1. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 1 R/2-R/3-Migration as part of the transformation of a homogeneous single company site to an industrial business park Jakob WöllenweberAkzo Nobel Faser AG Oberbruch Dr. Reinhardt KochGesellschaft für Rationalisierung Aachen Presentation given at the international SAP-R/2-congress at Strasbourg (April 16-19 1997)

2. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 2 R/2-R/3-Migration as part of the transformation of a homogeneous single company site to an industrial business park Problems, experiences and successes of organizational and IT-specific kind Starting point: Homogeneous company site with a couple of different centrally controlled plants with similar organizational structures and IT-systems Goal: Industrial park with AKZO NOBEL subsidiaries, non consolidated as well as not affiliated companies with diverse own IT-systems

3. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 3 Content: Introduction:The Company and the products The starting position The process of transforming to an industrial park The implementation by SAP R/3

4. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 4 Introduction:The Company and the products

5. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 5 The starting position at the Oberbruch location: The -organizational -accounting -EDP-point of view

6. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 6 The organizational starting position at the Oberbruch location: Five productive units and one non-productive unit for all plants

7. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 7 The accounting starting position: Cost accounting and transfer by cost types via main and sub cost centers Main cost departments Cost allocation and (late) accounting per cost center Primary costs

8. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 8 The EDP-starting position (1): Host-, Server- and Client level

9. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 9 The EDP-starting position (2): Interacting of different systems by Batch-Interfaces

10. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 10 The process of transforming to an industrial park : -from AKZO NOBEL Plant to cooperating with partners -from cost center-accounting to customer/supplier-relations -from group wide EDP-system to an individual EDP-system

11. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 11 The process of transforming to an industrial park: AKZO NOBEL plants become non consolidated or legally independent companies Service Units

12. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 12 The process of transforming to an industrial park : From cost center-accounting to customer/supplier-relations

13. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 13 The process of transforming to an industrial park : From group wide EDP-system to an individual EDP-system Migration process

14. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 14 The implementation by SAP R/3: -the "medium sized companies" Site Services and HIMA GmbH -the R/3-concept for Site and HIMA -the peculiarities of the R/3-implementation

15. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 15 The implementation by SAP R/3: The "medium sized companies" Site Services and HIMA GmbH Site Services Employees250Revenues70 Mill. DM Products/Services - Stock, Purchasing, Waste mgm.- Power station - Finish. goods wareh./distribution- Sewage plant - Accounting and cost control- Personnel department - Industrial Engineering- New business marketing - Health, Safety, Environment- Chemical labs HIMA GmbH Employees 400 Revenues 50 Mill. DM Products/Services - Maintenance for customers production units - Manufacturing and assembly of customer specific equipment and components (mechanical and electrical) - Specific measuring services (heat and vibrations)

16. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 16 The implementation by SAP R/3: The SAP R/3-concept for Site and HIMA (picture Nr. 1)

17. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 17 The implementation by SAP R/3: The SAP R/3-concept for Site and HIMA (picture Nr. 2)

18. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 18 -the peculiarities of the R/3-implementation -the Site is the biggest supplier for the HIMA -the type of coexistence between R/2 and R/3 -the fixed price conditions for the R/3-Imple- mentation by GfR

19. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 19 The peculiarities of the R/3-implementation: The Site-stock inventory as a consignment purchasing for the HIMA

20. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 20 The peculiarities of the R/3-implementation: The type of coexistence between R/2 and R/3 -FI isthe leading system for the accounting of Site and HIMA -All HIMA- and all Site-customers are accounts receivable in the respective FI -All sister organisations of the AKZO NOBEL group become accounts receivable/payable, even Site and HIMA vice versa -All debts receivable by invoices, all payments via banks -1:1-Relationship between R/3-FI-accounts and R/2-RF-accounts -Original RF-entries (f.e. group-Clearing) as slipsto R/3-FI -In special cases transfer and entry of R/3-slips to RF (f.e. Intrastat) -Before closing the accounts in RF transfer of FI-accounts balances to RF -Disclosure, consolidation andbalancing for AKZO NOBEL Faser AG unchanged via R2 with Host-programs

21. With SAP R/3 on the way to an industrial park r_koch_e.ppt / 21 The peculiarities of the R/3-implementation: The fixed price conditions for the R/3-Implementation by GfR Aachen Prerequisites for the fixed price condition: -Intensive joined preparations -Contractually agreed project contributions from Akzo Nobel employees -Rules for fast conflict clearance and decision making