Transforming from an AS400 to a Modernized ERP System in a Multinational Corporation

Background

An outdated AS400 system was crucial for all Enterprise Resource Planning (ERP) processes in a major multinational corporation. This aging system, which used to be essential for business operations, was hindering the company's expansion because of its lack of integration, real-time data processing, and scalability.

Problem

The main issue was the operational inefficiency caused by the AS400 system. This resulted in longer operational processing times and higher maintenance costs. The system's lack of integration with modern technologies and absence of support for advanced data analytics were major disadvantages. These constraints were impacting the company's strategic flexibility and its competitiveness in a fast-changing digital market. 

Plan

A strategic overhaul was deemed necessary to breathe new life into the company's ERP framework. The comprehensive plan included the following key components:

Comprehensive System Audit

A thorough evaluation of the existing AS400-based ERP system to identify shortcomings and areas for improvement.

ERP Software Selection

Carefully selecting a modern ERP software that aligns with the company’s current objectives and future growth strategies.

System Integration:

Seamlessly integrating cloud computing and AI technologies with the chosen ERP software to elevate operational capabilities.

Automated Workflows

Implementing automation solutions across critical business processes to boost efficiency and accuracy.

Employee Training and Support

Developing customized training programs to facilitate the transition to the new system and provide continuous support to enhance employee engagement.

Iterative Monitoring and Feedback Loops: Establishing systems for ongoing monitoring of the ERP system's performance and incorporating feedback to drive continuous improvements.

Solution

The solution involved retiring the AS400 system and transitioning to a cutting-edge ERP system with the following specifics: 

Modern ERP Software

A cloud-based ERP solution was implemented, ensuring high scalability, easy updates, and global accessibility. 

Advanced Technology Integration

The new ERP incorporated artificial intelligence for predictive analytics, cloud computing for on-demand resource scalability, and IoT for real-time monitoring and decision-making. 

Robotic Process Automation (RPA)

Key repetitive tasks such as data entry, payroll processing, and order management were automated, drastically decreasing the need for manual input and reducing error rates. 

Comprehensive User Training

Custom training modules were developed to help employees understand the functionalities of the new ERP, emphasizing efficiency and technological literacy. 

Ongoing System Optimization

A robust system was put in place for monitoring ERP performance metrics with real-time analytics to ensure continuous improvement. 

Results

Enhanced Operational Efficiency

The processing time for orders was reduced by over 50%, with RPA handling most standard operations. 

Cost Reduction

Operational costs decreased by 45% due to lower maintenance requirements and fewer manual interventions. 

Increased Scalability

The cloud-based ERP adjusted dynamically to fluctuations in data traffic and user demands. 

Advanced Analytics

The integration of AI and  enabled the extraction of actionable insights from vast data sets, enhancing decision-making processes by 60%. 

Boosted Employee Productivity

Automation liberated employees from repetitive tasks, allowing them to focus on strategic initiatives, thus increasing productivity by 40%. 

Conclusion

This case study exemplifies how a comprehensive ERP transformation can revitalise a multinational corporation's operations, dramatically enhancing operational efficiency, scalability, and market responsiveness. 

* Client confidentiality is of utmost importance to us. Although we have did not mentioned their names, the outcomes remain authentic.