Client: Global technology solutions provider Industry: Cross Industry Geography: Global Subject: Information Management; Enterprise Solutions; SAP Solutions
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For this global technology solutions provider, its SAP platform is mission-critical and the foundation for high performance. Accenture worked with the company to optimize this vital platform, leveraging our Accenture Delivery Centers in Toronto, Sao Paulo and Bangalore to reduce labor costs and access the right skills to achieve its goals.
This technology solutions provider to consumers, businesses and institutions has offerings spanning IT infrastructure, global services, business and home computing and imaging and printing. The company creates, engineers and delivers technology solutions that drive value, foster global citizenship and improve the lives of its customers.
The supply chain and replenishment groups of this global organization support one of its largest order-fulfillment platforms, interacting with a large number of strategic resellers and managing more than one-third of their revenue annually. Together these groups develop and maintain a mission-critical SAP platform that enables order-to-cash processes for its imaging, printing and personal computing and supply products sold in the Americas.
To optimize processing throughout its SAP platform, these groups decided to target three key business imperatives: enhance platform reliability and usability by strengthening application and operations management practices; reduce operating expenses by increasing efficiencies and leveraging lower labor costs where appropriate; and secure a long-term enterprise resource planning solution with the flexibility to grow with the organization. Amplifying the need for change was the growth of the business that resulted in a significant development backlog and increased sales-order volumes.
Through ongoing research, Accenture determined that outsourcing application development helps companies achieve high performance by enabling them to balance both sides of the "return on outsourcing" equation, targeting the dual objectives of reducing the total cost of ownership and increasing value from IT investments. For more than a year, this global technology solutions provider worked with Accenture to provide application management services for its supply chain operations' SAP platform.
Then it turned to Accenture to provide application development services for its SAP platform. The organization recognized Accenture for its application development experience, ability to ramp up quickly while minimizing transition risk and seamless integration into its existing project teams. Accenture's solutions delivery approach, using an integrated network of delivery centers that help deliver a seamless set of offerings and capabilities quickly and cost-effectively was also a deciding factor. Together the team created an improvement program across applications management and development to improve the IT capabilities and help reach the lower cost, increased stability and increased flexibility goals.
Accenture worked with the client team to devise a co-sourcing model in which the client retained core skills and Accenture transitioned SAP configuration, testing and enhancements to its delivery centers in Toronto, Sao Paulo and Bangalore. Specifically, Accenture provided SAP R/3 design, development and integration skills across key business areas, delivered day-to-day project activities for the solutions development organization and introduced leading concepts for applications development in areas such as demand management and resource planning. For example, Accenture introduced a consistent estimating process and top-down estimating model for projects, established end-of-phase check point reviews and developed a project management toolkit for project managers.
The solutions provider and Accenture worked together on 150-plus projects, ranging from expanding existing functionality within its SAP system to developing new functionality and business models. At the client's request, Accenture continues to provide additional resources and applications development expertise for the SAP enterprise order management platform.
With help from Accenture, the organization reduced its labor costs by more than 35 percent. Not only has it tapped into new resources to implement SAP projects more quickly, but the company also implemented a number of new processes to increase efficiency of its project delivery methods. At the top of this list is an entirely new demand management process that more tightly integrates the organization's business and IT activity. The new process helped reduce project backlog and tie projects more closely to the organization's three business imperatives.
Additionally, new project management processes and toolkits are enabling better quality and thoroughness of project deliverables. Together, Accenture and the client are moving toward larger releases of common functionality—a step that will promote more effective and productive use of IT resources and help our client reach high performance.