Mini case study
Alstom replaces legacy systems with enterprise resource planning system
Alstom provides systems for supporting energy and transport. This project was to support the UK gas turbine part of Alstom's business. The project involved the introduction of a new enterprise resource planning (ERP) system to replace 15 crit- ical legacy systems and many peripheral applications and connect satellite offices across the globe into a single, integrated system. The project was instigated following an IT strategy review in 2001, where it was realised that a major project was needed to provide a single integrated system based on SAP R/3. In the words of Project Director Lee Cridland: ‘we realised that our vision of creating a single, integrated system was simply not feasible with our legacy infrastructure. The SAP solution is not only easier to run and manage, but has also improved our ability to collaborate with our employees and external partners on a global scale'.
The first phase of the project, completed in 2003, migrated the company's old logistics and finance systems to SAP R/3. The previous legacy systems were a twelve year old OMAC 2000 manufacturing system and Oracle Financials. The first phase involved connecting 750 users at its Lincoln head office, as well as providing access to a limited number of international sites. The next two phases, which will be implemented through 2003 and 2004, will replace the remaining legacy systems for pre-point of order and post-point despatch processes, including its customer service module and extend the ERP system to a further 1000 users. Lastly, the system will be rolled out to about 20 global locations.
According to Cridland, the project is already financially justified on reduced IT support costs alone and Alstom expects to make a 200 per cent return on investment over the seven to ten year life of the system.
Alstom employed NovaSoft, an IT services company or ‘systems integrator' to implement the project.
Source: Turbine company sets its SAP R/3 project rolling, James Watson, IT Week, 13 February 2003. www.itweek.co.uk/News/1138744