Kemira Oyj: Developing a future-ready and data-focused mindset with a transformation to the cloud
Explore Kemira’s journey with SAP
Kemira Oyj turned a pressing need to update aging hardware into a transformational opportunity. In one move, it embraced a foundational shift to SAP S/4HANA on Microsoft Azure, adopted next-gen reporting capabilities with the SAP Datasphere solution, integrated the SAP Analytics Cloud solution for planning, and migrated middleware to SAP Integration Suite.
| Industry | Region | Company Size | Partner |
| Chemicals | Helsinki, Finland | 5,000 employees | cbs Corporate Business Solutions |
Of company factories and processes moved to the cloud without business interruption.
Of old master data and organizational structures harmonized or removed to support new data structure in SAP S/4HANA.
CIO, Kemira Oyj
Taking a quantum leap to digitalize its business for the future
Kemira Oyj is a global leader in sustainable chemical solutions for water-intensive industries. With a focus on pulp and paper, water treatment, and energy sectors, it provides the best-suited products and services to improve its customers’ product quality, process, and resource efficiency. Under its “chemistry with a purpose” mantra, Kemira holds the key to helping its customers transition away from fossil-based raw materials.
With strong sustainability credentials and an aim to be carbon neutral by 2045, Kemira supports the Paris Agreement to the United Nations Framework Convention on Climate Change. Kemira’s investment in process automation to improve efficiency and minimize waste is the centerpiece of its own sustainable manufacturing processes. The company is also looking at its supplier footprint and moving that portfolio toward renewable energy sources.
For Kemira, running intelligent operations in the cloud serves to support its sustainability ambitions. Tightly connected processes and systems across its enterprise combined with high-quality data analytics and reporting allow it to develop solutions that help customers increase productivity, use less water and energy, and transition away from fossil-based raw materials. They also allow for the transformation of Kemira’s own product portfolio toward renewables within a highly ambitious schedule.
To reach this level of operational excellence, Kemira accomplished a digital transformation of enormous scale. And while its catalyst for change was simply a pressing need to update an aging hardware environment, it seized the opportunity for a far-reaching transformation.
CIO, Kemira Oyj
Orchestrating a large-scale technology evolution of core architecture
With a focus on future readiness, innovation, and agility, Kemira’s executive team aligned on the company taking a quantum leap into the cloud, transforming its global business operations in one move. This involved a full-scale transition to advanced ERP in the cloud, adoption of finance innovations, a data warehouse transformation, adoption of next-generation data analytics capabilities, and the migration of on-premise middleware interfaces to the cloud.
The scope included a parallel implementation of five closely aligned initiatives. At the project’s core was a technology evolution to SAP S/4HANA on Microsoft Azure. In tandem, a comprehensive redesign of financial accounting was needed to take advantage of the enhancements and innovations offered by the advanced ERP. To radically modernize data warehousing, Kemira migrated the SAP Business Warehouse (SAP BW) application to the SAP Datasphere solution. There was also a digital data excellence initiative using the SAP Analytics Cloud solution, replacing a third-party solution. And last, but by no means least, Kemira needed to migrate its layer of middleware, encompassing more than 360 on-premise interfaces, from SAP Process Orchestration software to SAP Integration Suite. This step allowed the company to move away from old-school integration scenarios and embrace modern API-based integrations using services on SAP Business Technology Platform (SAP BTP) (see the diagram).
Mikko Mäkeläinen, director of business applications at Kemira, reflects, “The scope of our middleware integration requirements was really demanding. We needed to migrate more than 360 on-premise application interfaces, which were connecting our legacy SAP ERP application with the rest of the enterprise, from SAP Process Orchestration to SAP Integration Suite. And this workstream had to be aligned with the other milestones in the SAP S/4HANA transformation project.”
With Kemira’s internal team leading the transformation in collaboration with strategic partner cbs Corporate Business Solutions, a selective data transfer approach was taken to move from the on-premise environment to the new cloud architecture. This allowed Kemira to safeguard the company’s existing best-practices processes for the future. Supported by cbs, Kemira went live with the five initiatives of its cloud transformation in one big bang, with implementation taking just 15 months. What’s more, all of the company’s factories and operational processes were successfully moved to the cloud without business interruption.
Director of Business Applications, Kemira Oyj
Operating as a data-driven and data-focused business
Kemira’s foundational shift from SAP ERP to SAP S/4HANA on Microsoft Azure and adoption of SAP Datasphere set the stage for a dynamic and adaptive digital operating environment augmented by next-level data and reporting capabilities. To make this happen, approximately half of its old master data and organizational structures were harmonized or removed.
Integration with SAP Analytics Cloud for planning extends its foray into detailed analytics, financial planning, and forward-thinking business strategies. It enables monthly semiautomated and connected bottom-up financial planning, including enhanced simulation capabilities and driver-based forecasts as the foundation for planning, resulting in one set of numbers across the organization. And new capabilities in finance, such as margin analysis in SAP S/4HANA, enable the granular examination of earnings and market segments with a high level of accuracy and the ability to make the final forecast available to all stakeholders.
With continuous access to real-time data, Kemira’s team can use analytics on multiple fronts to deliver new insights that shape customer experiences and responses to market change. This includes opportunities to use data-driven business models in the cloud to cocreate initiatives with partners that focus on innovation and sustainability.
In addition, transitioning more than 360 interfaces from on-premise middleware to SAP BTP means the company can take advantage of modern integration scenarios using SAP Integration Suite.
Kemira’s technology transformation has moved the company to the next level as a data-driven and data-focused organization, with financial forecasts that are available to diverse stakeholders across the company. “We see our technology and data transformation in the cloud as a strategic asset,” says Mäkeläinen. “We have integration layers to all our data sources, corporate-level planning, profit and loss, and other finance planning processes all running on real-time data. The day after going live with the planning solution, we were using it for budgeting and taking advantage of real-time analytics and reporting. It’s a game changer when compared to manual reporting and having to pull data from spreadsheets.”
Kemira has also integrated SAP SuccessFactors solutions with SAP Datasphere and SAP Analytics Cloud to enable HR reporting and strategic workforce planning. Having workforce data available in real time supports its continuous performance culture.
And with the harmonization of environmental, health, and safety data, Kemira has achieved a strategic step toward sustainability and future sustainability reporting.
Lastly, at the mergers and acquisitions level, the flexibility of its modern ERP system has already enabled Kemira to divest a business in a short period of time by quickly creating carve-out copies and new systems for testing and migration purposes.
CIO, Kemira Oyj
Leading the way in sustainable chemical solutions
Whether it’s in the area of improving sustainability, innovating with AI, or analyzing its finance position for even better pricing, Kemira’s new technology foundation allows the company to be innovative, agile, and future ready.
Kemira is already expanding its use of SAP Datasphere and SAP Analytics Cloud to other process areas, enabling business users to expand data models, design their own dashboards, and create individual queries. This is helping it capture more value from the data to steer its business. The company takes a lot of pride in being one of the first billion-dollar companies to run its entire finance reporting on SAP Datasphere.
An interesting side effect of Kemira’s core architecture transformation and adoption of next-gen data analytics and reporting capabilities is the impact it’s having on attracting and retaining top talent. Podbereznyj explains, “Our modernization on SAP S/4HANA and our adoption of SAP Datasphere are proving to be a significant drawcard. There’s been a surge in interest from top candidates who would love the opportunity to work with us and use these tools at scale. Likewise for our people internally, this is a unique opportunity to work with these tools to be at the forefront of pioneering sustainable chemical solutions.”
Want to know more about Kemira?
Taking a Quantum Leap into the Digital Future to Explore Sustainable Chemical Solutions (SAP Innovation Award submission)
Kemira: Running Intelligent Operations by Connecting Systems and Automating Processes (SAP Online Customer Story)
Featured partner
As a trusted partner, cbs Corporate Business Solutions was instrumental in the success of Kemira’s digital transformation. The company combines integrated business process solutions, innovative technologies, and consulting for strategy, architecture, and process design with unique transformation services. The team at cbs orchestrated the meticulous transition from Kemira’s legacy SAP landscape to the cloud, helping retain essential components while making the most of new capabilities.