Delivering Value Through Enterprise Resource Planning SAP Business Suite Application

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Delivering Value Through Enterprise Resource
Planning/SAP Business Suite Application

• Sharp Electronics Corporation
• Amelia Mezrahi
• Director of IT

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About Sharp

• Sharp Corporation is a Japan based international
  consumer electronics company with subsidiaries
  world-wide.
• Sharp Electronics Corporation (SEC) is a US
  based company that purchases product from Sharp
  Corporation, Japan, and has manufacturing and
  distribution facilities in US, Mexico, and
  Canada.
• SEC produces products across multiple business
  units primarily focused on selling consumer
  electronics, mobile and IT solutions,
  Professional business systems, microelectronics,
  and solar systems.
• Products are sold through retail, dealer and
  business/OEM channels.
• Sharp uses primarily the SAP suite of
  applications across all organizations and
  locations since 1997 when the first
  implementation was completed.

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SAP Tidbits

• SAP is currently
• The largest software company in the world
• 3rd largest software company in the world
• 5th largest software company in the world

• What does SAP stand for?

• Number of SAP customers
• 525,100
• 3400
• 21,600

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Airport Banner

• Berkshire Grocery selects SAP to integrate
  Financial, Human Resources, and /manufacturing
  January 2004
• Study shows Korean-based consumer products
  company, CJ Corp achieved double-digit returns
  with CRM/SAP December 2003
• Volkswagen drives productivity profitability
  with SAP Product Lifecycle Management,
  Financials, Logistics, Production and
  CRM. December 2003
• CRM for streamlining spare parts fulfillment and
  collaboration across dealership network
• PLM for electronic bills of material in order to
  reduce cost across engineering and production
  operations
• Link production, financial and logistics to
  increase transparency and efficiency across motor
  assembly operations
• SAP chosen by Novartis for its global IT strategy
  .June 2003
• Replacing legacy systems across 50 countries,
  creating new efficiencies for research and
  development, managing HR, supplier relationships,
  production and supply chain processes.

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End-to-End Enterprise Integration

• Execute and integrate business activities across
  the enterprise that enable the firm to deliver
  the right product to the right place at the right
  time at the right cost

Customer Relationship Management Marketing, Field
Service, Sales
Financial Management
Human Resource Management
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Solution Maps
ERP Solution Map
Customer Relationship Management Solution Map
Product Life Cycle Management Solution Map
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Features and Benefits
Functions
Benefits

• Delivers analyses and evaluations for planning
  and controlling activities to improve performance
• Supports decision making with simulations to
  improve responsiveness to change
• Helps management recognize and capitalize on
  opportunities to create value in daily business
• and thereby increase the value of an
  organization
• Helps to monitor all financial transactions in
  real time for more accurate/timely information
• Offers extensive corporate governance support,
  including Sarbanes-Oxley compliance and
• Transparent financial reporting, reducing risk
  of noncompliance
• Simplifies processing of incoming outgoing
  payments, ensuring improved cash flow
• Combines planning, reporting, and analysis of
  competitive measures in one process to provide a
  more
• informed business analysis
• Provides tools for measuring optimizing the
  performance of important tasks to increase
  productivity
• Provides an extensive range of services and
  processes for effective human resources
  management,
• including employee transaction management,
  employee life-cycle management, recruiting,
  training,
• employee relationship management, employee
  self-service, and HCM analytics, resulting in
• improved staff productivity and retention
• Strengthens the logistical capability in
  procurement, production, storage, transportation,
  sales and distribution,and maintenance to create
  a more efficient, streamlined business
• Forms the basis for cross-organization
  enhancement of business processes and
  collaboration with vendors,customers, and other
  partners, improving the utilization of assets
• Supports centralized and decentralized
  organizational services in areas such travel
  management,

Analytics
Financials
HR
Operations
Corporate Services
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What to Target ?
Two different ways to determine what to
target A Diagnostic Approach- When unsure of
what business process to target, we can employ a
diagnostic approach to financial and operational
metrics.
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What to Target ?
Two different ways to determine what to
target A Prescriptive Approach- Through this
approach, we target business processes, quantify
improvement through operational metrics that
impact financials
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IT Business Value
Align IT Projects with Shareholder Value and
Strategic Objectives.
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Application Value Framework Cost Vs. Value
V A L U E

• Cost Perspective
• IT Costs /Budget - Hardware, Software,
• Networking, Staff, Services
• User Costs - Fully loaded costs of active users
• Downtime Costs - Value lost due to downtime
  disaster exposure
• Opportunity Costs - Application maintenance
  opportunity costs
• Value Perspective /Business Contribution
• Improved productivity
• Incremental revenue generation
• Lower business costs
• Reduced risks

C O S T
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Project Portfolio Snapshot
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Application Portfolio
Transactional
Informational/Analytics
Strategic
Costs
Value
IT Efficiency
Business Contribution
Informational
Strategic
-Improved Productivity -Lower cost -Better
information flow/visibility -Global supply chain
- Hardware -Software -Staff -Maintenance
ERP SMA Implementation

Transactional
2.0
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-Hardware - Staff
Collab. Planning, Forecasting Supply Chain
Metrics Profitability Analysis
-Standard Measures - Reduced efforts - root
cause analysis corrective actions
Transactional- Process and automate basic
transactions in order to boost productivity
reduce costs Informational/Analytics -Provide
information and analytics for managing the
company. Strategic - External-facing systems
resulting in sales growth, competitive advantage,
and stronger market position.

-Software -Staff
-Software -Staff
-Improve Profitability Analysis capability -
More profitable sales

-Software -Staff - Hardware

Warehouse Management Transportation
Planning Web Order Entry/ Internet Sales Order
Pointing
-Improve shipment processingReduce Costs

-Improve shipment processingReduce Costs
-Software -Staff
-Better order cycle time - Revenue growth -
Reduce costs

-Hardware -Staff/Dev

-Improve on time complete - improve out of
region shipments

-Staff

Market Intelligence
-Stronger Market positioning - ability to set
better prices
-Staff
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Value Transition

• Key Projects Across all Areas of the Organization
  
• 1. Web Order Entry/Internet Sales SALES
• 2. Mexico Warehouse Management System - LOGISITCS
• 3. Latin America Group SAP Implementation- ALL
  ENTERPRISE
• 4. Capital Expense Request/Internal Order
  Tracking System- FINANCE
• 5. Service Center Refurbishment Automation
  CUSTOMER SERVICE
• 6. Semiconductor Division SAP Implementation- ALL
  ENTERPRISE
• 7. New semiconductor Start-up Green-Field
  Business
• 8. Traffic Claims System
• 9. Collaborative Planning, Forecasting
  Replenishment w/Retail customers
• 10. New Deployment Toolkit to reduce out of
  region shipments/freight cost
• 11. Circuit City Direct Ship and ASN for laptop
  Business Unit
• 12. Supply Chain Metrics in Data Warehouse -for
  inventory, receipt and forecast accuracy,
  customer service reporting metrics
• Web Based Document Imaging CUSTOMER SVC/SUPPLY
  CHAIN
• Free Trade Zone and Customs System
• Customer Relationship Management Opportunity
  Tracking System MKTG/SALES

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Semiconductor Division Implementation
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Module Scope
Core Processes to SAP Modules Map
Master Data Management

• Sales / Returns
• Credits / Debits
• Billing / Invoicing
• Rebates
• Contracts / Quotations
• Deliveries / Credit Control

• Distributor Price Protection
• Ship and Debit
• Claims management

• Cost Center
• Accounting
• Internal Order
• Accounting
• Profit Center
• Accounting

• Purchasing
• Inventory Mgmt
• Valuation
• Invoice
• Verification

• Demand Planning
• Supply Planning

Core Processes
Sales Distribution (SD)
Distributor/Reseller Management (DRM)
Controlling (CO)
Materials Management (MM)
APO
SAP Modules
Security and Control
Business Warehouse Reporting
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Project Lifecycle
Project Lifecycle
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Key Milestone Alignment
Process
Technical
Change Management
Program Team Structure and Milestones
approved/Project Start
Decision on hardware finalized and approved
Change Management Leader identified
Business Blueprint Validation Completed
High-level architecture design finalized and
approved
Change Management and Training Strategy defined
and approved
Target business designs finalized and approved
SAP Landscape design finalized and approved
Baseline configuration completed
Project Team Training Delivered (Realization)
time
Promote to Production Strategy finalized and
approved
Final configuration completed
Training Environment prepared and approved
Security and Controls configuration completed
SAP 4.6 Sandbox with APO approved and prepared
Organization definitions completed and approved
Development Environment prepared and approved
R/3, BW, APO
Integration test completed
Role definitions completed and approved
Test/Training Environment prepared and approved
R/3, BW, APO
Go/No Go review/decision
Organization trained and ready for go-live
Production Hardware installed and tested
Support Organization Trained and Established
Go-Live
R/3, BW, APO Production System Delivered to
Functional Teams
Knowledge Transfer to Support Organization
Completed
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Keys to SuccessCritical Success Factors

• Organizational commitment
• Best project resources committed full time to
  project activities
• Multi disciplined project team
• Business and Management model defined
• Measures of success defined
• Quick escalation procedures to support prompt
  decisions on critical business issues
• Project team empowered to make decisions on
  behalf of operating organizations
• Minimal turnover of project team members
• Active steering committee in place
• Change management process in place and supported
• Active Project Control and Management

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Key Project Considerations

• Budget/Costs
• Business Value and ROI
• Scope
• Project Stages/Phases
• Timeline
• Project Team
• Location and Logistics
• Tools and Monitoring
• Stakeholder Communications PR

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Current Sharp SAP Environment

• ALL Sharp subsidiaries world-wide are integrated
  via SAP an ERP software system. This allows all
  departments within the company to use a common
  database effectively and efficiently for
• Supply and demand of product and parts for
  manufacturing
• Demand and Supply Planning
• Product Marketing
• Inventory Control
• Finance, Credit and Accounting
• Order Processing
• Warehouse Management and Logistics
• E-Sales
• Shipping and Delivery (Traffic)
• Internal Purchasing
• Model Master and Account/Customer Management
• Reporting
• EDI

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Sharp Future State

• The Extended Enterprise
• Enterprise Integration within the four walls and
  extended partners

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Thank You!