SAP Roadmap Approach

SUG MENA
March 09
 Agenda
• Introduction
– DUBAL Background & Vision
– Overview of our SAP Journey
• Roadmap Objectives
• Definition & Execution
• IT Dept Balanced
Scorecard
• Take Aways
 Dubai Aluminium is undergoing a
transformation...
The DUBAL of 2009…
• One of the largest single site aluminium
smelters in the world
• One million metric tons per year
• Products: Extrusion billet (59%),
Foundry Alloys (34%), High Purity
Aluminium (7%)
• Revenues >2 Billion USD
• Clients - Gulf, Europe, North America
and Far East
• 4,152 employees
• 33 nationalities
• One integrated information system
platform (SAP)
 . . . guided by a compelling vision
The Vision for 2010 - 2015…
• Global presence
• Among the top 5 aluminium producers
with capacity of 2,500k metric tons
aluminium
• Multiple production sites (e.g.) EMAL
• Upstream (Alumina) investment
• In-House world class smelting technology
• Safe & Clean environment
• Lowest cost metal producer
• Ramp-Up workforce
• Aim for common IT platform (SAP)
 Overview of our SAP Journey

Sept 06 – June 07 July 07 – Dec 07 Jan 08 – July 08 Aug 08...

Shamal

Wave 1
Team

Wave 1 Wave 2
Onsite
Big Bang – Core Modules (8) Support Staggered Go-Lives – Adhoc Modules (8)

Wave 1
Roadmap Definition Roadmap
Stabilisation (Focus - SD, FI, PP,
(All Modules) Execution
Payroll)
SAP Team
DUBAL

Increased Volume of Users

Refined Onsite & Offshore Support Resource Model

Project Shamal - Scope Wave 1 (9 mths)
• Sales & Distributions (SD)
• Production Planning (PP)
• Financials & Controlling (FI/CO)
• Materials Management (MM)
• Plant Maintenance (PM)
• Human Capital & Payroll (HC)
• Project Systems (PS)
• Business Warehouse (BW): Standard Business Content
 Project Shamal - Scope Wave 2
• A series of staggered Go-Live dates ending July 08:
– Treasury
– HR Personnel Cost Planning (PCP)
– Employee Self-service & Manager Self-Service (ESS/MSS)
– Environment, Health & Safety (EH&S)
– Advanced Planning & Optimization (APO)
– Business Warehouse (BW): Customised Cubes
– Quality Management (QM)
– Inventory Management (Outbound Logistics)
• Most Recently….
– DMS, Shipment Costing, LSO
Onsite/Offshore Team Ahmad Hassan
(Enterprise
Systems Mgr)

Alan
Murphy

Patrick Dalton Ross Clow Ian Stubbs Chris Kreuger Corne Pieterse Satya Seshadri Lakkajo Iman Al Omrani
(SAP Project Mgr) (CO Lead) (FI Lead) (MM/QM Lead) (SD Lead) (PM & DMS Lead) (Tech Lead) (Portals Mgr )

Ahmad Gary Drew

Ahmed Almusawi Shynu Yasin Moza Balkikrishna Das
Mohammad (Shipment Costing
(BPA) (BPA) (BPA) (BI Analyst) (Team Lead)
(BPA) Proj Mgr)

FI MM/QM PM
Deshpande
Kamran Amin Vashali
(BPA – SD/
(BPA) (BI Analyst) (Systems Analyst)
APO(DP))

APO/PP
Sathiya Lakshmi - ABAP Riham
Team Lead
(Soltius) (Soltius) (Systems Analyst)
Mylswamy

SD + APO/PP
CO + HR + EHS
Manoj - Workflow Muna Sultan
(Soltius) (Grad Trainee)

SAP Portals + Non-

SAP Apps
Ravi - ABAP
(Sotius)

Naveen
(BW)

SAP Technical

APO/PP + SD + ABAP, BW, XI,

CO + HR + EHS FI MM/QM Portals
One-Arch Workflow

DELOITTE AMS / One-Arch

 Agenda
• Introduction
– DUBAL Background & Vision
– Overview of our SAP Journey
• Roadmap Objectives
• Definition & Execution
• IT Dept Balanced
Scorecard
• Take Aways
 Objectives – Strategy & Functionality
• Align SAP team activities with each business
area vision
• Address ‘wish-list’ inherited from
Implementation project & put into a structured
plan
– separate tactical helpdesk calls from mini-projects
• Stimulate innovation via SAP Product Roadmap
• Integration of roadmaps will ensure ongoing
harmonization of business processes across all
areas
 Objectives - Measurement
• Identify Business Benefits wherever possible –
link initiatives to area KPI’s
• Help understand
– IT & Business resource requirements
– CAPEX requirements (Budget 2009)
• IT Dept Balanced scorecard - to help
demonstrate our value as a business partner
 Agenda
• Introduction
– DUBAL Background & Vision
– Overview of our SAP Journey
• Roadmap Objectives
• Definition & Execution
• IT Dept Balanced
Scorecard
• Take Aways
 Four Key Stages
Stage 1: Get Buy-In
Stage 2: Consolidate & Plan
Stage 3: Measure the Value-Add
Stage 4: Execute & Track
Stage 1: Get Buy-In

• Capture all issues

• Confirm Stabilisation per Area
• Incorporate KPMG
• Capture Strategic Objectives • Helpdesk Vs. Project

Key Deliverables: Helpdesk Log, Initiative Log

• Executive sponsorship
• Business Case for every initiative by the Business Users
• ‘Slowly-but-surely’ approach - Address pain points first
• Set Expectation: A Strategy…Best Strategy is a Flexible
Strategy…allow for a periodical review
 Stage 2: Consolidate & Plan

• Plan IT & Business Resource

• Internally
Utilisation (Under Commit &
integrate
Over Deliver)
Roadmaps
• Identify CAPEX if needed

Key Deliverables: Gantt Chart for GM Approval

Includes both Functional & Technical Streams (Security, Basis, Portals, BI, DMS)
Stage 3: Measure the Value-Add

• Map to Area KPI’s • Work with Finance

• Identify Benefits Upfront to measure benefits

Key Deliverables:
1. A Benefits Baseline (ideally quantifiable gains)
2. New Roadmap Dimensions (e.g.) can prioritise
on internal capabilities + highest cost savings
 Example – Potential Benefits for AP
Automation project
Do Nothing Phase 1 Phase 2
2008 End 2009 End 2010
No. of Invoices Processed 42,000 42,000 42,000
p.a.
Annual Savings - 2009 & 30% 44%
2010 based on a predicted
headcount reduction
Annual Recurring Savings - 51%
2011
Savings in Office Space AED 530k
Headcount Reduction % 36% 57%
Cost per Invoice – AED / USD AED 91 / USD AED 64 / USD 17 AED 45 / USD 12
25
Net Cash Outflow in 2008 AED 762k -
Payback – No. of months 8 months
Internal Rate of Return (IRR) 178%
Stage 4: Execute & Track

• Regular Review
with GM’s
• Execute Projects as usual
• Roll-Up via IT Dept
• Track Milestones + Benefits Balanced
Scorecard

Key Deliverables: Live Solution, Tracked Benefits,

IT Dept Balanced Scorecard
 Agenda
• Introduction
– DUBAL Background & Vision
– Overview of our SAP Journey
• Roadmap Objectives
• Definition & Execution
• IT Dept Balanced
Scorecard
• Take Aways
• Definition Green (>80%), Execution Green (>90%), Project Green (>95%)
• Presented to IT Mgt Team at Monthly Scorecard Meetings
 Agenda
• Introduction
– DUBAL Background & Vision
– Overview of our SAP Journey
• Roadmap Objectives
• Definition & Execution
• IT Dept Balanced
Scorecard
• Take Aways
 Take Aways
• Business process pain must be addressed first
– Area Roadmaps will evolve at different speeds
– Top-Down + Bottom-Up interviews
– Allow flexibility for change of Area strategic direction
• Include softer activities
– Refresher training, User Manuals, Process
Simplification
• Involve Finance Dept to rubberstamp any
quantifiable benefits (map to KPI’s)
• Track Roadmap definition & execution (e.g.) via
IT Dept Balanced Scorecard
• Plan resources utilisation carefully to ‘Under
commit & Over deliver’
Thank You