Allnex, a specialty chemicals supplier, initiated the 'Phoenix' program in 2013 to align its disparate business units and implement a standardized ERP system based on SAP due to its ambitious growth targets. The program aims to harmonize operations and reduce risks while improving efficiency and facilitating acquisitions through a two-year global rollout. Key lessons learned from the process emphasize strong governance, executive support, and effective change management to adapt to the new operational framework.

1. STREAMLINING
GLOBAL BUSINESS
PROCESSES WITH SAP
AT ALLNEX
Carl Osterrieth,
Global Application Integration
Manager

2. Allnex is a leading supplier of specialty chemicals,
offering a broad range of resins, additives and
crosslinkers for use on wood, metal, plastic and
other surfaces.

3. Combining strenghts of Allnex and Nuplex
• Sales: US$ 1.3 billion
• 2200 employees
• 17 manufacturing sites
• 13 R&D and support facilities
• 3 JVs
• Annual sales: NZ$ 1.5 billion
• 1800 employees
• 16 manufacturing sites
• 10 R&D centers
• 3 JVs

4. Need for a global transformation
April 2013:
• Coating business of Cytec industries is sold to a Private equity and becomes Allnex
The challenge:
• Allnex is a newly created company with ambitious growth targets.
• To achieve this type of growth the company will need to align itself and change its way of
working. Currently the different business units and sites are not all operating in the same way
since they originated from different company legacies with also different systems.
• To change the processes also the IT environment needs to change.
“To be Recognized as the Leading Coating Resins Company”

5. Need for a global transformation
 September 2013: Launch of company wide program called « Phoenix »
The proposed solution:
Harmonize the way the business is operating by moving all the units to the same process foundation
enabled by the implementation of a single ERP with a clear focus on cross-functional effectiveness will
enable Allnex to:
• Significantly improve the efficiency of its operations in SG&A (IT, Finance), Supply Chain & Manufacturing,
Sales Efficiency as well as business reporting
• Reduce working capital requirement in a sustainable way
• Facilitate M&A integration
• Significantly reduce operational risk by replacing outdated systems

6. Need for a global transformation
Phoenix is the name of the Corporate transformation program where Allnex will put
in place a harmonized and integrated core process model supported by a common
application platform based on SAP supplemented by a range of existing applications.
Phoenix is a Business program not an IT project.
It is creating business value thru a new global process model that has to benefit Allnex
overall. Part of the processes will be enabled via a new IT platform but it is the people
that make it work.
We have to change the way we work!

7. Phoenix Program approach
› The new platform will be based on a process driven new version SAP ERP, use of industry best practices
and pre-configured setup.
The expected time frame for a pilot implementation followed by a global Roll-out is 2 years – this is what
the Phoenix program mandate covers.
› Given the challenging time line the focus is the core End to End processes that can be covered via a
selection of SAP ERP Product Suite: SAP ECC 6.0, SAP BI/BW, BPC, SAP PI.
Phase 1 - PHOENIX
Get the basics right
(2013-2015)
 Core SAP Back End Processes
 Clean data – Global Data Concepts
 Integrated information and Processes
 GetValue added Processes to work (e.g. S&OP)
 Possibility to define base Platform for M&A
 Dedicated project team
 Partnership with well established SAP System Integrator
 Strong Program governance
 Fast track (only time for the basics).
 Parrallel roll out waves

8. 2013 2014 2015 2016
Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4 Q2Q3 Q4 Q3
Blueprint and Implement Hyper care
• Roll-out H+
ASIA
• Roll-out EU H+
• Roll-out NA H+
P
2
3
4
Q4
• Belgium, Norway, Italy, Netherland, United Kingdom
• # SAP Users: ~350
SAP ECC6:
FICO, SD, LE, PP, MM, QM, PM
SAP BI, SAP PI, BPC,
Solman: Incident, test & transport
management
Interfaces: Banks, Wercs, Tradebeam,
MS CRM,…
• China, Thailand, Malaysia, Japan, Taiwan, S. Korea, Australia
• # SAP users: ~350
• Austria, Germany, Spain, France
• # SAP users: ~230
• USA, Canada, Mexico
• # SAP users: ~350
Plan on a Page (October 2013)

9. Plan on a Page (realized)
2013 2014 2015 2016
Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4 Q2Q3 Q4 Q3
Blueprint and Implement Hypercare
• Roll-out ASIA
H
• Roll-out EU
H+
• Roll-out NA
H
P
2
3
4
Support Org
Q4
Support Org
Support
Org
SAPC
oE
SVT
TP W3 + Pilot
Anji
Methods
QM retrofit
SOD + retrofit
Staging
LE LU
LE NO
ITC
+ +
EOY
• October 1st, 2014
• July 1st, 2015
• December 1st, 2015
• May 1st, 2016
Plan on a Page (realized)

10. Lessons learned
 Get support from Executive Leadership
 Put your best internal resources on the project
 Put in place a very strong governance
 Be flexible, adapt to unforeseen events
 Balance between planning and delivery tracking
 Don’t spend too much time on the blueprint
 The real prototype is the pilot countries roll out.
 Stick to basic development needs
 Develop strong central team (Delaware Consulting, freelancers & internal IT)
 Develop local SI team working with central team
• US roll out with help of Delaware Consulting local resources
 Appoint a Roll out Wave manager
 Keep the pace, you will keep the motivation!

11. Lessons learned
 Don’t underestimate the « Data» effort
 Invest in Change Management
• Change agents with business knowledge
• More training on process than on SAP functionality
 Sufficient engagement of all Business functions
• Stakeholder management
 Don’t expect your System integrator to do it all
 Don’t start BI track too early
 Allow proper attention & resources to Authorization design
 Allow sufficient time to your organization to digest the new way of working.
 Be patient: give time to the organization to mature.
The people make the difference