Achieving high performance with Accenture s on-demand solution for the chemical industry. Driving business performance with SAP Business ByDesign

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1 Achieving high performance with Accenture s on-demand solution for the chemical industry Driving business performance with SAP Business ByDesign

2 2

3 Accenture helps small to mid-size companies and subsidiaries of large enterprises drive their performance to new heights by partnering with SAP to offer SAP Business ByDesign for the chemical industry, a cloudbased software-as-a-service (SaaS) enterprise resource planning (ERP) solution. 3

4 Growing use of cloudbased ERP in the chemical industry In today s changing global landscape, chemical companies face key challenges ranging from high volatility of natural resource prices, to the increasing burden of government regulations, to driving a sustainability agenda. Like companies in other industries, chemical businesses are looking at information technology (IT) to reduce operating costs and increase the value delivered to customers. In light of these challenges, chemical companies are revisiting and reevaluating their business and operating models, including the way they source, provision and pay for IT infrastructure and services globally. As more participants in the chemical value chain move to cloud computing, those companies that hesitate and continue to use home-grown, custom ERP systems may find themselves at a competitive disadvantage compared to their cloud-enabled peers in terms of cost and effectiveness. SaaS ERP solutions have come a long way, providing core functionality to run a business with the necessary security features to ensure your data is safe and protected. SAP Business ByDesign solution and benefits Not all SaaS ERP players are the same. SAP Business ByDesign offers the extensive capabilities expected from a core ERP system. All of its core functionalities including finance, human resources, customer relationship management, supply chain management and procurement are available over the Internet via lowcost, predictable monthly licenses and with no hardware or software to purchase, upgrade or maintain. However, given the already widespread use of SAP in the chemical industry, Accenture and SAP realized there were gaps in Business ByDesign functionality that would be required by chemical companies. Drawing on Accenture s 30 years of experience in the chemical industry, we prioritized and filled five key functionality gaps, known as add-ons, satisfying certain industry functionality foreseen as being required by chemical companies (see Building blocks for the chemical industry on page 6). These add-ons help enable an ERP SaaS system to work toward key functional needs within an industry, and therefore have a direct impact on a company s performance beyond the obvious areas of return such as elimination of hardware, software, data center space and software maintenance. Other benefit areas consist of: Processes between the business and the IT organization are harmonized and aligned, due to the standardization that comes with a single ERP. Production experiences more specialized production-to-order, shorter delivery times and smaller batches, and continuous, end-to-end production process from concept to solution. Supply chain management is more collaborative and goal-oriented, has greater visibility and cooperation with suppliers and a lower supply chain risk. For subsidiaries to larger organizations, SAP Business ByDesign offers integration at core interface points, from master data management to financial consolidation, easing the efforts of connecting to a global ERP system. Accenture Advanced Enterprise Solution We offer SAP Business ByDesign as a strategic component within the Accenture Advanced Enterprise Solution for Chemicals. The Accenture Advanced Enterprise Solution is a patented framework and set of deliverables that industrializes all aspects of an ERP program and related business services. It links Accenture High Performance Business research, industry-specific leading business processes and key performance indicators with a preconfigured ERP platform that can be leveraged throughout the application lifecycle, from analyze and design through implementation and support. This comprehensive approach preconfigured solution, documented processes and accelerated implementation is the key difference in working with Accenture and results in your competitive advantage. 4

5 Key benefits Engineered for a rapid implementation, SAP Business ByDesign enables chemical companies to enjoy benefits such as: Speed and ease of use Enabled via a web browser and the use of a modern technological infrastructure that delivers speed and a rich and attractive user interface. Cost reduction An on-demand delivery model helps avoid large, initial capital outlays required for traditional licensing of onpremise software. Additionally, upgrades (hardware and software) are already included in the cloud service. Flexibility Designed to be flexible with a high degree of configurability toward the end user. This flexibility makes for faster, better decisions with realtime analytics and improved customer satisfaction with higher operational efficiency. Geared toward users In its current version, SAP Business ByDesign (version FP 3.0, released in July 2011) is appropriate for mid-size organizations with 100 to 500 employees, is available in eleven countries, supports five languages and has a monthly subscription provision. 5

6 Building blocks for the chemical industry By bringing our deep industry expertise into SAP Business ByDesign (see Figure 1), we offer a solution tailored to the needs of mid-size chemical companies. For example, Accenture has identified specific building blocks pre-configured industry add-ons to address critical industry needs. Typically, each Accenture building block is developed in an area in which SAP does not provide any or adequate functionality for a key business requirement or scenario, thus jumpstarting business areas. At present, we have developed five building blocks for the chemical industry in SAP Business ByDesign (Release 1.0, scheduled for September ): Batch management and determination enables accurate batch processing during production cycles. Product cost calculation and variance analysis allows for accurate costing of product mixes (an absolute given in complex chemical processes). Internal subcontracting addresses the typical logistics needs of mid-tier chemical companies. Order and stock reporting provides a detailed end-to-end view of inventory across the supply chain (from sales, production to fulfillment). Hazardous material classification caters to the mandatory environment, health and safety (EH&S) needs of chemical businesses. Accenture high peformance delivered Accenture collaborates with leading chemical companies and suppliers to develop and execute global strategies, manage risk, and drive innovation. Using SAP Business ByDesign, we take an integrated approach to helping our clients manage today s shortterm challenges and position for high performance in the long term. Figure 1. SAP Business ByDesign offers a new class of solution that offers immediate results today, and a blueprint for future growth. SAP Business ByDesign Shared services Managed services End-to-end processes HR Project management Finance Bank Customers Sales Warehouse/ logistics Production Procurement Vendors Marketing Supply chain Accenture Chemicals add-ons Contractors Suppliers Vertical chemical add-ons from Accenture Start with the modules you need, grow into more later Unified work centers help people collaborate end-to-end Built in reporting and analytics creates better visibility and decision making Aligns process, metrics and compliance to ensure performance and accountability at all levels 1 Release 2.0 is planned for fiscal year 2012, third quarter. 6

7 We can help your company achieve its objectives with the following approaches: Implementation of SAP Business ByDesign Our experienced IT professionals can help your company implement the cloud-based ERP, train end users and position your company to go live as efficiently as possible. Value-added management consulting Drawing on the Accenture Advanced Enterprise Solution (our patented framework), we standardize all aspects of an ERP program and related business services. This solution is linked to Accenture High Performance Business research and leading business practices in the chemical industry. Using key performance indicators (KPIs) as guidelines, Accenture can assist your company throughout the application life cycle: from analysis and design through implementation and support. Integration to a global ERP system Accenture has extensive experience implementing core ERP systems for larger corporations. If you are a subsidiary, Accenture understands the upfront investment already made and balances standard business process operation with the uniqueness of business operations under a separate entity. Accenture has the expertise to then drive true business value by ensuring there is integration of operations between corporations and subsidiaries within this strategic IT landscape. 7

8 Copyright 2011 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. About Accenture Accenture is a global management consulting, technology services and outsourcing company, with approximately 236,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, Its home page is _lc/

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