New ERP system projected to deliver more than �250 million savings over six years
Capgemini and its partners have delivered a complex and highly challenging IT and business change program in less than 12 months without delays or budget over-runs. Client Finance Director
Following a merger, a client from a transformational outsourcing agreement needed a complete back-office makeover. The new organization was created to improve customer service and value for money, so effective new working practices and efficiencies through economies of scale were required. It was quickly recognized that a single standardized IT package and streamlined back-office support service would help deliver performance improvements and establish a foundation for future transformation.
The scale of the challenge was formidable as was the timescale. Within a year of the merger, a single system based on new SAP ERP software replaced hundreds of existing IT systems, using a “vanilla” SAP solution to neatly sidestep the need for expensive bespoke system builds. The integrated IT infrastructure covered management information, finance & accounting, asset management, purchasing & procurement, HR and a corporate data warehouse. Capgemini was prime contractor working with SAP, the main solution provider, and other specialist vendors and contractors.
The new scalable IT platform was on time, to specification and budget. Anticipated benefits are already evident, including:
- significant savings in IT running costs through the retirement of legacy systems
- single source of information and simplified processes to improve back office efficiency
- better quality, more reliable information to help managers run the business more effectively
- projections to deliver more than �250 million of savings over six years, mainly in procurement costs thanks to automated enforcement of purchasing rules for simpler supplier management.