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Making SAP Easy for the Media Industry – 2

Following on from our 1st instalment in this 2 part series, MESA continue their interview with Invenio to find out how they help their media customers understand the huge capabilities of SAP.
Interview by Chris Tribby

 

Invenio says that its SAP partners see savings of as much as 40%. Can you expand on that, share how the company’s solutions actually translate into real, bottom-line savings?

We helped a major newspaper group increase revenues by extending their ad-booking window by between eight and 24 hours. Our SAP solutions help their operations produce 15 million copies of a daily newspapers from 16 print locations, and to manage the financial and business operations of 25 separate legal entities.

We helped a major TV broadcaster improve its content acquisition processes across the entire broadcast portfolio, for both original and syndicated programming. Our solution helps manage the entire procure-to-pay process for 3,500-plus television programs, including series episodes, one-off programs, and movies.

We are helping a leading music publisher to standardize and streamline its global procure-to-pay processes using an innovative SAP solution that will manage over 150,000 suppliers worldwide. The self-service vendor portal and guided streamlined invoice processing has resulted in saving of thousands of man-hours in administrative tasks for the customer.

We implemented an award-winning SAP solution that offers support for financial, human resource management and management reporting for a major international search portal across their online, mobile, email subscription and e-commerce lines of business. This was one of the first SAP implementations for a pure online business.

With such a rich experience in the industry, our consultants have a head start when they start servicing our customers, resulting in better and faster issue resolution. With our experience in the industry, we have built ‘accelerators’ — pre-built solutions to address typical scenarios in media companies. This can potentially crunch the project timelines as compared to traditional partners.

Can Invenio offer some specific use cases, where media and entertainment companies made especially good use of Invenio’s offerings?

Universal Music Group (UMG) is the world’s leading music company with wholly owned record operations or licensees in 77 territories. Its business also includes Universal Music Publishing Group, the industry’s leading global music publishing operation. With the recent acquisition of EMI, Universal Music Group has consolidated its dominant position in the music market. Universal Music Group is a unit of Vivendi, a global media and communications company.

UMG has implemented a single global instance of the SAP FICO (Finance and Controlling) solution for its financial reporting. The procurement function was, however, widely distributed across various local systems. With 7,000-plus internal users involved in the P2P process working with 130,000 suppliers across the globe, the administration and control of purchasing was highly inefficient. UMG was keen to ‘outsource’ supplier data management back to suppliers, bring in better commitment tracking with clear visibility on spend and enforce strict budget controls. Traditional SAP solutions were cost prohibitive and integration with third party tools became unmanageable. That is when UMG turned the attention to Invenio’s P2P Solution.

Invenio’s work and partnership in different aspects of Universal Music’s SAP estate has been gradual in finite increments as Universal Music grew in its confidence with Invenio’s capability.

Over the last five years, Invenio has developed a bespoke procure to pay system on SAP for Universal Music which uniquely address the requirement of simple front end interfaces, full budgetary control, complete workflow, access through web and an easy to use vendor portal particularly suited for the media industry and at the same time fully inside SAP. Invenio was given the challenge to make it work across the globe, with country specific GAAPs and languages and running this in one instance of SAP, which was delivered exactly as tasked and has now been working for three years in a very stable manner.

We built on the SAP platform requiring no integration and available at a fraction of the cost of the classical solutions, very tightly integrated with budgeting allowing the possibility for a strict enforcement of a ‘no budget, no spend’ policy. Includes easy to follow and maintain workflows to improve compliance in the entire P2P process, with a secure, Web-based tool available on mobile which pushes the responsibility for supplier data and transaction maintenance back to the suppliers in ‘self-service’ mode.

The Invenio P2P solution has now been rolled out into nine countries including four of the biggest territories for UMG: USA, Japan, Germany and France. More than 4,000 internal users are working successfully with the user-friendly solution. Supplier on-boarding has also started and has received enthusiastic response in France, USA etc. The solution will be rolled out to eight more countries in the next year covering over 90% of UMG’s global business.

With all global purchasing data in one place, UMG has better visibility on spending enabling tighter budgetary control and more effective supplier management. Supplier relationships have also improved by providing them with better visibility throughout the process. The administration burden of the P2P process has come down, saving thousands of hours of administrative tasks for the business which can now be utilized better within UMG.

For more details on MESA you can visit their website here

 

Making SAP Easy for the Media Industry

MESAlogo9In this 2 part blog series, Invenio Business Solutions media practice heads sat down with the Media & Entertainment Services Alliance (MESA) to discuss the state of SAP services for the media and entertainment industry, and the success stories of Invenio customers.

MESA discuss how Invenio Business Solutions delivers SAP solutions, services and support for the media industry. Because SAP is all Invenio does — with 75% of its global revenue coming from media customers — the company marks itself as the best in the SAP business.

Interview by Chris Tribby of MESA 

 

MESA: What makes Invenio’s SAP offerings stand out in the media and entertainment space?

Invenio: We’re a 100% SAP consultancy and support practice, with 75% of our global revenue coming from media customers, in the music, publishing, broadcast and advertising space. From SAP Global rollouts to small upgrades projects.

As an SAP media specialist, we really understand the challenges in the media industry — from platform convergence and digitization to shifting market dynamics, IP protection and content distribution. We focus on media as one of our core industries, which ensures best practices and insight, and we’re the proud winners of SAP’s Best Partner Award for Innovation in the media space.

We have a diverse and growing media customer base with outstanding referenceability, and our experience includes award-winning projects e.g. Best SAP Partner Implementation for our ground-breaking work at Indian Web portal Rediff.com.

Our long and distinguished list of media clients includes Star and Fox TV, Random House (a subsidiary of Bertelsmann AG), Universal Music, Eros International, Star News and Fortune Magazine, Times of India, and Rediff.com – global providers of online news and information. This wealth of industry experience helps us address many complex and diverse challenges facing the media industry. And we underpin it all with a technology practice that offers in-depth solutions expertise and service excellence.

We also understand that any media company needs a host of specialized technical solutions to work alongside SAP solution. So we also offer Enterprise Architecture Integration services to seamlessly connect various systems.

MESA: What was the reason for Invenio’s beginning, what gap in the market did the company see that needed to be filled?

Invenio: The reason for Invenio’s formation was based on customer satisfaction, the only focus. Keep the customer satisfied and be transparent when it comes to pricing.

We observed a gap in IT partners which specialize in media domain and provide SAP services. The choice available for customers was to deal with the ‘big 4 or 5’ from the industry or choose specialist company which does not necessarily have SAP expertise.

Customer focus is in the DNA of Invenio. We always strive to give unparalleled services to our customers. We are also absolutely transparent with our customers, starting from the commercial rates. In an industry which, unfortunately, has become notoriously infamous for a “get away with as much as you can’ attitude,” we provide a breath of fresh air with our honesty and transparency.

Keep an eye out for part 2 of the blog next week.

Casting a Wider Net

Profitable overseas expansion

‘Traditional’ trading partners in the US and the Eurozone make up the majority of British overseas trade – which today stands at some 64% of total exports. But developing economies may provide an as-yet untapped source of revenue for many British manufacturers. The potential (and the reluctance to invest in these markets) has been the subject hot debate in the past few months, with many industry commentators weighing in with their opinions…

Jim O’Neill, the economist accredited with coining the “BRIC” acronym, told the EEF manufacturing conference in March, that while Europe will remain Britain’s biggest export destination, the country could not “afford” to maintain these links at the expense of emerging markets. He said “While our position with EU and Eurozone is of number one importance, we should not get blindsided as that being the key thing for our export future. Our big future for exports this decade… is going to be other parts of the world, particularly China.” Mr O’Neill said he believed that western economies still “underestimate the scale of the growth” of the BRICs together with the next big four emerging markets of Indonesia, Mexico, Turkey, South Korea. He concluded: “This decade, those eight countries will contribute as much to the dollar value of world GDP as that of the US and euro area put together, twice.”

It seems however, that British Manufacturers are making a few tentative steps into these markets, with The Independent reporting that British companies have more than “doubled their exports to the fastest growing emerging nations in a bid to cash in on the rapid expansion in the developing world”. Figures released by The Office for National Statistics showed that exports to Brazil, India, China, Russia and South Africa more than doubled from £12.7bn in 2007 to £27.1bn in 2012. This means that the BRICS now account for 5.56% of total UK exports, compared with just 3.34% in 2007.

What’s holding us back?

Manufacturing firms are reluctant to invest in emerging economies is another point for debate. A viewpoint put forward by Martin Weale, a member of the Bank of England’s Monetary Policy Committee, is that businesses have been suffering from “heightened uncertainty” about the economic outlook which may have been “putting them off” making investments in overseas markets. In a speech at the Warwick Economics Summit, he argued that a lack of confidence has been blamed for the relatively low levels of business investment since the end of the recession, and this explanation could be extended to manufacturers’ overseas ambitions. He says “The costs which need to be incurred in entering new markets are a deterrent, not because businesses expect new sales not to be worthwhile he said, but because … at a time of heightened uncertainty, the risks involved may be putting them off,” he said.

Despite this reluctance to invest, the recent flurry of positive news stories coming from UK Manufacturing sector means that overseas growth is firmly back on the agenda. The EEF Executive Survey 2013 puts “Increasing Demand for products in Emerging markets” at number 2 in their top 5 of manufacturing opportunities – just behind “the commercialisation of new technology and product development”.

Preparing for expansion

Of course any company considering entering a new market must not only ensure that they there is the right level demand for their products, but that the business has achieved a level of operational readiness that allows them to fully exploit new market opportunities. Preparing the company from an operational perspective is something that can be ably supported by the implementation of robust ERP system designed handle the demands of a truly global operation.

One recent success story is that of SPP Pumps – a manufacturer with British heritage – who are making it big on an international stage. SPP Pumps is a multi-award winning engineering firm who design and manufacture industrial pumps for a global client base and their equipment is found across all continents – covering a diverse range of industries. In 2008, the company opted to implement SAP, with the firm’s Managing Director, Graham Terry saying: “A defining characteristic of SAP is that it supports a global, growing business. Companies that are seeking to develop new service lines or explore new markets will find that SAP gives them the scope and the flexibility to do this”. Since the SAP implementation SPP have cited numerous benefits of SAP within a global context including:

  • Improved financial processes with “Up-to-date financial information combined with extensive reporting and drill-down capability gives us a fast, comprehensive view of what’s happening across the global operation”.
  • Improved business planning: “A clear – and often overlooked – benefit of SAP is its potential; we can confidently plan our future knowing we have the supporting systems in place to facilitate international growth”.
  • Improved productivity and expansion without adding extra headcount: “The implementation of SAP means that we can now effect major international expansion without having to increase operational headcount to cope with the additional volume of work.”

With the right technologies in place you can equip your people with the tools needed to support international business growth. For a deeper understanding of how technologies such as SAP ERP can increase your chances of success when competing in a hypercompetitive global market please contact us.

KBL Bags 2011 SAP ACE Award for "Best-Run Manufacturing Organisation"

Invenio Customer wins prestigious SAP ACE Award
Kirloskar Brothers Limited bags SAP ACE Award for “Best Run Manufacturing Organisation.

Invenio are pleased to announce that Kirloskar Brothers Limited (KBL), a leading global fluid management company, and valued customer of Invenio, was awarded the prestigious SAP ACE Award in the “The Best-Run Manufacturing Organisation” category.

The SAP ACE awards are an industry benchmark that serves to recognise the best of the best-run businesses in the Indian subcontinent, and serves as SAP’s tribute to the many customers who have used, learnt, innovated and leveraged the power of SAP solutions. Currently in its 5th year, this year’s SAP ACE nominations were hotly contested with 300 companies competing across 42 categories.

The award ceremony, held at the Grand Hyatt, Mumbai, recognised KBL’s performance by improving key processes through IT implementation. Speaking on the occasion Chaitanya Wagle, Associate Vice President said, “It is indeed a matter of immense pride for us to have bagged this award. On behalf of KBL I’d like to take this opportunity to thank SAP and the jury for recognising our efforts. The alliance with SAP helps various critical business processes across the organisation to achieve operational excellence that leads to greater customer satisfaction and loyalty.”

Sanjay Hiranandani, CEO, Invenio concluded “This is a thoroughly well-deserved acknowledgement of the hard work and dedication shown by the KBL team in achieving operational excellence through SAP. It gives us all immense pleasure to see one of our most valued customers being formally recognised for their achievements by receiving this prestigious award”.