to day operations Series of “gates” and checkpoints at critical phases Phased (separate business “types”) implementation over 9 months© ABB GroupOctober 25, 2010 | Slide 12
  • Implementation Process Overview This approach enabled Business buy-in Senior management involvement (STECO) gave project priority / gravitas it needed to succeed SAP project as a “single function” (separate accounting/separate management) enabled critical FOCUS Modular approach gave full, in depth understanding of each element at a module level Downsides to this approach Team pulled in different directions by own businesses Inevitably added time to project Modular focus reduced overview – increased “Silo” mentality Made dependencies less visible© ABB GroupOctober 25, 2010 | Slide 13
  • Challenges Breaking the spreadsheet culture Building confidence in the SAP numbers Despite the CFO having confidence, we probably spent the first 6 months after go live “proving” to businesses that the information in SAP was correct Reducing the number of journals We found that our Business Controllers were having to complete/correct the actions (or lack of them !) of the business The wider business had to learn that our SAP isn’t just a finance system Accounting during the month, not just at month end, in particular dealing with Results Analysis & Settlement errors© ABB GroupOctober 25, 2010 | Slide 14
  • Tangible Benefits Single ERP system (from 7 disparate) Significant improvement in availability, completeness and accuracy of first run numbers Final reporting maintained at 5 days (group requirement) but… Quality vastly improved Availability of numbers much sooner Belief in numbers significantly greater Analysis/reconciliation time more available Now believe 3 day reporting is a real possibility when required Reduced costs Shared Accounting Services 50% size of pre-SAP 50% reduction in Overdues Better visibility of debt, improved debtor reporting etc© ABB GroupOctober 25, 2010 | Slide 15
  • Tangible Benefits Purchase order compliance Vastly improved and standardised supply chain process Helped increase PO coverage from about 50% (records difficult to obtain!!!) To 100% compliant under SAP (fully measurable!) Vast improvement in Matching rates From about <20% (records difficult to obtain !!!) To 65% and growing Faster payment – now above industry average at 86% - 90% paid to terms Reduced SOX controls from 800 to 300 Standardised More easily defined, operated and tested lower cost© ABB GroupOctober 25, 2010 | Slide 16
  • What does this mean for the CFO PRE SAP POST SAP Multiple communications One communication from various sources source directly from SAP Significant effort to One version of the truth achieve degree of confidence in numbers Flash result achievable Delayed finalisation of sooner direct from SAP numbers More time for CFO to CFO forced to perform review and analyse – extra activity instead of creating© ABB GroupOctober 25, 2010 | Slide 17
  • Critical Success Factors Business led approach Dedicated team We did not aim to “Save the World” Being flexible to change approaches as SAP mist lifted© ABB GroupOctober 25, 2010 | Slide 18
  • What would we do differently? Despite vast improvements (eg) Quicker, more visible, greater accuracy, consistency, reduced cost, more credible etc … …the knowledge that we have gleaned whilst using SAP has prompted us to question why we did not “do more” (eg): (Ironically) Better reporting Order to Cash / Procure to Pay cycles well catered for Further standardisation through more restricted practices Less scope creep allowed during project© ABB GroupOctober 25, 2010 | Slide 19
  • Single item generating most improvement Steering Committee being represented by UK Board Committed Informed Strong Supportive© ABB GroupOctober 25, 2010 | Slide 20
  • SAP Project in Summary Providing Right Information Delivering Excellence© ABB GroupOctober 25, 2010 | Slide 21
  • © ABB GroupOctober 25, 2010 | Slide 22