Transition to a new efficient IT operating model to support innovation at SLB
Moving from 1605 Simple Finance and a Partner Managed Cloud
INTERNAL ONLY
Published in 2024/25
Client Synopsis
What did they do?
Why did they do it?
• In December of 2023, we kicked off a four-year brownfield migration from IBM’s Partner Managed Cloud Model using legacy ECC and S/4 Simple Finance (1605) to S/4 running utilizing the RISE IT Operating Model from SAP. • With the 1605 platform coming of mainstream maintenance and softness in the OFS market, SLB needed to find a way extend the time horizon from 2025 and lower the IT budget by 40% in 2023. The SAP board developed a program called “safekeeper” that will extend mainstream maintenance by up to2 years (2027) for a fee as long as the customer agrees to immediately move to the RISE platform. They purchased “Safekeeper” RISE transition package in late 2023 for about 40% of their landscape & will move other components to RISE over the next two years • While budgets and maintenance windows were compelling reasons to partner with SAP, SLB also is going through a huge transition to an Energy technology company where they needed an agile and innovative ERP platform to support the transition.
• SLB needed to extend maintenance window and stretch out the IT spend over several years to successfully complete the technical migration and with the extension they are looking to incorporate selected new innovations (CFIIN, Group Reporting, Transportation mgmt.
• SLB is the largest Oilfield Services (OFS) company in the world. • They run $33B of revenue per year on SAP.
How SAP solved a problem for the customer?
2 things that helped drive the strategy 3 things that helped drive the strategy
Industry
•
Oilfield Services
• “Safekeeper” program enabled SLB to stretch out the migration to 2026 and potentially 2027, however, SLB was required to begin the move the 1605 based ERP platform to RISE immediately.
• Executive Engagement – leveraged CK, D. Robinson, and P. Maier to convince SLB that aligning closely with SAP on RISE was the best long-term solution from a cost and innovation perspective. • S/4 Value – multi-layered value and benefit communication initiative targeting all levels of the organization from SAP starting with the Business Acceleration Program (BAP), developing in-depth Benchmarking/business cases with Value advisory, numerous s/4 simulation games, and numerous workshops/Demonstrations of the power of SAP’s new S/4 Platform on RISE
Region
•
NA, US South
MP Name
• Michael Shomberg MP & Anthony Scuilla IAE
INTERNAL – SAP and Customers Only The team involved: ( roles / names) • Mike Shomberg drove the Executive relationships between SAP (C. Klein, P. Maier, D. Robinson) & SLB and the knowledge sharing across the various value streams; Anthony Scuilla and Ryan Fishman/ GSI crafted and negotiated a win-win deal, Shaun Williams (EA) defined the BOM with the SLB Architects, Rohit Gupta CSD coordinated over 50 Demonstrations, Miguel Franco developed the business cases and value assessments, and Jay Wheeler developed Services proposals that highlighted SAP strengths.
Reference: Y/N • They are not officially in the reference program, however, with advanced agreement they agreed to allow SAP to announce the deal to the analysts. While they are very early in the process, please reach out to the MP for help scheduling. We will work with you to match your audience to the right people at SLB, as there are some that believe SAP forced them to move.
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