The Kinetic EnterpriseTM: the ERP system built to evolve

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The Kinetic Enterprise: ERP built to evolve

How Deloitte helps business to leverage SAP S/4HANA to become resilient

The COVID-19 crisis has shaken the world awake. The pandemic triggered many businesses to adapt to a rapidly changing reality – transitioning to virtual collaboration, adhere to measures taken on global and local level and respond to economic disruption. The question rises – what role does ERP strategy play in navigating through the pandemic?

As we look back, the pandemic affected businesses in many different ways, depending on region, industry and product. How businesses respond, and their ability to navigate through this crisis, is a matter of having a responsive organization – an organization that is built-to-evolve. From an ERP perspective, it appears that many firms did not have real-time data and lacked market information, which hindered leaders to adequate and rapid decision-making.

Deloitte helps businesses to transform their ERP landscape to become more adaptive and resilient through the principles of the Kinetic Enterprise™. As Joeri Bergacker – Partner at Deloitte Consulting – explains: “the Kinetic Enterprise™ provides an ERP solution (enabled by SAP S/4HANA) that is clean, intelligent, responsive and inclusive. By applying these four key design principles the platform enables scalability and flexibility to the organization. Moreover, real-time and meaningful data becomes available, which contributes to adequate and rapid decision-making to achieve measurable business outcomes”.

To be resilient in global crises, and enable businesses to rapidly respond to trends – Deloitte truly believes in the methodology of the Kinetic Enterprise™. As an example, if we look at the Consumer Industry – we observe that purchase behavior has changed immensely over the past years. The current pandemic has forced retail chains to quickly adopt omnichannel fulfillment, as consumers shifted to online shopping as COVID-19 measures prohibited in-store purchasing. Here, reimagining fundamental business processes to support a future-proof and resilient omnichannel architecture is crucial. The concept of Kinetic Enterprise™ facilitates organizations in transforming to omnichannel-enablement by deploying a highly scalable platform.

Success stories in the market

If we talk to our clients – we hear many success stories on businesses that apply Kinetic Enterprise related design principles in their business transformations.

One example comes from one of the largest grocery retailers in the Netherlands. Together with Deloitte, this supermarket firm is in the midst of a transformation to a more standardized, clean-core S4/HANA landscape – to ultimately achieve operational excellence. During the pandemic, the client observed the importance of forecasting and replenishment as consumer behavior changed. Local governmental measures – closing restaurants and working from home – changed the demand for supermarket products more radically than ever. According to the client’s Manager Products & Programs, the legacy ERP system was capable to manage the shift in demand. Nonetheless, the client believes that the future S/4HANA solution will contribute to a more responsive and scalable supply chain – as forecasting can be improved by real-time data streams, enabling reduction in lead times. Powered by S4/HANA, the grocery chain will improve its ability to adequately react to constant change, for instance to trends in consumer behavior (e.g. toilet paper run), weather conditions (e.g. BBQ weather), and supply stops (e.g. incident in incoming goods stream).

A second interesting story is that of Swinkels Family Brewers, a large Dutch group of breweries – also on a S4/HANA transformation journey. One of the key pillars in this transformation, is their strong focus on clean ERP – in which centralizing and harmonizing business processes is key. Maurice Rijnen, Head of IT, explains: “having your processes harmonized means that everyone in your organization knows what to do, when to do it, and how to execute – it makes our business more resilient as it will prevent situations in which processes are fragmented or disparate”. At the same time, Rijnen emphasizes the importance of strategic processes, distinguished by process segmentation which may require enhanced solutions – but nevertheless required to be highly integrated and streamlined in the overall ERP landscape.

Earlier in their IT transformation journey, Swinkels Family Brewers deployed SAP SuccessFactors and SAP Integrated Business Planning (IBP). As Rijnen reflects: “without these SAP solutions it would have been more difficult to properly handle the shift to working remotely and manage the large number of recruitment activities, nor could we transparentize and respond to demand fluctuations in the beer market over the course of the pandemic. Hence, we are very much looking forward to the future benefits that the S/4HANA landscape will bring us”.

Moving forward to a resilient business model

The success stories of the grocery chain and Swinkels Family Brewers are key drivers for Deloitte to continue to deploy SAP S4/HANA according to the Kinetic Enterprise™ methodology. It proves to be an approach that helps businesses to adapt and thrive – no matter what tomorrow brings.

Want to know more on how the Kinetic Enterprise™ can support your business in the post-pandemic world? Feel free to reach out to Joeri Bergacker – partner in Deloitte Consulting Netherlands.

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