Transforming the an international enterprise if implementing SAP services at unprecedented speed with

Partnering with, BAT has actually designed and also implemented a new worldwide SAP design template in an ext than 180 markets an international in record-breaking time and delivered far-reaching business value.

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Business challenge

British American Tobacco (BAT) looked for significant cost save to totally free up cash for investment in growth.


Partnering with, BAT has actually designed and implemented a new global SAP layout in an ext than 180 markets an international in record-breaking time and delivered far-reaching business value.


Business difficulty story

Unprecedented transformation challenge


To construct a truly an international business, executives in ~ British American Tobacco (BAT) looked for cost-efficiency gains and also greatly intensified business agility. To this end BAT occurred a brand-new target operating design that was to be enabled by the digital change of the company through the implementation the a new global SAP template.

This strategy prompted a basic review the BAT’s existing SAP software application landscape, and created a regime that became known merely as ‘TaO.’

Setting the scene, Nicandro Durante, Chief executive, management Officer the BAT, explains: “Our change program is of enormous scale and also intensity, unlike anything ever seen in BAT before. It is around designing and also implementing the lean, nimble and effective firm we have actually all want for so long. The TaO regime is a key part of our an international strategy and also will do a significant contribution to resources BAT’s future sustainability and growth.”

BAT engaged come enable worldwide delivery of the TaO program, native initial project setup to last go-live.

Ben Stevens, Finance Director, confirms, “The TaO program collection out to develop an integrated global enterprise. Us simply have to be the most efficient and also the most reliable player in the industry if we are going come release resources to invest behind next generation products, new markets or indeed new brand launches.

“What we have actually now is the possibility to look in ~ the firm on a holistic basis. The factor we can do this is because we are doing things the same way everywhere. TaO way the ability to compete and also win in one ever-changing industry place.”

revolution story

Harmonizing worldwide operations


BAT began by developing a simplified set of integrated business processes – the Target Operating version (TOM) – the would permit its global operations to share much more resources. To complement the new globally integrated way of working, BAT necessary to upgrade its organization management solutions, which to be largely based on SAP software.

The aim was to change BAT’s landscape from operational devices working separately to a an international enterprise functioning in a linked way, underpinned by one SAP instance for the entire business.Time was of the essence: BAT aimed to roll out the program, recognized universally as TaO (TOM and also One SAP), to an ext than 180 sectors in much less than 4 years. 

The regime was not as an easy as rolling out a standardization deployment to every country. Each new deployment presented additional global functionality required by that market, because that example: interfaces come front-end trade marketing systems, need forecasting, invoice scanning, and also EDI with suppliers.

Shon Kumar, worldwide Programme Director, comments, “The TaO regimen is around creating one integrated worldwide enterprise – acquisition a collection of individual and really well-run markets and also stitching them together right into something that is greater than the sum of the parts.”

A regimen of this range carries immense organization risk. For example, one specific local deployment supported 15,000 customers in 85 markets. BAT counts on SAP software program to support every component of the global enterprise, and unexpected downtime or lack of an important functionality might halt operations and also damage profitability.

Shon Kumar continues, “We were in search of a mechanism integrator who might offer excellent an international business and technical support, administer absolute commitment to this business-critical program, and generate superb concepts for innovation to aid us accomplish our deadlines. an international Business services ticked every the boxes, and demonstrated a proven track document of successful large, complicated SAP implementations, worldwide.”

The consultants assisted BAT come design, build, test, release and roll the end the new SAP template. A joint BAT and team managed the TaO routine and noted subject matter professionals to recommend both the SAP deployments and the design of business processes. Additionally, detailed the following services: A mixed on-shore, near-shore, off-shore model delivered services come regionally based groups utilizing InfoSphere details Server and also Backoffice Associates Data Stewardship Platform for Data Quality. Companies Analytics (BI, BW Design and Implementation). An international Template governance (Design Authority). Systems administration & defense (Basis/GRC)

Toby Granwal, Head of service Readiness at BAT, explains: “The worldwide SAP roll-out is complete and we are delighted through the business we have received from

“Even though the team has had to accommodate 10s of thousands of adjust requests, and a larger scope than initially planned, each phase of the deployment has been perfect on time, within budget and with very minimal disruption to our operations.

Jeff Keller, Engagement partner for TaO at BAT, comments, “The joint BAT and also team’s success in rolling the end the new SAP template globally to much more than 180 industries in two years and three month is an amazing accomplishment that no other SAP implementation has achieved before.”

SAP vested its 2015 Business transformation Award of distinction to BAT because that executing through excellence in their vision to change its worldwide product investment portfolio (including e-cigarettes) to assistance BAT’s permanent strategy and withstand industry disruption.

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The SAP jury gave the award to BAT’s TaO program for the worldwide scale of change including product portfolio and also supply network, aligning worldwide and regional needs, and impressive worth measurement.

outcomes story

Crystal-clear watch of the company


Rapid accessibility to trusted data is already proving hugely useful to BAT. Procurement staff have greater visibility of current and future products requirements which helps to stop over- or under-stocking.BAT now has full visibility of its global end‑to-end it is provided chain, i m sorry is regulated by the SAP supply Chain monitoring application. This allows greater optimization of stock levels and smarter list management. Through reducing total inventory, the company will be able to cut logistics and also storage costs, which consequently will relax capital.Toby Granwal remarks, “We control materials and recipes centrally, for this reason we can ensure consistent commodities globally and also leverage our range to get the lowest possible cost. Global standards do it much easier to ensure repeatedly high quality, and that our commodities adhere to regulatory requirements. In addition, we have millions invested in spare components inventory most of i m sorry doesn’t relocate for two years. Standardized data, naming conventions and a an international view will allow us to journey down spend on spares.”Historically, a absence of integration in between systems and processes offered by different divisions of BAT made that cumbersome in some areas to create data for company decision making. Data currently flows immediately through a solitary integrated system providing instant access to up‑to‑date figures.A regimen methodology was developed for TaO, with far-reaching input native, that enabled a process of industrialization, discovering from at an early stage implementations and also then structure rapidly. This culminated in the capability to go live with eight factories and also multiple sectors on a solitary day.The importance of the solitary operational standard and also benefits of strategic digital change became clearer v each deployment. With standardised data and also insight right into the entire business, managers have the right to make smarter strategic and also operational decisions than ever before before.Furthermore, the firm can better emphasis its sources on growing the sector share of key brands and on identifying avenues to launch brand-new products to satisfy demand. The implementation of TaO enabled BAT to run as a globally integrated enterprise, focussing its resources in a targeted means to maximize sales and also profitability. Improved trend data help identify brand-new opportunities and substantially advice time-to-market.Mark Burns, Head of shipment for TaO, comments, “Partnership was key in terms of just how we worked together come make sure we all had actually the same objectives – it was sometimes difficult to recognize who to be BAT and also who was“The main point of the equipment we noted comes from SAP. We knew indigenous the previous heritage instances the calibre of SAP and its capabilities. functioning in partnership with SAP lugged it to life; the partnership through BAT ensured that us successfully ceded the final product come our markets and factories and achieved our goals.“ detailed capabilities approximately system integration, supplementing a core set of an abilities that already existed in ~ BAT, specifically in the it department, and also made sure that we were may be to resolve volume, scale, geography and complexity. To drive a an international program such together TaO required solid leadership throughout the company – strong leadership that was suitable in ours and SAP partners.”In the finance and also back-office attributes BAT integrated and also automated plenty of processes. With better data, BAT has a granular watch of how money is invested at every levels that the organization.Similarly, the standardization offered by TaO has allowed BAT to introduce the concept of mutual services. Where formerly each end-market sustained its own earlier office, BAT can shift activities such as finance, treasury, technological support and others to mutual centers of excellence, giving greater resources to the team at lower full costs.“With the implementation that TaO, us now much better understand just how we invest money v customers across all our different company units. We right now invest considerably in trade margins. A worldwide view will permit us to optimize and drive improved return from this investment.“Having better-quality data in ~ our fingertips method that us can additionally plan and forecast much an ext accurately than before – ultimately helping us make smarter decisions for our business. Because that example, we can pinpoint the markets with the biggest potential for profit growth, and allocate our resources accordingly.”Where country company units require capital, improved main cash monitoring may remove the require for external funding to help reduce take out loan costs. Right now Treasury benefits room 30 percent ahead of company case as well as improving threat management and also controls across the company.In summary, streamlining and also standardizing on a single collection of processes permits BAT to operate far more cost-effectively than prior to with enhancing operating margins and further renovations predicted. BAT expects that TaO will contribute substantially to cultivation operating margin on typical by 50-100 communication points per annum.Shon Kumar elaborates, “The money we save will be invested in brand-new growth initiatives, help to cement the future prosperity of our business and sharpen our capability to compete in a challenging market. We deserve to now see the company in a holistic manner, and also can as such make much better resource and investment decisions.“ has detailed essential project, technical and also SAP deployment assistance at every moment of this journey. Bringing this an international program to a conclusion ~ above time and on budget plan is a impressive achievement.“The strength and also depth of the resources yielded by global Business Services have been truly an important to the mutual success that the TaO regime at BAT.”Mark Burns concludes, “What we’re spring to execute is come take ownership of the solution, and also work again in partnership with, v SAP and with BAT, making certain we continue to evolve the solution, to proceed to drive benefit and take us right into the following generation.”