Inculcating efficiency the SAP way

As market leaders in enterprise application software, SAP helps companies of all sizes and industries run better. Founded in 1972, SAP which stands for “Systems, Applications, and Products in Data Processing” has a rich history of innovation and growth as a true industry leader. SAP currently has sales and development locations in more than 50 countries worldwide. SAP applications and services enable more than 172,000 customers worldwide to operate profitably, adapt continuously and grow sustainably.
From back office to boardroom, warehouse to storefront, desktop to mobile device, SAP empowers people and organisations to work together more efficiently and use business insight more effectively to stay ahead of competition.
Need for transformation: In an exclusive interview to profit, SAP Director, Utilities Industry Asia Pacific Japan, Phillip Vaughan talked about the need of transformation in different sectors of the developing economies to bring them at par with the increasingly globalised world. A candid Mr Vaughan walked into the conference room with his team, and we sat down to have a detailed discussion over the usefulness of SAP in transforming businesses across Pakistan today.
With a wry smile on my face, I asked Phillip, why Pakistan? Given the extent of the crisis, in the power sector of Pakistan, with Government struggling to finance the ever inflating circular debt, I could not help but wonder why his company had chosen Pakistan as a destination for implementing its software.
Phillip smiled back and replied, “Because we love the challenge.” He continued, “Where I come from, in Australia the utilities sector is very stable, the companies have streamlined their processes and working with them is routine process. However in Pakistan, working with different utilities sector companies will be a unique experience, since it will give us the opportunity to work in the face of adversity.”
The outlook for employing SAP Enterprise Resource Planning (ERP) in indigenous companies of Pakistan is good, there is always a place for a local service provider where training can be imparted to the workforce of different organisations. There are different kinds of trainings that can be employed, you need to find uses of the software and then follow up training to implement the software needs to be imparted to the workforce of different enterprises. Training must not be limited to the internal staff of the organisation but is an imperative for the partner staff as well, Phillip explained.
Accepting sovereign risk: The perpetuation of the IT sector follows economic growth. Unfortunately when compared to the developed economies, the IT infrastructure is still in the development phase of the emerging economies. When companies decide to invest in volatile regions, they accept sovereign risk as part of the package and therefore corporations evolve hedge strategies to dampen the impact of risk he explained as I confronted him over the possibility of exposure on foreign companies that base their businesses in Pakistan. While explaining the need of reformation in organisational hierarchies, systems and structures, Phillip said that SAP is not merely about using the software. SAP is an implementation provider. The SAP economy he continued is much larger than the company itself.
According to an IDC report, SAP is the leading enterprise applications vendor across wide customer and product categories. It has therefore created a booming economy unto itself whereby an ever growing number of developers are jockeying for the attention of the market leader, with its installed base of more than 41,000 customers.
In simpler terms after indulging in some research of my own I have come to the conclusion that SAP is a goliath of enormous proportion, SAP has redefined innovation, it is the King in the enterprise application industry, SAP is the modern day messiah of enterprise resource development. And this in itself is not an overstatement.
Anticipating the business environment: Continuing my discussion with Phillip over the business potential in Pakistan, he expounded upon the factors corporations need to consider when investing in a particular market. You need to anticipate the business environment, you need to take into account the business prospects and understand core issues of when to take the leap, when to start building the smart grid. There is a very good business case in Pakistan mainly because of the problems in the country. Employing SAP can enhance productive efficiency. The first aspect that Utilities organisations of Pakistan need to take into account is to control finances, improve billing procedures and revenue collection while simultaneously catering to the end consumer by continuously improving services for them. Highlighting the global economic crisis, Phillip said that in the wake of an inherent risk to the developed economies, companies stand to benefit very strongly from the Asian market.
Revamping KESC: Part of the team was Aamir Raza Shah, Director of Business North, SAP Pakistan. Explaining the implementation of SAP in the utilities sector, he said that SAP for KESC has to be implemented very soon, which will enable it to generate monthly statements and improve efficiency from weeks, to days. He said that despite the fact that KESC has undergone a rather volatile transition period, the SAP ERP solutions will ensure trusted data for customer satisfaction. 5th October is the date for the software to go live for KESC billing. Highlighting the importance of the use of SAP in Pakistan, he said that it can be used to train the trainer, and Siemens Pakistan has taken a leading role with more than 700 SAP certified trainers. These trainers with the help of the E academy can cater to national and international environment. Aamir also talked about their global partners extending to as far as Qatar, Far East, Bangladesh and other regions. SAP can make businesses run better by raising the bar, by harmonising business performers through the use of integrated technologies, by providing specific industry solutions, Phillip said as I asked him about the application of SAP in the different sectors of the Pakistani economy.
“The utilities sector of Pakistan is going through a major transformation at the moment. While the country is suffering from the worst energy crisis that it has experienced in decades, the local utilities companies are making all possible efforts to minimise costs, improve their business management and develop a more agile supply chain. At this point when utilities companies are going through a business turn around, SAP ERP solutions can help these companies re-assess their needs and goals and then focus on the key business areas to attain maximum benefit in the shortest possible time,” Phillip had noted earlier in his address to the audience at a conference organised jointly by SAP Pakistan and Siemens.
Organisational change imperative: Phillip discussed how SAP is a great tool for managing industry specific assets, and can bring about 20 to 30 per cent productivity increase for asset management. However while highlighting the significance of SAP, he pointed out that while the software is a catalyst for organisational change but at the same time the success of its operations can be enhanced by carrying out similar structural changes within hierarchies that aid in the implementation of SAP.
“SAP provides best practices for the Industry,” continued Aamir as he explained to me the extent of the penetration and usability of this software. He said that currently the Auditor General of Pakistan is using SAP to cater to the requirements of 2.5 million people across four provinces, while at the same time can be as personalised to cater to the needs of small businesses like Student Biryani. He said that previously before the introduction of SAP AGP closed its ledgers by the 25th of every month that has been now improved to 7th and the 8th. It is pertinent to note that SAP has in excess of 2000 utility customers across the globe that comprises of more than half of the total Utility customers share in the world. SAP continues to be the most successful vendor in its category of business solutions with no direct competitor, specialising in Asset Management, billing and CRM. SAP makes it to the top ten worlds largest software companies according to Forbes Global 200 list.
Liberalisation a solution? Currently SAP is catering to the Oil and Gas sector, the Manufacturing sector, Chemicals sector, fertiliser sector with institutions like AGP, HEC, FBR, PTCL, Ufone, ENGRO, FFC, Bin Qasim, Atlas Honda, Indus Motors and others. Highlighting the need of improving efficiency in the power sector Phillip said that liberalisation is an imperative for increased efficiency. Pakistan needs to pursue a policy akin to the one implemented by Margaret Thatcher in Great Britain. As competition increases and the market forces are allowed to operate, it would greatly improve market participation. SAP, Phillip said is catering to changing market structures and along with it providing independent solutions to government and private producers that have different demands and requirements. The 2nd area they are currently working on is the execution of a Smart Grid, by bringing IT to the grid. In these present times, it is an absolute imperative to evolve practices that are in conjunction with technological innovation to inculcate best business practices in organisations and certainly SAP has set the par of excellence for a great variety of institutions.
The writer is News Editor, Profit.