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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.

Company
Mercedes-AMG GmbH, a subsidiary of Daimler AG

Customer Website
www.mercedes-amg.com/

Line of Business
Manufacturing, R&D/Engineering

SAP Solutions
SAP Custom Development, UX design services from SAP

Headquarters
Affalterbach, Germany

Number of Employees
1,500

Industry
Automotive

Visionary Themes
Run Live, Run Simple

 

Collaboration at its fastest and finest

Customer Snapshot: History

Full Speed Ahead for 50 Years

Superior performance is the driving force behind everything Mercedes-AMG GmbH does.
 
A as in Aufrecht, M as in Melcher and G as in Großaspach – the names behind these three letters are the starting point of the rapid development from a two-man operation to a global brand.

Customer Snapshot: Business Model

 

Performance Processes Create Performance Vehicles

Mercedes-AMG GmbH specializes in producing unique, performance vehicles. This includes developing the design, aerodynamics, interior, powertrain, engine, suspension, brakes and electronics of the complete AMG vehicle. Mercedes-AMG GmbH is also in charge of all marketing and sales-related activities for its products.
Today it is a one hundred percent subsidiary of Daimler AG and is the group's technological spearhead in the performance car segment. The AMG brand promise of "Driving Performance" stands for state-of-the-art technology and pure driving excitement.
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

The Pursuit of Excellence
The history of Mercedes-AMG GmbH is full of records – whether they be for motor racing, performance or sales figures. But a success story can only be written if you have a firm eye on the future.
 
The professionalism of AMG is defined by its pursuit of high performance, precision and efficiency. Every AMG car promises to provide outstanding performance, exciting driving pleasure and ultimate quality down to the finest detail. As part of the "AMG Performance 50" strategy, every new AMG model strives to be the market leader in terms of fuel consumption and emissions. Many AMG vehicles currently already enjoy "best in class" status when it comes to consumption, emissions, maximum performance and torque.

The Challenge

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.

 

How we can get even better…

Enter SAP

Lord of the Milestones

Mercedes-AMG GmbH enlisted the Design and Co-Innovation Center (DCC) from SAP to conduct an intensive research plan and develop new software from the ground up.
 
The first task was to assess the current state of a complete car production cycle. The team was able to get a holistic view about the development of a new model from initial concept to final delivery. Putting the entire process under a microscope brought to light a number of organizational challenges within Mercedes-AMG GmbH. Once these challenges were out in the open, the teams could address and correct for these challenges and fine-tune the design process.

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.

 

The workshop participants learned so much, and most importantly, they developed a deeper understanding amongst themselves, which is supporting their daily work.— Dirk Zeller, Head of IT Consulting, Mercedes-AMG GmbH

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.

We tried to portray these challenges in a way they could easily understand, and also in a way that would shock them. By drawing comics and translating the challenges in the form of funny pictures, we could communicate them with a sense of humor. By doing this, they accepted them and they felt that we understood them.— Karen Detken, Senior Strategic Design Consultant, Design & Co-Innovation Center, SAP
 

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.

Better Business

 

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

 

Better Together

The Design Thinking approach helped to transform the overall company culture. Team members have a better understanding of the processes outside of their department. With this better sense of perspective, each group no longer acts as a silo but instead acts as a moving part of a greater, more agile machine.

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.

Journey Ahead

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.

 

Processes are in place for better collaboration

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