Finalist: 2024 Best Run SAP Intelligent ERP
Woodside: Embracing a Clean Core, Woodside Energy strategically integrates SAP BTP in a greenfield, standardised SAP S/4HANAWoodside, in partnership with Deloitte, implemented a standardised SAP S/4HANA solution to unify legacy systems post-merger with BHP Petroleum. Download the DocumentSAP Australia and New Zealand
Best Run Awards 2024
Best Run Awards 2024
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www.woodside.comSAP S/4HANA
SAP BTP
Woodside, a leading global energy company, collaborated with Deloitte to execute a transformative implementation of a standardised SAP S/4HANA solution,
marking a pivotal moment in their journey towards operational excellence and sustainability. This initiative was propelled by the merger with BHP’s petroleum
business in June 2022, which was the catalyst for Woodside to consolidate its operating model, processes and culture.
Initiated in February 2022, Woodside’s transformational endeavour aimed to unify its legacy businesses onto a singular operating platform, leveraging a
comprehensive suite of SAP solutions including SAP S/4HANA, SAP Ariba, and SAP Business Technology Platform (BTP). The approach prioritised agility and
efficiency, opting for a greenfield implementation strategy, and embracing standardised SAP processes to swiftly deploy a unified global ERP system. Woodside
and Deloitte innovated on SAP BTP to develop industry-specific applications whilst keeping SAP core technical debt low.
This strategic utilisation of SAP has not only facilitated the realisation of merger synergies, it has also expedited the establishment of a one company culture, one
way of working and positioning Woodside at the forefront of SAP excellence in the energy sector.
Embracing a Clean Core: Woodside Energy Strategically Integrates SAP
BTP in a Greenfield, Standardised SAP S/4HANA
Woodside Energy
Intelligent ERP Enterprise
Private Edition SAP S/4HANA
SAP Signavio
SAP Enable Now
Multi-Bank Connector
Advanced Financial Close
SAC Analytics
SAC Planning
9 Custom BTP Applications
Industry WebsiteProduct and Services Featured SAP Solutions
Natural
Resources
www.woodside.comSAP S/4HANA
SAP BTP
Woodside, a leading global energy company, collaborated with Deloitte to execute a transformative implementation of a standardised SAP S/4HANA solution,
marking a pivotal moment in their journey towards operational excellence and sustainability. This initiative was propelled by the merger with BHP’s petroleum
business in June 2022, which was the catalyst for Woodside to consolidate its operating model, processes and culture.
Initiated in February 2022, Woodside’s transformational endeavour aimed to unify its legacy businesses onto a singular operating platform, leveraging a
comprehensive suite of SAP solutions including SAP S/4HANA, SAP Ariba, and SAP Business Technology Platform (BTP). The approach prioritised agility and
efficiency, opting for a greenfield implementation strategy, and embracing standardised SAP processes to swiftly deploy a unified global ERP system. Woodside
and Deloitte innovated on SAP BTP to develop industry-specific applications whilst keeping SAP core technical debt low.
This strategic utilisation of SAP has not only facilitated the realisation of merger synergies, it has also expedited the establishment of a one company culture, one
way of working and positioning Woodside at the forefront of SAP excellence in the energy sector.
Embracing a Clean Core: Woodside Energy Strategically Integrates SAP
BTP in a Greenfield, Standardised SAP S/4HANA
Woodside Energy
Intelligent ERP Enterprise
Private Edition SAP S/4HANA
SAP Signavio
SAP Enable Now
Multi-Bank Connector
Advanced Financial Close
SAC Analytics
SAC Planning
9 Custom BTP Applications
Challenges
Woodside was operating on a legacy SAP ERP platform which had been significantly customised over the years.
In 2022, Woodside Energy strategically merged with BHP Petroleum, expanding its global operations and
propelling its mission be at the forefront of the global energy transition. However, the merger with BHP Petroleum
brought with it a second, customised and soon-to be unsupported SAP ERP platform.
On completion of the merger, Woodside faced the reality of operating and supporting two complex ERP's which
burdened the organisation and its people with two ways of working, significant cost, overhead, and complexity for
aggregating and consolidating data.
One specific area of challenge was Woodside's tax and royalty processes, which were highly reliant on manual
interventions and disconnected systems, including complex SAP enhancements, large Excel worksheets and
macros. The method of handling tax obligations was not only time-consuming but also fraught with the risk of
errors and low transparency due to offline spreadsheets and the lack of systemised processes.
Additional challenges included complex offshore maintenance and logistics requirements, global process and data
harmonization and joint venture accounting.
Embracing SAP Business Technology Platform (BTP), Woodside embarked on a transformative journey to
establish a "clean core“, seamlessly integrating bespoke tax solutions, supply chain solutions and planning
solutions. This solution would service 39 sites across 11 countries and over 4,500 users.
Woodside was operating on a legacy SAP ERP platform which had been significantly customised over the years.
In 2022, Woodside Energy strategically merged with BHP Petroleum, expanding its global operations and
propelling its mission be at the forefront of the global energy transition. However, the merger with BHP Petroleum
brought with it a second, customised and soon-to be unsupported SAP ERP platform.
On completion of the merger, Woodside faced the reality of operating and supporting two complex ERP's which
burdened the organisation and its people with two ways of working, significant cost, overhead, and complexity for
aggregating and consolidating data.
One specific area of challenge was Woodside's tax and royalty processes, which were highly reliant on manual
interventions and disconnected systems, including complex SAP enhancements, large Excel worksheets and
macros. The method of handling tax obligations was not only time-consuming but also fraught with the risk of
errors and low transparency due to offline spreadsheets and the lack of systemised processes.
Additional challenges included complex offshore maintenance and logistics requirements, global process and data
harmonization and joint venture accounting.
Embracing SAP Business Technology Platform (BTP), Woodside embarked on a transformative journey to
establish a "clean core“, seamlessly integrating bespoke tax solutions, supply chain solutions and planning
solutions. This solution would service 39 sites across 11 countries and over 4,500 users.
Solution
The solution integrated an SAP S/4HANA full suite greenfield approach with essential capabilities, including
Finance, Procurement, Supply Chain, EAM and Human Resources, with key cloud applications such as SAC
Analytics and Planning, Advanced Financial Close, Multibank-Connector supported by SAP Signavio and Enable
Now. This comprehensive framework was further enhanced by nine bespoke BTP applications that catered to
specific business functions including tax, supply chain, receipts and payment processes.
Central to this approach was the strategic use of SAP BTP to maintain a ‘clean core’ S/4HANA environment,
employing the Deloitte AppHaus design framework and a robust Cloud Application Programming (CAP)
application. This facilitated seamless data virtualisation from the S/4HANA On-Prem System into the SAP
S/4HANA Cloud database, achieving flawless integration without altering the core system.
The project was driven by the imperative to swiftly harness synergies through a greenfield approach, prioritising
vanilla processes to design, build, and deployment phases. This strategy aimed to create a unified, global ERP
system that fosters a singular, global way of working. The chosen platform, a best-in-class SAP S/4HANA
solution supported by SAP's cloud applications, reflects a commitment to simplicity, innovation, and efficiency.
The solution integrated an SAP S/4HANA full suite greenfield approach with essential capabilities, including
Finance, Procurement, Supply Chain, EAM and Human Resources, with key cloud applications such as SAC
Analytics and Planning, Advanced Financial Close, Multibank-Connector supported by SAP Signavio and Enable
Now. This comprehensive framework was further enhanced by nine bespoke BTP applications that catered to
specific business functions including tax, supply chain, receipts and payment processes.
Central to this approach was the strategic use of SAP BTP to maintain a ‘clean core’ S/4HANA environment,
employing the Deloitte AppHaus design framework and a robust Cloud Application Programming (CAP)
application. This facilitated seamless data virtualisation from the S/4HANA On-Prem System into the SAP
S/4HANA Cloud database, achieving flawless integration without altering the core system.
The project was driven by the imperative to swiftly harness synergies through a greenfield approach, prioritising
vanilla processes to design, build, and deployment phases. This strategy aimed to create a unified, global ERP
system that fosters a singular, global way of working. The chosen platform, a best-in-class SAP S/4HANA
solution supported by SAP's cloud applications, reflects a commitment to simplicity, innovation, and efficiency.
Impact
A single view of all businesses and
assets with a consolidated data set
allowed for financial and operational
reporting to be completed at source.
Primary listing on the ASX and
secondary listings on the London
Stock Exchange and New York Stock
Exchanges brought a requirement for
the new system and processes to be
SOx Compliant.
Successfully merged two global
companies following major business
merger, including migrating 4,500 users
onto a single SAP system with in single
go-live.
Utilising a mega-merger (to become the largest energy company listed on the Australian ASX) as the springboard for a generational business
transformation program brings significant risk and reward. S/4HANA was the key enabler for Woodside in its strategy to operate on a single set of global
processes across the merged organisation of around 4,500 users. Operating on a single system enabled Woodside to harness synergies across its
business and operations and develop a unified culture underpinned by one way of working.
Single view of business and assets: A single view of all businesses and assets with a consolidated data set allowed for financial and operational
reporting to be completed at the source. The project involved the implementation of a new costing model across the entire organisation.
Sarbanes Oxley compliance: As part of Woodside's merger with BHP’s petroleum business, the company has secondary listing on the NYSE and as
such is required to be SOx Compliant. The Keystone S/4HANA team worked in parallel with the Deloitte SOx Team to implement a SOx compliant
system.
IT Simplification: Go-Live enabled the decommissioning of two aging and heavily customised ERP systems that represented a significant IT
simplification for Woodside. A greenfield approach with minimal customisation to the solution provides an opportunity for Woodside to achieve a lower
total cost of ownership.
A single view of all businesses and
assets with a consolidated data set
allowed for financial and operational
reporting to be completed at source.
Primary listing on the ASX and
secondary listings on the London
Stock Exchange and New York Stock
Exchanges brought a requirement for
the new system and processes to be
SOx Compliant.
Successfully merged two global
companies following major business
merger, including migrating 4,500 users
onto a single SAP system with in single
go-live.
Utilising a mega-merger (to become the largest energy company listed on the Australian ASX) as the springboard for a generational business
transformation program brings significant risk and reward. S/4HANA was the key enabler for Woodside in its strategy to operate on a single set of global
processes across the merged organisation of around 4,500 users. Operating on a single system enabled Woodside to harness synergies across its
business and operations and develop a unified culture underpinned by one way of working.
Single view of business and assets: A single view of all businesses and assets with a consolidated data set allowed for financial and operational
reporting to be completed at the source. The project involved the implementation of a new costing model across the entire organisation.
Sarbanes Oxley compliance: As part of Woodside's merger with BHP’s petroleum business, the company has secondary listing on the NYSE and as
such is required to be SOx Compliant. The Keystone S/4HANA team worked in parallel with the Deloitte SOx Team to implement a SOx compliant
system.
IT Simplification: Go-Live enabled the decommissioning of two aging and heavily customised ERP systems that represented a significant IT
simplification for Woodside. A greenfield approach with minimal customisation to the solution provides an opportunity for Woodside to achieve a lower
total cost of ownership.
“”“This was a very deliberate decision, allowing us to maximise value from the
merger and realise it quickly. With over 2,000 customisations in legacy SAP,
we needed a bold approach to bring these heavily customised systems into a
new platform and go live at the same time.”
Meg O’Neill, Woodside Chief Executive Officer
merger and realise it quickly. With over 2,000 customisations in legacy SAP,
we needed a bold approach to bring these heavily customised systems into a
new platform and go live at the same time.”
Meg O’Neill, Woodside Chief Executive Officer