Marcegaglia (steel) goes digital with SAP S/4HANA and CapGemini
With the support of Capgemini Italia, the world’s leading industrial steel-processing company renews its management and reporting system The world’s leading industrial steel-processing group banks on Capgemini Italia and SAP to innovate and match its technology platform to changing business needs. Today, Marcegaglia has a data warehouse and SAP Business Suite 4 SAP HANA (SAP S/4HANA), the next generation business suite of SAP that uses a combination of in-memory software and cutting-edge hardware components to ensure access to information at speeds and volumes never experienced before, for real-time governance of the company through the most appropriate and effective generation of insights.
Marcegaglia is the leading industrial group worldwide in the steel processing sector, with a yearly output of 5,3 million tons. The group has operations worldwide with 6,500 employees and 48 manufacturing plants where 5,500 kilometres of carbon and stainless steel products are manufactured every day. In 2014, the steel sector (90%) and other business (10%) generated turnover of 4.1 billion euros. Founded in 1959, and fully owned by the Marcegaglia family, the Group has its headquarters in Gazoldo degli Ippoliti, in Mantova province, Italy.
Needs Changing business needs and constant technological evolutions led the industrial group Marcegaglia, a multinational operating worldwide with 6,500 employees, 60 sales offices, 210 representations and 48 manufacturing plants, to implement a significant upgrade of its entire ERP platform and Data Warehouse, migrating both systems onto SAP S/4HANA technology . At the heart of this important project lies Marcegaglia’s need to speed up an operational infrastructure – at both a technological and a functional level – that has to be capable of adapting to shifts in the market.
The project, developed by Capgemini Italia using SAP S/4HANA technology, the global leader in business software, together with the IT division of the Marcegaglia Group, is based on a specific pathway with an initial technological innovation step involving migration of the whole ERP system to SAP HANA, affecting a total of 1,300 users in 12 separate locations. Subsequently, following a precise roadmap, the main features of the current system will be updated, introducing new SAP modules covering business processes – such as Credit Management, Cash Flow & Budget Forecast and Consolidated Financial Statements – redesigning the new Data Warehouse on SAP S/4HANA in place of previous platforms, an operation that will affect 60 users in four separate locations.
A process of change and technological innovation that provides an opportunity to review business processes and operating procedures throughout the logistics and production area, enabling the company to set up a system that reflects the new organizational and business structure. The new environment makes it easier to govern the business, making it no longer necessary to check data at a later stage before it is presented; this is also the start of a pathway where reporting can be performed using any device and according to each executive’s specific needs. In addition, the adoption of SAP Fiori and Screen Personas, tools that simplify the user interface, help to display data in a clearer and more intuitive way and make data entry easier.
The new management system powered by SAP HANA and the review of the entire reporting system and Data Warehouse will enable the Marcegaglia Group to handle transactional and analytical data much more easily, to open up natively to web and mobile services in order to simplify or outsource various processes, activate new standard SAP modules available only on SAP HANA technology, enable innovative capabilities within the SAP management software, enable a modern user experience, while overcoming the technological limits of the systems before migration. And on the SAP Business Suite powered by SAP HANA, customers can populate the data warehouse in next to no time, take advantage of the features of HANA LIVE, handle analysis and reporting in real time, and exploit the combination of in-memory software and cutting-edge hardware components to access information at speeds and volumes they have never experienced before. The early results of using SAP HANA technology arising from the upgrade project, the excellent integration between the ERP and BW systems and the full suite of SAP BusinessObjects have in fact helped to accelerate the transition to the business and technology goals which the customer had set itself.