Mercedes-AMG GmbH, a subsidiary of Daimler AG
Customer Snapshot: Overview
~ 12,000 parts go into building a Mercedes-AMG GmbH car
An engine is more than the sum of its components. To achieve optimal performance, the parts must work together in sync. That is the driving force behind not only the cars Mercedes-AMG GmbH creates but also the entire Mercedes-AMG GmbH organization. While their excellent cars speak for themselves as they win races and awards, the 3-4 year product development cycle was falling short of their expectations. The team looked to SAP to build a collaborative product planning and development solution to help drive productivity.
Mercedes-AMG GmbH, a subsidiary of Daimler AG
Line of Business
SAP Custom Development, UX design services from SAP
Number of Employees
Run Live, Run Simple
Customer Snapshot: History
Full Speed Ahead for 50 Years
Customer Snapshot: Business Model
Performance Processes Create Performance Vehicles
AMG has its own culture, the ‘inner force’ of AMG in driving performance. Always in search of the optimum next step, we challenge the status quo. This is what characterizes and distinguishes us. Every employee has this spirit which defines AMG.— Tobias Moers, Chairman of the Board of Management of Mercedes-AMG GmbH
Customer Snapshot: Success Strategy
Consolidating the Landscape for Better Collaboration
Mercedes-AMG GmbH challenged their teams to expand their product portfolio while maintaining superior quality standards. Even though this was possible within the current structure, the time to market was too long to keep up with their new plans. The company realized that to achieve their goals, every team would need to work in close collaboration.
Lord of the Milestones
The DCC team used an innovative collaborative method they called “Lord of the Milestones”, which they invented for this project and was based off Business Origami. The experience was not only fun and engaging for the participants, it was also wildly successful at closing the communication gap among silos. It was clear that the team needed to redefine the entire planning process as it developed the new software as planned. Custom Development (CD) from SAP was brought in from the beginning to be part of the Design Thinking process, and to develop the designed solution with a full understanding of the back-story.
Enter SAP: The SAP Experience
A True Collaborative Experience
Teams from across several disciplines came together to discuss the challenges the Mercedes-AMG GmbH employees face in their daily work. The teams collaborated so well that team members felt at times that it was hard to tell who was from SAP and who was from Mercedes-AMG GmbH or the DCC.
The Design Thinking sessions created a collaborative space where all ideas were welcome and contributors felt free to unleash their imaginations. The entire team then presented the ideas and challenges in a humorous way to build empathy for the other stakeholders in the process. Armed with a mutual understanding of competency and stakeholder needs along with a clear visualization of the challenges they were facing, the team was able to define the clear challenges and find solutions. In the end, they created stronger software and processes to help them design and build a larger variety of models, while maintaining the same high quality and standards Mercedes-AMG GmbH has always delivered.
Findings Led to Big Changes
Working together, the teams successfully optimized planning, tracking, and production to achieve their goals and deliver a larger quantity and variety of vehicle models that are more cost-effective. The new centralized software produces stronger, transparent data which in turn encourages better collaboration.
The design-led co-innovation process at SAP’s AppHaus acted as a catalyst for changing the nature of our organization’s relationship with SAP.— Dirk Zeller, Head of IT Consulting, Mercedes-AMG GmbH
Better Business: Benefits
Disrupting the Automotive Sector
Mercedes-AMG GmbH is now skyrocketing with optimized planning, tracking, and production—delivering more varieties of cars in larger quantities, faster, and with the same high quality yet more cost-effective. They also have not only improved data quality immensely by collecting information in one central system, but have greater transparency and collaboration with their processes.
This solution will disrupt IT in the automotive sector. The result of this first development phase is far better than I ever imagined.—Tobias Moers, Chairman of the Board of Management of Mercedes-AMG GmbH
Better Business: Run Simple
As for the new software, the transparency of the system encourages better collaboration among all stakeholders, keeping the lines of communication open for an even stronger sense of teamwork and unity.
Daimler has chosen SAP as a partner for their Design Thinking enablement because SAP went on a similar journey and thus Daimler can benefit from SAP’s learning. A former development project of Daimler’s subsidiary Mercedes-AMG GmbH with SAP, in which Design Thinking was applied, created a high amount of trust which is the basis for the partnership.
A Smooth Road Ahead
The strengthened corporate culture and structural underpinnings leave Mercedes-AMG GmbH well positioned to achieve their accelerated product development challenge. It’s not just the cars that are better, stronger, and faster… the whole process can now Run Simple, and team members are more connected, which promises to lead to a future of limitless possibilities.