To maximize technological advancements and address an increasing need for efficient business operations, Sumitomo Seika Chemicals Co., Ltd. has recently taken a significant leap. Partnering with IBM Japan Co., Ltd. and SAP Japan Co., Ltd., Sumitomo Seika embarked on a transformative journey, migrating its core business system to the cloud offering RISE with SAP. This strategic move is not just a shift to a new platform; it’s a foundational change aimed at revitalizing and strengthening Sumitomo Seika’s business structure.
SAP’s cloud offering, particularly the SAP S/4HANA Cloud, sits at the heart of this transformation. This initiative is not merely a technical upgrade; it’s a strategic realignment with Sumitomo Seika’s visionary purpose statement: “Using our chemistry to address the challenges facing the earth and human lives.” This encompasses a commitment to sustainability and innovation, aiming to bolster the company’s corporate value sustainably.
Migrating to SAP S/4HANA Cloud: A Strategic Imperative
The decision to migrate to SAP S/4HANA Cloud was influenced by multiple factors. (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.) Firstly, the impending maintenance deadline in 2025 for the existing SAP ERP system necessitated a proactive approach. Sumitomo Seika’s choice of SAP S/4HANA Cloud, particularly the private edition, demonstrates a strategic intent to optimize business processes across finance, accounting, production, logistics, and sales.
Secondly, Sumitomo Seika sought to modernize its system infrastructure to be agile and responsive to changing business needs. This meant not only upgrading the core system but also incorporating peripheral systems like extended warehouse management (EWM) and transportation management (TM), ensuring a comprehensive and integrated approach to business operations.
The Role of IBM Japan in the Transformation Journey
IBM Japan played a pivotal role in this transformation. By leveraging their IBM Rapid Move approach, they facilitated a rapid, repeatable, and scalable migration to SAP S/4HANA. This approach maximized the use of existing SAP system assets while paving the way for new business innovations and system integrations.
A key aspect of IBM Japan’s contribution was its expertise in change management. Recognizing the magnitude of this migration, they ensured the penetration of this new mindset right from the project’s inception. This involved a careful balance of maintaining existing processes, integrating new SAP S/4HANA functionalities, and managing the overall change in the organization.
Boosting Efficiency with SAP Cloud Offering
One of the most striking outcomes of this migration has been the significant improvement in efficiency and standardization of business processes. By automating and visualizing management information, Sumitomo Seika has not only streamlined its operations but also laid a foundation for continuous improvement and responsiveness to market changes.
In addition, the integration of Tagetik as a business management platform has been crucial. This tool has enabled Sumitomo Seika to automate the collection and processing of various management-related reports, further enhancing efficiency and standardization from an overall optimization perspective.
The journey doesn’t end with the successful migration to SAP S/4HANA Cloud. Sumitomo Seika, along with IBM Japan, continues to focus on strengthening data linkages and renewing peripheral core systems. This ongoing process of change management is integral to building a robust overall management base for Sumitomo Seika, propelling them towards further growth and innovation.
The collaboration between Sumitomo Seika, IBM Japan, and SAP Japan epitomizes a forward-thinking approach to business process modernization. It’s a testament to how strategic partnerships, powered by cutting-edge technology like SAP’s cloud offering, can drive transformation and set the stage for future success in a rapidly evolving business landscape.
