Insurer IAG paused an SAP migration to map 300-plus processes. It cleared 40% of its company codes before migrating data.
Prashant Shetty runs digital finance at Insurance Australia Group (IAG).
He told the SAP NOW AI Tour in Sydney that the move from SAP ECC, SAP's older business software, to the newer S/4HANA has run "for a few years" and is still going. iTnews reported his comments on 26 October.
The project began because support for ECC is coming to an end. It also had to meet IFRS 17, the accounting standard for insurance contracts. Then AI changed the plan. "That gave us an opportunity to take a pause," Shetty said.
IAG mapped "300-plus" finance processes with SAP Signavio, a process-mapping tool. It cleared 40% of its company codes, the separate sets of books a company keeps in SAP, often one per legal entity. Shetty says that reduced the data to move and already sped up the month-end close.
"AI cannot drive value in itself," he said. The data and the process come first.
Our reading: the first saving came from data IAG no longer has to move. The iTnews report gives no go-live date, no cost and no figure for how much faster the close is.
Sources
Our file on IAG
All 2 IAG storiesFor your next steering committee
- 1Ask which design decisions in your programme would be expensive to reverse, and when each was last reviewed.
- 2Ask which expected benefits change if the implementation approach changes.
- 3Ask who owns a decision to change course, and where it would be recorded.
Issue 01 of the ERP LEADERS brief puts a timeline, the three-number review and six questions on one page. Read issue 01
Welcome back. · Issue 01
