cepsa digital transformation strategy and hana digital transformation strategy and hana top...

CEPSA Digital Transformation Strategy and HANATop Priorities in Oil&Gas and Chemicals

Miguel Canteli. February 2016.

CEPSA Today. Business Priorities

Digital Strategy

Migration to HANA in Memory (CEPSA/SAP Project)

3

WORLD WIDE BUSINESS

Cepsa Today

Cepsa | Migration to Suite on HANA | February 2016

Industrial plants

Industrial plants and assets in developement

Explorationand Production

Refiningplant

Petrochemicalplant

COLOMBIA

PERU

BRAZIL

ALGERIA

CHINA

MALAYSIA

KENYA

ABU DHABI

SURINAM

THAILANDIA

INDONESIA

LIBERIA

CANADA

4

OUR ACTIVITIES

Cepsa Today


EXPLORATIONAND PRODUCTION

PETROCHEMICALS

GAS AND POWERDISTRIBUTIONAND MARKETING

TRADING

REFINING

5

LEADERS IN…

Cepsa Today


• We are world leaders in producing rawmaterials for biodegradable detergents(LAB) and account for 15% of the world'scapacity

• With the production of the Shanghai plant,Cepsa will become the world's secondlargest producer of phenol/acetone.

• We are also leaders in the Spanish aviationfuel market.

• We have developed processes, in the areaknown as EOR/IOR, which allow us torecover on average an extra 20% ofcrude oil from fields.

6

PETROCHEMICALS

ProductdiversificationGlobalization

Maximize downstream added value

TRADING

Marginoptimization

Geopolitical & Markets Risks

BUSINESS CHALLENGES

Cepsa Today



Cash flowasset value

High riskoil price

REFINING

Efficiency andflexibility

Margin volatiltyvalue

optimization

DISTRIBUTIONAND MARKETING

Client focusIntegratedbusiness

High volumesLow margins

GAS AND POWER

Energy poolsinergies

Regulatedmarkets

Safety and Environment

7

BUSINESS PRIORITIES

Cepsa Today


PETROCHEMICALS

Productionglobalization

Increase Downstream added value

Integration

Technologicalleadership

TRADING

Marginoptimization

Geopoliticalinstability



High riskoil price

REFINING



optimization




GAS AND POWER


Regulatedmarkets

Safety and EnvironmentCONSISTENT BUSINESS INTEGRATION AND DIVERSIFICATION

SAFETY AND EFFICIENCY

Cepsa Today. Business Priorities

Digital Strategy


9

IT STRATEGIC OBJECTIVES

IT Strategy


PETROCHEMICALS

Productionglobalization

Increase Downstream added value

Integration

Technologicalleadership

TRADING

Marginoptimization

Geopoliticalinstability



High riskoil price

REFINING



optimization




GAS AND POWER


Regulatedmarkets

Safety and Environment

CONSISTENT BUSINESS INTEGRATION AND DIVERSIFICATION

SAFETY AND COST

INFORMATION SECURITY AND EFFICIENT SHARED SERVICES

GLOBAL AND DIGITAL PROCESSES

10

DIGITAL ARCHITECTURE

IT Strategy

Cepsa | Migration to Suite on HANA | February 2016Gartner & MIT Report: “Cepsa. Raising the performance

of the IT organization and increasing reuse levels”

E&P SUPPLY MANUFACTURING LOGISTICS RETAIL FINANCE MARKETING SHAREDSERVICES

Business processesReuse common processes across all Business Units and Corporate

Vertical Value Chain Integration

TechnologyReuse

com

mon

tech

nolo

gie

sacr

oss

the

valu

ech

ain

Horizo

nta

l Soft

ware

Layer

Inte

gra

tion

Portals / User access

Collaboration / Virtual Teams

Content and KnowledgeManagement

Business Intelligence and Data Management

Application and ProcessIntegration

ERP-HANA

Component Repository Web Services Development

Data Base Access

OS and Security

IT COMPONENT CATALOG

BUSINESS PROCESSCATALOG

11

FRONT OFFICECONTENT

MULTICHANNEL

DIGITAL APPLICATION PLATFORM

IT Strategy


BACK OFFICETRANSACTIONAL

MIDDLE OFFICEDECISION

AUTOMATED

COLLABORATIVE

12

DIGITAL INTEGRATION PLATFORM

IT Strategy


REALTIME AND MULTICHANNEL

NEW WAYS OF WORKING AND SOCIAL

PREDICTIVE ANALYSIS

13

DIGITAL INTEGRATION PLATFORM

IT Strategy


REALTIME AND MULTICHANNEL

NEW WAYS OF WORKING AND SOCIAL

PREDICTIVE ANALYSIS

Cepsa Today. Business Priorities

IT Strategy


15

CEPSA ERP PLATFORM

Migration to HANA in Memory


IS-OIL

Finance

FI

Sales and Distribution

SD

MaterialsManagement

MM

Human Capital

Management

HCM

PlantManagement

PM

SuppliersRelationship

Management

SRM

IM FSCM

QMJVA

SuccessFactors

ServiceNow

SuppliersPortal

Business Objects

BO

Business Warehouse

BWBusiness

Planning and Consolidation

BPC

Travel and Expenses IS-Utilities

IS-U

IS-Retail

IS-R

16

CEPSA HANA MIGRATION PROJECT



• One single SAP integrated instance for all business areas (IS-Oil), with more than 2.800 users

• Large database size and complexity, high level of customization

• Business continuity to be improved

• Cepsa Board fully committed

• HUAWEI selected as infrastructure partner

• PANAYA code cleaning and testing tools

• Migration from ECC 6.0 EHP4 to ECC 6.0 EHP7 on HANA

• Project scheduled from May 18th to November 8th

17

SAP HANA VALUE PROPOSAL



SAP HANA value

proposal3

1

2

4

5

CASH MANAGEMENT

• Centralized bank account management• Real time bank position• Improved cash position forecast• Cash management dashboard

USER INTERFACE• New simplified user interfaces• Mobile applications

OTHERS IMPROVEMENTS• IBP Integrated Business Planning: ERP and BPC

database unification

SIMPLE FINANCE• Business processes improvement: SAP Accounting• New reports accesed via web or mobile devices

SUITE ON HANA• In-memory technology• Improved performance (transactional, batch processes)

18

PROJECT KEY VALUES



40.673objects

Reports

Roles

Transactions

Interfaces

Jobs

Queries

User exits

…

4.089 changes

Software

changes made

to ensure

successful

migration

1.910tests

Functional tests

to ensure proper

functioning of

SAP applications

on HANA

75% databasereduction

75% database

reduction from

7,9 a 2,1

terabytes

+110people

Over 110

technical

resources

involved in

migration process

+20.000hours

More tan

20.000 working

hours

19

ARCHITECTURE



ECC6 EHP4

HANAECC6 EHP7

Heterogeneousmigration

< nov 7, 2015 > nov 8, 2015

20

ARCHITECTURE



OceanStor S5500T96Tb storage

2x FC 16Gb/sSAN switches

HUAWEI RH 8100 6TB

MAIN

SAP HANA PRODUCTION

OceanStor S5500T96Tb storage

2x FC 16Gb/sSAN switches

HUAWEI RH 8100 6TB HUAWEI RH 5885 1TB

DISASTER RECOVERY

QUALITY AND DEVELOPMENT

HUAWEI IN MEMORY INFRASTRUCTURE

21

ARCHITECTURE: DISASTER RECOVERY



Data

base

Applic

ation

Vie

w

CPDA

EPC-00 EPC-00 IS 1- 00

TST-02

SRV02767

SRV02367

SRV02267

EPC-ASCS-00

EPC-PAS-01

SRV02787

EPC-DI-06

EPC-DI-04

SRV02220

SRV02207

SRV02206

EPC-DI-03

EPC-DI-01

EPC-DI-02

SRV02202

SRV02203

SRV02219

EPC-DI-05

EPC-ASCS-00

EPC-PAS-01

SRV02787

TST-ASCS-00

TST-PAS-01

SRV02387

IS 1-ASCS-00

IS 1-PAS-01

SRV02287

CPDB

Private network Mirror network Backup network Service network

22

PROJECT PLAN OVERVIEW



Project executed according to the plan initially established with no significant deviations

Kick-off and project preparation18 April

1

April2015

May June July August September October November

Infrastructure installation21 April18 May

2

Cycle 1: HANA + EHP7 Migration25 May15 June

3

Test code changesDR testing and volumes7 September2 October

6

Cycle 2: HANA + EHP7 Migration7 August4 September

5

Functional testing and code changes16 June6 August

4

Development environment migration to HANA5 October2 November

7

HANA go-live and support8 November…

9

Production environment migration to HANA6 November -8 November

8

Finished In progressGo-live

23

April2015

May June July August September October November

PROJECT PLAN IN DETAIL



Kick-off

Infrastructure

Downtime

acknowledgement

Cycle 1

07/08/15Soft Freeze - No new

projects

Phase I: Preparation

Cycle 1: EhP7 + HANA (SPDD Adjustment

included)

SPAU/HANA enab Functional Testing

Phase II: First migration cycle

Cycle 2

02/10/15

Phase III: Second migration cycle

Hard Freeze

Cycle 2: EhP7 + HANA + SPDD

Go-Live

08/11/15

Phase IV: Prod migration

HANA Development

Phase III – Dev migration

SPAU/HANA enabFunctional Testing

Phase: V

Custom Code (Analysis /Workshop)

Execution (VTO / BPPO)

System Administration

GLS

SPDD

DR/HA

DR/HA

Hard Freeze - No DEV system

Dual Development

Preparation (VTO / BPPO)

DR

24

RISK MANAGEMENT AND CONTINGENCY PLAN



Downtime too highPotential high downtime thatmay not fit with the go-live weekend

• Performed several technical migrations in order to optimize the process• Archiving information in order to reduce downtime

Remote connectionRemote connection availability of outsourcingservices to HANA environment (virtualizedvia Citrix)

• An alternative channel was provided for remote connection in case of main channel failure

Integrated cutover planLack of coordination of activities among thedifferent teams involved in migration

• A single migration plan shared by all the teams was prepared• Consolidation of this cutover plan before migration

The current SAP production environment could be activated again if for some reason would not have been possible to complete the migration within established plan (go / no go decision on Sunday November 9 at 15:00)

Main risks in production migration

Main contingency plan

25

NEXT STEPS



• Migration to Suite on HANA

• SAP BPC for Planning and Consolidation

• SAP Business Warehouse (BW)

• SAP IS-Utilities

• SAP IS-Retail

• Simple Finance and Cash Management proof of concept

FUTURE

THANK YOU

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