Roche Diagnostics Establishes Continental SAP Template with ERP on HANA
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1 Americas-Rollout: Carve-out and migration in 12 countries Roche Diagnostics Establishes Continental SAP Template with ERP on HANA In a rollout dubbed GLOIRE for Americas, Roche Diagnostics has extracted all of its sales branches in South, Central, and North America from Roche Pharma s SAP systems and integrated them into a new standalone SAP landscape for Roche Diagnostics Americas. The fact that this new landscape is based on SAP HANA posed a particular challenge. Ten months after the project began, Brazil was the first country to go live. In carrying out this ambitious endeavor, Roche Diagnostics relied on the expertise of cbs Corporate Business Solutions.
2 About the Roche group Headquartered in Basel, Roche is one of the leading companies in research-oriented healthcare. It combines the strengths of its Pharma and Diagnostics divisions and, as the world s largest biotech corporation, develops differentiated medicines for oncology, immunology, infectious diseases, ophthalmology, and neuroscience. Roche is also the most prominent provider of products related to in-vitro diagnostics and tissuebased cancer screening, as well as a pioneer in diabetes management. Its efforts in personalized healthcare focus on developing medicines and diagnostics that improve patients quality of life. Since its foundation in 1896, Roche has played an important role in improving the health of the world s citizens. The WHO s list of essential medicines contains no fewer than 24 Roche pharmaceuticals, including life-saving antibiotics, malaria medication, and chemotherapeutic agents. In 2014, the Roche group employed around 88,500 people around the world, invested CHF 8.9 billion in research and development, and generated CHF 47.5 billion in revenue.
3 In a rollout dubbed GLOIRE for Americas, Roche Diagnostics has extracted all of its sales branches in South, Central, and North America from Roche Pharma s SAP systems and integrated them into a new standalone SAP landscape for Roche Diagnostics Americas. The fact that this new landscape is based on SAP HANA posed a particular challenge. Ten months after the project began, however, Brazil was the first country to go live. Argentina, Colombia, Mexico, Panama, and the Central America and Caribbean regions then followed in a second wave. In carrying out this ambitious international endeavor, Roche Diagnostics relied on the wide-ranging expertise of cbs Corporate Business Solutions (Heidelberg, Germany). Having already worked with Roche for a number of years, cbs s SAP consultants provided the right total package of rollout experience, a high degree of familiarity with Latin America (and Brazil in particular), expertise in SAP HANA, and the special software cbs ET Enterprise Transformer. Headquartered in Basel, Roche is one of the leading companies in research-oriented healthcare. It combines the strengths of its Pharma and Diagnostics divisions and, as the world s largest biotech corporation, develops differentiated medicines for oncology, immunology, infectious diseases, ophthalmology, and neuroscience. Roche is also the most prominent provider of products related to in-vitro diagnostics and tissue-based cancer screening, as well as a pioneer in diabetes management. As of 2014, the Roche group was employing around 88,500 people and generating CHF 47.5 billion in annual revenue. Mapping diagnostics processes with GLOIRE Not long ago, Roche was facing a challenge: It needed to harmonize the SAP processes at all of its Diagnostics sales locations in South, Central, and North America in order to make them comparable. Furthermore, Roche wanted to migrate all of the sales subsidiaries involved from the Pharma division s SAP system and an old, non-template-based Diagnostics system into that division s new SAP ERP installation. To that end, the company laid out a five-year road map for rolling out its Global Implementation Reference System (GLOIRE) template to the Americas region. The Diagnostics processes and best practices defined in this template differed significantly from those previously in place in the Pharma system its sales subsidiaries were running in South and Central America. The coverage these procedures provided for the Diagnostics subsidiaries workflows was inadequate, not to mention overly resource-intensive.
4 legal reporting and e-invoicing); and determined what process adjustments would be required as a result. These preparatory activities turned out to be a significant help in staying on the project s tight schedule and coordinating the large team involved, which was scattered across four continents. Our goal is clear: When this project is complete, we want all of our Diagnostics sales subsidiaries in South, Central, and North America to be working with a standalone SAP system for Diagnostics, states Oktay Yavuz, IT project lead for GLOIRE for Americas at Roche Diagnostics. Wanted: comprehensive SAP expertise Large-scale rollout schedule in multiple waves Roche identified a series of primary objectives, the foremost of which involved implementing the Diagnostics template GLOIRE using division-specific processes and best practices in all 12 Roche Diagnostics countries in South, Central, and North America. In a parallel effort, a new system landscape based on SAP HANA needed to be assembled as a destination for this framework. Roche is now proceeding with its incremental plan to integrate its sales subsidiaries into the Diagnostics SAP landscape for the Americas based on SAP HANA, which will decouple them from the Pharma division s system. The plan for this international rollout project calls for four waves. Before the first wave began at Roche s offices in São Paulo, Brazil, the company needed to establish a new Americas landscape with SAP HANA at its foundation. The second wave also proved challenging, as it involved rolling out to several countries and going live at the same time: First up were Argentina and Colombia, followed by Mexico and other countries of Central America and the Caribbean (including Costa Rica, Guatemala, Nicaragua, and Panama). Through a big-ticket workshop and detailed fit-gap sessions in the United States, those working on the project took stock of the processes, developments, and interfaces already in place in the wave-two countries; identified the system discrepancies and legal requirements at hand (including in In this highly complex global rollout project, Roche Diagnostics needed a partner with wide-ranging proficiency in SAP consulting, worldwide SAP rollouts, and the strict tax regulations of Brazil. Migration expertise and knowledge of SAP HANA would also be key in moving data from Pharma to the Diagnostics system. In addition, the ideal partner would have proven skills in developing the interfaces and forms that would be necessary in assembling the new system landscape for the 12 countries. Thanks in particular to its indepth knowledge of Brazil and Latin America, cbs was Roche s first choice. Indeed, the extensive experience the firm had already built up in more than 50 projects in Brazil alone proved to be a compelling argument. This included a keen familiarity with the intricate legal requi-
5 rements the Brazilian tax system demands of companies operating in the country. As an added plus, cbs offered unique experience with SAP HANA: From corresponding training to real-world implementations, its consultants had an intimate understanding of this new database technology. Meanwhile, cbs also won Roche over with the end-to-end solution approach it proposed for this complex carve-out and migration project. Specifically designed for SAP system transformations, the integrated standard software cbs ET Enterprise Transformer makes it possible to handle even combined use cases at the data, process, and system level in a holistic manner. Thanks to cbs ET, we had a reliable way to carry out our large-scale migration right on schedule and in line with Roche Diagnostics process structure, Oktay Yavuz reports. Moving from Pharma to Diagnostics in Brazil For the first wave of its international rollout, Roche Diagnostics opted for the following project approach: The new GLOIRE template would be rolled out by an international team in Brazil, along with SAP GRC NFe a solution for reporting taxes and related documents (notas fiscais) to the country s tax authorities. Over a period of just 10 months, Roche aimed to assemble a separate system landscape for the Americas in Brazil based on SAP HANA while incorporating an 80-member team from the U.S., Colombia, Panama, Mexico, Brazil, and Switzerland into the project. In rolling out the GLOIRE template in Brazil, the company would also ensure compliance with the country s specific tax regulations and implement comprehensive legal reporting. Before its new landscape could be built, the template and in particular, Roche s custom developments had to be reviewed in terms of their compatibility with SAP HANA. This included exhaustive testing of all the template
6 processes and functions at hand. The rollout of GLOIRE itself comprised functions in sales, service, logistics, order management, contract management, finance, and controlling. In this initial wave, Roche removed Brazil from its Pharma division s system and inserted it back into the SAP system for Diagnostics a step that took very little time thanks to the company s longstanding partnership with cbs. The data involved was extracted from Pharma s production system and imported into the new Diagnostics system. To maintain a consistently high level of data quality and avoid redundancy, data cleansing was performed in the production system prior to the migration. In the process, the data was taken from the production system right from the very first test to allow plenty of time for reviewing the results. The organizational unit in Brazil made its own effort to adapt to the GLORE template, which was expanded to meet local legal and business-critical requirements. Meanwhile, the project team tested the country-specific aspects and put them into use before conducting further tests with the migrated data. Throughout the Brazilian phase of the project, Roche and cbs also needed to customize and implement an array of interfaces. Once numerous test routines had been completed and all of the local and legal guidelines were met, the solution went live in Diagnostics new SAP system. A milestone for the project The employees in Roche s organizational unit in Brazil have since begun working with the SAP HANA-based ERP system. This successful start validated the company s strategy and approach and thus marked an important milestone for the project as a whole. Its Brazilian unit can now access out-of-the-box solutions that are tailored to the precise require-
7 ments of Roche Diagnostics. Since separating its Pharma and Diagnostics divisions at the system level, Roche has also been reaping the benefits of its new, streamlined SAP landscape. Thanks to its use of best-practice processes and the expertise contributed by cbs, Roche also managed to reduce the number of interfaces involved and safeguard compliance with its group-wide guidelines. The project was completed on time and within Roche s prescribed budget. Following the successful go-live in Brazil, Argentina, Colombia, Mexico, Panama, and other countries in Central America, the next phase of this challenging endeavor is set to begin: In wave three, Roche plans to make a parallel system transition in Chile, Peru, Ecuador, Venezuela, Uruguay, and the U.S. The final rollout will then take place in Canada.
8 cbs Corporate Business Solutions The Materna Group Management Consultancy Im Breitspiel Heidelberg - Germany P contact@cbs-consulting.com
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