SAP Powers Growth at ABB

Feature Article | March 15, 2007 by admin

ABB will leverage the latest release of SAP’s market-leading ERP application as the company’s main business process platform, tapping the SAP GRC Access Control application from the set of SAP solutions for governance, risk and compliance (GRC) to help meet U.S. Sarbanes Oxley Act (SOX) requirements and additional regulations in other markets in which the group operates. Built on the SAP NetWeaver platform, SAP ERP will help ABB gain the flexibility to run administrative processes from shared service centers and further optimize services and business agility through integration with third-party applications used by customers and suppliers. The announcement was made at the CeBIT trade fair, being held in Hanover, Germany, March 15 – 21.
Rather than taking a “rip and replace” approach to IT and business process infrastructure, ABB is identifying and integrating local best practices and third-party applications used in global operations. The flexible architecture underlying SAP ERP together with the SAP GRC Access Control application will help the company align these local processes with global accounting standards and policies for GRC management. This will help ABB cut administrative costs, accelerate workflows and support faster acquisitions and divestments.
“As a global leader in power and automation technology, we need a solution that empowers users to maintain their local best practices while helping ensure alignment with our common, global aims,” said Haider Rashid, chief information officer of ABB. “SAP helps us to further improve ABB’s operational excellence. This solution will support our push to increase efficiency and further broaden our global sourcing, production and sales activities. We will achieve efficiency gains and further strong operational improvements in simplifying our business processes. With SAP, we are on a clear path to becoming one, simplified organization, and we are doing so with the goal of achieving a significant return on the investment.”
ABB will focus its SAP implementation on human resources (HR), finance and administration (F&A), Information Systems (IS) and corporate governance processes to better target efficiencies including shorter monthly closing cycles and a significant reduction in administrative costs. In upgrading to the latest release of SAP’s market-leading ERP application, ABB ultimately plans to extend its current SAP user base of 22,000 to at least 88,000 employees.
“Today’s market pressures of globalization and regulatory compliance compel companies to take new approaches and align their operations to simplify their business and IT infrastructures,” said Léo Apotheker, executive board member and president of Customer Solutions and Operations at SAP. “The rollout at ABB underlines how SAP’s integrated suite applications and compliance controls help companies evolve business processes for greater efficiency, flexibility and agility. SAP continues to deliver the comprehensive solution sets that meet the distinct industry and business process needs of CEOs, CIOs and information workers and empower companies to achieve business model innovation.” The first phase of the rollout is under way for operations in more than 30 countries, including China, Finland, Germany, India, Italy, Sweden, Switzerland, the United States and the entire South Asia Pacific region, including Australia.

Source: SAP AG

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