The SAP ERP was implemented by SONDA IT and took to Innova to a new level of governance and compliance

 

The SAP ERP was implemented by SONDA IT and took to Innova to a new level of governance and compliance

Client: Innova Industry: Governance Solution: Following a stringent selection process, SONDA was chosen to implement this project.



Governance

Summary

Innova is petrochemical company that belonged to Petrobras and was acquired by the Videolar Group in October 2014. It had an excellent year in 2014. The company received the Best Company prize in the Brazilian chemical and petrochemical sector, which was awarded by the magazines Exame and Amanhã. In addition, it was recognized as the ninth best public company in Brazil in terms of IT Governance in 2014, following an audit by the TCU (Tribunal de Cuentas de la Unión), an impressive recognition for the company's Information Technology department.

This positive situation strengthened the company's resolve to discontinue with Oracle and migrate to SAP, as all the changes to the organization, management and compliance inherent in this implementation had contributed to these awards. "We became more united, consistent and stronger as a company, and ready to face new challenges. Without doubt, our excellent human capital under the guidance of senior management will enable us to achieve more victories," affirmed Rafael Pierosan, Information Technology Manager at Innova.

Implementing the SAP ERP was an long-held desire, as the current system was already outdated and had been extensively customized. Whilst it provided various features for end users, it also required a massive structure and was very costly to maintain. Innova visualized a migration from Oracle to SAP when it was sold by Petrobras Argentina to Petrobras Brazil, which was already using this German ERP on a mature system with various benefits.

SAP indicated various suitable partners to implement such a project within a company with the characteristics of Innova, which at that time was a State enterprise. SONDA IT was awarded the tender from a list of eight bidders, as it complied with all the legal and procedural requirements, and presented the best financial proposal.

Meanwhile, Innova formed an executive committee to ensure that the project would be successful, which received training in SAP to clearly understand the issues involved and be "on the same page" as the project teams. Mr. Pierosan explained that "this meant that our staff could actively contribute to implementing the solution, in addition to being the referential point between the team of ERP consultants and the related business department."

The implementation was originally estimated to begin in September 2013, but eventually started in July 2014. Finally, the project was completed in mid-April, after reducing its estimated duration by approximately 35%. "SONDA was very professional, flexible and fast, when implementing the services, and when making the necessary corrections as incidents arose during project commissioning. We believe that its commitment to the Innova objective was an important factor in the success of the project," added Mr. Pierosan.

As soon as the deployment had been completed, the system stabilization and adaptation phase began. This phase lasted for several months after the activation, as the new model broke various paradigms at Innova, and finished with a contract for SONDA IT remote Application Management Services (AMS).

Currently, around 200 users have access to the system, including both employees and external users. The cost of the SAP ERP implementation was approximately13% below budget and the annual support cost for the solution was nearly 40% cheaper.

SONDA IT believe that the success of the Innova project was due to two reasons. "Among all the projects implemented in Brazil, Innova was most diligent when preparing and processing details that were important to make the SAP project succeed. In addition, our customer's flexibility and commitment to success, combined with their professionalism, were differentiating factors that ensure the success of projects such as this", concluded Fabiano Alves, Business Manager at SONDA IT.

Client Profile

Innova is the first and only Brazilian petrochemical company to integrate within one industrial plant their production lines for ethylbenzene, toluene, styrene monomer and polystyrene, which are essential points in the transformation chain for plastics. In 2005, Innova inaugurated the first Styrenics Technology Center (CTE) in Latin America, where all the processes can be reproduced under the same conditions that customers perform them. The exhaustion of new products, applications and potential segments is developed and tested here.

Business Need

• Implementing the SAP ERP was an long-held desire, as the current system was already outdated and had been extensively customized.

• The IT department had suppressed its needs after years of waiting to implement an up-to-date system.

• The software previously used required a massive structure and was very costly to maintain.

Benefits

The synchronicity between the Innova and SONDA teams enabled the ERP to be implemented in 35% less time than expected.

• The SAP ERP took the company to a new level of governance and compliance, taking advantage of a standardized model with high performance and availability, and lower maintenance costs.

• New processes have been added to the system, eliminating parallel controls.

• Changing the ERP is similar to any organizational change and has contributed to being awarded two prizes for best company in the chemical and petrochemical sector of Brazil granted by the magazines Exame and Amanhã, in addition to being recognized as the ninth best public company in Brazil in terms of IT governance by the TCU (Tribunal de Cuentas de la Unión).

Testimonial

"SONDA was very professional, flexible and fast, when implementing the services, and when making the necessary corrections as incidents arose during project commissioning. We believe that its commitment to the Innova objective was an important factor in the success of the project."

Rafael Pierosan, Information Technology Manager at Innova.