When a small company dares to do something big with SAP

Let's assume that in the course of your life you encounter a product again and again and know its advantages: Would you then use it in your own company? He didn't hesitate for a second: Pietro Pignatiello, owner and CEO Pi2Process AG. The SME with 20 employees in Freienbach, which emerged from a succession arrangement in September 2016, manufactures mechanical components mainly from aluminum, non-ferrous metal, plastic and assembles subassemblies up to entire devices. These are delivered to Switzerland, overseas and Asia. It is also the only supplier in Switzerland to specialize in 3D hybrid additive manufacturing - a new dimension of 3D printing. "On my long career path, I have already led five different ERP-systems. For my own company, I chose SAP because it's the only solution that guarantees proven standard processes and a small company doesn't have time to question them," says Pietro Pignatiello. Only with standardized processes is there fast and efficient processing. As a man of action, he also immediately renamed his newly acquired company, consistently aligned it with processes and decided on a new location in order to better implement the process idea in the material flow as well as in the way of working with the machinery.

Project management and an SAP template

Just a few days after taking over the company, Pietro Pignatiello started working with the IT service provider GIA Informatik AG from Oftringen. Why didn't he perform an actual ERP evaluation? "My evaluation was my career path. GIA and I had been in contact several times in the past. The open communication, the mutual trust, the competent project manager and the people behind it convinced me. In addition, I knew that with 'gia//fertigung' the company had a proven SME template with best-practice processes from SAP."

The 75 Days Project

In just 75 days, GIA was to complete the implementation of SAP ERP on HANA "from the socket". Is this even possible? In such a small company? "Supported by Pietro Pignatiello, we paid attention to rigorous compliance with the SAP standard and lean SME project management in precisely defined phases right from the start," says Thomas Burkhardt, Account Manager GIA Informatik AG. "In September 2016, we set up the system in our data center and imported our template." In parallel, GIA created the delta functional concept, in which the deviation from the SAP standard processes is recorded. Then it was off to the implementation phase with user training and data transfer. The go-live took place at the end of December 2016 - just within the set deadline.

New processes as unknowns

One difficulty was the requirement that employees master the new SAP processes within a short period of time. What to do? From the very beginning, Pietro Pignatiello inspired his employees with enthusiasm for the chosen path. He always stood by their side, continuously trained them, and thus took away their fear of the unknown. "Whereas improvisation and a hectic pace were the order of the day in my company before, the standardization and structure of SAP now came into play," explains Pietro Pignatiello.

Big benefit for small company

The example shows that SAP also works in small companies. Pietro Pignatiello: "Our customers, SMEs with 200 to 1000 employees, often work with SAP themselves. That's why they really appreciate the exchange at eye level. They know that SAP guarantees expertise, is standardized, transparent and traceable. The trust in these qualities is palpable." Investors such as banks are also happy to have a partner with an up-to-date ERP system, as the reported key company figures can be presented transparently at any time.

Tips for other companies

What advice does Pietro Pignatiello give to other SMEs who are thinking about ERP?

• Even as an SME, invest in a professional ERP system. If you make the calculation including process benefits over the entire service life, almost every price is put into perspective.
• Take a pragmatic approach right from the start. Invest your money in a standardized and, above all, end-to-end ERP solution such as SAP. Because the as-is state is a non-goal; the way is the goal. This eliminates the need for a costly and time-consuming formal evaluation.
• SAP has high-level integrated standard processes across the entire value creation process and cash flow. Build on it.
• Rely on a partner with professional and human competencies. Only when you speak the same language can such a plan work.

Distinction with the Quality Award

This SAP project set new standards. For this reason, the Schwyz-based company won the SAP Quality Award in the "Fast Delivery" category in spring 2017. "Together, we have proven that we are able to implement such a project leanly and successfully due to the right attitude," Thomas Burkhardt explains.

Pi2Process is currently refining and training the standard processes so that it can, for example, carry out capacity planning even more precisely. In addition, many other automations are in the pipeline. "In this way, we ensure even better internal transparency and even faster processing," emphasizes Pietro Pignatiello.

Facts - the most important in brief

• Objectives:
  • Ensure maximum process reliability as well as logistical and financial transparency at Pi2Process
  • No server landscape at Pi2 Process AG; "delivery ex socket".
  • Prove that the approach with the "gia//fertigung" template works even for very small companies
  • Carry out reference project with SAP at a company with 20 employees
• Effort:
  • 46 consultant days until go-live, another 19 consultant days for additional processes as well as optimizations in phase two
  • Pi2Process: Three people (CEO, Finance, Operations)
  • GIA: Six people (project managers, consultants: order processing, purchasing/materials management/production, finance/controlling, forms/labels, technology).
• Project flow:
  • Set up SAP system and import the template "gia//production": September 2016
  • Delta subject concept: Parallel in September 2016, completed in October 2016.
  • Realization: Set up process deltas, train users, transfer data in November and December 2016
  • Go-Live: End of December 2016
  • Lead time: 75 working days
• Infrastructure/Software/Hosting/Operations:
  • Use of "SAP from the socket" from the SAP Cloud@GIA in the GIA Datacenter, operated on shared SAP HANA system
• Total cost:
  • All-in fee for infrastructure, hosting, operation, licenses, maintenance, solution and project: cost per user and per month is equivalent to leasing a mid-range car

• Achieved goals:
  • Project was implemented to the previously defined extent, at the pre-calculated cost, in the agreed time and quality
  • Customer and consultant proved that an SAP project can be implemented very leanly even for small companies
  • IT and ERP lay the foundation for a business that can grow
  • Winning SAP Quality Award in the category "Fast Delivery" at SAP Forum 2017

More information: GIA Informatics