Ready for the future enabling growth the digital way!

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1 Ready for the future enabling growth the digital way! Heinzel Group Hans-Juergen Oppeneiger SAP Center of Excellence Prague, Tieto Bernhard Rumpl Principal Consultant Industry Solutions

2 Data Enabled Business Results Reducing raw material costs Increased late order acceptance despite being fully booked, while keeping OTIF Reduced quality claims through advanced analytics Integrated Planning, from S&OP down to global CTP Harmonized 13 sites, 8 countries and 3 business areas into one solution

3 adding business value while (re)building the foundation

4 Heinzel Group World-wide growth with tailor made solutions Pulp Paper - 3,7mio tons sold Hans-Juergen Oppeneiger H.Oppeneiger@zellstoff-poels.at SAP Center of Excellence Tieto >14000 employees focused on the data driven world >1000 dedicated to forest & paper industry Bernhard Rumpl Bernhard.Rumpl@tieto.com Principal Consultant Industry Solutions 4

5 Ready for the future enabling growth the digital way! Agenda I. Drivers for Change IT Architecture Digitalization II. Possibilities Data Lakes S/4HANA III. Heinzel Group Group Overview Digital Core in Practice IV. The Finale Innovation & Business Results Digital Foundation 5

6 Data Lake/Cloud/ Integration/API Platform Demand Resources Climate Systems of Engagement Connected ERP/Transactions Modular MES Functionality Next Generation ERP Concept Integrated Business Planning Cloud, Big Data & AI Globalization Edge Enabled Automation p o s t I T l a n d s c a p e IoT OT/IT Convergence

7 Digitalization in the Industry Digital Foundation Automation & Effectiveness Analytics & Optimization New Services & Digital Business Systems Integration Digitization Analytics for Transparency New Services Data Harmonization IT / OT Merge Automated Insights to Action Digital Platforms Business Processes

8 Ready for the future enabling growth the digital way! Agenda I. Drivers for Change II. Possibilities III. Heinzel Group IT Architecture Data Lakes as platform Group Overview Digitalization S/4HANA Digital Core in Practice IV. The Finale Innovation & Business Results Digital Foundation 9

9 Strategic Answer for Data Usage smart & agile Systems / Apps Data Lake Cloud Sensors ERP CRM Any data source

10 Use your data KPI dashboard Morning meetings Task management Root cause management Maintenance notifications Management dashboard Work orders Mill dashboards Mobile Usage Shift log book.. 11

11 Ready for the future enabling growth the digital way! Agenda I. Drivers for Change IT Architecture Digitalization II. Possibilities Data Lakes S/4HANA III. Heinzel Group Group Overview Digital Core in Practice IV. The Finale Innovation & Business Results Digital Foundation 12

12 S/4HANA as Catalyst Digital Initiatives Business driven light, short term IT driven heavy, long term Digital Foundation Pre-Projects S/4 Phase 1 S/4 Phase 2 Px Px

13 S/4HANA as Catalyst Form A Vision, then Break it Down Guidance for Business Transformation NOW Large enough to be an improvement Small enough to reduce risks Milestone makes sense (i.e. intermediate efforts for IF) milestone Stable vision Guidance for stakeholders But adaptable to business requirements Using tech. possibilities VISION IT driven heavy, long term Digital Foundation Pre-Projects S/4 Phase 1 S/4 Phase 2 Px

14 SAP Journey SAP S4/HANA PRESTUDY FOR HEINZEL GROUP BY TIETO Ca 10 min Heinzel Overview Quick: Innovation & Digitalization SAP Journey + Compact Core Global setup, local impact => Roadmap for action

15 Digitization Initiatives Organizational Setup IT Foundation

16 Organizational Setup 17

17 Digital as value driver for the whole group Identified projects for all group members Digitization Initiatives From automation to blockchain Most activities centered around ERP SAP ERP is our central platform Organizational Setup 1986 SAP R/ SAP R/ SAP SAP systems Aquisitions ~every 2 years IT Foundation

18 getting real answers for each site Transformation NOW Milestone VISION 1. AS-IS situation 3. transformation roadmap and next steps for each mill. 2. VISION of the future landscape. Our transformation guideline. Digitization - synchronization with other projects Functional - e.g. harmonized Order to Cash for all, Procure to Pay Timeline e.g. mill sequence Organization e.g. project team, Center of Excellence 19

19 20 201

20 Tieto Initiatives in the Paper Industry 30+ Examples from Digital Foundation to Digital Business v10 Q2 18 Digital Foundation Automation & Effectiveness Analytics & Optimization New Services & Digital Business Systems Integration Data Harmonization Business Processes Digitization Automation Combined OT / IT Processes Analytics for Transparency Automated Insights to Action New Services Digital Platforms

21 Walk in the Virtual Forest Detailed realworld assets in virtual environment based on various data sources Enabling planning and simulation and execution of real world operations

22 Image Recognition with DL Industry needs: How Tieto helps: Business benefits: Better, faster and repeatable wood log quality classification 24/7 operation Reduction of tedious work for operator Transferable to other saw mills with less effort Analyzing wood log images from a saw mill Generating a DL model for wood log quality classification Providing classification of logs to customer Warning if log was not classified correctly More stabile wood log classification (quality is driver for payment) Better utilization of operator with other work packages Comparability between saw mills Logging of quality issues based on customer data 23

23 E2E Business Project Example Business Transformation driven by the Move from AS/400 to S/4HANA WHO German fine & special paper company with 3 business units WHAT Full scope ERP + MES SAP S/4HANA 1709 TIPS/4 SAP + MES HOW Pre-project done in Q Design-Build-Live Empowerment for new way of working Fully delivered by Tieto SAP S/4HANA FI/CO SD PP MES LE MM HCM 24

24 Building the Digital Future of the Industry Differentiation Industry Focus Specialized Digital Assets Company/Industry specific add-ons and processes Industry Solutions Standardization Efficiency SAP Systems and Best Practice The worlds #1 business platform

25 Internal Heinzel Group Hans-Juergen Oppeneiger SAP Center of Excellence Tieto Bernhard Rumpl Principal Consultant Industry Solutions

26 7 Key-Topics to take home Balancing Value vs. Foundation is a topic everywhere Integration is a key challenge & effort driver Data (lake) as new enterprise core is one answer ERP as enterprise core is another answer Utilize S/4HANA as essential evolution step for your landscape Digital innovation as game-changer does not come off the shelf Clarify, now, how your Digitial Foundation will enable business over the next years