Release

The Synergy
to Move Forward
Release
June 12, 2020

ABM Investama adopts data analytics to drive efficiency, cut waste and respond to volatile market conditions with IBM

Click to Enlarge

IBM Indonesia and ABM Investama today announced the successful completion of the mining-focused investment company’s digital transformation project which aims to augment its analytics capabilities, improve time-to-insight and enhance operational efficiency.

The project, which was completed in just six months, saw IBM Services working with ABM Investama to accelerate the company’s migration to SAP S/4HANA from a previous SAP software system which had reached end-of-life, enabled by IBM Rapid Move service for SAP S/4HANA.

ABM Investama estimates it can now access crucial insights 90 percent faster; create key asset management reports in 40 minutes instead of seven hours. Through selective data migration and data cleansing from the previous system to the new one, it reduced the size of its database by 85 percent and consolidated company codes in SAP software by 47 percent1. Faster insights and reporting mean that ABM Investama is able to respond more quickly to market changes and protect its margins.

With more than 15 integrated subsidiaries focused on mining, services and infrastructure, integrating business processes is critical to the management of ABM Investama’s group-wide costs. Executives pay close attention to fluctuations in energy prices, and constantly monitor supply chain issues. To enhance the reporting process, the company embarked on a digital transformation program. ABM Investama decided to transition to the next-generation SAP S/4HANA suite to help reinvent business processes while upgrading its enterprise systems for greater efficiency and improved business outcomes.

Delivered by IBM Services, IBM Rapid Move service for SAP S/4HANA is built on IBM’s decades of experience in large-scale SAP software deployments and SAP Integrated Delivery Framework to help accelerate migration to SAP S/4HANA with minimal risk. The offering leverages standardized templates to deliver an agile, automated transformation approach and provide the ability to cleanse, merge and consolidate full or partial historic data so businesses can leverage and transform existing ERP investments for a fast path to SAP S/4HANA. It also integrates SNP CrystalBridge software from SNP Group to create a highly automated migration, enabling enterprises to move to the latest in-memory platform without the need for multiple migrations and deployments.

Mr Doni Syamsurianto, Chief Information Officer, ABM Investama said: “The approach leverages the power of software automation together with unparalleled visibility and analytics, allowing us to get the business benefits of SAP S/4HANA efficiently, ensuring we don’t have to wait years to build up enough historical data for the analytics to work. This method thus delivers quick return on investment, increased business continuity, agility, a lower total cost of ownership, improved governance and compliance.”

Decision-makers ranging from managers to senior leaders across ABM Investama subsidiaries now have access to reporting dashboards in SAP S/4HANA. Company executives can also access SAP S/4HANA on their mobile devices to perform tasks such as approving purchase orders and maintenance requests for mining machinery. The enhanced visibility of operations across the group makes it easier for ABM Investama to identify potential supply-chain issues and scale production up or down accordingly.

Although its journey with SAP S/4HANA is just beginning, ABM Investama is already targeting significant efficiency improvements in key process areas. For example, the company expects to cut its month-end closing process less than 10 days, freeing employees to spend more time on value-added analysis.

Tan Wijaya, President Director, IBM Indonesia said: “To accelerate its position as a leading investment corporation, ABM Investama embarked on a large-scale business transformation program. The implementation of IBM’s Rapid Move meets the company’s requirement to leverage its existing investment while providing greater flexibility for its business to fast forward its digital transformation which is part of the overall business transformation. With the selective data migration, ABM reduced its database size, increased its performance through SAP S/4 HANA and provided them with high system availability for near zero downtime on its transformation.”