Introduction and background
Over the past years many global and midsize chemical companies have standardized on ERP and BI solutions from SAP solutions to run their organization and exchange information with their suppliers and customers. Actually SAP solutions offer comprehensive sets of functionalities that enable the chemical industry to manage all of their standard and specialty business processes, ranging from finance and commerce to production and supply chain functions.
Also, besides supporting business processes, SAP solutions include features and functionalities that assist chemical companies meeting industry specific compliance and regulation requirements like for example; EH&S and REACH.
To deploy and support its complete SAP landscape for thousands of users, a global or large Chemical organization usually invests in dedicated IT resources and systems. By distributing this total cost of ownership over a great number of users and functions a global chemical company can achieve a positive return of investment of their SAP solution.
For a small or midsize Chemical organization deploying and running a small scope SAP solution for a number of users typically comprised between 50 and 250 the IT resources required to run the solution are in proportion of the number of users significantly larger than for a SAP implementation for multiple thousands of users. For a small or midsized company the cost of ownership of a small scope SAP solution is difficult to justify with a traditional implementation and operation approach based exclusively on internal IT resources.
The small scope SAP landscape cost vs benefits gap
The chemical industry is a very dynamic environment rapid innovation and operational adjustments made by companies lead to frequent start-up investments, M&A, divestitures and spin-off operations and to the constant emergence of small and midsized chemicals companies.
Since large and global chemical companies have widely adopted SAP as the ERP and BI solution of choice for running their organizations it is logical that smaller companies also want to adopt the same SAP solutions in an effort to facilitate the development of their business relations with the rest of the industry.
This situation clearly creates a demand for deploying and running an SAP solution in the context of a small Chemical company. However because of the limitations of their internal IT resources small chemical companies are looking for new and efficient solutions to bridge the cost vs benefits gap presented by a traditional approach of deploying and running SAP.
Efficient solutions for the deployment and operation of small scope SAP landscapes
When deploying SAP, small and midsize organizations have business requirements similar to large organizations, including; currency conversion, local regulatory and tax laws, double bit language, 24 by 7 operation, Disaster Recovery Solution, interface with current SAP or legacy solutions, basic reporting capabilities.
However, from an operational stand point the SAP solution needs to be low cost to operate, easily managed and serviced over the complete life cycle of the solution.
To address the challenge of deploying and running small scope SAP solutions, Diagonal, oXya and NaviSite are joining forces to offer comprehensive end-to-end SAP solutions for 50 users up to 250 users dedicated to the chemical industry with a focus on small companies, spin-offs and distributed production centers.
The “all-inclusive SAP for Chems” solution includes the initial deployment of the SAP solution, the infrastructure sizing, procurement and hosting, the post “go-live” application and infrastructure support and administration services.
Based on best practices templates and managed hosting services the “all-inclusive SAP for Chems” is designed to “go-live” in 5 months and offer a total cost of ownership reduced by 25 to 45% over the cost of an in-house managed solution.
Also, to provide CIOs and CFOs the tools to best plan their budgets, the cost of the “all-inclusive SAP for Chems” solution is divided into an initial fixed project price and a fixed monthly fee for the post “go-live” application and infrastructure support services.
Organization of the solution
The “all inclusive SAP for Chems” is specifically designed for small chemical companies or entities in order to meet 3 major objectives;
– Reduced deployment time
– Reduced cost of operation
– Increased application and infrastructure efficiency
To achieve these goals, Diagonal, oXya and NaviSite have joined forces to bring their industry specific expertise together in one comprehensive end-to-end effective solution for deploying and running SAP for 50 to 250 users at a price point in line with small chemical companies’ requirements.
Scope and Benefits of the solution
The solution is designed to be implemented in 5 months for a 50 up to 250 users based on documented Best Practices for Chemicals procedures defined by SAP. In order to achieve rapid deployment and reduced cost of operation after “go-Live”, the complete landscape is based on a managed hosting solution of the infrastructure and outsourced support and operation resources.
Scope and organization of the solution:
Diagonal Consulting – a Morse Company and a certified partner of SAP for over 15 years, provides implementation and support services for the entire spectrum of SAP solutions. We are the Business Application Services division of Morse with over 500 Consultants delivering system integration and application management services worldwide focusing on global support and remote services, ERP Projects (Rollouts, upgrades, & training), SAP Mobility, Engineering & Construction, ABAP, SCM and Business Intelligence.
oXya – IT services provider exclusively dedicated to providing technical consulting, support and administration services for SAP. With over 300 employees oXya is a respected leader in the SAP industry and has to date assisted over 150 midsize organizations increase the efficiency and reduce the cost of operation of their SAP infrastructure.