Keeping AP Running During a Corporate Spin Off: Adient s Digital Journey Session ID# 7320 Sreekanth Saseendran & Brian Shannon Adient US Llc &

Transcription

1 Keeping AP Running During a Corporate Spin Off: Adient s Digital Journey Session ID# 7320 Sreekanth Saseendran & Brian Shannon Adient US Llc & Dolphin

2

3

4 About the Speakers Sreekanth Saseendran, Manager SAP COE Project Services, Adient. Has 10 plus years of SAP experience in Finance and Project Management area. Currently manages the project execution team in Adient for RTR value stream. Brian Shannon, Chief Strategy Officer, Dolphin Brian is a Business Process/Finance SAP expert with more than 20 years of finance leadership experience at companies including Chrysler, Owens Corning, and Scotia Bank, as well as his own Consulting firm, Forbes Link Consulting. He is a sought after speaker on optimizing near cash processes.

5 Agenda About Adient Adient Shared Services Solution Spinoff Project Post Spinoff Enhancements Wrap Up

6 Once we were part of Johnson Controls Automotive Experience Interior systems for cars, light trucks and vans. 51% 49% 49% Sales % 37% Building Efficiency Controls systems, services and integrated facility management for nonresidential buildings. 15% 14% Power Solutions Automotive batteries and hybrid solutions for the replacement and original equipment markets.

7 2016 Corporate Spinoff Ultimately, the spinoff will result in two strong independent companies well positioned for success and market leadership. R. Bruce McDonald April, 2016 Spinoff: the creation of an independent company through the sale or distribution of new shares of an existing business or division of a parent company. A spinoff is a type of divestiture. 7

8 Adient today The largest global automotive seating supplier, supporting all major automakers in the differentiation of their vehicles through superior quality, technology and performance. Revenue & Margins FY16 $17B Consolidated revenue $7B Unconsolidated seating revenue $8B Unconsolidated interiors revenue #1 We re currently the global leader in the $60 billion automotive seating market We operate in more than 230 facilities in 33 countries around the world. 1/3 We supply 1 out of every 3 automotive seats worldwide. We are Adient 8

9 Worldwide industry leadership We are among the Top 10 Global OEM auto parts suppliers in the world. Global sales in 2015 $23.9 B Seat systems per year 25 M+ Adient Other Lear Leader in Chinese share of the seating business >40% of market* *seating business including JVs We enjoy a clear leadership position as the world s largest automotive seating manufacturer, with twice the global share of our nearest competitor. 9

10 Located right where our customers need us most Global locations Amount Countries Employees North America 38 Locations Europe 91 Locations Asia 91 Locations Globally 75,000+ South America 10 Locations Africa 6 Locations We are Adient / Customer Update / November 2016 We are Adient 10

11 Working with the world s largest auto manufacturers Automotive seating customers We work with the world s largest auto manufacturers, supplying parts for the most important automobile brands across the globe. Fiat Chrysler Automobiles GM Ford Other Jaguar/Land Rover BMW Volvo Nissan Toyota Hyundai/Kia Honda Chinese OEMs VW Mercedes Renault, Peugeot, Citroën We are Adient 11

12 Agenda About Adient Adient Shared Services Solution Spinoff Project Post Spinoff Enhancements Wrap Up

13 JCI/Adient Shared Services Solution Global AP solution Processing >6.0 million pages of invoices per year for Europe, North America & Asia suppliers OCR recognition on header level with a recognition rate >70% Support of all European languages Automated intelligent routing of invoices for approval and exception handling 10 year evolution of solution 6.0 Million Johnson Controls (in pages) 3.1 Million Adient (in pages)

14 Accounts Payable Solution Intelligent Invoice Capture with 100% Visibility Approvals Globally Standardized Processing Configurable Dashboards & Reports

15 End-to-End Invoice Processing PROCESSING CAPTURE Data Documen ts ANALYTICS

16 Global Accounts Payable Solution The AP solution started with one business unit and then was expanded as a global hub for the other business units + corporate. All units run a mix of SAP and other ERPs. Automotive - Global Hub SAP PTS-AP Corporate SAP or other SAP or other ERP Same solution SAP as ERP solution Automotive North America Power Solutions Europe Building Efficiency SAP or SAP or other SAP ERP or other ERP solution other ERP solution solution North America SAP or other SAP or other ERP SAP solution or other ERP solution ERP solution North America China SAP or other SAP or other ERP SAP solution or other ERP solution ERP solution Asia Pacific

17 Agenda About Adient Adient Shared Services Solution Spinoff Project Post Spinoff Enhancements Wrap Up

18 Business Drivers Team had less than 1 year; from split off announcement to stand up a new independent system. Move to new SAP ECC on HANA AP solution required same functionality Companies had relatively the same geographical footprint

19 Risks Keep business running during transition Reprioritize existing team projects Upgrade of KOFAX and Launch of Thin Client Validation was also happening in parallel. Manage issues related to moving to a brand new infrastructure (ECC on HANA) Ensure the new SAP instance is stable before bringing over large volume of activities. Move system from Data Center in EU to US Previously, the global hub was located in Germany which was a good middle point for a global business with operations in China and Mexico. JCI s new Data Center was in Atlanta, GA.

20 Starting Production Environment Building Auto OCR Auto + Corporate ECC Accounts Payable All BUs Automotive Content Repository All BUs Regional Business Centers provides shared services to business units Building Building ECC Power Power ECC JCI Business Units AE: Automotive BE: Building Efficiency CO: JCI Corporate PS: Power Solutions Content Repository Note: AE Metals not shown as there is no impact to those instances due to AE Separation activities

21 Considerations for Spinoff Create a Clone of AE s systems in new Atlanta data center Kofax, Dolphin-PTS, IAT, IXOS and Centera for JCI will be clone of Automotive s set up Consolidate PS/BE/CO invoice images into JCI IXOS / Centera Procurement / Segregation of hardware's in RBC s. These activities to be managed by Regional IT in conjunction with the Purchasing team

22 Application Spinoff Timeline Phase 1: CorpUnity Dep A Phase 3: CorpUnity Dep B Phase 4: CorpUnity Dep C Phase 5: CorpUnity Dep D Apr 1, 2016 May 22, 2016 Jun 1, 2016 Aug 1, 2016 Oct 1, 2016 Phase 2: Data Center Migration - BE, PS ECC systems move to PDC - BE, PS connects to CorpUnity ECC for Dolphin. - BE, PS switches to Kofax, Web IAT, IXOS and Centera in PDC High Level Timing for Production cutover

23 Spinoff Team Members PMO Business Team - identified business requirements and tested system Purchasing team - for procurement of new hardware IT team to finalize the design aspects (Technical Architecture, Solution Delivery) PMO/Functional Lead Technical Lead

24 Phase 1: Corp Unity Stand up AP and other infrastructure on new ECC on HANA system Corporate separated into new ECC system 2 legal entities migrated from Automotive ECC to new ECC Moving low volume entities first Complete end-to-end testing of functionality Compatibility of codebase with HANA needs to be validated. Once testing was complete, production data was migrated during the cut over window Corporate SAP Legal Entity 1 Legal Entity 2

25 Phase 1: CorpUnity Dep A Regional Business Centers All BUs Corporate Automotive OCR Corporate JCI OCR Building ECC Power ECC Auto + Corporate ECC Accounts AE,CO Payable All BUs Automotive Content Management All BUs Content Management JCI Business Units AE: Automotive BE: Building Efficiency CO: JCI Corporate PS: Power Solutions Moved 2 corporate legal entities into a new infrastructure CorpUnity ECC Corporate Accounts Payable Corporate JCI Content Management Corporate Content Management

26 Key Tasks Phase 1: Corp Set Up Communication to AP team in Regional Business Centers about the change Procurement of Hardware for Regional Business Centers Segregation of PC s / Scanners in RBC s for different organizations Processing of paper invoices in correct hardware Creation & configuration of new mailboxes AP Solution - PTS Install the codebase and configure Dolphin solution similar to how it was in Automotive Maintain routing tables and update approver tables. Deploying the PTS migration programs in new ECC landscape Set up new security roles and assign to users. 33

27 Phase 2: Data Center Migration Migrating the all other business units onto the Corporate system BIG BANG - Volume of data to migrate was HUGE [approx. 350k PTS records] Weekend migration Business SME s supporting the BU performed testing using the same methodology as Phase 1 Power Solution SAP Corporate SAP Dolphin Building Efficiency SAP

28 Phase 2: Data Center Migration Regional Business Centers Auto + Corporate Auto OCR Auto ECC Auto + Corporate Accounts Payable AE,CO Auto Content Management Auto + Corporate Content Management Auto + Corporate JCI Business Units AE: Automotive BE: Building Efficiency CO: JCI Corporate PS: Power Solutions Move Data Center for Non Auto systems Migrate KDIC for Building & Power to CorpUnity ECC and new Data Center. Migrate Building & Power OCR and Content Management Building ECC Power ECC Corporate Building Power JCI OCR Corporate Building Power CorpUnity ECC Corporate Accounts Payable Corporate, Building, Power JCI Content Management BE,CO,PS Content Management

29 Key Tasks Moving Other BU s Migrate master data interfaces for other BU s Perform configurations needed to bring in additional BU s Realigning Trusted RFC s for the other BU s Updating logical system configuration for the other BU s Perform PTS migration Bring on additional users to new system Content repository set up of additional BU s 33

30 Phase 3: Clean Up of Automotive Inform vendors of change Remove legacy configuration data Shut down links to legacy systems Automotive SAP Accounts Payable SAP System of Acquired companies

31 Phase 3: Final Solution Architecture Regional Business Centers Regional Business Centers Automotive OCR JCI OCR Automotive ECC CorpUnity ECC Accounts Payable Accounts Payable Automotive Content Management BE JCI Business Units AE: Automotive BE: Building Efficiency CO: JCI Corporate PS: Power Solutions Content Management Building ECC PS Power ECC JCI Content Management Content Management

32 Key Tasks Updating Adient Migration of mailboxes in to new domain Domain migration of Kofax servers and making necessary set up at server level to avoid DNS / IP conflicts Termination of old domain in Kofax servers after network changes Set up new Active Directory accounts to run services in new domain Communication to vendors about the mailbox changes Clean up of unwanted Trusted RFC s Clean up of Dolphin approval / routing tables to remove the data for old BU s 33

33 Agenda About Adient Adient Shared Services Solution Spinoff Project Post Spinoff Enhancements Wrap Up

34 Continuous Improvement Robotic process automation Automatic notices sent to vendors if invoices are invalid or not approved Early monitoring of scanned invoices AP team can see invoices as soon as they are received, giving them up to 2- days for processing

35 Agenda About Adient Adient Shared Services Solution Spinoff Project Post Spinoff Enhancements Wrap Up

36 Lessons Learned Engage the partners at a very early stage, especially when the time available is limited Communicate the change / make people aware Clear Direction of priorities from Top Down: Executive sponsorship was crucial to success

37

38

39 Thank you for attending my session! For questions, contact me at: Don t forget to fill out the Session Evaluation on the Mobile App! Keeping AP Running During a Corporate Spin Off: Insert Adient s Presentation Digital Journey Title Insert Session Speaker ID# Name(s) 7320 Sreekanth Saseendran & Company & Brian Shannon Adient US Llc & Dolphin

40 Follow Us Thank you for your time Follow us on