Health Tech Major’s ERP Systems gets a Digital Makeover

Automation of order to cash improved productivity by 30%, enabled high-speed deployment for patients and care providers.

Client background

Client: Global health tech major
Geographies: Presence in over 100 countries
Services: Over 400 products including patient monitors, data management systems, resuscitation products as well as healthcare services. Makes medical imaging equipment such as CT scanners, X-ray, ultrasound and magnetic resonance machines
Revenue: About 10 billion euros in annual revenue

Challenge

The global health tech major was dealing with a very complex ERP landscape with 49 of the global ERPs serving specific markets and most of them being heavily customized for various business units slowed down the system.

Minor changes to the system required extensive testing, leading to high operating costs. The existing ERP landscape not only made reporting error prone,it also made system changes extremely difficult, resulting in high compliance and operating costs. Hence, the global health tech major felt an urgent need to simplify, standardize and transform its IT landscape.

Solution

The transformation required ERP consolidation, simplification of business processes and implementation of the SAP Digital Core, including SAP S/4HANA Simple Finance and SAP S/4 Central Finance. The program also focused on automation of repeat tasks. It included changes to personal health applications and industrial applications across all key units.

With a diverse audience, across 100 countries, localization was key to implementation. The program entailed both greenfield and brownfield implementation. As part of the brownfield implementation, there was simplification and standardization of existing applications, while the greenfield implementation included a global rollout of the new ERP system.

SAP S/4HANA Finance implementation eliminated the need to gather and prepare data for analysis
Standardized business processes in Personal Health and Health Systems reduced process complexities
Adopted agile delivery factory approach for mass deployments, with the focus being on country-specific functions pertaining to legal, fiscal and reporting requirements
Implementation in a phased manner, starting with consolidation of 49 production ERP systems to six within a span of 18 months and a plan to further consolidate to 2 production ERPs by 2020
Employed high-speed deployment approach with the creation of deployment-run book, covering methodology, governance and RACI matrix, test, training and communication strategy; release management strategy with tools and accelerators for each component
Implementation of SAP Fiori to ensure a consistent experience with instant access to workflows and information, to prioritize tasks

Business impact

Automation of repeat tasks for order-to-cash (O2C) process improved productivity by 30%
A standardized ERP landscape across business units led to 50% reduction in IT costs. The new, simplified system enabled quicker implementation of changes to the system, thereby reducing both effort and time
A consistent user experience for both patients and care providers resulted in up to 30% improvement in overall business performance and productivity as end users had access to accurate
Improvement in Payment on Time KPI: Number of invoices processed in a day increased from 40-50 per FTE per day to 300-400 per FTE per day. The quick processing of invoices enabled quick payments to vendors

“Wipro partnered with the health tech major to re-architect a very complex business application landscape. The enterprise-wide transformation paved the way for their digital transformation, modernizing their backbone and enabled them to forge new paths in care delivery.”

Srinivas Sai Nidadhavolu - Vice President & Global Practice, Head - SAP at Wipro

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