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BASF Makes IT Landscape Fit For The Future

By: Dave Gosine

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BASF will continue to standardise its SAP landscape and at the same time harmonise the relevant processes involved until 2008. It will place the IT systems for the most important business processes together and realign them into a uniform SAP standard. This allows systems previously implemented locally, to adjust to the increasing global requirements. In this way, BASF can reduce the expense of its annual operational costs for this SAP system by double-digit millions. Responsible for the implementation in Europe is the IT service provider BASF IT Services, which operates these systems and consequently also knows the interfaces between the applications.

Initially at the end of 2005, the IT subsidiary of BASF created a mutual platform for the accounting and maintenance systems in the BASF plant in Ludwigshafen. So far already, BASF IT Services has transferred 4,000 old customary developments, which have been adjusted in for instance packaging goods, to the SAP standard. This restructure reduces the technical complexities and makes working with the systems much simpler.

At the request of BASF, BASF IT Services has compiled seven business systems from the logistic, accounting and maintenance sectors into finally two standard systems. These are all so-called 'Enterprise Resource Planning Systems' (ERP), wherein a company can organise its business processes in SAP. In the scope of this project, BASF IT Services also brings the systems up to the standard version SAP R/3 Enterprise and provides new functions for example to deal with movements of goods and order requirements.

The 15,000 SAP users in Europe are almost unaware of the change because BASF IT Services makes sure that the systems remain available at all times.

"Step by step we are moving towards providing one of the most modern and flexible IT structures in the world. We are actually now laying the foundation, which will enable the BASF AG to be able to integrate its IT systems into one ERP system," explains Andrew Pike, Director of the BASF Competence Center Information Services. "This type of IT structure can adjust flexibly to any organisational changes made in the company."

"Realising the company strategy, with the support of IT, is of prime importance. It creates competitive advantages. We live the strategy of BASF and help our customers to be even more successful," says Wolfgang Erny, speaking on behalf of the Board of BASF IT Services. "Not only do we run the systems but also we work together with our customers on solutions suitable for the future. As full service IT provider, we offer complete solutions from one source, spanning consulting, conception and implementation, as well as operating the systems."

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