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  1. 1. SAP Customer Success Story “We want to be the best – that is why we need the best ERP solution and why we chose mySAP ERP.” Alfonso Stier, Head of Planning and IT, Casa de Moneda de Chile AT A GLANCE CASA DE MONEDA Company Name Casa de Moneda de Chile DE CHILE PREPARING FOR THE FUTURE WITH mySAP™ ERP Industry Production of bank notes, security papers, and coins As the provider for coins, bank notes, and public documents in Key Challenges Chile for almost 260 years, Casa de Moneda de Chile is reposi- •Reposition from public sector to international service provider tioning itself as an international producer and service provider. •Integrate all information into a single system, to improve To successfully compete in the global marketplace, Casa de decision making Moneda realized that it needed an ERP system to provide •Improve ability to adapt and respond to changes in business business insight based on high-quality information. The model mySAP™ ERP solution has been selected as the strategic tool •Implement a more competitive organizational structure to optimize employee productivity, improve process efficiency, Implementation Partner increase customer satisfaction, and prepare the organization for VISION ONE, Chile the future. Solution and Services The mySAP™ ERP solution Casa de Moneda de Chile, the oldest public institution in Chile, Implementation Highlights is completely owned and directed by the Chilean government. • Redesigned organization according to best practices Today, the organization that started as a medieval workshop in mySAP ERP • Implemented mySAP ERP within producing gold coins has more than 500 employees and offers six months 710 different products in two core areas: the impression of • Worked with suppliers to imple- ment just-in-time delivery security papers and public documents and the stamping of Key Benefits metal, especially coins and medals. • Enhanced communication and collaboration with single source of information for Very proud of its long tradition, Casa de Moneda is by no means decision making an organization entrenched in the past. During its history, the • Improved customer service with faster delivery and reaction institution has been continuously modernized and has broad- to requests ened its product and services offerings to public as well as private • Reduced inventory costs Hardware customers. The exploitation of new markets and the adoption of •IBM UNIX pSeries 615 as production server new technologies have been paramount to Casa de Moneda, and •IBM UNIX pSeries 640 it is not by chance that they are the first public sector enterprise as development server in Chile to deploy SAP® solutions. Operating System Microsoft Windows (with Oracle database)
  2. 2. STRATEGY AND ORGANIZATIONAL Casa de Moneda had two self-developed systems that were not CHANGES REQUIRE A NEW BUSINESS SOLUTION integrated, which made it very time-consuming to find the The decision to implement an ERP solution at Casa de Moneda appropriate information and distribute it to decision makers. resulted from the realization that the institution is facing the To have all critical information in one system and to deliver it in fiercest business challenges in its history. Globalization also real time quickly emerged as the main driver for a new system. affects public services. Deregulation of markets, especially in the public sector, brings new opportunities as well as new participants. To compete effectively and to capitalize on new “With mySAP ERP, we were able opportunities, management decided that it had to adapt the business model. to design our organization according to approved best practices of successful A key element of the new strategy is the expansion to new private sector companies.” markets. Casa de Moneda decided to reposition itself from a Alfonso Stier, Head of Planning and IT at Casa de Moneda national producer to an international service provider, address- ing customers in the private sector, such as private banks, as well as governmental entities. To be successful in the global market- place, Casa de Moneda also realized the need to make the organi- After evaluating a number of ERP solutions, mySAP ERP zation and its processes more efficient. emerged as the solution that could best handle the institution’s requirements. Management was especially impressed by ACHIEVING INFORMATION INTEGRATION the functional depth of mySAP ERP, which enables the integra- AND USING BEST PRACTICES tion of all information and administrative processes into a To cope with these challenges, Casa de Moneda knew that it single system. must become more competitive. The organization found itself in a highly dynamic market where product quality, production The best practices in mySAP ERP provided another important planning, cost control, and competitive prices are essential argument. This aspect proved to be of critical importance, given for survival. the ongoing organizational changes, with new structures and redesigned processes. Management realized that to face external challenges they would have to conduct an internal review. Information quality was determined to be the critical factor. “To make well-informed decisions, we need reliable information in real time. It was clear to us that our IT systems could not provide that,” says Alfonso Stier, head of planning and IT at Casa de Moneda.
  3. 3. MAKING ORGANIZATIONAL STRUCTURE QUALITY, AVAILABILITY, AND TRUSTWORTHINESS AND PROCESSES MORE EFFICIENT OF INFORMATION IMPROVE PRODUCTIVITY, Within only six months, Casa de Moneda implemented COLLABORATION, AND CUSTOMER SERVICE mySAP ERP. The most significant decision of the implemen- In addition to the real-time availability of information, there is tation was to completely replace the previous systems and another unexpected benefit. Now that business information is rebuild the organization around the best practices defined in delivered to all users’ desktops through mySAP ERP, the infor- mySAP ERP. Results of this decision are already visible: the mation itself is much more accepted within the organization, organizational design has been changed and 19 profit centers improving internal communication and collaboration dramat- have been established. Together with selected suppliers, a ically. In the past, the planning department had to collect infor- just-in-time delivery process was established, significantly mation from various systems and deliver it to the respective reducing inventory costs. departments. Often, the quality of the information resulting from this semimanual process was questioned, leading to “With mySAP ERP, we were able to design our organization disputes between departments. according to approved best practices of successful private sector companies,” says Stier, pointing out that this has been pivotal With mySAP ERP providing reliable and trusted business insight, in the transformation from a public service institution to a this issue has been removed. Since all functional areas now use company led by private sector principles. mySAP ERP as the common, single source of business infor- mation, collaboration between the departments has improved. DELIVERING BUSINESS INSIGHT TO IMPROVE COST In addition, a significant increase in employee productivity was PLANNING AND INVENTORY CONTROL achieved as information-gathering resources are freed up to The primary goal of the installation has been accomplished: concentrate on business analysis. mySAP ERP provides better business insight due to the high quality and availability of business-critical information. This The benefits of mySAP ERP are also visible to Casa de Moneda’s proved to be especially beneficial in the areas of cost control customers. Delivery times have been considerably reduced due and inventory planning and control: to improved order management, and the response time to • For the first time, it is possible to get a complete overview of all customer requests has been significantly shortened. Because the costs and allocate them precisely to each product, enabling the security paper and coin industry is characterized by non- discovery of hidden costs. standard products, it is essential to react quickly to customers’ • The precise knowledge of the current inventory status saves demands for new, individual products. mySAP ERP provides costs in daily operations. For example, the production of bank Casa de Moneda’s customer-facing units with the capability to notes requires special paper that has to be imported from immediately calculate product cost and determine the final Europe, usually by ship. Previously, the lack of inventory price much faster than before. monitoring resulted in situations where the paper for an order could not be delivered in time, resulting in a special shipment by plane at considerably higher cost. With mySAP ERP, this issue has been resolved.
  4. 4. mySAP ERP PROVIDES ADAPTABILITY TO FUTURE CHANGES Beyond these short-term benefits, there is a strategic rationale behind the implementation of mySAP ERP. Casa de Moneda’s management is convinced that their organization is prepared for the future and can adapt quickly to changes in a dynamic market environment. Casa de Moneda is an organization in the midst of a period of fundamental transformation – internally and in its “The broader goal of the mySAP ERP installation is to . . . successfully cope with the present and future challenges that this globalized and unpredictable world holds in store for us.” Alfonso Stier, Head of Planning and IT at Casa de Moneda market environment. mySAP ERP provides Casa de Moneda with the adaptability and agility to face future challenges. “The broader goal of the mySAP ERP installation is to make IT the driver for the development of this institution, with the over- arching goal to successfully cope with the present and future challenges that this globalized and unpredictable world holds in store for us,” concludes Alfonso Stier. An important element of Casa de Moneda’s organizational transformation is its long-term strategic commitment to SAP, with mySAP ERP as the backbone of the institution’s strategic development. Likely next steps will be the implemen- tation of SAP Business Intelligence, a component of the SAP NetWeaver™ platform, and closer integration with the infor- mation systems of Casa de Moneda’s customers and business partners. 50 071 250 (04/05) 2005 by SAP AG. All rights reserved. SAP, R/3, mySAP,, xApps, xApp, SAP NetWeaver, and other SAP products and services © mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. Printed on environmentally friendly paper. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty state- ments accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.