United Tractors’ digital transformation to SAP S/4HANA on Azure

United Tractors Tbk.

The Challenge

United Tractors was gearing up to expand its business by implementing a synergy-based and diversified business model into various business units. The associated digitization efforts involving the migration to the new SAP S/4HANA business suite with lower cloud operating costs was identified as a priority to support business growth, influence its ability to adopt next-generation business processes and enable it to make informed decisions quickly based on real-time insights.A reliable, time and cost saving way, accommodating the highest flexibility regarding the coverage of data transformation requirements and with minimal downtime was the need of the hour to significantly drive United Tractors’ operations leading the industry with an outlook for business continuity and agility.

Selective migration; technical migration of business partners; activation NewGL with ledgers; non Unicode to Unicode implementation in one-step single go-live approach.

Source system: SAP ECC6.0 EHP 4 SP8
Target system: S/4HANA 2020 on Azure Cloud
SAP modules affected: FI, CO, MM, SD, PP, QM, CA, HR, PS
DBMS: Oracle 11 to HANA 2.0

The Solution and Benefits

As part of United Tractors’ digital transformation journey, the company planned to upgrade its existing ECC 6.0 (on premise) to significantly improve its operations via a host of optimization strategies. A rapid implementation to move the core business system to S/4HANA and Cloud was imperative to manage demand for innovation, customisation and transparent real-time analysis, ensuring business agility – an essential aspect for staying at the top in today’s increasingly intense market environment. The solution needed to provide operational efficiency and flexibility supporting United Tractors’ strategic endeavour to become an intelligent enterprise as they transformed their data, business and systems from on premise to Azure.

SNP’s software centric data transformation platform CrystalBridge® and selective data migration approach BLUEFIELD™ offered a low-risk acceleration of S/4HANA transformation to Azure Cloud through automation and specialized data visualization. The proven reliable methodology launched multiple projects simultaneously - New GL, Business Partner and Unicode conversion, delivering clear advantages in terms of costs, system downtime and project runtimes.

The end-to-end industrialised S/4 migration approach reduced complexity consuming fewer resources and offering comprehensive project life cycle support, including provisioning, installation, migration, conversion and go-live. SNP’s approach supports business growth and paves the way for integrating emerging technologies including Big Data, embedded AI, in-memory HANA database, and real-time analytics.

Fast, Secure, Low-risk and fully remote implementation within budget and timelines
Selective Migration delivered successfully in a predictable timeframe with a mature industrialized approach
End to end project lifecycle transformation provides operational efficiency and flexibility
Make smart decisions based on real-time data
Greater speed, accuracy with minimized downtime ensures continuous operations
Option to combine the S/4 migration with other transformation topics (e.g. data harmonization, org. structure changes, NewGL activation)
Go-live at any time regardless of the financial year-end, retain relevant historical data, achieve transformation without re-implementation, rationalize computing resource consumption
One Step Approach for cost-efficient project implementation
Create a lean and agile IT structure

Key Facts

Duration

7 month (Downtime 30 hours)
Project Type

Move to SAP S/4HANA on Azure Cloud
Systems in scope

SAP ECC6.0 EHP 4 SP8
Users

1,950

Apart from resolving the data transformation challenges, SNP’s BLUEFIELD™ approach powered by CrystalBridge® platform delivered United Tractors’ ambition for a lean, high-performing S/4HANA target system in Azure. A high degree of automation and reliability combined multiple projects simultaneously, reduced data footprint with selective data migration, lowering TCO at minimal downtime and risk into a single go-live within budgeted timelines. Thanks to SNP we are on an accelerated path to become an agile intelligent enterprise.

Lie Gunadi

Corporate Strategic and Technology Division Head, PT United Tractors Tbk.

About United Tractors

United Tractors is a subsidiary of PT Astra International Tbk ("Astra"), one of Indonesia's largest and leading business groups with a network of services spanning various industries and sectors. United Tractors, a public listed company by listing its shares on the Indonesia Stock Exchange, has developed into one of the major players in the domestic sector and industry.

The construction machinery business unit, known as United Tractors, is the largest heavy equipment provider in Indonesia. As the sole distributor of Komatsu, UD Trucks, Scania, Bomag, and Tadano, United Tractors provides heavy equipment, trucks, cranes, and busses used in industrial construction, energy, mining, agriculture, forestry, as well as material handling and transportation.