SAP Customer Success Story | Consumer Products | Compañía Tecno Industrial (CTI

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© 2014 SAP AG or an SAP affiliate company. All rights reserved.

CTI : Finding a Logical Conversion Path with the System Landscape Optimization Group from SAP® Consulting

SAP Customer Success Story | Consumer Products | Compañía Tecno Industrial (CTI)

Executive overview Company Vision Why SAP Implementation Solution Benefits Future plans

Company Compañía Tecno Industrial (CTI) S.A. Industry Consumer products Products and Services Appliances for household and professional use Web Site www.cti.cl SAP® Solutions Services of the System Landscape Optimization group from SAP® Consulting

How can a company change and adapt its organizational structure in a fast and easy way when it is affected by new tax regulations? Compañía Tecno Industrial (CTI) S.A., a company of the Electrolux Group, chose the System Landscape Optimization group from SAP® Consulting to help it meet its targets in a timely manner. After an initial evaluation phase in which the technologies were chosen, a plan was developed to create three new company codes in order to meet all expectations.
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SAP Customer Success Story | Consumer Products | Compañía Tecno Industrial (CTI)

Executive overview Company Vision Why SAP Implementation Solution Benefits Future plans

CTI – a leader in Chile
It all started back in 1905 in the city of Valparaíso, Chile, with the creation of a company called Fábrica Nacional de Envases y Enlozados S.A., also known as FENSA S.A. The company moved to Santiago, Chile, in 1940 and, in 1975, merged with the company MADEMSA, becoming CTI S.A. CTI produces and sells appliances for domestic and industrial usage and owns the trademarks for FENSA, MADEMSA, FERRILOZA, SOMELA, and GAFA, which are registered in Brazil, Argentina, Ecuador, Colombia, Bolivia, and Peru. The group now consists of the companies CTI, Somela, CST in Chile, and Frimetal in Argentina. In 2011, after a long association with CTI and Somela, the Swedish company AB Electrolux – based in Stockholm and a worldwide leader in domestic appliances with a presence in 150 countries – bought 64% of CTI’s shares through the holding company Sigdo Koppers S.A., establishing a new company.

Countries in which Electrolux, the main CTI shareholder, exists

150

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SAP Customer Success Story | Consumer Products | Compañía Tecno Industrial (CTI)

Executive overview Company Vision Why SAP Implementation Solution Benefits Future plans

New tax regulations force a company reorganization
Due to a legal change in Chile’s tax regulation laws, CTI had to change its business structure to be legally compliant with the new regulations and, at the same time, take advantage of important tax deductions. This time-critical change required a split in Sigdo Koppers and in the SAP software to create new legal entities for the business. In the first meeting between CTI and the System Landscape Optimization group, company representatives presented their ideas and stressed the importance of working with technologies, metho­ dologies, and experts that would minimize the risks and timeline. The idea was to create new company codes using already-existing ones as templates.

CTI is the leading provider of domestic appliances in Chile and Argentina.

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SAP Customer Success Story | Consumer Products | Compañía Tecno Industrial (CTI)

Executive overview Company Vision Why SAP Implementation Solution Benefits Future plans

Keys reasons for choosing SAP – trust and expertise
Antonio Parra, IT manager at CTI, describes the reasons why the company selected the System Landscape Optimization group to execute the project: “As we faced this organizational change, we had offers from local and regional consulting companies as well as from SAP . We already had some experience with the group’s technologies, and we knew that they would match the needs of our project exactly. “There were two key reasons in choosing the System Landscape Optimization group. The first was the trust that SAP inspired in us as opposed to the local and regional consulting companies. The second was the fact that they could execute a critical project in a short time frame with fewer risks and that they could guarantee us that it would be possible to delete anything that was necessary and to create or modify the entities that the merge required.”

“The decision was based on trust, quality, and time rather wthan on the price of SAP’s offer.”
Antonio Parra, IT manager, CTI S.A.

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SAP Customer Success Story | Consumer Products | Compañía Tecno Industrial (CTI)

Executive overview Company Vision Why SAP Implementation Solution Benefits Future plans

Company code clone – a perfect fit in a tight time frame
The goal was to delete 71 companies, 289 plants, 1,500,000 materials, 85,000 customers, and 67,000 suppliers in order to clone 3 new entities and create 45,000 new materials, 6 new logistic centers, and more. And, most important, the time frame could not be more than three months. After an evaluation phase, the System Landscape Optimization group proposed a company code clone as the best solution to fulfill the customer’s needs and, at the same time, to finish on time. The specific advantage of this solution is that it offers the possibility of copying entire organizational units or just parts of them, including lower structures, such as customizing and master data. This procedure does not affect the data from the source company, which remains in the system and is still accessible after finishing the project. In this particular project, the source company was cloned to build new entities, including all organizational structures and all of the customizing and master data, which were copied and extended to the new companies. Apart from customer, supplier, and other financial data, master data from the software’s production planning, materials management, and quality management modules was also cloned. In this way, users had all the data they needed to work with in the new environment.

Project time frame

3 months

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SAP Customer Success Story | Consumer Products | Compañía Tecno Industrial (CTI)

Executive overview Company Vision Why SAP Implementation Solution Benefits Future plans

Completing the project in three months and going live in one hour
In July 2012 the System Landscape Optimization group started the realization phase, which com­ prised three test cycles. Each cycle was divided into parallel projects in order to speed up the global project execution. This measure required special treatment in order to handle the adaptations in the test system and to help ensure that the transformation rules could be applied without affecting the consistency of the master data. The project affected more that 8 million pieces of data in an SAP ERP application system of 850 giga­ bytes. It was finalized successfully after three months and went live during a weekend in September 2012. The system downtime for going live with the company code clone required just one hour. Jaime Gutierrez, IT project manager and optimization leader at CTI, explains how the three go-lives occurred: “The first consisted of deleting data that originally came from the Sigdo Koppers holding company and that was not relevant for the new companies. This step was strategically decisive, since it allowed us to speed up the transformation afterwards by working only with the valid data. Later, three new companies were cloned from the source company. And, finally, the company merge enabled the main company to go live.”

Downtime when going live with the company code clone

1 hour

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SAP Customer Success Story | Consumer Products | Compañía Tecno Industrial (CTI)

Executive overview Company Vision Why SAP Implementation Solution Benefits Future plans

Major improvement in system knowledge
The benefits of the company code clone solution were: •• No need for resource allocation to manually recreate or copy already-existing objects •• High scalability and flexibility during the cloning of organizational and master data •• Minimized total cost of ownership through efficient data transformation and optimization •• A fast, flexible, and reusable solution to replace manual duplication of organizational data “During the first go-live we realized that the deletion phase could have run faster if some SAP services had been applied as optimization services to reduce the table size,” comments Gutierrez about additional benefits of the global project. “This is a lesson learned for future projects.”

“The SAP software system response times could be reduced by half thanks to the data cleansing previous to going live. End users and process leaders improved their system knowledge, and the experience gained during the project served as advance training.”
Jaime Gutierrez, IT Project Manager and Optimization Leader, CTI S.A.

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Compañía Tecno Industrial (CTI)

Executive overview Company Vision Why SAP Implementation Solution Benefits Future plans

Increased confidence for future mergers
The company code clone service streamlines duplication of organi­ zational units and master data within SAP software. It enables full cloning of all selected units within a single transformation run, making this solution faster – and more flexible and scalable – than others. And it lets you copy all or only selected parts of your organization. “To do such a project in three months with a small number of experts and an execution in the production system within only one hour was an astonishing success and allowed us to comply with expected costs and the established time frame,” summarize Parra and Gutierrez. “We saw the professionalism and competence of the System and Landscape Optimization group and discovered its transformation technologies. We are confident that, with these technologies and this team, we can start thinking about new mergers or integrations with other SAP solutions we already use.”

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