we know                                                                                      they knowDKSH expands its bus...
“Since implementing                          Headquartered in Zurich, Switzerland,    to enhancements and changes. With   ...
a similar procedure had already been       The operations and business support          “DKSH prides itself onundertaken s...
limited risk and without incurring high    service level agreements (SLAs) in           “If our systems fail –costs – SAP ...
IBM Tivoli Monitoring provides DKSH        SAP NetWeaver Business Warehouse             “With the robustemployees with the...
IBM Deutschland GmbH  D-70548 Stuttgart  ibm.com/solutions/sap	 IBM, the IBM logo, and ibm.com are trademarks  of Internat...
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DKSH expands its business with a highly scalable solution from SAP and IBM


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The journey to develop a global ERP template started in 2005 and was based on SAP ERP applications, including Financials, Controlling, Materials Management, Sales and Distribution and Warehouse Management. SAP NetWeaver Business Warehouse will provide company-wide reporting and analytics capabilities, while SAP Business Objects Governance, Risk and Compliance (GRC) is being used to protect assets and information. The company also worked with IBM Global Technology Services to deploy IBM Power 570 and IBM Power 550 servers, running IBM AIX and a suite of IBM Tivoli software.

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DKSH expands its business with a highly scalable solution from SAP and IBM

  1. 1. we know they knowDKSH expands its business with a highlyscalable solution from SAP and IBM Overview The Challenge capabilities, while SAP Business numbers and stock levels – enables After its merger in 2002, DKSH found Objects Governance, Risk and DKSH to improve processes internally, that its heterogeneous, unconnected Compliance (GRC) is being used and also feed this information back to IT systems were preventing it from to protect assets and information. clients as a value-added service, a key capitalizing on economies of scale The company also worked with IBM competitive advantage. and causing inconsistent levels of IT Global Technology Services to deploy performance at different locations. IBM Power 570 and IBM Power 550  Key Solution Components Employees were spending too servers, running IBM AIX and a suite Industry: Wholesale Distribution & much time and effort consolidating of IBM Tivoli software. Services information across the fragmented Applications: SAP® ERP with modules Enterprise Resource Planning  The Benefits including Financials, Controlling, (ERP) systems. These were DKSH has gained an integrated, Materials Management, Sales inhibiting reliable company-wide consistent ERP system based on SAP and Distribution and Warehouse reporting and monitoring, making it ERP, enabling it to exploit economies Management, SAP NetWeaver® difficult to identify potential process of scale to make significant efficiency Business Warehouse, SAP NetWeaver improvements. Disaster recovery gains. IT employees at DKSH spend Business Warehouse Accelerator, SAP capabilities did not meet the less time managing ERP systems, BusinessObjects Governance, Risk, company’s aggressive growth needs. and the highly reliable IBM Power and Compliance (GRC) servers reduce time spent resolving Hardware: IBM ® Power 570 and 550 performance issues, boosting servers, IBM System Storage® DS8700, productivity. Using the global ERP DS4800 and DS4500, IBM System template based on SAP ERP, DKSH Storage 3584 Tape Library The Solution can rapidly and effectively integrate Software: IBM AIX®, IBM Tivoli® Storage The journey to develop a global ERP new acquisitions into the company, Manager, IBM Tivoli Monitoring, template started in 2005 and was allowing it to move into new markets IBM Tivoli Workload Scheduler, IBM based on SAP ERP applications, faster and at lower cost. Total Tivoli Netcool/OMNIbus, IBM Tivoli including Financials, Controlling, recovery from disaster, which used Composite Application Manager. Materials Management, Sales to take at least 24 hours, can now be Services: IBM Global Technology and Distribution and Warehouse achieved within two to four hours, Services – deployment services Management. SAP NetWeaver increasing responsiveness and Business Warehouse will provide improving client service. Monitoring company-wide reporting and analytics of performance – for example sales
  2. 2. “Since implementing Headquartered in Zurich, Switzerland, to enhancements and changes. With but with a strong Asian presence for reporting and monitoring conducted the IBM Power servers more than 140 years, DKSH focuses on a location by location basis, gaining and DS storage, we on providing market expansion an overall view of operations was have experienced 100 services for their business partners. highly problematic, preventing DKSH percent uptime in terms It specializes in helping companies from becoming the agile, responsive of server operation. The bring products and services to market. and efficient company it wanted to be. Operating in 35 countries, DKSH performance, reliability has 540 locations in the Asia-Pacific Under the project name ‘Pegasus’, and stability of our region, and 20 in Europe and the DKSH initiated a total transformation hardware platform are Americas. The organization consists of IT systems in 2005. Implementing better than ever before, of four business units: Consumer SAP ERP and creating a SAP and we can easily grow Goods, Healthcare, Performance ERP based global template have Materials and Technology; and within given DKSH the tools to optimize the system to keep up these, covers the five main areas processes across the company, while with the pace of the of sourcing, research and analysis, accelerating expansion. Implementing dynamic growth of marketing and sales, distribution and software to facilitate better business DKSH.” logistics, and after-sales services. intelligence and analytics improved Employing 22,000 people, DKSH transparency for internal users, Matthias Legler, Vice President of IT at achieved sales of CHF 8,576 million in partners and clients who wanted to DKSH 2009 (approximately 8,270 million US track their performance. With reliable, dollars). scalable hardware supporting these applications, DKSH cut operational Following its merger in 2002, costs, minimized risk and ultimately DKSH found itself with numerous, gained an essential competitive edge. unconnected ERP systems at different locations, forcing the company to Lacking consolidation and scalability take an inefficient, ad hoc approach DKSH conducted a review of internal processes and identified a need for consolidation and standardization. Growing by acquisition had led to multiple enterprise resource planning (ERP) applications in use across DKSH, including different versions of SAP ERP, and solutions from JD Edwards, Scala and others. Disparate ERP systems rendered it almost impossible to undertake reliable company-wide monitoring or internal and external reporting. Matthias Legler, Vice President of IT at DKSH comments, “Often, we found employees from different locations ‘re-inventing the wheel’ in cases where changes or enhancements needed to be made to the applications, when
  3. 3. a similar procedure had already been The operations and business support “DKSH prides itself onundertaken successfully elsewhere teams at the IT headquarters in Kuala its ability to penetratein DKSH. We wanted to adopt a more Lumpur planned to develop a globaleffective approach, spreading best template based on SAP ERP, to be rolled new markets rapidly,practices throughout the organization, out to DKSH locations. These locations with limited risk andaccelerating progress and saving time could use the template to easily and without incurring highand expense; so we began looking to quickly deploy a pre-configured, costs – SAP ERP is astandardize on the ERP system that standardized ERP system, which is key enabler to achievebest met our needs. integrated with the central hub in Kuala Lumpur. Local IT teams were then able this core business goal.” “Also, we were finding it very difficult to tailor this to suit their needs, making Matthias Legler, Vice President of IT atto consolidate information from the adjustments to suit the location’s market DKSHmultiple ERP applications. This was and operations.holding us back from analyzing thecompany’s performance as a whole: “Our business is highly diverse, andfor example, gathering important therefore each DKSH business unitinformation needed for corporate-level needs specific functionalities of the SAPdecision-making was a highly complex applications,” says Legler. “On the otherand time-consuming process.” hand a lot of ‘me too’ processes are common and can be harmonized. ByThe company faced a similar creating a global ERP template basedchallenge with its underlying IT on SAP ERP, we are able to reap theinfrastructure, as different locations benefits of a standardized and quickhad a mixture of IBM, HP, Sun roll-out without neglecting the specificMicrosystems and Intel servers, some needs of different business areas.”running Microsoft Windows operating TECHNICAL LANDSCAPEsystems, others supporting UNIX Supporting business expansion Servers: IBM Power 570 and Powerlandscapes. The mixed landscape The global template would also be used 550 servers replacing Sunwas highly complex to manage and with every new acquisition, enabling Microsystems and HP hardware, IBMmaintain. DKSH to replicate its business model System Storage DS8700, DS4800 and rapidly and efficiently at new locations. DS4500, IBM System Storage 3584Furthermore, the legacy hardware Tape Library.lacked flexibility and scalability, Legler explains, “Our global SAP Software: IBM Tivoli Storage Manager,presenting significant barriers to environment gives us a significant IBM Tivoli Monitoring, IBM Tivoligrowth. competitive edge by accelerating Workload Scheduler, IBM Tivoli growth into new markets without Netcool/OMNIbus, IBM TivoliPegasus takes flight sacrificing the standard of our Composite Application ManagerDKSH initiated project ‘Pegasus’ in operations. We are able to ‘dock in’ (ITCAM). SAP ERP, SAP NetWeaver2005, with goals including the increase new business much faster, and since Business Warehouse, SAP NetWeaverof efficiency through centralization the template delivers the ERP solution Business Warehouse Accelerator, SAPand the development of a platform to fully integrated with our headquarters BusinessObjects Governance, Risk,facilitate growth and enhancement operations and our global data centre, and Compliance (GRC).of IT management. The company we avoid the risk of ending up with the Users: SAP ERP: more than 5,000selected SAP ERP, with modules for dispersed systems we had before. internal users. SAP NetWeaverFinancials, Controlling, Materials Business Warehouse: 1,500 externalManagement, Sales and Distribution “DKSH prides itself on its ability to users.and Warehouse Management. penetrate new markets rapidly, with
  4. 4. limited risk and without incurring high service level agreements (SLAs) in “If our systems fail –costs – SAP ERP is a key enabler to a demanding environment. The IBM which they haven’tachieve this core business goal.” servers and storage systems offer outstanding scalability, enabling DKSH yet, thanks to IBMSelecting IBM hardware to make the most of opportunities for Tivoli Monitoring – theTo support the SAP ERP growth. combination of Tivoliimplementation, DKSH wanted to Storage Manager andoverhaul its existing IT infrastructure, “Since implementing the IBM Power IBM hardware willwhich was suffering performance servers and DS storage, we haveissues. It also wished to standardize experienced 100 percent uptime in enable us to be backits hardware, replacing the mixed terms of server operation,” comments online in all within twoinfrastructure supporting its business- Legler. “The performance, reliability to four hours. This is acritical applications with technology and stability of our hardware platform huge improvement thatfrom a single vendor. This would are better than ever before, and we can will translate into a keymake management and support for easily grow the system to keep pacethe solution easier, and enable DKSH with the dynamic growth of DKSH.” competitive advantage.” to take a more efficient approach to Matthias Legler, Vice President of IT atlicensing. Rapid recovery from disaster and effective DKSH operational managementWorking with IBM Global Technology With variable levels of disaster recoveryServices, the company deployed at different locations, DKSH wishes toIBM Power servers running IBM put into place a consistent, effectiveAIX, replacing the mixed landscape strategy across the company. Toincluding servers from Intel, HP and meet this requirement, the companySun Microsystems. selected IBM Tivoli Storage Manager to provide online database backup for“We conducted a comprehensive SAP applications, Microsoft SQL Serverreview of available offerings, and and IBM Lotus Domino, and LAN Freeselected the IBM solution when we Backup to automate data backup.discovered it offered the lowest totalcost of ownership,” says Legler. “Also, The team from IBM Global TechnologyIBM presented us with a very clear Services also helped DKSH implementroadmap for the future, showing that a third-party solution. Overall, thethere is a long-term strategy in place company’s response has dramaticallyfor the Power Architecture, which made improved with the time to recoveryus feel comfortable we were making a reduced from a period that varied fromwise investment for years to come.” 24 hours to a few days, to within two to four hours.For storage, DKSH selected the IBMSystem Storage DS series, including “If our systems fail – which they haven’tDS8700 and DS4800 disk systems, yet, thanks to IBM Tivoli Monitoring – theand an IBM System Storage 3584 Tape combination of Tivoli Storage ManagerLibrary. and IBM hardware will enable us to be back online in all within two to fourThe IBM solution has given DKSH hours. This is a huge improvement thatsuperb reliability and availability, will translate into a key competitivehelping the company meet client advantage.”
  5. 5. IBM Tivoli Monitoring provides DKSH SAP NetWeaver Business Warehouse “With the robustemployees with the ability to keep an Accelerator and SAP BusinessObjects IBM infrastructureeye on infrastructure and application for reporting and analytics purposes.performance and availability with architecture supportingminimum effort. IBM Tivoli Monitoring New reporting capabilities are our SAP applications,is used to manage all components provided by SAP NetWeaver Business DKSH has improvedincluding SAP applications, Warehouse, which presents a ‘single data security andhelping DKSH identify and resolve version of truth’, enhancing corporate business continuity,bottlenecks and work proactively to decision-making capabilities. Sinceensure availability of business critical deploying SAP NetWeaver Business unmatched by anyapplications. Warehouse Accelerator, DKSH has other company seen performance of month-to- operating as a serviceLegler adds, “With Tivoli Monitoring, we date queries, such as sales figures provider in our market.”are alerted to potential issues before for individual products, improve they become a problem, improving significantly – in some cases by 90 Matthias Legler, Vice President of IT at DKSHour responsiveness and enabling us to percent.pre-empt disaster. We are directed toexactly where a problem might arise, The DKSH teams have developedhelping us respond much faster and a number of in-house applicationsavoid any downtime.” giving certain customers access to information such as sales data andTo handle and manage the different stock numbers for certain products.workloads and jobs across the SAPlandscapes, DKSH uses IBM Tivoli Enjoying the benefitsWorkload Scheduler. TWS allows a DKSH has gained an integrated,central control over all workloads, robust enterprise resource planningproviding transparency of SAP system based on SAP ERP runningworkloads and extends automation to on IBM infrastructure. The global ERPSAP environments. template has enabled it to capitalize on opportunities for growth, and withProtecting infrastructure assets a highly scalable infrastructure, DKSHSAP BusinessObjects Governance, can be confident it has the IT solution toRisk, and Compliance (GRC) was sustain continued success.deployed to control access to keyinfrastructure assets and information, Legler summarizes: “With the robustguarding against fraud and mistakes. IBM infrastructure architecture supporting our SAP applications,“SAP BusinessObjects GRC allows us DKSH has improved data security andto put strict access control safeguards business continuity, unmatched by anyin place, so that we can be confident other company operating as a servicewe are embedding compliance and provider in our market. The solutionmaximizing transparency in all our has given us the capabilities to drivebusiness processes,” explains Legler. efficiencies and increase operational effectiveness, leading to better serviceAccurate, company-wide reporting for our clients. Today we have a reliable,DKSH chose to implement SAP scalable high-end solution in place toNetWeaver Business Warehouse, support our company growth.”
  6. 6. IBM Deutschland GmbH D-70548 Stuttgart ibm.com/solutions/sap IBM, the IBM logo, and ibm.com are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of other IBM trademarks is available on the Web at “Copyright and trademark information” at http://www.ibm.com/legal/ copytrade.shtml Intel, the Intel logo, Intel Xeon and the Intel Xeon logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a trademark of Linus Torvalds in the United States, other countries, or both. Microsoft, Windows, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries, or both. Other company, product or service names may be trademarks, or service marks of others. This case study illustrates how one IBM customer uses IBM and/or IBM Business Partner technologies/services. Many factors have contributed to the results and benefits described. IBM does not guarantee comparable results. All information contained herein was provided by the featured customer and/or IBM Business Partner. IBM does not attest to its accuracy. All customer examples cited represent how some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions. This publication is for general guidance only. Photographs may show design models.© Copyright IBM Corp. 2011. All rights reserved.© Copyright 2011 SAP AG SAP AG Dietmar-Hopp-Allee 16 D-69190 Walldorf SAP, the SAP logo, SAP and all other SAP products and services mentioned herein are trademarks or registered trademarks of SAP AG in Germany and several other countries. SPC03298-MYEN-00 (January 2011)