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  1. 1.   Throughout its more than 40-year history, Embraer has been involved in all aspects of aviation including design, development, manufacturing, sales and technical support for commercial, agricultural and executive aviation. In addition, Embraer also offers integrated solutions for defense and security, and is the market leader for commercial jets with up to 120 seats. High and Rising Software Maintenance Costs Stifle Investment in Innovation In pursuit of financial efficiency, Embraer determined that its IT operating costs and ERP software maintenance budget consumed 70 percent of the total IT budget. This was not acceptable to CIO Alexandre Baulé, because it represented a severe limitation to the investments he could make in innovation. “Nearly three quarters of our IT budget was devoted simply to keeping things running, but at the same time we were experiencing a huge pressure for innovation and growth,” says Baulé. “And because of the worldwide recession over the past few years, increasing the overall IT budget was not really an option.” Quest for Financial Efficiency Leads to Rimini Street At the same time, Embraer was under pressure from SAP to upgrade. But according to Baulé, “The upgrade would have been a multimillion-dollar project for us, aside from the disruption in operations. And we could not figure out a return on investment for this whole effort. So we had to move in another direction. We had to figure out how to turn the situation around, and we ended up investigating Rimini Street.” In 2011 Embraer moved from SAP to Rimini Street for support of its SAP system to achieve better value and improve the level of service received. As a result, Embraer immediately reduced its annual SAP maintenance fees by 50 percent. Maintaining Compliance in a Difficult Regulatory Framework The business environment in Brazil is very challenging, and because Embraer, unlike most Brazilian companies, is a major exporter, it faces special regulatory hurdles. Embraer’s SAP system is highly customized to accommodate many specific aerospace and defense requirements, as well as Brazilian tax specifics and the Public Digital Bookkeeping System (SPED). Baulé says, “Those customizations were the key source of our maintenance and support problems, and they were not covered under our maintenance contract with SAP.” Rimini Street’s standard service program includes, at no extra charge, support for customized code as well as complete tax, legal and regulatory updates for the many countries in which Embraer operates. To ensure timely and accurate updates, Rimini Street’s tax, legal and regulatory team works directly with government organizations and thousands of additional sources to identify, Leading Aerospace Manufacturer Cuts Costs, Drives Innovation with Rimini Street Support Success Story | Embraer Client Profile: With more than 19,000 employees operating throughout Brazil, the US, Portugal, France, China and Singapore, Embraer is the third- largest airplane manufacturer in the world, behind Boeing and EADS. The company has produced more than 5,000 aircraft that operate in over 80 countries across five continents. Industry: Manufacturing Geography: Headquarters in São José dos Campos, Brazil, with operations at other sites in Brazil, China, the US, France, Portugal and Singapore 2012 Revenue: $6.178 billion USD Employees: 19,200 Applications: SAP R/3 4.7, SAP BPC 7.5 (SP 3), Enterprise Portal 7.0 (SP 21), GRC 4.0 (SP 14), PI NW 7.1 (SP 8), SAP BW 7.1 Hardware/Operating System/Database: Solaris 9 and 10/Oracle 9i and 10g/ Windows, Sun, Fujitsu AT A GLANCE “The move to Rimini Street for independent enterprise software support provided immediate cost savings along with better service, which is a rare and excellent combination.” Alexandre Baulé CIO, Embraer Choice. Value. Independence.
  2. 2. “The goal was a 30-percent reduction in our ERP maintenance costs. Thanks to Rimini Street we achieved more than 50 percent.” Alexandre Baulé CIO, Embraer analyze and deliver updates for nearly 200 countries. Each update Rimini Street delivers is tailored for Embraer’s specific SAP R/3 4.7 implementation and environment — unlike vendor compliance updates, which arrive in undifferentiated bundles that take time and expensive resources to sort out and apply. To ensure Embraer’s legal and accounting compliance, to date Rimini Street has spent the equivalent of 30 man-months, saved Embraer five migrations, and completed 72 localization projects, resulting in significant savings for the company. “The government changes tax rules, export and import rules, and accounting rules quite often — it’s a very unstable environment,” comments Baulé. “Rimini Street’s process of providing us with timely, complete tax, legal and regulatory updates has been coping with that difficult environment beautifully. More and more, our internal teams are confident in relying on Rimini Street’s advice and support.” Expanding the Global Scope, Scale and Use of SAP Since switching annual support from SAP to Rimini Street, Embraer has also benefitted from maximizing the return on investment for its SAP software and continuing to evolve and advance the scope, scale and use of its enterprise software to achieve its business objectives — while running its mature, stable release into the foreseeable future without required upgrades. Furthermore, Embraer has been able to significantly add to its overall savings through Rimini Street’s more efficient, personalized support program by cutting additional, unnecessary expensive support and maintenance costs associated with the traditional software vendor support model. Savings from Rimini Street Enable Growing Investment in Innovation “Our original target was to achieve 25 percent total savings in our IT budget,” says Baulé. “We surpassed that, saving 30 percent. So now our percentage ratio of IT maintenance costs to innovative projects, which formerly was 70/30, is 50/50. And we envision opportunities to go even further than that, putting even more money into innovation, reversing the original ratio to 30/70. But even our current level of savings is a breakthrough for us — it’s saved us enough resources to cope with some of our serious challenges over the past two years.” Improved Service Levels Accompany Improved Cost Value In the two years since Embraer switched to Rimini Street Support, Rimini Street has successfully resolved nearly 200 cases for the aerospace giant, including several P1 production critical issues. “The move to Rimini Street for enterprise software support provided immediate cost savings along with better service, which is a rare and excellent combination,” continues Baulé. “We are very satisfied with the level of support we receive from Rimini Street.” BENEFITS • Significantly Reduced Maintenance Costs on Current SAP System — Embraer exceeded its own goal of reducing the cost of ERP vendor maintenance by 30 percent: actual savings were more than 50 percent. • Receiving Tailored, Timely Compliance Updates — Rimini Street’s standard service program includes complete tax, legal and regulatory updates for the many countries and extremely complex regulatory environment in which Embraer operates. • Used Savings to Fund Global Expansion — Rimini Street is helping Embraer continue to advance the scope and scale of its SAP footprint, with rollouts in Portugal, the US and potentially additional countries. WHY RIMINI STREET • Premium — Rimini Street’s ultra- responsive support program includes valuable services not included with standard vendor support, including support for customizations, interoperability and performance tuning. • Personalized — As a Rimini Street client you are assigned a named, regionally based Primary Support Engineer who heads up a team of specialists and experts on call as needed — as well as a named Global Account Manager dedicated to your success and satisfaction. • Proven — Hundreds of global, Fortune 500, midmarket and public sector organizations from virtually all industries depend on Rimini Street as their trusted independent provider of enterprise software support. Worldwide Headquarters 3993 Howard Hughes Parkway Suite 780 Las Vegas, Nevada 89169 Toll Free +1 888-870-9692 Main +1 702-839-9671 Fax +1 702-973-7491 Email © 2013-2014 Rimini Street, Inc. All rights reserved. Rimini Street and the Rimini Street logo are registered trademarks of Rimini Street, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders. LT-US-123113 Success Story | Embraer