BMW Group: Accelerating an ERP transformation and a move to the cloud with migration factory approach

See how BMW Group is embarking on an ambitious IT transformation project to future-proof its ERP systems and move them to the cloud with RISE with SAP S/4HANA Cloud Private Edition. Download the Document

BMW Group: Accelerating an ERPtransformation and a move to thecloud with a migration factory approachBMW Group aims to make individual mobility more human, intelligent, and responsible soit can move “body, heart, and mind.” As the world’s leading manufacturer of premium carsand motorcycles, the company is passionate about crafting inspiring, uplifting, andpleasurable experiences with the power to transform.Meanwhile, BMW Group is undergoing an IT transformation of its own. Using RISE withSAP S/4HANA Cloud Private Edition, it’s embarking on an ambitious project to future-proof its ERP systems, move them to the cloud, and create a platform for innovation.With expert support from SAP, BMW Group is on target to complete this transformationsuccessfully and on time.1
2Rapidly building a future-proof technology platform usingRISE with SAP S/4HANA Cloud Private Edition“Some people questioned our ambitions when, shortlyafter signing our contract for RISE with SAP, we proposedcombining a complex system split and a cloudmigration. But SAP rose to the challenge and helpedmake it happen in fewer than 12 months.”SAP Transformation Lead, BMW GroupBMW GroupMunich, Germanywww.bmwgroup.comIndustryAutomotiveEmployees154,950Revenue€155.5 billionProducts and servicesPassenger cars andmotorcyclesFeatured solutions and servicesRISE with SAP S/4HANA CloudPrivate Edition, SAP S/4HANACloud Private Edition, andSAP MaxAttention30%Of systems in scope migratedto RISE with SAP S/4HANACloud Private Edition in12 months20%Of systems in scopeconverted to SAP S/4HANACloud Private Edition in12 monthsBefore: Challenges and opportunities Speedily move 36 on-premise systems to next-generation cloud ERP without impacting day-to-dayoperations Reduce risk while satisfying the highest security, performance, and availability requirementsWhy SAP RISE with SAP S/4HANA Cloud Private Edition solution, enabling a future SAP software platformthat combines the goals of IT transformation and cloud strategy SAP S/4HANA Cloud Private Edition, offering a robust solution for standardization and innovation A migration factory approach from the SAP Solution Delivery Center group, supported bySAP MaxAttention services, helping migrate ERP systems to the cloud and convert them to SAP S/4HANA Factory approach involving build, migration, and conversion subfactoriesAfter: Value-driven results Accelerated transformation to SAP S/4HANA Cloud Private Edition, with potential to implement newstandard components and innovate rapidly immediately after conversion Increased system performance and higher system availability Enabled smooth operations using the platform-as-a-service model managed by SAP93523enUS (24/10) © 2024 SAP SE or an SAP affiliate company. sap.com/terms-of-useExecutive overview Objectives Solution Results
3Embracing cloud ERP for greater flexibility and standardizationBMW Group relies on a production network comprisingmore than 30 manufacturing facilities across the globe.A sales network with representatives in more than 140countries sells around 2.55 million cars and 209,000motorcycles each year.To support these operations, the company wanted toquickly transform its IT landscape built on the on-premiseSAP ERP Central Component (SAP ECC) by combiningmigration to the cloud with conversion to a future-proofERP solution. This would help it harness innovativetechnologies such as AI.This transformation spanned areas such as finance,logistics, human capital management, transportationmanagement, and global trading systems.All systems are highly tailored, and migration and conversionplans needed to consider the distinct needs of individualbusiness projects.Optimizing downtimes and minimizing risk while safeguardingday-to-day business operations were key objectives. Thecompany also needed to maintain the most stringent securitystandards while moving on-premise ERP systems to thecloud. And the resulting IT landscape had to offer highlevels of performance and availability.But the project also needed to be fast – with the companysetting out to complete the entire transformation in fewerthan four years.Executive overview Objectives Solution Results
4Enabling an efficient, successful migration and conversion with diverse serviceofferingsBMW Group has a long-standing partnership with SAP, whichprovides a range of software that meets the global company’sdiverse IT needs. SAP also offers expert services that theautomotive leader knew would help ensure speedy andsuccessful project execution.A transformation of this scale demands smart, rigorousproject management. To enable this, BMW Group used arange of services from its trusted software partner. SAPenabled a “factory” approach comprising build, migration,and conversion subfactories.Experts for SAP Services and Support provided projectmanagement services that offered a robust structure for theinitiative. Together with the SAP Enterprise Cloud Servicesgroup, the team led and coordinated SAP softwaretransformation activities, provided infrastructure, andhelped manage risk. The services also helped keep dailybusiness operations running smoothly and increasedsystem security, performance, and availability.The technical and most of the functional work for the cloudmigration and conversion to SAP S/4HANA Cloud wasdelivered using migration services from the SAP SolutionDelivery Center group, which provides an integratedsolution delivery model. This flexible mix of onshore,offshore, and nearshore services delivered remotely fromglobal locations helps maximize flexibility and scalability.SAP’s experts also helped minimize downtime andmaximize availability by enabling a smooth handover fromthe factory stage to the operation stage.SAP MaxAttention services completed the offering,providing specialized assistance to safeguard go-live andcutover. These services also included expertise ondemand, specialized services for integration analysis andconcepts, test management, test automation, and datavolume management.Executive overview Objectives Solution Results
5Moving fast by prioritizing technical migration to SAP S/4HANA and thecloud to tap into the new ERP system’s innovation potential earlierAided by RISE with SAP S/4HANA Cloud Private Editionand robust services from SAP, BMW Group is on track tocomplete its transformation on time. In only 18 months, itsuccessfully migrated around one-half of the target systemsto RISE with SAP S/4HANA Cloud Private Edition andconverted one-third of the target systems to SAP S/4HANACloud Private Edition.Across these systems, BMW Group now benefits froma more secure, future-ready IT infrastructure offering highavailability and performance.With a total of 36 landscapes now in its sights, BMW Groupcontinues to migrate and convert its ERP systems. Thecompany plans to complete its transformation by 2027.Combining cloud migration using RISE with SAP withconversion to SAP S/4HANA Cloud Private Edition hasaccelerated the SAP software transformation at BMW.Prioritizing the technical migration to SAP S/4HANA and tothe cloud has enabled BMW to move fast and ready itselfto tap into the innovative features of the new softwarethrough a structured innovation journey.BMW now intends to embrace the possibilities offered bynext-generation ERP and foster a clean core approach thatsupports continuous innovation, better business processes,and agility in the cloud.Executive overview Objectives Solution Results