Speed with SAP S/4HANA: Accelerating value at AM General Copyright 2018 Deloitte Development LLC. All rights reserved.

Transcription

1 Speed with SAP S/4HANA: Accelerating value at AM General

2 Introductions Copyright Deloitte Development LLC. All rights reserved. 2

3 Breadth of Experience and Innovative Spirit Drives Us DESIGN ENGINEER MANUFACTURE SUPPLY & SUPPORT SPECIALIZED VEHICLES FOR MILITARY AND COMMERCIAL CUSTOMERS WORLDWIDE

4 We Take Pride in Our Vast History and Strong Heritage 1903 The Standard Wheel Company Willys Jeep American Motors Studebaker GENERAL PRODUCTS DIVISION We have over 100 years of industry experience, tracing our roots back to Studebaker in 1903 and following a rising trajectory with Willys, Jeep, and American Motors, to today s AM General. Our product portfolio includes 2 ½ 6x6 military trucks, commercial buses, the U.S. Post Office trucks, and the iconic HMMWV and its variants.

5 AM General s Broad Scope and Manufacturing Capabilities are Our Core Strengths

6 Our Customers Challenges Are Our Motivating Factors DESIGN & ENGINEERING MANUFACTURING FULL LIFE CYCLE SUPPORT

7 AMG s Burning Platform AMG s currently operates from a highly customized 12 year old ECC 6.0 that has never been upgraded. Current Complications with the Burning Platform Inefficient processes Improper use of the technology stack Expensive to consolidate acquired companies Expensive to meet new customer requirements Lack of consistent and efficient reporting Expensive to upgrade with a high total cost of ownership Continual accrual of technical debt associated with integration

8 SAP S/4HANA Project Objectives The purpose of this SAP S/4HANA initiative is to ensure the enterprise can increase effectiveness and efficiency by transforming people, business processes and supporting technologies to drive growth and optimization across AM General. Project Objectives Drive opportunities to automate and improve productivity Utilize standard and best practice processes and technology Limit customization (hard requirements or defendable ROIs) Harmonize policies and processes across departments and facilities Drive transparency in reporting, risk and compliance management Enhance the user experience (SAP Fiori 2.0) Infrastructure modernization and reduction of technical debt

9 AMG Choices 1. Upgrade ECC 2. Upgrade to Suite on SAP HANA 3. Brownfield: Upgrade to SAP S/4HANA 4. Greenfield: Reimagine ERP on SAP S/4HANA AMG elected to go greenfield due to the value proposition This journey starts with a Reimagine phase

10 Reimagining your business requires thinking differently about ERP

11 Technology Capability

12 Defining a Business Capability Policies Process People CAPABILITY Technology KPIs Data

13 Reimagine Approach Key Activities Deliverables Capability Landscape Baseline Solution and Documentation Leadership 1:1 Interviews Executive Shared Vision Workshop Capability Assessment Workshops Baseline Solution Demos Scope and Estimate Phase 2 Shared Vision Capability Assessment Documents Change Impact Themes Objectives: To-Be Application Landscape Change Impact Theme Assessment Change Readiness Approach Reimagine future operations Establish a project vision Align stakeholders to the project vision and purpose Define a set of capabilities Establish opportunities and pain points for each capability Identify major gaps Risk identification General project prep Decision/Next Step Papers Initial WRICEF Scope Stakeholder Assessments OCM Approach Change Impact Assessment Approach

14 Reimagine Results ~100 capabilities in scope Confirmed a solid business case due to highly manual and inconsistent processes Identified several large rocks that needed immediate decisions. Examples: Actual product costing Bill of material solution architecture No major risks from deviating from standard processes and SAP S/4HANA A belief that we can realize value faster by implementing the core And most importantly, stakeholders were aligned to the #1 project tenant: AMG Will Only Adopt Standard Processes and Technology

15 Time to Value Understanding scope and the use of best practices, a 34 week SAP project is scheduled 8 Week Blueprint 10 Week Build 11 Week Test 5 Weeks Deploy AMG believes they could run fast and realize value sooner with the proper governance

16 Warning: Do Not Attempt This! Unless Deloitte Helps You Put the Following in Place

17 Critical Success Factors The project identified these as the critical success factors to run fast Active executive steering committee (ESC) sponsorship with frequent touch points Strong change agent leadership and facilitation Embrace best practices through Deloitte accelerators Rapid project request resolution Issues, decisions, and actions Rigorous scope management Proactive project management Effective use of offshore resources adhering to ITAR regulations Rallying the project around key project tenants

18 AMG S/4HANA s Governance Structure The governance structure firmly connects the project to the C-Suite and to the key stakeholders within the business Frequent touchpoints with the business for escalations and change management activities Functional Advisory Committee (FAC) Business Process Owners APT Executive Steering Committee (ESC) SAP S/4HANA PMO C-Suite engagement. Due to the critical nature and implications for the project, there are ESC meetings every two weeks A representative and dedicated project management team Change Agent Network Change Agent Leads Change Agents SAP S/4 HANA Project Team Process Teams SAP S/4HANA OCM Team Development & Data Site Deployment Network Site Deployment Leads Site Deployment Personnel Security & Controls Infrastructure

19 Program Management Office (PMO) Program Manager Business Finance IS&S PM Advisor RJ CT EI MC MS Ryan Jones Sr. Manager IS&S SAP / Mfg. Systems Chuck Tabacchi Director Program Management Eric Irwin Manager General Accounting Mike Cantoni PMO Analyst PMO Mark Smiljanic Sr. Manager Deloitte Consulting LLP

20 DLeapS Deloitte Leading Practices Solution DLeapS is the Deloitte SAP S/4HANA showcase template with leading global practices combining our experience across industries What is DLeapS? Solution built on SAP S/4HANA - implementing Deloitte s leading industry practices Demonstrates Art of the Possible with a functioning SAP S/4HANA solution for transactional processing and integrated planning Enhanced user experience using latest User Interfaces with a library of SAP FIORI apps As a project delivery model Use of best practices which can increases quality and reduces risk Accelerators based on SAP Best Practice building blocks Ready to run scenarios across process areas As an accelerator To define the project scope based on the solution map To speed up design process (blueprint) and reduce realization efforts Readily deployable solution What does it contain? Business process map (L1 to L4) Pre-configured solutions from multiple industries in a single S4/HANA instance Configuration documents, test scripts, training outlines, and BPPs Helps accelerate project delivery and improve speed-to-value

21 Deloitte s Data Migration Accelerator for SAP S/4HANA Tested, pre-configured capabilities provide a jumpstart that helps our clients solve the data equation faster Comes with more than 40 prebuilt conversion objects, complete with mapping sheets, predefined data quality/ profiling/cleansing rules and documentation It s extensive It s fast D-DASH It s complete Incorporates detailed business-process impact analysis, industry knowledge, proprietary accelerators and templates (80+ deliverable accelerators and templates) It s flexible It s SAP+ Identifies potential gaps in readiness of existing data and provides pointed insights for migration Enhanced ROI Complements SAP Rapid Data Migration (RDM) with extensive set of data services and ABAP programs for SAP S/4HANA (6 different parameters) Can help attain business results quicker

22 ITAR Compliance We put emphasis on defining ITAR data and building solutions in the first week of design to run fast in build Explicitly defined ITAR data within a few weeks of design Designed and built two key solutions o A masked As-Is ECC production-like environment o Two data staging areas for data migrations and cleansing ECC Masking Engine Masked Data Un-Masked Data Development and Support AMG Profiling and Data Cleansing As a result, Deloitte s lower cost and scalable offshore resources can fully support all development and testing activities.

23 Key Project Tenants We leave you with key project tenants that also allow us to run fast Being Collaborative and Flexible Work together as one team with open door policies. The project should value individuals and interactions over processes, tools, and formal meetings. Being Proactive Raise issues, decisions, or actions out of your control immediately. Ownership Embrace a culture of responsibility, ownership, and accountability for changes and decisions. Being Value Focused Constantly check that work being performed is value added. As an example, the project will value working software over comprehensive documentation. Standard Solutions Seek out the right industry or off the shelf technology solutions.

24 Questions? Copyright Deloitte Development LLC. All rights reserved. 24

25 About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the Deloitte name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see to learn more about our global network of member firms. Member of Deloitte Touche Tohmatsu Limited