When Andreas Vehreschild took up his new position as Chief Digital Officer (CDO) at Kaiser Group in September 2022, he was given the challenging task of digitizing the over-100-year-old traditional provider of electrical installation products and systems. The Kaiser Group is a third-generation, family-run company and sees itself as both a pioneer and an innovation leader. Based in Schalkesmühle, Germany, the company has subsidiaries in Germany, Belgium, the Netherlands, and Switzerland.
The new CDO had two specific goals: first, to standardize processes across all subsidiaries and create a template for any newly acquired business to follow, and second, to upgrade Kaiser’s outdated legacy system to SAP S/4HANA.
He embraced the challenge, recognizing that comprehending the business processes was an essential first step for long-term success. He also was aware that this challenging task could only be accomplished with a strong partner, engaged contributors, and a powerful IT tool. This is where digital consultancy and SAP partner Valantic and the business process transformation portfolio SAP Signavio came into play.
Long-Term Success with End-to-End Processes
Significant change management was required as colleagues needed to transition from instinctive decision-making to a data-driven approach. “This was not merely an IT project, but also a business one,” Vehreschild said. “It was imperative to engage the various stakeholders right from the outset and eliminate any obstacles to change.” He said it was important to look at the end-to-end processes and not just focus on one department or process, because “every process impacts other departments and their processes as well.” The backing of management was also crucial for the long-term success of the project, he emphasized.
To bring all stakeholders and their needs under one roof and gain a common understanding of the transformation project, Vehreschild hosted a series of workshops. “Some of the long-serving employees from different subsidiaries had never met before, and now they discussed their process challenges. Intercultural interaction was very important,” he said.
The transformation team, supported by Valantic experts and their wealth of knowledge and experience, opted for a decentralized approach. They started with the company’s Swiss subsidiary, subsequently expanding to other locations. They had three main topics on their agenda: SAP best practices, performance of the processes, and immediate impact through quick fixes.
Transparency Across All Systems and Processes
Frank Franzlik, head of Process and Project Engineering, Valantic ERP Consulting, described how the business process transformation project started: “Out of the full SAP Signavio portfolio, we first used SAP Signavio Process Manager. The solution helps to document, model, and simulate business processes. The scope for this involved the four core processes of Kaiser: order to cash, purchase to pay, demand to supply, and record to report. Second, we implemented SAP Signavio Process Insights, which identifies, analyzes, prioritizes, and monitors a customer’s most critical business processes and alerts them when an issue arises.”
Vehreschild expressed great satisfaction with the results of these preliminary measures: “For the first time, we achieved transparency across all our systems and processes, each associated with specific numerical values.” It only took the project team about one week to implement the whole system.
In the workshops, the team introduced the concept of best practices and process management with SAP Signavio solutions to their colleagues in all locations and showed them the performance of their current processes with concrete examples like throughput time or cash discount. “They were able to link the process and performance then, understanding which lever to adjust to enhance efficiency,” Vehreschild said.
Immediate Impact Leads to Acceptance
The business partners saw immediate impact. “We were able to offer quick solutions to problems in the processes that had developed over a long period of time,” Vehreschild said. “Overall, everyone involved was very satisfied with the new approach.”
“Now, the advantage is that anytime there’s a process discussion within our production or sales department, everyone says ‘Let’s solve it with SAP Signavio!’” he said, noting that his colleagues now understand the portfolio’s functionality, know its potential, and realize they can use it as a flashlight to identify strengths and weaknesses.
Talking about lessons learned, the CDO said: “Never underestimate the power of a community! It encompasses uniting varied departments and cultures, promoting dialogue, and providing opportunities for interaction.” He also said that working with a strong partner like Valantic was crucial for the success of the project.
Franzlik of Valantic gave an outlook on the further joint path of the partners: “Thanks to the insights gathered from 12 distinct workshops, we are now positioned to establish a road map for successful SAP S/4HANA implementation,” he said. “We aim for a decisive road map, our so-called ‘GPS,’ to assist Kaiser on its digitization journey.”
