ENTERPRISE RSOURCE PLANNING (ERP)

OPM 632

TITLE:
ASSIGNMENT 2: PROCESS OF SAP IMPLEMENATION IN
COMPANY BRITISH AMERICAN TOBACCO

PREPARED FOR:
PREPARED BY : PN. FAIZATUL AKMAM

NAME : STUDENT ID : CLASS :

RABIATUL ADAWIYAH BINTI ABD MANAF 2019140841 NBO69A
COMPANY BACKGROUND

British American Tobacco Malaysia founded in 1902 during British colonial. The company
continues to go from strength to strength thanks to market-leading brands, a successful strategy, talented
people and our purpose to build A Better Tomorrow. BAT currently leading, multi-category consumer
goods business. The company purpose is to build A Better Tomorrow by reducing the health impact of its
business through offering a greater choice of enjoyable and less risky products for their [Link] is
a leading FTSE company with truly international credentials. Spread across six continents, the regions are
the United States of America Americas and Sub-Saharan Africa Europe and North Africa and Asia-Pacific
and Middle East.

Few consumer goods companies can claim over 150 million consumer interactions every day and
distribution to over 11 million points of sale across more than 180 markets.

There are more than 55,000 BAT people worldwide. Although the company have had to adapt how and
where the employee work from since the start of 2020, many of them are based in offices, factories,
technical hubs and R&D centers, but lots of them also spend their time out on the road, helping and
advising tobacco farmers, and the retailers who sell their products, both valued partners who have always
played a major part in BAT success.

The heritage and the foundation of BAT success is in cigarettes.

However, as the company recognize that the world is changing. The management now have a clear
purpose to build A Better Tomorrow by reducing the health impact of its business.

This entails:

• Committing to providing adult consumers with a wide range of enjoyable and less risky products

• Continuing to be clear that combustible cigarettes pose serious health risks, and the only way to
avoid these risks is not to start or to quit

• Encouraging those who otherwise continue to smoke, to switch completely to scientifically-

substantiated, reduced-risk alternatives

• Tracking and sharing progress of our transformation.

BAT ambition remains to have 50 million consumers of our non-combustible products by 2030 and to
accelerate the growth of our New Category revenues at a faster rate than company total revenue,
reaching £5billion in 2025. As the company have already made good progress towards these targets, they
increased consumers of non-combustible brands by 3 million, reaching 13.5 million by the end of 2020,
and New Category revenues grew by 15% in the same period.

Hence, it continue to accelerate the transformation journey to create A Better Tomorrow for all their
stakeholders.

• Product

VUSE

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CIGARETTES

SAP IMPLEMENTATION

Thare are a lot of SAP module implemented in BAT. One of it is SAP 4HANA where it is specifically and
mojorly use for finance. Below is the road map of system imlemetation:
Step 1:

Setup and Enablement – this step shows the steps project lead takes to setup the project, define key
milestones, set the initial project scope and invite the team members into the project using
Implementation Portal for SAP S/4HANA Cloud (that is part of SAP Cloud ALM).

Step 2:

Fit-to-Standard Analysis – in this part employee will see how the configuration expert (or alternatively
business process expert) sets the detailed scope for specific business area and company by selecting scope
items to be in/out of scope for the deployment project. And then it continues with the explanation of
capabilities for reviewing the rich business process content, including displaying the business process
models and documentation of the pre-delivered business processes. At the end of this step, the team
captures a requirement into the backlog using the “notes” functionality in the Implementation Portal.

This process in a straight sequence, in reality the project teams will iterate on various scope items and will
refine the scope based on the results of the fit-to-standard workshop. Proper execution of fit-to-standard
workshops is critical for projects to finalize the business scope, define the configuration values, define the
scope of integrations, define output management and analytics needs and more.

Step 3:

System Provisioning – in this step, the team takes the results of the fit-to-standard workshops to set the
scope for provisioning, maintain key values like chart of accounts and then trigged the Q-system
provisioning process. The Q-system is provisioned with customer specific scope activated and the team
can start configuration activities.

Step 4:

Configuration – in this step the project team takes the backlog and uses iterative agile approach to
configure the solution. The demo shows how the backlog item gets implemented into a configuration in
the system. It shows the configuration expert navigating to the Manage Your Solution App and then using
Self-Service Configuration UIs to record the desired configuration values in the Q-system.

Step 5:

Testing – in this step the configuration expert runs the pre-delivered test script with appropriate values
to confirm that the configuration in the system works as desired. The pre-delivered test scripts are useful
not only during the initial configuration, but also and more importantly play critical role during the
regression testing after each release upgrade. SAP S/4HANA Cloud comes pre-delivered with test scripts
covering the scope of the solution, which is a significant saving of effort and cost.

Step 6:

Data Migration – the last step shows the activities project team executes to load data into the new
system. The data load tool simulates the load into the system, user can check the results, make
adjustments if needed, and then complete the load activities. This process is tested in Q-system and then
repeated in the production environment prior to the production cutover.

REQUIREMENT FOR IMPLEMENTATION

Establish the objective

Establish the clear objectives for embarking upon an SAP ERP Project. It could be for

1. standardization of processes

2. getting faster MIS

3. reducing inventory

4. insights into cost, etc.

No matter what the objective is, it needs to be established from the executive management level in order
to have the right expectations for the project. It is important to be realistic and cognizant.

Define a clear MIS

Information needs of the organization have to drive the ERP project. The Management Information
Reports and their periodicity expected out of the ERP must be defined clearly.

Build a Road Map

SAP ERP Implementation projects are not a one time spend. Proceeding forward with such an ideology
will form the basis for disappointments at a later stage. Build and formulate at least a 5-year
SAP roadmap for the various parts of the organization which will get automated and integrated in a
phased manner.
Dedicated ERP Manager

Even before evaluating a product or partner, it is important for the organization to have a dedicated SAP
ERP Manager whose only job would be to own the product and project. The ERP manager will report to
the CIO. This will ensure that the right focus is given to the project. It is even more desirable if the ERP
Manager is homegrown instead of being a lateral hire.

Dedicated Multi-Department ERP Core Team

It is important to constitute an ERP Team with a representative from all departments. Members of this
team should have a thorough understanding of the company and be one of the best in their individual
departments. This team needs to be dedicated towards the ERP implementation project instead of
considering it as one of the jobs to do.

Budget Allocation

ERP Projects are inherently money guzzlers. The tangible ROI is felt in the long run. Having a myopic view
with an expectation of instant results is a sure way to stall the project. It is important to have a budget
allocation for Capex and Opex based on a 5-year roadmap.

AMS Strategy before ERP Project Decision

It is extremely important to have a clear plan as to how the organization intends to render the support to
the ERP User Community. Continuous support and periodic incremental improvements are the only way
to get the best out of an ERP. One time implementation wonder does not exist. It is important to have a
clear strategy as to whether life cycle support for the ERP application is going to be outsourced or
insourced.

If an organization pays attention to these points before commencing the ERP implementation project, the
odds in favor of making the project successful gets higher.

BENEFITS OF SAP 4 HANA IN BAT

SAP S/4HANA allows to:

• Reinvent business models
• Drive new revenues and profits
 • Connect with customers through any channel to deliver value
• Access the Internet of Things and Big Data
• Simplify the processes, drive them in real-time and adapt instantly
• Gain insight to any data, in real-time – supporting instant decision making
SAP S/4HANA will simplify IT landscape and reduce cost of ownership (TCO), through:
• Reducing data footprint
• Working with larger data sets in one system saving hardware costs, operational costs, and time
• Choice of deployment: cloud, on premise, or hybrid to drive quick time-to-value

CHALLENGES IN DURING IMPLEMENTATION

• Budget allocation

Due to the cost and at the same time company requirement. Big money has contribute to this system
implementation. It some how affecting company profit and revenue.

• Training and exposure

As this is new system implemented. Thus it some how affecting work efficiency due to lack of knowledge
about SAP system.

• Customization

Every industry has different operation. Thus SAP is build up custom to its business. Somehow the SAP
project team do not understand or create the system but less meet the company requirement.

RECOMMENDATION

• Frequent training

As SAP is a complex system, it is better to have frequent training exposing SAP especially new joiner to
enhance knowledge and improve work efficiency.