a similar procedure had already beenundertaken successfully elsewherein DKSH. We wanted to adopt a moreeffective approach, spreading bestpractices throughout the organization,accelerating progress and saving timeand expense; so we began looking tostandardize on the ERP system thatbest met our needs.“Also, we were finding it very difficultto consolidate information from themultiple ERP applications. This washolding us back from analyzing thecompany’s performance as a whole:for example, gathering importantinformation needed for corporate-leveldecision-making was a highly complexand time-consuming process.”The company faced a similarchallenge with its underlying ITinfrastructure, as different locationshad a mixture of IBM, HP, SunMicrosystems and Intel servers, somerunning Microsoft Windows operatingsystems, others supporting UNIXlandscapes. The mixed landscapewas highly complex to manage andmaintain.Furthermore, the legacy hardwarelacked flexibility and scalability,presenting significant barriers togrowth.
Pegasus takes flight
DKSH initiated project ‘Pegasus’ in2005, with goals including the increaseof efficiency through centralizationand the development of a platform tofacilitate growth and enhancementof IT management. The companyselected SAP ERP, with modules forFinancials, Controlling, MaterialsManagement, Sales and Distributionand Warehouse Management.
“DKSH prides itself onits ability to penetratenew markets rapidly,with limited risk and without incurring highcosts – SAP ERP is akey enabler to achievethis core business goal.”
Matthias Legler, Vice President of IT atDKSH
The operations and business supportteams at the IT headquarters in KualaLumpur planned to develop a globaltemplate based on SAP ERP, to be rolledout to DKSH locations. These locationscould use the template to easily andquickly deploy a pre-configured,standardized ERP system, which isintegrated with the central hub in KualaLumpur. Local IT teams were then ableto tailor this to suit their needs, makingadjustments to suit the location’s marketand operations.“Our business is highly diverse, andtherefore each DKSH business unitneeds specific functionalities of the SAPapplications,” says Legler. “On the otherhand a lot of ‘me too’ processes arecommon and can be harmonized. Bycreating a global ERP template basedon SAP ERP, we are able to reap thebenefits of a standardized and quickroll-out without neglecting the specificneeds of different business areas.”
Supporting business expansion
The global template would also be usedwith every new acquisition, enablingDKSH to replicate its business modelrapidly and efficiently at new locations.Legler explains, “Our global SAPenvironment gives us a significantcompetitive edge by acceleratinggrowth into new markets withoutsacrificing the standard of ouroperations. We are able to ‘dock in’new business much faster, and sincethe template delivers the ERP solutionfully integrated with our headquartersoperations and our global data centre,we avoid the risk of ending up with thedispersed systems we had before.“DKSH prides itself on its ability topenetrate new markets rapidly, with
IBM Power 570 and Power550 servers replacing SunMicrosystems and HP hardware, IBMSystem Storage DS8700, DS4800 andDS4500, IBM System Storage 3584Tape Library.
IBM Tivoli Storage Manager,IBM Tivoli Monitoring, IBM TivoliWorkload Scheduler, IBM TivoliNetcool/OMNIbus, IBM TivoliComposite Application Manager(ITCAM). SAP ERP, SAP NetWeaverBusiness Warehouse, SAP NetWeaverBusiness Warehouse Accelerator, SAPBusinessObjects Governance, Risk,and Compliance (GRC).
SAP ERP: more than 5,000internal users. SAP NetWeaverBusiness Warehouse: 1,500 externalusers.