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SAP Customer Success Story

Information & Communication Technology (ICT)

We realised it would take us a lot of time,


energy and dollars to do the implementation.
Then, we spoke with SAP.
Sandeep Mathur, Manager Projects Office, Fujitsu Australia and New Zealand

AT A GLANCE
Company Name
Fujitsu Australia and
New Zealand
Website
www.fujitsu.com.au

Location
Sydney (headquarters) with
capital city offices across
Australia and New Zealand
Industry
Information & Communication
Technology (ICT)
Products and Services
Consulting, IT solutions and
managed services
Revenue
A$650 million
Staff
3,000
Challenges & Opportunities
I Past business acquisitions had
led to process overlap and a
variety of redundant legacy
business systems
I Lack of systems continuity was
restricting operational efficiency
and causing duplication of effort
I Needed to consolidate business
around a single, consistent
enterprise application
environment
Project Objectives
I Migrate acquired businesses
off legacy application platforms
I Standardise processes and
procedures across the merged
organisation in line with industry
best practices
I Provide an expandable platform
for implementing additional
functionality in the future
Solutions and Services
I SAP ERP 6.0
I SAP Best Practices
Why SAP Solutions
I SAP Best Practices provided
good starting point for
process optimisation

Moving to a completely new


platform enabled construction
of a highly optimised
infrastructure from the
ground up
Broad range of products
ensured Fujitsu could
accommodate current and
future growth within the
SAP framework.

Implementation Highlights
I Phase 1 implementation
completed in eight months
despite complexity
I Sophisticated governance
structure ensured ongoing
buy-in from key business
leaders representing 3000
users
I Rollout supported by extensive
online training delivered to more
than 1500 people
Key Benefits
Quantitative benefits:
I Streamlined HR and payroll
processes reduced the cost
of payroll overtime data entry,
payslip distribution, leave
management and other labourintensive processes
I Consistent warehouse
management and improved
reporting removed excess
costs from product inventory
I Licence and support costs for
disparate technology platforms
were eliminated
Qualitative benefits:
Common processes enabling
strategic alignment of all
business units
I Improved reporting capability
I Single view of customers and
suppliers eliminates redundant
data and processes
I Better HR processes providing
more efficient employee
training, retention and leave
management
I Employee and manager selfservice improve access to
accurate, timely data

Fujitsu
Fujitsu set for expansion with SAP Best Practice

Combining disparate business processes into a single version


of the truth is never easy but for consulting giant Fujitsu
Australia and New Zealand, it was simply impossible. The
merger of Fujitsu and DMR in 2004, followed by the
acquisition of the Australian subsidiary of Atos Origin in 2005,
left Fujitsu with a range of legacy business applications and a
vestigial process structure that was fostering inefficiency and
duplication of effort. Following the appointment of new CEO
Rod Vawdrey in 2003, Fujitsu began a transformational review
of its business and technology infrastructure that would lead
to the integration of these three disparate businesses.
The eight-month implementation project was built around
SAP ERP 6.0 and guided by SAP Best Practices as well as
Fujitsus own internal project management expertise. Nearly
150 staff spent months mapping existing business processes,
identifying opportunities to eliminate inefficiency, and
developing new processes that were modelled in the new SAP
environment. At the end of this major business restructuring,
Fujitsu has emerged with a unified and clean data model that
has boosted process efficiency, improved reporting, and
refocused the company around common goals and a unified
direction moving forward.

Getting to this point wasnt easy, particularly with pressing


timeframes and the sheer size of the $650 million
organisations operations. Fujitsus rollout of SAP ERP 6.0
was supported by a number of simultaneous process-focused
streams in areas such as data migration and training, which
utilised innovative online delivery methods.

The 2005 acquisition of the Australian subsidiary of French


Carefully constructed governance boards ensured ongoing
consulting firm Atos Origin further expanded Fujitsus
executive buy-in, with regular meetings ensuring that any
service capabilities, but also reinforced the growing internal
issues were dealt with as they came up. Regular staff rewards
problems that the newly merged organisation was facing.
and acknowledgment fostered employee buy-in, as did
The underlying processes and systems were not unified, and
frequent mass communications updating employees on
it was causing a lot of grief to
the projects status. Ten
the organisation, explained
business process owners were
We had multiple time sheeting systems and
Sandeep Mathur, Manager
assigned to the project fullgeneral ledgers, and because of this everybody
Projects Office, Fujitsu
time, requiring staff to be
was talking differently. Islands of data were
Australia and New Zealand.
backfilled to continue
not talking to each other, and even when they
business as usual activities
were brought together, you would have huge
Businesses were running on
during their absence.
inconsistencies: No two reports were the same,
spreadsheets, he continued.
they all gave different results. This was causing
We had multiple time
The hard work proved worth
a lot of frustration at the leadership team level.
sheeting systems and general
it in the end: since Fujitsu
Sandeep Mathur, Manager Projects Office, Fujitsu Australia and New Zealand
ledgers, and because of this
went live with its SAP
everybody was talking
solution, qualitative feedback
differently. Islands of data were not talking to each other,
confirms the new processes are working far more effectively
and even when they were brought together, you would have
than the old. Divisions between business units have been
huge inconsistencies: No two reports were the same, they all
eliminated, and the company now has a technology platform
gave different results. This was causing a lot of frustration at
upon which it can work to add additional internal and
the leadership team level.
customer-facing capabilities. Vawdreys goal is to position the
reborn Fujitsu as a serious alternative to major competitors
like IBM, and the success of its SAP ERP implementation has
Designing a Revolution
put it on the right track to make this happen.
The appointment of new CEO Rod Vawdrey in 2003 set in
motion the change that would resolve Fujitsus lingering
organisational issues. Vawdrey was keen to break down the
When History means Trouble
walls of disunity, bringing the company together around a
A regional subsidiary of global technology giant Fujitsu
common cause and on a common direction.
Limited, Fujitsu Australia and New Zealand employs more
than 3,000 people to manage a variety of businesses that
generate over $650 million in revenues annually.
With three different enterprise applications running two
instances of Masterpack ERP and one of Oracle Financials
it was soon decided that the best way forward was to
Its core business operations include strategic consulting,
consolidate and rebuild the companys processes around a
enterprise application services and infrastructure
single, unified enterprise information system. Such a project
outsourcing. It also re-sells both Fujitsu enterprise
was far more than just a new application installation,
products, as well as third party products from vendors
however: with 3,000 staff in the company and decades of
such as HP, IBM and EMC.
legacy processes to work past, it was clear Fujitsu was in for
a major business restructuring.
In recent years, Fujitsu has moved to strengthen its
capabilities, which already service a broad range of
Fujitsu toyed with the idea of trying to standardise the
government and corporate customers. In 2004, Fujitsu
business operations on one of the existing platforms, but
merged with its sister company DMR Consulting Group
holding on to those legacy systems would have perpetuated
which specialised in application services and consulting.

previous, inefficient processes. SAP, which offered a full range


of enterprise applications backed by robust Best Practices to
guide implementation, quickly became the favoured platform
for the companys major process redesign.
If we were going to go through the traditional approach
to enterprise-wide roll-outs by engaging every user in the
business groups to find out their requirements, it would be
like starting from the bottom-up, said Mathur. We realised
it would take us a lot of time, energy and dollars to do the
implementation. Then, we spoke with SAP.
SAPs years of experience, encapsulated within formal Best
Practices offerings, was a major factor in Fujitsus eventual
decision. While we knew the SAP Best Practices might not
be the perfect fit to every organisation, they provided a good
starting point, Mathur explained. Our timeframe was very
aggressive, and if we could get 60 or 70 percent functionality
out of the box, it would be far easier for us to focus on
the rest.
As well as choosing SAP, the Fujitsu implementation team
made another very important decision: when the project
was finished, every process would be modelled within SAP
or be changed so that it could. After years of dealing with
incompatible and divergent processes, there was simply no
allowance made for non-standard processes. The moment
you allow one, you have others, Mathur said.
Keeping the Project Focused

Fujitsu had set itself a short timeframe for the project, which
began in February 2006 and was originally slated to go live
by October 1. This put the Project Unity - Fujitsus SAP
implementation project team on the fast-track to do a
complete process review and implement SAP accordingly.
With absolutely no room for getting the project wrong,
Fujitsu engaged SAP Consulting to do a major business
review, set the scope for the project, and identify any
potential functional gaps. Paired with Fujitsus own extensive
capabilities in project management, the team was able to
develop a clear roadmap for a whirlwind implementation
that was set to shake the company to its foundation.

When we started, the business had very little understanding


of SAP, said Mathur. As weve gone through the blueprint
phase, it was really like peeling the layers off the onion. People
came to know how SAP works, and understanding of the
entire business grew as well.
The implementation team set about recruiting the technical
and business people it needed to complete the project.
Given the large number of divergent businesses involved in
the project, the implementation team with the full
support of Rod Vawdrey and other high-level executives
commandeered the skills of ten key business process
owners, committing them full-time to steering the
SAP implementation.
To ensure proper governance throughout the project, the
implementation team also oversaw the establishment of a
three-tier governance structure that included a Program
Director; Steering Committee, including four executive
general managers; and a formal Governance Board including
the CEO and Executive Director.
A formal change request system was established during the
project, so that stakeholders could identify issues or areas
where modelled businesses could be further improved.
When we started, the business had very little
understanding of SAP. As weve gone through
the blueprint phase, it was really like peeling
the layers off the onion. People came to know
how SAP works, and understanding of the
entire business grew as well.
Sandeep Mathur, Manager Projects Office, Fujitsu Australia and New Zealand

All told, the project eventually involved more than 50


technical staff and 100 business-focused staff, who regularly
worked together to keep the project on track. Much of this
co-operation was fostered within the Business Transformation
Forum (BTF), a committee that met for an hour every week
and brought together all key decision makers.

made sense to them. To make this happen, the group


With any change management issues tabled during the BTF
included a dedicated training manager, dedicated change
meetings, variations were able to be quickly dealt with and
manager, and up to ten trainers who were charged with
consensus reached to ensure continued smooth progress.
developing and delivering
BTF members also worked
the training content.
together to develop common Every business suffered because we took key
definitions of business
resources from every business area to get
Every business suffered
processes for example,
the project finished. Strong support from
because we took key
how time sheets or expense
the leadership team is so important for a
resources from every
claim forms should be
transformation project like this; without it,
business area to get the
lodged and processed that
we wouldnt have succeeded at all.
project finished, said
were then modelled within
Sandeep Mathur, Manager Projects Office, Fujitsu Australia and New Zealand
Mathur. Strong support
the SAP environment.
from the leadership team is
Another major change was
so important for a transformation project like this; without
the transition from a variety of costing models to a single,
it, we wouldnt have succeeded at all.
standardised costing model built within the SAP
environment.
Because of the highly distributed nature of its business,
Fujitsu turned to a range of Internet based technologies to
From an organisational perspective, there was a huge change
complement traditional classroom teaching. For example,
as to how we used to organise the operations prior to SAP,
OnDemand Software, a SAP Certified Integration Partner,
said Mathur. It had a huge potential impact on people.
delivered a range of educational tools, while WebEx online
We just had to understand the subtle differences which
presentation tools were used heavily to deliver consistent
existed among various state operations, and make sure
online training to employees around Australia and
everyone understood the best way forward.
New Zealand.
To make the implementation process easier, a number of
In a large organisation, people come and go, so one-off
streams were set up that used focused project teams to
product training doesnt work, said Mathur. You need to
handle different elements of the implementation.
have an ongoing method for training people.
For example, upon project kick-off a Data Migration group
By the time the project was finished, more than 1,500
immediately began the onerous task of moving masses of data
employees half the total workforce had participated in the
from the legacy systems, while a separate Training & Change
online training, helping the implementation team deliver
Management (TCM) group planned the process of educating
consistent training that prepared the employees to hit the
the companys 3,000 staff about the new system.
ground running. Complemented by a regularly updated
Project Unity intranet site, all employees were kept apprised
Data Migration alone proved to be an incredibly demanding
of the projects progress and its impact on their roles.
task. Each of the companys projects numbering more than
5,000 across the organisation had to be mirrored with new
entries in the empty SAP database, with all fields filled out
Flipping the Switch
and data checked to confirm validity. It was a challenge to
As months rolled by, pressure was on the team to ensure that
say the least, Mathur recalled.
it could meet the October deadline for the project. By
September there were some very nervous people, Mathur
The TCM group was equally critical, since employees had to
laughed. There were some perfectionists in the organisation
be introduced to the major business change in a way that
who would like to dot every i and cross every t, but at no

point in time can you say youve got everything nailed down
100 percent. Its always evolving.
By October 1, the new SAP implementation had evolved
enough that it was ready to go into early production trials.
A pilot project was commenced, with SAP ERP 6.0 running
on top of a Fujitsu FlexFrame server, MaxDB database and
Linux operating system.
Over the course of the project, the Project Unity team worked
steadily to accommodate what turned out to be 77 discrete
change requests. Many of these were significant in terms of
both technical complexity and Change Management impact.
The extra money on the change requests was well spent,
according to Mathur. There were some very unique things
that Fujitsu do, and we had to change the systems to do
them, he explained. For example, we do a lot of
outsourcing business and do a lot of support and
maintenance work on applications. They were not fitting
straight into standard SAP Project Systems, so we had to do
quite a few changes around that so we could make sure the
entire business fitted into SAP.
With those changes integrated, the system went live on
October 30. True to its name, the project had delivered a
major unification effort, a complete process review and a
completely new way of running what had for too long been
disparate and redundant operations. With the help of SAP
and its own internal expertise, Fujitsu Australia and New
Zealand had completely reinvented itself.
The New Fujitsu

With its SAP ERP framework in place, Fujitsu has


subsequently implemented a range of additional functionality
including employee self-service (ESS), manager self-service
(MSS), payroll and Human Resources capabilities.
These functions make use of the consistent process and
data models put in place during Phase 1 of Project Unity,
and are delivering direct improvements in employee
efficiency by providing direct access to correct, current
business information.

Self-service has been great, and a very smooth implementation,


said Mathur. SAP got the usability of ESS and MSS right, so
people just took to them. There is so much information at
their fingertips, and earlier they didnt have that option.
When you dont hear about any issues, you know people
can use the system without any pain.
The benefits of the whole Project Unity effort are still
becoming apparent, but it is already clear that it has
delivered significant and important improvements to
Fujitsus operations.
Many of these benefits are qualitative: for example, the
implementation of common processes across the company
has enabled the strategic alignment of the companys business
units, rationalised purchasing processes and warehouse
infrastructure, eliminated internal trading, improved the
ability to manage the companys leave liability, and provided
on-demand training as well as better business process
documentation.
Self-service has been great, and a very smooth
implementation. SAP got the usability of ESS
and MSS right, so people just took to them.
There is so much information at their fingertips,
and earlier they didnt have that option. When
you dont hear about any issues, you know
people can use the system without any pain.
Sandeep Mathur, Manager Projects Office, Fujitsu Australia and New Zealand

Improved reporting capability, a direct result of the


consolidated data and flexibility of the SAP ERP platform, has
sped up the production of key reports, reduced errors due to
manual data entry, and provided a single source of the truth
that has improved the consistency of Fujitsus information.
Access to better data has enabled benefits such as improved
order scheduling, better forecasting of demand across the
Australia and New Zealand markets, and a single view of
customers and suppliers that has made it much easier to
identify opportunities or issues in Fujitsus everyday
operations.

Eliminating legacy HR and payroll systems and streamlining


previous data handling and distribution processes, for
example, is expected to deliver savings annually. Automated
transactions, improved visibility of employee information,
improved links to SAP financial and project information and
a reduction in the number of employee merit reviews from
six to just two a result of improved ongoing project visibility
will all deliver additional savings.
Fujitsu for the Future

The greatest benefits will come in the long term as Fujitsu


continues to build new business processes on top of its new
best practices driven by the SAP framework. SAP has allowed
us to be positioned well for future growth, said Vawdrey.
However, using the SAP Best Practices,
some of our business processes changed
fundamentally. Project Unity, and the capability
of the SAP ERP 6.0 platform, helped us
overcome some long-standing barriers within
our business. We wanted this project to be a
showcase for all the other implementations
we do, and it has more than lived up to
those expectations.
Sandeep Mathur, Manager Projects Office, Fujitsu Australia and New Zealand

Implementation of SAP Freight Tracking and Build To Order


functionality will improve management of Fujitsus server
business and lower its inventory costs. Enhanced business
training will speed induction of new employees, and ensure
the entire organisation continues working to the same
schedule of process improvements.
Better contract management will improve communications
with key business partners, while the use of SAP customer
relationship management (CRM) capabilities will reduce data
management complexity and improve Fujitsus ability to
identify and capitalise upon new customer opportunities.

Despite the incredibly complex nature of Project Unity,


Mathur believes its ongoing success has more than validated
the choice of SAP ERP 6.0. Using the guidelines of SAP Best
Practices, the company has been able to both change its
operations, and lay down a flexible framework to support
ongoing business process improvements in the long term.
If we didnt have those best practices as a guide, we might
have just gone and replicated what we were used to doing,
Mathur said. However, using the SAP Best Practices, some of
our business processes changed fundamentally. Project Unity,
and the capability of the SAP ERP 6.0 platform, helped us
overcome some long-standing barriers within our business.
We wanted this project to be a showcase for all the other
implementations we do, and it has more than lived up to
those expectations.

www.sap.com/contactsap

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