SAP Customer Success Story | Industrial Machinery and Components | Bosch Packaging Technology

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Picture Credit | Bosch Packaging Technology, Germany. Used with permission.

Bosch Packaging Technology: SAP Landscape Transformation Helps Harmonize Financials and Controlling

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SAP Customer Success Story | Industrial Machinery and Components | Bosch Packaging Technology

Executive overview Company Vision Why SAP Solution Benefits Future plans

Company Bosch Packaging Technology Industry Industrial machinery and components machinery and equipment Products and Services Development and production of packaging solutions for pharmaceuticals, food, and confectionery industries Web Site www.boschpackaging.com SAP Solutions Services from the System Landscape Optimization group, SAP Landscape Transformation software Partner BearingPoint GmbH (www.bearingpoint.com) As a part of its strategic decision to clearly structure and harmonize the companys system landscape, Bosch Packaging Technology decided to fully align and standardize the companys financial and controlling processes. The project included the conversion of charts of accounts, profit centers, and functional areas, as well as the renaming of user IDs. The System Landscape Optimization group from SAP performed the entire conversion, using SAP Landscape Transformation software.
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SAP Customer Success Story | Industrial Machinery and Components | Bosch Packaging Technology

Executive overview Company Vision Why SAP Solution Benefits Future plans

Bosch Packaging Technology Packaged as promised. Bosch.

Bosch Packaging Technology headquartered in Waiblingen, Germany is one of the leading suppliers in the field of process and packaging technology. Established in 1974, Bosch Packaging Technology is a division of Robert Bosch GmbH and employs 5,000 associates. The company plans, designs, manufactures, and installs packaging lines for manufacturers of pharmaceutical, confectionery, food, and other products. It also provides a broad palette of services and solutions offering filling, process, and packaging technology for the pharmaceutical and confectionery industry segments. In addition, it provides packaging solutions for piece and bulk goods in the food industry segments, as well as solutions for health and personal care products. Bosch Packaging Technology operates a global service and sales network with 30 branches in more than 15 countries worldwide. Around the globe, Bosch Packaging Technology maintains production facilities in Europe, the United States, South America, and the Asia-Pacific region. The Bosch Packaging Technology slogan Packaged as promised. Bosch. is part of the long tradition that represents Bosch Packaging Technologys core competencies: technological leadership, modernism, quality, reliability, and customer orientation.

Branches in over 15 countries worldwide

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SAP Customer Success Story | Industrial Machinery and Components | Bosch Packaging Technology

Executive overview Company Vision Why SAP Solution Benefits Future plans

Business operations based on a standardized system landscape

Bosch Packaging Technology has a strategic plan to maintain the power of its innovation and achieve profitable growth. The plan Vision 2020 is based on a fundamental orientation to clearly structure and fully harmonize the companys system landscape and processes, as well as its customer- and partner-related data. Part of Bosch Packaging Technologys far-reaching plan included the Bosch chart of accounts (BCA) conversion. The major focus of the conversion project was the full alignment and standardization of the companys financial system. Frank Streichert, Vice President Information Coordination and Organization, highlights the overall importance: The BCA conversion project was not only extremely complex but also strategically of high value, meeting internal and external accounting standardization requirements. Another objective of Bosch Packaging Technology was to support business development in preparing the company for future transformation efforts and, at the same time, to stay fully in line with the regulations of the International Financial Reporting Standards (IFRS). For this purpose, the subsidiary companies needed to switch from local charts of accounts to the single corporate chart of accounts at Bosch. In addition, Bosch Packaging Technology opted for the introduction of parallel accounting on the basis of IFRS, which required the implementation of IFRS requirements across the whole Bosch Packaging Technology business. Using SAP Landscape Transformation software as a basis, the combined team of experts from Bosch Packaging Technology, BearingPoint, and the System Landscape Optimization group from SAP was able to tackle all the above-mentioned objectives within a single harmonization project.

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SAP Customer Success Story | Industrial Machinery and Components | Bosch Packaging Technology

Executive overview Company Vision Why SAP Solution Benefits Future plans

Engaging experts from the System Landscape Optimization group

Throughout an extensive project-scoping phase, Bosch Packaging Technology carefully evaluated different options for meeting the intended objectives. It could then select the best vendor to help realize the demanding transformation scenario. The company chose SAP as a trusted advisor, based on past experience. SAP experts had already contributed to a successful project whose goal was to introduce IFRS while focusing on creating a single common Bosch chart of accounts for some business units in the Bosch group of companies. Bosch Packaging Technology was confident that the high-quality SAP Landscape Transformation software platform and the SAP expert services would once again support the companys major key decision drivers data consistency and security while helping to ensure an efficient and reliable execution. SAP Landscape Transformation software is designed to help accelerate business and IT transformation and better plan, analyze, sequence, and realize customerspecific business scenarios. This design made the software ideal for handling Boschs large data volume and minimizing system downtime.

Based on the positive experience of using the technologies and services of the System Landscape Optimization group in previous projects at Bosch, such as for customizing harmonization and IFRS implementation, SAP was short-listed for the BCA project.
Albrecht Werner, Senior IT Consultant for Accounting, Bosch Corporate Sector Information Systems and Services (CI)

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SAP Customer Success Story | Industrial Machinery and Components | Bosch Packaging Technology

Executive overview Company Vision Why SAP Solution Benefits Future plans

Mastering complex harmonization requirements

The team successfully conducted the conceptual design and planning phase for the entire harmonization project and paved the way for the overall transformation efforts. The project scope consisted of harmonizing and renaming the operational chart of accounts and restructuring all general ledger accounts and cost elements. Furthermore, it was decided to rename and merge profit centers and functional areas, as well as to realize the renaming of about 400 Bosch Packaging Technology user IDs, based on Boschs global user ID guidelines. Over the following eight months of the realization phase, the team conducted three test cycles. The team dedicated each test iteration to specific performance-related issues and incorporated technical testing, integration testing, and user acceptance testing. Throughout quality testing, the creation of mapping tables became the essential building block for the upcoming conversion of the productive system. Bosch Packaging Technologys preferred partner, BearingPoint GmbH, worked hand in hand on-site in Waiblingen with the dedicated local project team at Bosch Packaging Technology. A specialist from the System Landscape Optimization group provided remote support. Since team members were all located in different countries and time zones, most projectrelated tasks were handled as part of a virtual operation. Regular in-depth communication sessions helped to foster a strong team spirit and extensive cooperation. Holger Unzeitig, Project Manager at Bosch Packaging Technology, praises the project: The expert team, operating in an international project environment, mastered this complex harmonization initiative with great competence, despite a challenging timeline.

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SAP Customer Success Story | Industrial Machinery and Components | Bosch Packaging Technology

Executive overview Company Vision Why SAP Solution Benefits Future plans

Consistent and secure data handling

The BCA conversion project covered 13 sites and involved 4 SAP system clients that were distributed throughout 2 time zones in Germany, Switzerland, and the United States. The conversion of the productive system included the reading of about 2.5 billion data records and the conversion of about 1.2 billion data records in the 1.7 terabyte database. One project highlight was the renaming and merging of more than 12,500 data items during the chart of accounts conversion. In addition, a major project objective was to execute all conversions in relevant clients within a single downtime. The tight timeline for the going-live weekend put pressure on each member of the team. However, the scheduled weekend, together with a contiguous public holiday, offered an extended window of three days for system clients located in Europe. By making several runtime measurement and performance improvements, the team cut the initial 80-hour window to less than 20 hours. As a result, users could log on the system almost 12 hours earlier than anticipated. Based on a very detailed cutover plan and an efficient handover between all parties involved, it was possible to release the SAP system for business use earlier than planned and the contingency plan was never required, says Holger Unzeitig. Moreover, the project phases and going live were accompanied by our financial auditor, who confirmed that the transformation fully met the requirements. The companys board members were happy that the first month-end closing of all affected Bosch Packaging Technology sites met the auditors quality standards. This proves that an excellent job was performed by all project members, says Sven Beck, Head of Finance at Bosch Packaging Technology.

One of the essential challenges was to keep the downtime during cutover to a minimum. By taking appropriate measures, it was possible to reduce the technical conversion time by more than 75%.
Frank Streichert, Vice President Information Coordination and Organization, Bosch Packaging Technology

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SAP Customer Success Story | Industrial Machinery and Components | Bosch Packaging Technology

Executive overview Company Vision Why SAP Solution Benefits Future plans

Unified and efficient corporate management

After the system went live smoothly over the scheduled weekend, Bosch Packaging Technology employees were immediately able to pursue business activities and continue their daily work. Frank Streichert says: The BCA project was implemented very successfully in terms of budget and time. The standardization achievements can be seen as the basis for the consolidation of individual divisions. As a result of this successful conversion project, Bosch Packaging Technology now profits from several advantages. The company has streamlined its internal processes and can offer more transparent financial and controlling operations. In addition, corporate managers profit from the introduction of an efficient and centralized organizational setup. Key users in the financials and controlling areas immediately saw two main benefits. The users now have the advantage of centralized download functionality for currency rates. Also, the unification of profit centers, cost centers, cost elements, and functional areas now offers the users simplified global reporting processes. This demanding project was accomplished within budget and on time, and it met all of Bosch Packaging Technologys requirements.

Thanks to the successful implementation of the Bosch group specific elements within our business division, we have taken a great step toward reaching the target of standardized structures and processes within financials at Bosch Packaging Technology.
Sven Beck, Head of Finance, Bosch Packaging Technology

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Bosch Packaging Technology

Executive overview Company Vision Why SAP Solution Benefits Future plans

Taking steps to support Boschs vision

Boschs vision for the future is to establish a Bosch Packaging Technologywide template and to eventually migrate all individual SAP and non-SAP software systems into the single newly established SAP software system. Currently, a dedicated template-development team is planning and structuring the scheduled business process optimization. According to the blueprint, the first Bosch Packaging Technology sites will be migrated into the new SAP template by 2015. In addition, more data harmonization and standardization projects will be conducted over the next few years to integrate newly acquired companies into the existing Bosch Packaging Technology system environment. Bosch Packaging Technology is confident that the System Landscape Optimization group, as a preferred partner, will once again help our company to tackle future transformation projects, says Holger Unzeitig.

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Picture Credit | Bosch Packaging Technology, Germany. Used with permission.

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