McKinsey & Company, Inc. – SAP Innovation Awards 2025

Recognized as an Outstanding Achiever. A major chemicals/agriculture client invested $200m in a 2-year SAP S/4HANA program across 30+ sites in 5 countries. Due to market changes and a 40% sales drop in 2023, the business case became outdated. McKinsey & Company assisted in re-baselining it, using updated financial data and Value Finder measurements. The revised business case projects increases of ~$20-50m in EBITDA, ~$30m in working capital, and ~$10-40m in cumulative value from the ERP program. Additionally, ~$50-90m in new value opportunities were identified. 11 risk-mitigation recommendations were provided for go-live, ensuring a smooth transition and effective demonstration of the program's value to executives and board members. - 5459 Download the Document

PUBLICEntry Pitch DeckMcKinsey & CompanyDarwin Deano / Gaurav GoyalProfessional ServicesRewiring value creation with Value Finder andSAP
COMPANY NAME:HEADQUARTERS:INDUSTRY:WEBSITE:NUMBER OF EMPLOYEES:Company information2McKinsey & CompanyNew York, United StatesManagement consultinghttps://www.mckinsey.com/45,100McKinsey & Company, founded in 1926, is a global managementconsulting firm dedicated to achieving sustainable and inclusive growth.Our mission is to help clients realize bold ambitions and drive lastingimpact. We serve diverse sectors, including healthcare, public entities,and central banks, leveraging technology and data to deliver innovativesolutions. We run an intelligent business by investing in knowledgedevelopment, strategic partnerships, and advanced analytics, ensuringour clients' success and global progress.PUBLIC
CHALLENGE: SOLUTION: OUTCOME:S/4HANA ERP implementation3increase in recurring value (EBITDA) cumulative value directly attributable toERP programnew value opportunities identified (pendingvalidation)~$20-50mMcKinsey & Company~$10-40m ~$50-90mOur major chemicals/agriculture client invested over$200m in a 2-year SAP S/4HANA greenfieldprogram, integrating SAP S/4HANA, SAP Ariba, andSAP Fieldglass across 30+ sites in 5 countries forFinance, Procurement, Maintenance, Sales, andSupply Chain. However, fluctuating marketconditions and a 40%+ sales drop in 2023 alteredfinancial baselines and operational metrics, makingthe business case defined in 2022 stale.With go-live 2 months away, the org needed to re-baseline the business case and establish newmetrics to demonstrate the program's value toexecutives & board members 90 days post-launch.Ahead of go-live, we spent 4 weeks assisting theclient by re-baselining the ERP business case usingthe latest financial data and Value Findermeasurements. We established metrics andmethods to attribute value and success to the ERPprogram, identified additional focus areas withsignificant value opportunities to be validated by theclient's business, and provided insights andrecommendations to mitigate risks at go-live.These efforts ensured a robust and accuratebusiness case, enabling the client to demonstratethe program’s value effectively to executives andboard members post-launch.The business case was adjusted based on ValueFinder measurements and the latest financial data.This resulted in a projected ~$20-50m increase inrecurring EBITDA value and a ~$30m boost inworking capital. Additionally, the ERP program itselfis expected to contribute ~$10-40m in cumulativevalue. We identified ~$50-90m in new valueopportunities, pending validation, and benchmarked21 system automation rates. To ensure a smoothtransition, we also provided 11 go-live risk-mitigationrecommendations. These comprehensive efforts aimto validate the initial estimates and demonstrate theprogram’s value effectively to executives and boardmembers post-launch.PUBLIC
4PUBLICClient’s CIOValue Finder from McKinsey “played avalue creation/value confirmation role”for the ERP transformation program
GLOBAL CHALLENGESChallengesBUSINESS CHALLENGESPUBLIC 5McKinsey's Value Finder tool helps companies globally byaddressing key challenges such as identifying inefficiencies in HRfunctions, streamlining procurement processes, and achieving costsavings and operational efficiencies. It aids in optimizing supplychains, reducing procurement costs, and ensuring consistentpractices across regions. Additionally, the tool tackles industry-specific market challenges, such as margin pressures andcompetition, by analyzing opportunities and executing over 500targeted initiatives for growth. By offering a comprehensiveapproach that includes baselining expenses, peer benchmarking,and process automation, the Value Finder tool significantlyenhances overall business performance and operationaleffectiveness.Our major chemicals/agriculture client faced significant challengesduring a $200m SAP S/4HANA greenfield program across 30 sitesin 5 countries. Initially defined in 2022, the business case had to bere-baselined due to a 40%+ drop in sales volume and fluctuatingmarket conditions. This impacted financial baselines andoperational metrics across Finance, Procurement, Maintenance,Sales, and Supply Chain functions. Two months before go-live, theurgency was to validate initial estimates and measure outcomespost-launch to demonstrate value. These challenges strainedworkforce morale and productivity, creating uncertainty and stressas employees navigated the massive integration of SAP S/4HANA,SAP Ariba, and SAP Fieldglass platforms.