MAS to adopt uniform SAP system, JKH to upgrade

MAS Holdings is exploring the possibility of securing one SAP system across the entire group. The plan, simply known as 1,1,10 aims to implement one system and one process by 2010. MAS Holdings IT Manager Ransith Fernando speaking on "Towards Bottom Line Benefits with SAP NetWeaver Master Data Management (MDM)" stated that the amalgamation of 8 SAP Systems into one involves a considerable investment of many factors.

MAS has 8 live SAP instances and 3 ongoing projects and according to Fernando, NetWeaver enables the company to consolidate by mapping the difference of MDM. "MAS has an estimated purchasing budget of US$300 million and this is without the company transactions," he said.

Fernando also stated that if a 5 percent downpricing can be negotiated from suppliers it will result in a US$15 million to bottom line benefit. "This is something we can do and what we need to do. On a worse case scenario if we can get 0.5 percent savings this still translates into US$1.5 million to bottom line benefits," he assured.

Fernando further portrayed that NetWeaver MDM allows you to maintain your data with the growth of new supplier new codes. MDM supports consolidation of most master data in SAP. "We are only concentrating on the external partners and not the internal ones," he noted.

The Daily Financial Times learns that MAS had conducted a pilot project to sort out all technical issues of data extraction and the integration of Business Intelligence (BI) which revealed that 20,000 different codes exist which should be less than 1,000. Thus the MAS Holdings’ next steps would include the reduction of supplier codes. Challenges in this sector include the spending analysis of one group and the handling of the entire structure.

Fernando conveyed that the company had just commenced the reduplication of data and that it requires a higher level of consolidation.

Meanwhile, John Keells Holdings (JKH) the largest implementer of SAP (Systems, Applications and Products in data processing) in Sri Lanka is to proceed with more upgrades and implementations of the software in the coming years.

Addressing the SAP Summit 2008 JKH Chief Information Officer (CIO) Ramesh Shanmuganathan revealed that in 2008 the company is to adopt a SAP Retail Solution for the super market chain as well as upgrading the Enterprise Resource Planning (ERP) for better and broader functioning. "Embracing the Corporate Planning Management (CPM) to bring the ultimate visibility through a balanced scorecard, planning and budgeting and business consolidation," he said.

JKH intends to implement in 2009 SAP Governance, Risk and Compliance (GRC), Customer Relationship Management (CRM), Supplier Relationship Management (SRM) and Advanced Planner and Optimizer (APO). These adoptions are in line with the 5 year strategy road map of JKH to implement SAP beginning from 2004.

In his presentation on a 'Successful Business Intelligence (BI) implementation strategy for a diversified conglomerate' Shanmuganathan commented that the success factors of this programme are to find a right partner with a correct attitude, executive sponsorship, identify stakeholders, clearly documenting the policies, having a committed team and planning to derive a sustainable business case. He added that the Key Performance Indicators (KPIs) have to be defined clearly which is a critical aspect of the implementation.

"In a complex environment as ours BI becomes the core. It gives different information required by different users," he affirmed. He moreover divulged that the Forbes Magazine stated that 82 percent of senior executives believe that the information they need to make decisions is available within the company but very hard to get hold of.

The challenges Shanmuganathan noted are maintaining a single version of the truth across the entire group, catering to diverse requirement from 8 different sectors and 70 plus businesses within, empowering the user at various levels and balancing the act between standard and analytic reporting.

"Gain executive sponsorship as early as possible, engage potential users from businesses at all levels in understanding their expectations and deliver a single version of the truth- no excuses. The credibility of the whole initiative depends on this," he advised.