2410 sap lighthouse value engineering partnership at canadian pacific

7/29/2019 2410 SAP Lighthouse Value Engineering Partnership at Canadian Pacific

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Orange County Convention CenterOrlando, Florida | May 15-18, 2011

SAP Lighthouse / Value Partnership atCanadian Pacific

Rick FeichtDirector, Enterprise Architecture

Corporate & SAPCanadian Pacific


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Real Experience. Real Advantage.

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Executive Summary

About Canadian Pacific

IT Retrospective

Driving the Digital Railway

Reaching Critical Mass

SAP and the Lighthouse Analysis

Leveraging the Value Partnership

The Road Ahead

Summary

Questions

Agenda


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Executive Summary

Canadian Pacific is undergoing a significant businesstransformation. Our journey to become the safest, most fluid railway

in North America is paralleled by our growing relationship with SAP.

This presentation describesCanadian Pacifics experience

with the SAP Lighthouse /

Value Partnership to date and

how we believe it will

transform our business.


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Canadian Pacific: Who We Are

North Americas first coast-to-coast transcontinental railway- In operation for over 125 years

- Over 16,000 employees- 14,000 mile Rail network in Canada + U.S.

Provide rail and intermodal freighttransportation services

- Serve multiple sectors: commodities, agriculture,electronics, fuel, vehicles

- Global reach through ports of Vancouver, Montrealand New York

- Active Customers: 4000

- Annual Revenues: $4.9 billion

Technologically-advanced Class 1 Railway- More than 700 trains running daily

- Meet more than 10,000 individual customer service commitments every day

DomesticCDN25%

Domestic US

9%

Global37%

Transborder29%


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Canadian Pacific: Who We Are

Support Groups

- Operations

- Finance

- Human Resources

- Information Technology

- Marketing & Sales

- Law & Risk Management

- Strategy & Yield- Performance Improvement

IT > Enterprise Architecture

- Responsible for all IT architectural functions

- Provide CP with an IT strategic vision- Guide IT solution development and deployment

Our Vision: To be the safest, most fluid railway in North America


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IT Retrospective

1997: First Use of SAP

2006: Re-platform- Move from Unix to Windows

- Upgrade to ECC 6.0

- Introduction of Netweaver components (Portal, XI, BW)

- Introduction of SAP First program

- Modules in play - FI, CO, AM, PM, MM, SD, PS, HR, RE, IM, PP

2009: Foundation work to support SAP First / SAP FAST- Upgrade EHP4 and SOA framework

- Additional Netweaver components

- Creation of a 5 year functional roadmap- Establish maintenance and multiyear foundational investment plan

- Bottom up approach to enabling capability

- Convergence to 2 asset classes (SAP and Shipment Suite)


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Driving the Digital Railway

Make the railway safer,

more efficient and morereliable

Ahead of the curve withpredictive technology

Getting the rightinformation, to the rightpeople, at the right time


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Reaching Critical Mass: Time for Change

Desire to be industry leaders

- Access to the best technology

- Efficiency potential is high

Fully leverage our investmentwith SAP

Shift Approach: Bottom-Up toTop-Down

Inflection point of change: CrossoverTransform the Business

The Business recognized the

need for change

IT staged to support change

SAP recognized the signs and theopportunity


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SAP and the Lighthouse Analysis

Lighthouse Analysis

- Reviewed existing business processes with stakeholders

Identified opportunities to improve, streamline,transform

- Recommendations

Developed roadmap for functional areas (HR, L2C,Finance, Ops)

Validate existing foundational roadmap

- Co-developed and refined a Functional Five YearRoadmap

Roadmap design for each functional business area

High-Level detail


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Risk

Risk

Mgmt

Mgmt

Five Year Roadmap

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Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

HiretoRetire

HiretoRetire

Train

Delivery&

Execution

LeadtoCash

LeadtoCash

InnovationInnovationFoundationFoundation VisibilityVisibility CoCo--InnovationInnovation

E

AM

E

AM

Finance

Finance


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Leveraging the Value Partnership

2011 Value Partnership: preparing for success Crossover

Business

Business Focus: L2C, Finance, Operations Launch initiatives to define/design business strategies Understand business processes and pilot change User Group facilitation Financial systems optimization Operational functions alignment

Power of the integrated system

Business Strategic transformation planning Top-Down model Business SMEs work with Executives Business capabilities > IT capabilities

Business IT

SAP


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Information Technology

Governance and methodologies- Creating a more consistent approach to solution delivery

Enterprise-wide scale of measurement

- EAF: Enterprise Architecture Framework

Partnership providing framework and training

- TOGAF SAP solution delivery aligned with industryrequirements

Development Framework- Better, Faster, solution delivery model:

Optimized assembly line approach to solutiondelivery

Speed of delivery and consistency

Realization of Business Value

Leveraging the Value PartnershipBusiness IT

SAP


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SAP

Best practices as defined by SAP Who better?

Bring practical application of business systems

Establishment and Alignment of PMO processes Application Lifecycle Methodology supported by Certification and Training

Access to Ramp-Up

Access to Industry Leaders & Core teams in Waldorf

Facilitation of industry user groups SUGRAIL

A-team of Business Transformation Specialists

On site Principle Architects

Leveraging the Value PartnershipBusiness IT

SAP


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Value Partnership Functions / Structures

ExistingPrograms /

Projects

New Programs /Projects

Servicesprovided

from CoE toprograms,

projects andbusiness units

ValuePartnershipLeadership

EnterpriseArchitecture

Co-Innovation

Technical

Architecture

Information

Architecture

Business

Architecture

L2C

Data

Finance

DeliveryExecution

Program

Management

Center of

Expertise

VisualizationReporting(Services)

Testing(Services)

MaxAttention

ValueRealization

Organizational Change

Management

Value

Engineering

run the transformationprogram efficient, with flawlessdelivery and execution,minimal risk or disruption

Introducetechnical andbusiness processinnovations

transform CPsdata structure intocorporate data thatallows insight andexecution

the WHAT, based on businessrequirements and overalltransformation needs

run programsflawless andefficient

embed best-practice IT

organizationprinciples and

provide servicesto implemen-

tation projects

the HOW, basedon specific

business unit andcross-functionrequirements

(detailed design)

ensure change happensin a managed way throughtthe organisation during

develop the vision & plans for the technical,business process and data architecture that

enables CPs transformation

overall leadership and executiveguidance for the whole ValuePartnership / transformation

execution

responsibility

design

responsibility


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Enterprise Architecture

ExistingPrograms /

Projects

New Programs /

Projects

Servicesprovided


projects and

business units

ValuePartnership

Leadership


Co-Innovation

TechnicalArchitecture

InformationArchitecture

BusinessArchitecture

L2C

Data

Finance

DeliveryExecution

ProgramManagement

Center ofExpertise


Testing(Services)

MaxAttention

ValueRealization

Organization

al ChangeManagement

ValueEngineering

run the transformationprogram efficient, with flawlessdelivery and execution,

minimal risk or disruption






organization

principles andprovide services

to implemen-tation projects



(detailed design)





execution

responsibility

design

responsibility


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Delivery Execution

ExistingPrograms /

Projects

New Programs /

Projects

Servicesprovided


projects and

business units

ValuePartnership

Leadership


Co-Innovation




L2C

Data

Finance

DeliveryExecution

ProgramManagement

Center ofExpertise


Testing(Services)

MaxAttention

ValueRealization

Organization

al ChangeManagement

ValueEngineering








organization





(detailed design)





execution

responsibility

design

responsibility


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Value Realization

ExistingPrograms /

Projects

New Programs /

Projects

Servicesprovided


projects and

business units

ValuePartnership

Leadership


Co-Innovation




L2C

Data

Finance

DeliveryExecution

ProgramManagement

Center ofExpertise


Testing(Services)

MaxAttention

ValueRealization

Organization

al ChangeManagement

ValueEngineering








organization





(detailed design)





execution

responsibility

design

responsibility


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Program Coordination

ExistingPrograms /

Projects

New Programs /Projects

Servicesprovided


projects and

business units

ValuePartnership

Leadership


Co-Innovation




L2C

Data

Finance

DeliveryExecution

ProgramManagement

Center ofExpertise


Testing(Services)

MaxAttention

ValueRealization

Organization

al ChangeManagement

ValueEngineering








organization





(detailed design)





execution

responsibility

design

responsibility


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The Road Ahead

What these changes mean for our business: The Railway

Where does this take us?

- What do we hope to gain?

Leader in Rail Business Systems.

Improved Financial results

Meet the objectives of the Digital Railway

Enhance the execution of our vision.

What does success look like?

IT Simplification and Standardization

SAP and Shipment Suite

Leader in Rail Industry Best Practices

Greater Integration: Simpler consolidated framework

Reduced complexity: Solution Delivery Velocity


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Summary

Success of the Value Partnership is driven by the mutualcommitment and goals of three parties

1. Business2. Information Technology

3. SAP

Formalizing governance will change the way we deliver solutions

Leadership must follow a top-down model

Senior executives act in unison regarding supporting strategies


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Questions?


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] Thank you for participating.

SESSION CODE: 2410

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2410 sap lighthouse value engineering partnership at canadian pacific

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