SAP S4HANA Case Study 1

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JAPANESE LIFE SCIENCES

COMPANY ALIGNS GLOBAL


STRATEGY WITH ASE AND
SAP S/4HANA
By partnering with Capgemini, the company Overview
develops a global template based on the SAP Client: A leading Japanese life
sciences company
S/4HANA ERP platform in order to facilitate the
Region: Global
unification of regionally divergent processes
Industry: Healthcare & Life Sciences
Client Challenges: The company
was keen to standardize business
Understanding benefits of global standardization processes across the regions as it
planned to transform from a Japan-
Many global organizations inevitably wrestle with the challenges of operating centric manufacturing business
across borders and cultures. This international sprawl often results in processes model to a globally decentralized
differing from one region to the next, which makes it difficult to operate manufacturing business model
effectively during periods of growth. When introducing global processes,
Solution: Partnering with Capgemini,
companies must also be sure to balance local needs with global consolidation in
the company developed an S/4HANA
order to avoid any negative impact on productivity and product quality when the global standard business platform
transformation applies standardization rather than regional specialization. design and transformed its supply
chain business model to a model with
a good balance of global governance
and regional execution excellence.
When companies introduce global standardization in processes aimed at enhancing
globally influenced KPIs such as brand perception, process quality, etc, it is important to
avoid any negative impact on locally influenced KPIs such as productivity, efficiency, and
product quality. To do this, it is necessary to ensure the global template/standard can
sufficiently accommodate specific local needs/process variations arising out of legal/
regulatory/market-specific/cultural differences.

A major Japanese life sciences company understood how standard processes could
help it control business performance and make it easier to identify best practices by
reviewing regional performance. After a careful review of its options, the organization
chose Capgemini as its partner to ensure that its goal of designing a global business
platform based on SAP S/4HANA was achieved. Capgemini’s value offerings, such as
iCaptivate and the India SAP “factory’” model, ensured the client had the best-in-class
ability to meet their number-one objective of a S/4HANA global standard business
platform design.

Building an SAP S/4HANA-based global business


platform aligned with strategic goals

To launch the project and achieve the organization’s objective of transforming its global
supply chain model, the partners leveraged Capgemini’s proprietary ASE (Accelerated
Solution Environment) offering to quickly share and align strategic goals and challenges
among all the key members involved in the global business transformation. As a result,
although the company’s regional leaders initially held conflicting expectations for
the project, they were able to agree on a common understanding of the goals for the
global standardization as well as the key challenges that they would need to overcome.
Working with this knowledge, Capgemini began to perform a redesign of the company’s
global standard business platform based on SAP S/4HANA.

This design was focused on business processes, IT architecture, and master data
management and leveraged Capgemini’s iCaptivate methodology, which introduced a
range of standard business processes. To make the global business platform robust and
sustainable, the partners proceeded to determine a set of universal guiding principles in
order to identify how to capture disparate processes, manage master data, and define
organizational structure with the standardized approach. These guiding principles
became a toolkit containing simple rules that the company’s managers can use to
analyze non-standard processes in different regions and easily decide what should be a
part of the future global standard process that best aligns with its common strategy. In
addition, the organization and Capgemini determined which non-SAP processes could
be included as part of the global business platform and configured in alignment with
the new functionalities.
Some of the key business enablers of the revised S/4HANA design are:

An action list for Standardized product and Uniform business performance


global, strategic goals process quality levels levels at global sites

Single global ERP instance to Optimized logistics processes Global master data governance
leverage economies of scale such as global, end-to-end
integrated planning that
result in timely delivery

Preparing for international implementation


By the end of this design phase, the company and Capgemini had designed a global
standard business platform based on SAP S/4HANA - enabled by SAP CPI Cloud
Integration capability to seamlessly integrate with a wide range of IT assets (SAP, non-
SAP, Cloud, on-premises, etc.) - with which every region could harmonize. With the
global standard processes designed, the speed of product and service delivery could be
measured based on a common set of KPIs.

With the design revised to align with the business strategy, the company and Capgemini
have shifted their focus to preparing for a global rollout. The partners have assembled
a number of different teams that offer a range of expertise that will be essential for
successful implementation. Once this project concludes, the organization will be able
to operate with greater agility and more effectively manufacture, qualify, and deliver
its goods while providing services around the world. Moreover, the organization will be
better able to balance global demand and provide better services and more affordable
products in an even more timely manner to medical institutes and patients on a
worldwide scale.
About
Capgemini
Capgemini is a global leader in partnering with companies to transform and manage their business
by harnessing the power of technology. The Group is guided everyday by its purpose of unleashing
human energy through technology for an inclusive and sustainable future. It is a responsible and diverse
organization of 270,000 team members in nearly 50 countries. With its strong 50 year heritage and deep
industry expertise, Capgemini is trusted by its clients to address the entire breadth of their business needs,
from strategy and design to operations, fuelled by the fast evolving and innovative world of cloud, data, AI,
connectivity, software, digital engineering and platforms. The Group reported in 2020 global revenues of
€16 billion.

Get the Future You Want | www.capgemini.com


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