sap s4 hana project norsk hydro hana hydro sbn... · 2017-06-08 · main phases in sap s4 roadmap...
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Alf Bjarne Kaasen
Finance
SAP S4 HANA ProjectNorsk Hydro
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A resource-rich, global aluminium company
• Global provider of alumina, aluminium and aluminium products
• Leading businesses along the value chain; raw materials, energy, primary metal production, aluminium products and recycling
• 13,000 employees involved in activities in more than 40 countries
• Market cap ~NOK 100 billion/USD 11 billion
• Annual revenues ~NOK 82 billion (2016)
• Included in Dow Jones Sustainability Indices and FTSE4Good
PrimaryMetal
RolledProducts
Energy
Bauxite &Alumina
Extrusion joint venture
With robust positions across the value chain
(4)
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Engaged in the entire aluminium value chain
Bauxite Alumina Energy Primary Casting Products
Rolling
Extrusion
Recycling
Recycling
(3)
Bauxite Alumina Energy Primary metal Casthouse Rolled products Extrusion Solutions Recycling
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A resource-rich, global aluminium company
(4)
A complete aluminium company
• Primary aluminium production in Norway, Germany, Qatar, Slovakia, Brazil, Canada, Australia
• 10 TWh captive hydropower production
• European #1 in rolled products
• 50% partner in Sapa, world leader in aluminium extruded profiles
•Remelting in the US, European recycling network
• Technology and R&D centers
Primaryaluminium
2.1million tonnes
Robust positions along the entire value chain
Europe’s
#1aluminiumcompany
World’s
largestaluminarefinery
Highqualitybauxite
10 TWhhydropowerproduction
Global
top 10aluminium
smelter
Largesthot rolling
mill outsideChina
Marketleader Asiain primaryfoundryalloys
Longposition in bauxite and
alumina
Bauxite & Alumina
Primary aluminium
Rolling mills
Remelters
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The vision of One – S/4 HANA Enterprise ManagementFuture SAP solution harmonization can be viewed in 3 layers
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TCO driven
Business driven
Business driven
SAP Solution layersValue
Hydro Business requirements
Current processes /System setup
SAP IndustryBest practice
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• Efficiency
− Transform to value-added work
− Business planning improvement / Rolling forecast
− Process simplification and harmonization
• Insight & analytics
− Improve reporting capabilities, also for end users
− Information on mobile devices – anywhere, anytime
• Compliance & security
− ICFR improvements
− Segregation of duty
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Expected benefits from Finance stream
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Assumption: Greenfield will allow to realize higher value in long term, while
brownfield investments can be allowed given positive business caseHigh level recommended roadmap approach
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High
Time
Low
Busin
ess V
alu
e
2017 2025
AS IS
“Brownfield”
“Greenfield”
• Investments in AS IS solutions acceptable provided positive
business case within remaining timeframe
• Business Case = + immediate business value + reusability in greenfield – investment in brownfield
Lost value
• Reduced harmonization and
simplifications• Lost efficiencies of common
business processes
• Lower flexibility in responding to
business changes• Higher cost of future changes due
to lower standardization
• Reduced alignment with
Digitalization and Industry 4.0 initiatives
• “History luggage” and compromises
on TO BE due to brownfield approach limitations
• IT operations costs savings
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Main phases in SAP S4 roadmap
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Plan & Prepare
Principles
2016
Pre-Study
Finance and
Roadmap
Foundation
Analysis & design
Proof of Concept
(PoC)
PilotImplementation
Template
To be decided Planned
TCMSImplementation
Foundation & Structures
2017 �
Plan & Prepare
Implementation
TCMSUpgrade
Template Roll-out
202X
High level plan
BCM CM BAM IHC
TRM BI FI
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Strategic alignment process
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Technology
People
Processes
Prestudy Design Implement Roll out Realize benefits
Business Area Vision
Realized
Run change management
Optimize processes
Build digital tools
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• Continue improvements drive.
• Capture commercial opportunities
• Extend technology and innovation lead
• Turn leading HSE/CSR position into competitive advantage
• Deliver on fast-developing
customer demands
• Capitalize on strong climate position over time
• Further strengthen relative industry position
• Enhance market positions and
high-grade portfolio
• Mature selective growth projects for when time is right
Hydro’s aspiration for higher value creation
Hydro improvement drive
continues at full pace
A solid platform for building
an even stronger HydroHydro aims to be climate
neutral by 2020
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