Analyzing the Benefits of Clean Core for the Company

To conclude our exploration of the benefits of clean core, we turn our attention to the enterprise at large. In today's fast-paced business environment, efficient management of operations, resources, and data is crucial for success. This management is true for production companies, where streamlined processes and clear visibility into the entire supply chain are essential. Enterprise Resource Planning (ERP) systems offer a comprehensive solution to these challenges, helping companies improve productivity, reduce costs, and increase customer satisfaction.

Watch the video to explore the challenges from company perspective.

For businesses, effective collaboration within, and between, departments to achieve company goals is a crucial component of staying competitive.

In the previous lesson, we mentioned how a favorable news article led to an increase in customer orders for The Gritty Pixel. And just like with Klaus, the rapid and sustained increase in order volume while good news on its own laid bare the challenges of the legacy system. Fatima wanted to design and implement an application to create a "feedback loop". Machine learning algorithms would analyze customer support tickets and take appropriate action, based on the patterns it detected. For example, if many customers requested support services for a product feature, a support note could be created automatically for the support website. In addition, a new workshop proposal could be created, with an automatically generated course structure, based on the content in the tickets analyzed. This workshop could then be offered to customers.

Normally, the business side of the house submits this type of proposal to IT, who would prepare a tactical plan and a timeline for implementation. However, the response Fatima received was not what she had hoped for. She was told that none of the current systems were designed on a platform with machine learning capabilities. Even if one was, the sheer number of systems and the interfaces required to implement this proposed scenario would be too expensive.

The Gritty Pixel recognized the challenges posed by its legacy systems and that they needed a robust solution. The Gritty Pixel undertook a comprehensive evaluation of various ERP systems to find one that met its specific requirements. The evaluation process involved considering factors such as scalability, customization options, ease of integration, user-friendliness, and cost-effectiveness.

After careful consideration, the company chose SAP S/4HANA Cloud. SAP S/4HANA Cloud was the only solution that offered the full scope of all modules needed and that were tailored to its production processes, including:

• inventory management.
• procurement.
• production planning.
• scheduling.
• sales.

Following the implementation of the SAP S/4HANA Cloud, The Gritty Pixel experienced a significant boost in its operational efficiency. By integrating all departments and processes into a single, centralized system, the company eliminated duplication of efforts and delays caused by manual data entry. This led to streamlined workflows, reduced paperwork, and faster response times. For instance, the system automatically generated production plans and optimized resource allocation, resulting in enhanced productivity and a reduction in production costs.

Before implementing the SAP S/4HANA Cloud, the company struggled to achieve accurate inventory tracking and management. This often led to inventory discrepancies, stockouts, and excessive carrying costs. With the ERP system in place, the company gained complete visibility into its inventory levels in real-time, ensuring excellent stock levels and reducing the risk of stockouts. Also, automated inventory tracking, coupled with data analytics capabilities, enabled The Gritty Pixel to identify trends, predict demand fluctuations, and make informed purchasing decisions. As a result, the company significantly reduced its inventory holding costs and achieved higher customer satisfaction through improved order fulfillment rates.

One of the key strengths of an SAP S/4HANA Cloud is its ability to generate real-time reports and provide in-depth insights into various aspects of the business. By accessing accurate and up-to-date information, company management gained an overall view of the entire production process, enabling them to make informed decisions quickly. Furthermore, with customizable dashboards and reporting tools, the ERP system facilitated the generation of intuitive visualizations, trend analysis, and forecasting. These capabilities enhanced the company's ability to identify market trends, optimize processes, and align production strategies with customer demands.

The ERP system proved to be vital for interdepartmental collaboration within the company. Instead of relying on fragmented communication channels or inconsistent spreadsheets, employees could access a centralized platform that facilitated information sharing. This led to improved communication, reduced communication errors, and enhanced coordination throughout the production process. Also, the ERP system enabled efficient collaboration between Company XYZ and its suppliers, fostering better relationships and improving supply chain management.

Benefits of a clean core for companies: Streamlined operations Cost savings Improved decision-making Enhanced collaboration

The successful implementation of an SAP S/4HANA Cloud transformed The Gritty Pixel's operations, addressing the challenges it faced in a rapidly evolving production industry. By streamlining operations, improving inventory management, and enhancing decision-making capabilities, the ERP system enabled the company to achieve higher productivity, reduce costs, and increased customer satisfaction. The case study of The Gritty Pixel underscores the significance of ERP systems in helping production companies to overcome obstacles and thrive in today's competitive landscape.

Understanding the potential value that can be obtained supports investment to get and stay clean.