Case of Enterprise system on Celanese Recentralizes with a New Enterprise system

1. ES&ITS Presentation on case study-
Celanese Recentralizes with a New
Enterprise System
Submitted By:
Ambarish Nigam 20135005
Amit Kumar - 20135006

2. Introduction
• A global chemical company
• HQ- Texas, United States
• Five main businesses:
1. Chemicals and its Intermediaries- Acetyl products and
Specialty chemicals
2. Celanese Acetate Products- to manufacture cellulose
acetate filaments and tow
3. Ticona Technical Polymers- use to make chemical
products for electronics, telecomm, automotive and
medical industries
4. Performance Products- ingredients for food products
like sweeteners
5. Celanese Ventures- specializing in R&D

3. • 30 facilities in 11 countries on 6 continents
• They largely focused on decentralizations during 1980-90s.
• Each independent units implemented separate customized
SAP systems as per their own requirements
• They grow inorganically by acquiring small companies having
their own enterprise systems
• By 2000, world economy weakens and their sales declined
and forced them to reduce the expenses
• To reduce expenses: best available option was centralization

4. • How centralization help to reduce cost??
- To use the same version of SAP by all units
- It reduces the no. of IT staff
- It reduces financial irregularities
- Use of SAP features like SCEM
- Opportunity to cross-sell and up-sell customers between
business units

5. • To recentralize the company: Karl Wachs, new global CIO;
Task- to reduce company’s costs by integrating its
information system
• Started project OneSAP
• Took 11 months and total cost of $60 million
• Challenges:
- Technical: to install new SAP software so that every unit
could use it
- Organizational Culture
- Clear and absolute order from top management

6. How they did it??
- Divided project into seven tracks: Finance, Supply chain,
manufacturing, order to cash, Business intelligence,
technology, and change management
- Each track has several functional stakeholders to track
progress and one person for working at higher level
- Followed six sigma philosophy- “TQM” which means
every person was responsible for quality

7. The problems project faced:
- Unavailability of SCEM software at the time of
implementation
- To include new company they purchased from clariant in
early 2003
- Cleaning and integrating data from various existing SAP
systems into OneSAP

8. Answer-1
• Bargaining power of customer is low
• Bargaining power of supplier is high
• Threat for supplier is low
• Entry barrier is high
• Competition is high

9. Answer-2
• to cut the cost
• Acquisition of smaller firms in other product portfolio in same
business.

10. Answer-3
• Challenges:
- Technical: to install new SAP software so that
every unit could use it
- Organizational Culture
- Clear and absolute order from top management.
- Organization Culture is the most difficult
challenge .

11. Answer-4
• Earlier the company was trying to adapt the software to the
business but now the company would have to adaot the
business to software.
- Divided project into seven tracks: Finance, Supply chain,
manufacturing, order to cash, Business intelligence, technology, and
change management
- Each track has several functional stakeholders to track progress and
one person for working at higher level
- Followed six sigma philosophy- “TQM” which means every person
was responsible for quality

12. THANK YOU