hoerbiger – fit for the future with sap s/4 hana

1 Copyright 2016 FUJITSU

Fujitsu Forum 2016

#FujitsuForum

November 16, 2016 2

HOERBIGER – Fit for the Future with SAP S/4 HANA

HOERBIGER –Fit for the Future with SAP S/4HANA

Thomas Kriechbaum

Chief Process Officer (CPO), HOERBIGER

Teja Ullrich

Head of Corporate IT (CIO), HOERBIGER

Manuel Thalhofer

SAP Offering Manager EMEIA, Fujitsu

3 Copyright 2016 FUJITSU

The Fujitsu Way

Streamline SAP Landscapes

Simplification is

the basis to improve in many other areas

Organizations must enable now for the

Digital Transformation to respond to market and business demands

much faster…

…and with more efficiency.

Enable Digital Transformation

HOERBIGER – Fit for the Future with SAP S/4 HANA Fujitsu Forum 2016

Thomas Kriechbaum HOERBIGER - Chief Process Officer (CPO)

Teja Ullrich HOERBIGER - Head of Corporate IT (CIO)

Munich, November, 16th 2016

November 16, 2016 5


Agenda

HOERBIGER – Introduction

Project STREAM at HOERBIGER

Future IT Landscape based on SAP S/4 HANA

HOERBIGER – Outlook

November 16, 2016 6


Effective Business Model based on Three Pillars HOERBIGER Group – Strategic Business Segments

Key components and

services for compressors,

turbines and industrial

gas-operated engines

Safety products

Synchronizer systems for manual

transmissions and

dual clutch systems

Comfort systems for cars and

commercial vehicles

Testing and diagnostic systems

Smart actuators for

machine tools

Modular solutions for demanding

customer applications

Energy Automotive Industry

November 16, 2016 7


Our Roots ensure sustainable Development HOERBIGER Group – History

Martina Hörbiger Alfred Hörbiger Hanns Hörbiger

1895 1900 1925 1945 1989 1903 1937 1971 1950 1958 1997 1931

Hanns Hörbiger invents the

HOERBIGER steel plate valve

for compressors

Engineering office

in Budapest, Hungary

Relocation to

Vienna, Austria

95 percent

export rate

Destruction of the main plant in Vienna and

reconstruction by Martina Hörbiger

Beginning diversification

through start of

production for

compressed air

components

Production build-up for

drive train components

HOERBIGER Holding

becomes Group

holding company Start-up of in-house

production of

scavenge pump valves

Inception of the company

HOERBIGER & Co.

Development and granting of

licenses

Board of Trustees:

Christiana Hörbiger

HOERBIGER Foundation becomes

majority shareholder, restructuring

by new management:

Strategic Business Units, further

globalization

November 16, 2016 8


Key Indicators confirm our strategic Direction HOERBIGER Group - Again over 1 billion EUR in Sales in 2015

948

646

450

2000

1.150

2010 2005

+6%

2015

6.858

2000 2005

+4%

4.707

7.247

3.675

2010* 2015*

*after 2010, including temporary employees

Sales Trend of the Group [MEUR] Headcount Trend of the Group

November 16, 2016 9


Lasting Success thanks to Diversification HOERBIGER Group - Again over 1 billion EUR in Sales in 2015

*Strategic Business Unit

10%

Drive

Technology

32%

Compression

Technology

58%

Hydraulic Systems Industry

19%

Automotive

38%

Energy 43%

Risk diversification Core competencies and markets

Sales by SBU* and Business Division (2015) Sales by Industry Sectors (2015)

November 16, 2016 10


Customers trust in HOERBIGER as a Global Partner HOERBIGER Group – Global Presence

HOERBIGER - Within reach of our Customers

Over 130 Locations in 54 Countries with over 7000 Employees



Global Orientation of Corporate IT The IT Organization is aligned with global Teams using global Processes

Global IT Organization

112 employees in 4 main IT locations

Key figures for CIT Applications

56 employees

24 SAP Systems at Fujitsu TDS (Germany)

ERP 4.7, ECC 6.0, S/4 HANA

BW, HR, PO, PPM, SOLMAN

Avg. system availability 99,99 % in 2015 (PRD)

~2.500 SAP Users in more than 75 locations

24 SAP rollouts performed in 2015

55 rollouts within 3 years

Strict template approach (legal dev. only)

4 rollout teams working in parallel

In focus

Key figures for Corporate IT (Applications) Lean global IT Organization



Every Implementation needs strategic Partners Long-term Relationships with our Partners

Professional Partners for Best Practice Processes



Agenda







STREAM – A major Change Project for HOERBIGER

Processes Systems People

A STREAM-lined, integrated

and lean IT architecture

based on SAP ensures

working more effectively in

and across business units

Focusing on an activity-

oriented approach and value

generation sets the future

mainSTREAM

STREAM-lined and optimized

business processes creating

a better way of working

together

STREAM will make HOERBIGER fit for the Future



Standardization across Business Models Overview of the Business Models at HOERBIGER

Order-based processes

Processes specific to

platform-development

and MTO

Service & Projects

Repair of components

and equipment

Project business with

the focus on equipment

rental improvements

Serial processes

Automotive serial

production with direct

connection to the

customer

One-Fit processes

Mainly support

processes such as

accounting or purchasing

Standardization over the

entire Group

Categorization of Manufacturing and Service Locations

into the various Business Models

Order-based Service & Projects Serial One-Fit



STREAM Process Landscape along E2E Processes

Strategy

Development

Business

Planning Ideation Controlling

Risk

Management

QEHS

Management

Process & Project

Management Audit

Management Processes

HR Accounting Treasury Facility

Management IT Legal Communication Marketing

Master Data

Services

Quotation Processing/Acquisition

Series and application development

Platform Engineering Sales & Account Management Sales Planning

Customer to Demand

Product Management

Engineering Change Management

Idea to Product

Innovation Management

Business Specific One Fit

Sales Order Processing Service Delivery Quotation Processing/ Acq. Service Development Warehousing

Service

Production Readiness

Production (M t Order & Stock)

Forecasting Quality

Warehousing Delivery Sales Order Processing Billing

Demand to Supply

Merger and Acquisition Divest

Invest to Divest

Supplier Quality

Invoice Ver. /Pay Strategic Sourcing Operative Sourcing Inbound Logistic

Request to Pay



5 Main Project Phases defined Overview of main Phases, suggested Timeline, key Activities and Outputs

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Timeline

Deliver-

ables

Program setup Process template

setup

IT solution

development

Preparation of roll-

out

Pilots /

phased roll-out

Q1/2015 – Q2/2015 Q2/2015 – Q4/2015 Q1/2016–Q2/2017 Q3/2016-Q2/2017 Q1/2017 – 2020

Align on scope with

BUs/functions

Align on process list &

target architecture

Define work streams,

plans & milestones

Conduct bootcamp to

onboard team

Draft standard to-be

processes templates

Develop IT guideline &

apps selection

Ensure end-to-end

process integration

Conduct technical

specification

Write development

specification

Develop IT solution

Integrate & test

developed solution

Prepare data migration

Detail roll-out plan

Prepare solutions

for BU roll-out

Nominate and train roll-

out teams

Onboard & train local

teams for pilots and later

for roll-out

Conduct template roll-

out

Support Go-Live

Provide solution care

Team on-boarded and

supporting STREAM

Approach & work plans

detailed

Process templates ready

for solution development

IT guidelines developed

IT solution refined and

tested

Global roll-out plan

defined and prepared

Global IT team setup

Global roll-out of

templates completed

Key

activities

Actual phases



Template Approach rolling out over the next Years More than 100 Locations affected

Implementation of standardized process landscape

in one global system template

Changes only due to local (legal) requirements

Very strict multi-layered governance process

implemented

Utilization of 4 rollout teams in parallel (one teach

each in the Americas and Asia and 2 teams in

Europe)

Rollout teams consisting of business (process

experts) and IT (SAP module) experts

Rigorous global project management

Rollout of one Template… …in over 100 Locations globally



Template Development will be done in Steps Template will be completed during the first Rollouts

Pilot 1 (order-b) Pilot 2 (serial) Next Rollouts Final (o-b & serial)

Order-based template

with one-fit processes

Relevant processes

for Pilot 1 will be

implemented within

the template as well

as local settings

Extension of template

for serial processes

Serial-based settings

and processes will

be added to the

template

Further extension of the

template

With ongoing roll-

outs the template will

be extended with

additional processes

Finalized template for all

process types

After a few roll-outs,

the template will be

completed and

reused for the rest of

the project

Template (o-b) Purely local Not used Functionalities / Processes: Template (s) Template (one-fit)

loop

STREAM Template will grow during Rollouts



Agenda







Architecture Guidelines for IT Landscape All guidelines agreed by Board of Directors

Dimensions

General

Principles

IT Platform

Applications

IT architecture is driven by business strategy and business requirements

Enterprise architecture principles apply to all parts of the organization

Purchases of IT systems, applications and services has to be approved by IT

Number of strategic IT vendors to be minimized and place in architecture clearly defined

All standardized processes to be implemented on SAP platform, whenever technically

possible and economically reasonable

Workflows will be managed by the platform which owns most of the data

Each data object is owned by one system and may only be changed in this system

Processes to be implemented in global IT applications whenever possible

Number of systems that run individual end-to-end processes to be minimized

When off-the-shelf solutions are implemented customization has to be minimized

Preference should be given to mature application and technologies

Description of IT Architecture Guidelines



SAP as Backbone for IT Landscape Reduced Applications Landscape

Simplified IT Landscape using SAP as Backbone All decision according to IT principles and architecture guidelines

A B

Structure

of ERP

landscape

Setup

of ERP system

Platform

Decision on how the new

structure will be implemented –

greenfield setup or reuse of

existing system

Selection of platform (e.g. SAP

ERP, S4/HANA) and data base

(ASE, HANA) to be used

Definition of best option for HOE

with regard to number of ERP

systems and clients

Top-down target IT architecture aimed at reduction

of ERP systems and IT applications used

IT principles and guidelines to support process

workshops and requests for architecture deviations

~130 out-of scope

apps (e.g. AutoCAD)

~60 in-scope

apps (e.g. Bellin)

~15-20

ERPs1

~25-35

SAP

Not addressed in

STREAM



Clear Decision Path for ERP IT Landscape Steering Committee decision made after financial, technical and strategic evaluation

A

Structure

of ERP

landscape

Setup

of ERP system

Platform

One client for HOE /

One system

One client per

Business Model /

One system

One system

per Business Model

New system

(greenfield)

Existing system

(reuse or upgrade)

New system

(copy of ECC 6.0)

SAP ECC 6.0 on

SYBASE ASE

SAP ERP Business Suite

on HANA

SAP S/4 HANA

Opt A

2

1

3

or

Opt B

Dimensions Relevant Options



Three Steps necessary for a Platform Decision New module "Simple Logistics" released in November 2015

3

Old vs New

Technology

Additional vs

Standard

functionalities

New modules

launched

recently

All new developments only on

SAP HANA, new features not

available on ASE platform, new

licenses necessary

New User Interfaces (simplified

GUIs) and new processes only

available on S4/HANA, no new

licenses necessary

SAP launched new module

"Simple Logistics (S-LOG)" in

addition to already state-of-the

art technology "Simple Finance

‘SFIN’"

Step 3

Step 2

old

new

Old User GUIs

No new Functionalities

New UI5 GUIs

New Functionalities

1503 S-FIN

S-FIN

S-LOG 1511

A

Three Decisions to be taken Step 1



Or simplified: Which Engine would you choose....?

Chosen option

You won´t buy a Car in 2016 with the Technology of 2004

3 A

SAP ERP on ASE SAP ERP on HANA SAP S/4 HANA



Future IT Landscape is simplified clearly Process based, harmonized, STREAMlined

On Premise Cloud

HANA

PO

Salesforce

Success

Factors

EDI

ERP 4.7

HCP**

Internet of Things (IoT)**, Industry 4.0** MobileApps**

DOXIS Innoface

Windchill

Others

Others

SAP IBP*

Concur

Kronos

*in evaluation, **in progress

Cool Orange

Autodesk

Vault

ECC 6.0

QIM

SOLM 7.1

BW 7.5 S/4 HANA 1610

BRO

Bensberg

GIB

4PEP

Eilebrecht

MDG

Archive

EHS

Treasury

BRF+

PPM 6.1

HFM

Softcon CIS P4T

Vertex

Bellin

ADP

Max Flow Etiscan /

Mobisys

Seal

MPDV Lumesse

SAP module or

add-on

3rd party add-

on 3rd party tool

B



Agenda







What are our Challenges Why S/4 HANA

Future Requirements from Markets need S/4 HANA Overview on future Challenges from Customers and Markets

!

Management and reporting requirements need

powerful database model

High automation-potential with new logistic

functions

SAP Fiori workflows required for efficient and

effective daily operation (mobile devices)

Simple to use intuitive user screens and

systems

Flexible interface technology and capabilities to

analyze big data

100+ locations globally, multiple business

models

Drop shipments via multiple stages to optimize

logistic workflows

Complex matrix organization with multiple

approval authorities/steps

Limited access to qualified people and lack of

IT skills in remote locations

Connectivity to our machines in the plants

(preparation to Industry 4.0)



Fit for the Future with SAP S/4 HANA

Making HOERBIGER fit for the Future

SAP S/4 HANA is the Backbone for the future HOERBIGER IT Landscape



Fujitsu‘s services for HOERBIGER

SAP Systems as a Service Takeover operational efforts Setup new system landscape

HANA Greenfield approach & Coaching Analytical services S/4 Processes adoption Process optimization Remodeling / Code optimization