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Aiming for global growth, specialist manufacturer Phillips Carbon Black Limited realized many of its existing processes could not scale cost-effectively. The company engaged IBM® Services™ to move from SAP ERP on-premises to a next-generation SAP S/4HANA® platform hosted on AWS, creating an integrated, scalable, fully digital business
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As it prepared for rapid global expansion, Phillips Carbon Black Limited recognized that tight, central control of scalable processes would be vital to maintain operational cost-efficiency as the company grew
One of the world’s largest producers, Phillips Carbon Black Limited (PCBL) has set its sights on global industry leadership. In recent years, the company has expanded significantly, reaching out to more than 30 countries and identifying great opportunities to grow revenues and market share
However, manufacturing carbon black is complex and resource-intensive, and margins are tight. To achieve its ambitions, the PCBL team knew that scaling operations cost-effectively while retaining excellent business controls would be critical to success
Sabyasachi Bhattacharya, Chief of HR & IT, comments: “PCBL’s Digital Roadmap is to embrace the industry 4.0 concept within the next three years. Our journey to smart manufacturing will involve a strong, strategic focus on the customer experience, which will help us to differentiate our offering from competitors. The end destination is full integration with our customers’ supply chains, enabling true co-creation
“Our back-office workflows, including sales, dispatch and finance, were already digitized with SAP ERP solutions, but the factory floor was still mostly controlled with manual, paper- and spreadsheet-based processes and decision-making.
To solve the challenge, the company decided to digitize its manufacturing operations, wherever possible. By replacing manual processes with automation and digital integration, PCBL could capture and analyze data that would help it fine-tune its manufacturing operations, reduce waste and synchronize production, sales and distribution. Collectively, the aim was to cut costs, improve efficiency and reduce the environmental impact of a very resource-intensive industrial process
Dipan Sengupta, Head – IT at Phillips Carbon Black Limited, recalls: “We targeted a far-reaching digital transformation. The aim was to shape best-practice business processes and control them from end-to-end in a single, integrated platform. This new way of working unites everyone in the business: from manufacturing teams in our factories to marketing and human resources employees in our offices.”
“In the IT department, our primary objective is delivering value to the business, and we were confident that SAP S/4HANA would empower us to spend less time deploying and maintaining the new SAP applications, and more time on development,” explained the PCBL IT team-members. “With our on-premises infrastructure approaching end-of-life, we looked for a high-performance platform for the target SAP S/4HANA environment.”
“ One of the keys to the success of this project was the best practices and accelerators that IBM brought to the table. For example, using the SAP HANA Migration Console developed by IBM, we were able to automate 85 percent of the ABAP to HANA object conversion. ”
— Deepak Kalia, Associate Director, IBM Services
“As well as eliminating the need for significant up-front capital investments in compute, storage and networking hardware, the cloud model provides us with truly elastic scalability—meaning we only pay for the resources we use
Dipan Sengupta commented: “IBM has a truly global presence, and we had positive experiences working with IBM on critical and complex SAP migration projects in the past, which we saw as a key enabler of our long-term growth strategy.
During the journey, as a first step, IBM Services completed a SAP HANA Impact Assessment. This in-depth engagement helped PCBL to identify which of its processes would change after the transition to SAP S/4HANA, what employee training would be required, and which methodology would deliver the shortest time to value
Working together with IBM and AWS, PCBL extensively tested the target SAP S/4HANA environment by deploying a temporary on-premises replica of its production environment. After refining the critical process steps, IBM Services ran a single-step migration from HP-UX to SUSE Linux Enterprise Server for SAP Applications on AWS, simultaneously upgrading from SAP ERP to SAP S/4HANA
The new AWS platform is based on Amazon Simple Storage Service (Amazon S3) and Amazon Elastic Compute Cloud (Amazon EC2) servers with Elastic Load Balancing—ensuring that incoming application traffic is automatically balanced across multiple Amazon EC2 instances. Protected with an additional layer of firewall, IPS & Antivirus security, the AWS cloud DC is accessed by PCBL over Amazon Direct Connect to its wide-area network. Amazon CloudWatch and other tools are used to monitor the applications and cloud infrastructure
“Even though our move to SAP S/4HANA on AWS was a first for IBM at the time, the team was always confident that they could complete the process without any impact on our business users—and that’s exactly what they delivered,” explains Dipan Sengupta
“The support we received from IBM is world-class. There were plenty of early mornings and late nights in the lead-up to our go-live, but whether it was 2 p.m. or 2 a.m., IBM Services was always ready to help.”
By leveraging the IBM Ascend methodology for SAP S/4HANA, which includes the proven workflows SAP S/4HANA Conversion Best Practice, S/4HANA Conversion Process Flow and SAP S/4HANA Conversion Lessons Learned—IBM Services was able to deliver a smooth journey to cloud for PCBL.
Deepak Kalia, Associate Director, IBM Services, comments: “One of the keys to the success of this project was the best practices and accelerators that IBM brought to the table. For example, using the SAP HANA Migration Console developed by IBM, we were able to automate 85 percent of the ABAP to HANA object conversion.
Bas Kamphuis, General Manager, ISVs at Amazon Web Services, adds: “Without a doubt, the strong collaboration between AWS and IBM played a key role in delivering a highly effective solution within an aggressive timeframe.
— Sabyasachi Bhattacharya, Chief of IT and HR, Phillips Carbon Black Limited
By moving to a future-ready foundation for its SAP business systems, PCBL is ready to integrate its operations from end-to-end. The company has already rolled out SAP S/4HANA applications to support its manufacturing, human resources and marketing personnel, and plans to continue to roll out digital processes across its growing business
“Typically, employees would share this information in spreadsheets sent via email, and receive authorization on the same channel. As well as adding significant amounts of time and manual work to the process, this approach made it very difficult to maintain a clear audit trail—increasing the risk of pricing errors slipping through
“With SAP S/4HANA and SAP Fiori® mobile apps, Phillips Carbon Black Limited has transformed its customer quotation process. Today, our sales team submits discounts for management approval via a transparent, digital workflow, all from their mobile devices.
“The business is delighted with the new way of working. Our Chief of Procurement, who regularly travels around the world, told us that he no longer needs to take his laptop with him: he can approve everything via a secure, lightweight SAP Fiori app on his smartphone or tablet.”
On this digital core of SAP S/4HANA, PCBL has now embraced SAP SuccessFactors®, a cloud-based human resource management system with an integrated face-recognition attendance system, to accelerate repetitive workflows such as employee absence requests and travel reimbursement
“All that painstaking work is now a thing of the past. Employees can request time off, reimbursement or even hotel rooms via the SAP SuccessFactors portal or mobile app, which is tightly connected to our SAP S/4HANA solution in the cloud. Better still, we’ve practically eliminated the need for paper. Employees simply take a picture of receipts with their phone, and we retain a digital copy in case we need it for future reference.”
Sabyasachi Bhattacharya adds: “We saw SAP S/4HANA as the ideal backbone to enable our way-forward integrated business planning (IBP), as it is capable of integrating with a wide range of other enabling digital platforms. In line with our vision statement of ‘an exciting workplace to our people’, we have taken a giant leap on HR transformation by connecting SAP S/4HANA with SAP SuccessFactors. IBP will be an important milestone for us in coming years.”
Since transitioning to the latest SAP S/4HANA solutions, powered by the SAP HANA data platform, PCBL is measuring significant improvements in technical performance. The company has compressed its SAP application databases from 500 GB to 170 GB, and now offers 30 percent faster end-user application response times—empowering employees to work more productively
In the past, PCBL relied on tape backups to protect its on-premises SAP application data. It took days to complete a backup, and would have required at least two days of manual work to restore the data in the event of a recovery scenario.
Today, in addition to local automated backups in AWS S3 Storage, the SAP environment in AWS Mumbai is replicated every 60 seconds to a disaster recovery instance based in AWS Singapore. With the low-latency, high-bandwidth connection between the two AWS regions delivering 98 percent faster replication, the company has cut its recovery point objective and reduced the risk of data loss in a recovery scenario. Crucially, the company can now spin up its recovery site in as little as two hours: 95 percent faster than previously possible.
Sabyasachi Bhattacharya continues: “Our collaboration with IBM is symbiotic, and both our businesses have gained great value from this engagement. In supporting our move to SAP S/4HANA in the cloud, IBM has gained valuable practical expertise that will help streamline future engagements. We have already recommended IBM to many organizations who are considering migrating to SAP S/4HANA as part of their digital transformation initiatives.”
Dipan Sengupta concludes: “Our journey with SAP S/4HANA is just beginning, and we’ve only scratched the surface of what the platform can do for our business. By partnering with IBM, AWS and SAP, Phillips Carbon Black Limited is in a strong position to stay lean and agile as we rapidly grow our operations around the world.”
“ Without a doubt, the strong collaboration between AWS and IBM played a key role in delivering a highly effective solution within an aggressive timeframe. Throughout the engagement, experts from IBM and AWS were in constant contact, and that effective collaboration helped us overcome some tough technical challenges along the way. ”
— Bas Kamphuis, General Manager, ISVs, Amazon Web Services
Part of RP-Sanjiv Goenka Group and headquartered in Kolkata, India, Phillips Carbon Black Limited is the largest carbon black producer and exporter in India. With annual revenues equivalent to USD359.4 million, Phillips Carbon Black operates four strategically located, state‑of‑the‑art manufacturing plants in India, and operates in more than 30 countries worldwide
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