{"id":12496,"date":"2016-05-13T13:08:20","date_gmt":"2016-05-13T12:08:20","guid":{"rendered":"http:\/\/timoelliott.com\/blog\/?p=7780"},"modified":"2021-08-16T18:22:24","modified_gmt":"2021-08-16T16:22:24","slug":"swiss-property-business-model-disruption-with-sap-s4hana","status":"publish","type":"post","link":"https:\/\/timoelliott.com\/blog\/2016\/05\/swiss-property-business-model-disruption-with-sap-s4hana.html","title":{"rendered":"Swiss Property: Business Model Disruption with SAP S\/4HANA"},"content":{"rendered":"<p><a href=\"https:\/\/i0.wp.com\/timoelliott.com\/blog\/wp-content\/uploads\/2016\/05\/swiss-property.jpg?ssl=1\" rel=\"attachment wp-att-7795\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-7795\" src=\"https:\/\/i0.wp.com\/timoelliott.com\/blog\/wp-content\/uploads\/2016\/05\/swiss-property.jpg?resize=690%2C313&#038;ssl=1\" alt=\"swiss property\" width=\"690\" height=\"313\" \/><\/a><\/p>\n<p>I recently had the honor of presenting the keynote at the SAPSA (Swedish SAP User Group)\u00a0<a href=\"http:\/\/www.sapsa.se\/event\/varimpuls-2016\/\" target=\"_blank\" rel=\"noopener\">V\u00e5rImpuls Conference<\/a> in Malm\u00f6, talking about how organizations are using the latest digital technologies to create the disruptive business models of the future.\u00a0You can view and download the presentation here: &#8220;<a href=\"http:\/\/www.slideshare.net\/timoelliott\/enabling-digital-business-in-an-age-of-disruption-61404337\" target=\"_blank\" rel=\"noopener\">Enabling Digital Business in an Age of Disruption<\/a>.&#8221;<\/p>\n<p>While at the conference,\u00a0I attended a great presentation\u00a0by <a href=\"https:\/\/www.linkedin.com\/in\/peeter-p%C3%A4rna-6744675?\" target=\"_blank\" rel=\"noopener\">Peeter P\u00e4rna<\/a>, Founder and CEO of Estonian services company <a href=\"http:\/\/www.intelsys.ee\/en\/\" target=\"_blank\" rel=\"noopener\">IntelSys<\/a>. He\u00a0gave a\u00a0concrete example of how modern technologies like S\/4HANA can help with business model transformation.<\/p>\n<p>His company helped <a href=\"http:\/\/www.swiss-property.ch\/\" target=\"_blank\" rel=\"noopener\">Swiss Property<\/a>\u00a0<span class=\"s1\">implement the first <a href=\"http:\/\/go.sap.com\/product\/enterprise-management\/s4hana-erp.html\" target=\"_blank\" rel=\"noopener\">S\/4HANA Enterprise Management<\/a> project\u00a0<a href=\"https:\/\/news.sap.com\/swiss-property-builds-its-future-on-the-sap-s4hana-enterprise-management-solution\/\" target=\"_blank\" rel=\"noopener\">earlier this year<\/a>.\u00a0<\/span><\/p>\n<p>Swiss Property is transforming\u00a0the residential construction industry with a new disruptive business model based on the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Lean_manufacturing\" target=\"_blank\" rel=\"noopener\">lean production<\/a> techniques that have long been used in other industries.<\/p>\n<p>Labour productivity in construction has been falling since 2000\u00a0across the EU, and residential projects are typically very complex, involving many different organizations and contractors. Each project is a one-off, starting everything from scratch each time.<\/p>\n<p><a href=\"https:\/\/i0.wp.com\/timoelliott.com\/blog\/wp-content\/uploads\/2016\/05\/swiss-property-residential-project.jpg?ssl=1\" rel=\"attachment wp-att-7786\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-7786 size-thumbnail\" src=\"https:\/\/i0.wp.com\/timoelliott.com\/blog\/wp-content\/uploads\/2016\/05\/swiss-property-residential-project.jpg?resize=150%2C150&#038;ssl=1\" alt=\"swiss property residential project\" width=\"150\" height=\"150\" \/><\/a>Swiss Property believes they can pioneer a better approach using a vertically-integrated model. The company manages the <a href=\"http:\/\/www.swiss-property.ch\/group\/property-lifecycle\/?lang=en\" target=\"_blank\" rel=\"noopener\">entire property lifecycle<\/a>\u00a0for high-end residential properties.<\/p>\n<p>The company searches for appropriate plots of\u00a0land in Switzerland, assesses the opportunities,\u00a0and structures a deal.\u00a0It then creates digital 3D conceptual and detail\u00a0designs, which are used to create prefabricated wooden structures in factories in Estonia. These structures are then shipped and assembled on-site, and the completed project sold or leased to customers.<\/p>\n<p>The result is significant cumulative gains at every stage\u00a0&#8212;\u00a0gains in efficiency, time-scale, cost-savings, quality, service, overall end-product and client experience. And the company believes that it can benefit significantly from efficiency savings over time, leveraging reusable\u00a0best-practice processes across multiple projects.<\/p>\n<p>It is akin to the &#8220;mass customization&#8221; models of other industries &#8212; every property is uniquely designed for its environment, but uses\u00a0the same construction system.<\/p>\n<p>The latest digital technologies are core to the new business model.\u00a0Although Swiss Property only has around 100 employees today, it has a relatively complex corporate structure, with multiple entities across\u00a0two countries, and big plans for the future.<\/p>\n<p>With the\u00a0wide range of different activities implied by managing an end-to-end process, the company\u00a0needed a comprehensive ERP system that could handle future growth.<\/p>\n<p>After around a year of analyzing different possible solutions, Swiss Property chose S\/4HANA Enterprise Management, and IntelSys provided a <a href=\"https:\/\/www.youtube.com\/watch?v=3KUWXgm0k-w\" target=\"_blank\" rel=\"noopener\">solution<\/a> to\u00a0integrate it with\u00a0<a href=\"http:\/\/www.autodesk.com\/products\/revit-family\/overview\" target=\"_blank\" rel=\"noopener\">Autodesk Revit<\/a>, an industry standard for 3D\u00a0design and construction\u00a0for collaborative\u00a0<a href=\"http:\/\/www.autodesk.com\/solutions\/bim\/why-bim-and-benefits#explore\" target=\"_blank\" rel=\"noopener\">Building Information Modeling<\/a>.<\/p>\n<p>Implementation of the software as a service took just 2 months &#8212; and that included an end of year holiday period!<\/p>\n<p><a href=\"https:\/\/i0.wp.com\/timoelliott.com\/blog\/wp-content\/uploads\/2016\/05\/end-to-end-swiss-properties-small.jpg?ssl=1\" rel=\"attachment wp-att-7784\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-7784 alignnone\" src=\"https:\/\/i0.wp.com\/timoelliott.com\/blog\/wp-content\/uploads\/2016\/05\/end-to-end-swiss-properties-small.jpg?resize=947%2C510&#038;ssl=1\" alt=\"end to end swiss properties small\" width=\"947\" height=\"510\" \/><\/a>The final solution provides a seamless, end-to-end workflow. SAP ERP provides a single source of truth for the Revit system, with all the master data centrally managed in ERP. Any changes in product design are\u00a0managed with predefined workflows and automatically communicated to related projects.<\/p>\n<p>The result is faster, more efficient\u00a0project delivery, with &#8220;push button&#8221; integration between the systems: S\/4HANA creates a bill of materials and organizes the purchasing and manufacturing through to the final assembly, directly from the 3D digital plans.<\/p>\n<figure id=\"attachment_7781\" aria-describedby=\"caption-attachment-7781\" style=\"width: 690px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.youtube.com\/watch?v=3KUWXgm0k-w\" target=\"_blank\" rel=\"attachment noopener wp-att-7781\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-7781 size-full\" src=\"https:\/\/i0.wp.com\/timoelliott.com\/blog\/wp-content\/uploads\/2016\/05\/intelsys-revit-sap.jpg?resize=690%2C228&#038;ssl=1\" alt=\"intelsys revit sap\" width=\"690\" height=\"228\" \/><\/a><figcaption id=\"caption-attachment-7781\" class=\"wp-caption-text\">INTELSYS Revit Integration with SAP ERP<\/figcaption><\/figure>\n<p>One particularly important selling point of the new system was the new SAP Fiori user experience across desktops, tablets, and phones. Many of the staff are based on projects or in factories, so mobile usage is\u00a0important, and office staff use MacOS computers, so the ability to use ERP functionality via\u00a0browser-based\u00a0interfaces was essential.<\/p>\n<p>Thanks to new technology, Swiss Property has\u00a0created a more streamlined, simpler, and more scalable\u00a0approach to construction, allowing it\u00a0to create high-quality residential projects faster and at lower cost than the competition.<\/p>\n<p>The result is the first step towards &#8220;construction as a platform&#8221; and there is a huge potential to take the concept well beyond existing market boundaries and find new ways of creating value with an ecosystem of new partners.<\/p>\n<p>For more information about the implementation, you can view this video of SAP&#8217;s Rob Enslin interviewing Jaan Saar, Swiss Property&#8217;s Head of Process and IT:<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Swiss Property is using SAP S\/4HANA to transform the residential construction industry with a new disruptive business model. <\/p>\n","protected":false},"author":2,"featured_media":12795,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6],"tags":[290,382,385,386,398,489,560,618,903,911,931,1042],"class_list":["post-12496","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deployments","tag-construction","tag-digital","tag-digital-disruption","tag-digital-innovation","tag-disruption","tag-fiori","tag-hana","tag-innovation","tag-s4hana","tag-sap","tag-saphana","tag-swiss-property"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/timoelliott.com\/blog\/wp-content\/uploads\/2016\/05\/swiss-property-2.jpg?fit=690%2C313&ssl=1","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p3X9RF-3fy","_links":{"self":[{"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/posts\/12496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/comments?post=12496"}],"version-history":[{"count":1,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/posts\/12496\/revisions"}],"predecessor-version":[{"id":20540,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/posts\/12496\/revisions\/20540"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/media\/12795"}],"wp:attachment":[{"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/media?parent=12496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/categories?post=12496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/tags?post=12496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}