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Shapoorji Pallonji Digitally Transforms to Drive Sustainable Growth and Engineer a Better Planet

Leading Indian delivers a scalable, integrated business technology platform for increased agility and continued innovation

Shapoorji Pallonji and Company Private Limited is a leading global, diversified organization in with interests in and construction, , real estate, water, energy, and financial services. For over 150 years, the company has been delivering sustainable solutions to engineer a better planet, including building some of ’s most iconic landmarks. The company has experienced massive growth over the last five years, expanding into new business areas and dramatically growing its engineering and construction division in terms of project size, geographical reach, and revenue. With more than 200 projects in progress at any time and distributed across regions, Shapoorji Pallonji needed a robust, flexible, and scalable digital platform and processes that could more effectively and efficiently manage operations. As partners throughout its journey, SAP delivered not only cutting-edge technology but the ongoing guidance, support, and confidence needed to champion its digital transformation and drive the business forward. Customer First Success Story | Engineering, Construction, and Operations | PUBLIC

Customer Established in 1865, Shapoorji Pallonji and Company Private Limited is a global, diversified business conglomerate with headquarters in Mumbai, India. Its 18 major companies offer end-to-end solutions in six business segments including engineering and construction, infrastructure, real estate, water, energy, and financial services. With a strong workforce of 70,000 people, Shapoorji Pallonji serves clients in more than 70 countries with a focus on governance and sustainable development. The company is known for building megastructures and iconic landmarks, as well as delivering innovative technologies in water management, renewable energy, oil and gas, and power. 7 days For monthly financial close, down from 25 days Objectives To reach its goal of doubling its revenue by 2020 and expanding into international markets, Shapoorji Pallonji needed to: • Implement a scalable, flexible, secure, and robust platform that could support business transformation initiatives and continuous innovation across its diverse businesses Single • Equip employees with cutting-edge, integrated technology and increase automation to enable business excellence and Source of truth with a central increase efficiency • Deliver an enhanced, consistent user experience using the latest UI features and ensuring high availability (zero downtime) digital platform and integrated for improved employee productivity business processes • Accelerate reporting processes to provide timely insights for data-driven decision-making 15% Challenges Increase in application Before its digital transformation, Shapoorji Pallonji experienced: development productivity • A heavily customized legacy ERP solution lacking the integration and scalability required to expand into new business sectors • Reports that were static and took days to generate, offering little insight without significant manual analysis of data • Time-consuming financial close and consolidation across businesses • Mundane tasks and paper-based processes that reduced employee productivity and process efficiency 20% • No common HR platform or standardized processes to allow for the harmonization of HR practices across regions Reduction in annual effort for • Management of HR activities using spreadsheets and e-mail, and manual collection of employee documentation access management “SAP was always by our side in the entire journey, providing us the required boost whenever required. The SAP team is determined to ensure that Shapoorji Pallonji achieves its desired business outcomes by effectively using SAP solutions and leveraging available support services. Whenever we face challenges, I know that there is someone in the background working for us, and they will definitely come up with a solution.”

Manoj Bhoota, Vice President IT,

Industry Employees Revenue Featured Solutions and Services Shapoorji Pallonji and ® ® Company Private Limited Engineering, 70,000 INR 527.5 billion SAP SuccessFactors solutions, SAP Business Suite construction, (US$7.4 billion) powered by SAP HANA®, SAP S/4HANA®, SAP Analytics Mumbai, India ® ® www.shapoorjipallonji.com and operations (2019) Cloud, SAP Cloud Platform, SAP BW/4HANA , SAP Fiori® apps, Identity Authentication, and SAP Enterprise Support services Through its massive digital transformation, Shapoorji Pallonji has achieved the flexibility and agility needed to support continued innovation and business growth, and it gains: • Increased efficiency in reporting by removing manual intervention and the ability to give critical regional insights for faster, more informed decision-making across the business • An accelerated monthly financial close process, from 25 days to 7 days, and a near real-time view of financial performance, providing more timely reports to the CFO • Improved visibility of project health and delivery of quarterly cost-to-complete analysis (as opposed to every six months) to better understand cash flows, forecasts, and profitability • Increased employee productivity by reducing mundane and paper-based tasks and shifting efforts toward value-adding activities • A single source of truth with a state-of-the-art technology platform that integrates end-to-end business processes • Analytics across the entire procure-to-pay cycle, which provides greater visibility leading to smarter procurement decisions and reduced inventory levels • An enhanced user experience with seamless access to applications and a significant reduction (20%) in the annual effort of the access management team in resetting passwords across various applications for a large user community (10,000+ employees) • Harmonization and digitalization of HR processes across businesses and a single platform for the hire-to-retire process, resulting in an enhanced employee experience, increased productivity, more effective recruiting and onboarding, and reduced attrition • The ability to deliver an e-procurement platform or vendor portal in just four months, which helped streamline and automate vendor engagement and purchase orders for an anticipated reduction of the procurement cycle (at least 50%) • Increased development productivity (15%) and higher availability of applications, increased security, and reduced risk of code loss using the latest development toolkits

“Today, decision-making is based on the analytics that we are providing. Previously, we were not able to create a regional comparison, and we now have that information. That is the kind of drastic change that we are having.” Manoj Bhoota, Vice President IT, Shapoorji Pallonji Group To become an intelligent enterprise, Shapoorji Pallonji used an integrated suite of technologies from SAP’s Business Technology Platform, including: • A robust core and central system of record to enable end-to-end business processes and accelerated reporting • Advanced analytics and a single snapshot of business performance and project health to make more timely, informed decisions using SAP Analytics Cloud and SAP BW/4HANA • An end-to-end platform for digitalization of HR processes with SAP SuccessFactors® solutions • Faster, more efficient development of SAP Fiori® apps using SAP Cloud Platform and SAP Web IDE • Seamless authentication of more than 7,000 users across several integrated applications enabling greater security with the Identity Authentication service

Partnering with SAP Using a Customer First Approach “Any new initiative is very well supported by SAP, and it brings in a sense of belonging. We have very good success stories that would not have been possible without SAP services,” says Manoj Bhoota, vice president of IT at Shapoorji Pallonji Group. SAP was instrumental in establishing stakeholder confidence, resolving issues, and advising the business on new technologies and capabilities that align to its strategic vision.

The customer engagement executive helped ensure desired business outcomes were reached by providing continuous guidance and connecting Shapoorji Pallonji with the right people and services. “SAP was always with us. We made our customer engagement executive a permanent representative in our steering committee. Having SAP there bolstered stakeholder confidence levels.”

When introducing new products, SAP arranged several workshops to help the team understand product functionalities and optimal solution configurations. SAP wholly supported Shapoorji Pallonji’s decision to manage the migration from SAP Business Suite powered by SAP HANA to SAP S/4HANA internally. Experts from SAP Enterprise Support provided technical recommendations on the road map, conducted a downtime assessment, and provided a sandbox for a pilot migration. When challenges arose, SAP provided quick resolution through its expert chat, support tickets, and an SAP support engineer who would conduct detailed analyses of the issues. The maintenance manager and SAP Enterprise Support also advise on new functionality, nodes, and patches and help evaluate system performance.

SAP also enabled Shapoorji Pallonji to remove shelfware, which is not part of its road map, and procure solutions that will support its transformation journey using SAP’s on-premise and cloud extension policy. “Without SAP’s support, it would be very difficult to embark on any new journey. I'm quite happy and satisfied that whatever journeys we have taken to date with SAP, we have been successful,” remarks Bhoota.

Image Credit | Shapoorji Pallonji, Mumbai, India. Used with permission. Role of Change Management in Shapoorji Pallonji’s Transformation At the start of the transformation, SAP arranged workshops with stakeholders to understand key functionalities, technology trends, and how other companies in its industry are innovating. Adopting a “first get convinced and then convince” approach, the IT team conducted pilots to validate the road map and increase adoption with minimal disruption. Shapoorji Pallonji carefully analyzed the solution capabilities, including the scalability, flexibility, and benefits they offer, and mapped those offerings to its business vision and objectives.

“With any application, it's a big change, and we have to change the mindset of the individuals. Without the support of key stakeholders, we cannot be successful. It’s a business transformation and not an IT transformation,” says Bhoota.

Effective and consistent communication to all stakeholders at various levels of the organization explained the benefits of the impending changes for the company and for individuals. Frequent e-mail communications helped keep the community both continuously engaged and also mentally and psychologically prepared for the change. Key stakeholders participated in regular steering committee meetings and weekly reviews.

Other change management activities critical to the success of the transformation included: • Involving key stakeholders such as board members and business process owners to build a common understanding of and confidence in the changes • Understanding the challenges of end users and their early involvement in the project, which created a sense of ownership and inclusivity • A champion per region that participated throughout the implementation, from requirements gathering to user acceptance testing • Train-the-trainer sessions and regional training to educate users on the new technology and processes both before the solutions went live and one or two months following the deployment as a recap course • A support system that provided immediate assistance with the application and prevented user frustration

Lessons Learned on Shapoorji Pallonji’s Digital Transformation Journey • Take the time to build stakeholder confidence and bring them along on the journey to avoid surprises • Reduce change management challenges using informative and innovative communications to the user community as the go-live approaches • Pilot new capabilities with a small user community first, to minimize disruption and address technical issues early What’s Next? With the success of the partnership with SAP, Shapoorji Pallonji plans to continue its digital transformation with a migration to SAP S/4HANA. The company anticipates that SAP S/4HANA will provide access to new finance and analytics functionalities, enable further simplification of its IT architecture, and increase flexibility, speed, and scalability, setting up the company to take advantage of future innovation.

“As IT people, we have to be self-motivated and keep on improving. At the same time, whatever we're doing should benefit the business. SAP is helping us to manage this balance,” says Bhoota. Driven by a “hunger to excel,” Shapoorji Pallonji, with the help of SAP, will leverage its strong digital foundation to continuously innovate and explore new technologies that will enable even greater efficiency and business growth. Bhoota continues, “The core is now in place. Extending the functionalities of the core using SAP Cloud Platform is also in place. We are into mobility as well. Analytics is giving us the right information at the right time. Now we are looking forward to the adoption of technologies like conversational AI and the Internet of Things ( IoT), which now touches upon improving core processes at construction sites.”

Shapoorji Pallonji plans to use IoT sensors for material and equipment tracking across project sites, monitoring key parameters such as equipment efficiency and availability, fuel consumption, and consumption of steel and cement. The company also plans to use the IoT to gain a clearer view of the thousands of people working on-site, to make more efficient use of resources and ensure worker safety. Conversational AI will help assist employees with simple HR tasks, such as determining available vacation days, reducing the volume of queries for HR administrators, and providing convenience to employees. Finally, Shapoorji Pallonji is looking into robotic process automation for automation of vendor invoicing and other IT and business processes. Follow us

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