Digital Transformation with an ERP Cloud solution
Sven Denecken
SVP SAP Industries, SAP SE | Driving innovation across SAP′s Portfolio and co-innovating with customers & eco-system | Advisory work
Transforming to the Cloud means change management on people, companies, processes - and clients
Technological innovations lead to major transformations in industries with significant impact on business models, operations and productivity. The constant demand for connected business processes and networks is the new reality for any organization. There is a growing demand for innovation, real-time data analysis, and faster response time. Organizations using legacy ERP systems have often customized their ERP systems over time to suit their current business reality.
These customizations, however, are not only costly to implement and consume lots of resources to maintain, but they also slow down the business agility and growth potential when facing new challenges and market impacts. Moreover, organizations face challenges during upgrades due to the complexities they have built by customization. Consequently, these organizations are pushed on the path of no growth with a very slow, sometimes zero adoption of new features and innovations.
ERP Cloud solutions help you to achieve a competitive advantage by leveraging ground-breaking technologies. Moving to a cloud solution also offers you the “once in a lifetime” opportunity to redesign processes and systems.
Lets look at one of the many examples in more detail:
The Digital Transformation journey of Macmahon Holdings Limited with our ERP Cloud solution
Founded on August 5, 1963, Macmahon Holdings Limited is listed on the Australian Securities Exchange (ASX) and offers the complete package of mining services throughout Australia and Southeast Asia. Macmahon manages mines for some of the world's largest mining companies, with the capacity to tailor its mining services to meet the specific needs of each of its clients.
As the business changed along with its customer requirements, Macmahon aimed to improve business agility by increasing visibility across its operations – a task which was not possible within their legacy environment. As a result, the company established a unified business operations platform based on our ERP Cloud Solution and our own cloud-based Human Capital Management (HCM) solution to provide a single source of truth across all its markets. Nowadays, decisions are based on real-time information, enabling the contractor to respond faster to customer enquiries.
Macmahon was able to obtain considerable quantitative and qualitative benefits with the implementation of a Cloud ERP solution. It was able to achieve more efficient finance and HR processes, eliminating duplication of effort and resulting in significant time and cost savings. A simplified IT environment with the consolidation of multiple finance and HR solutions and a cloud-based approach reduced the IT maintenance time by 15%.
Through the digitalized business process, it has made considerable savings by centralizing and streamlining the process. They now spend 85% less time on period-end closing and were able to reduce working capital expenses by A$ 5 million.
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