SAP Implementation

The Client

Apple Computer, Inc., designs, manufactures, and markets microprocessor-based personal computers, related personal computing, and communicating solutions. The company’s products are sold to education, creative, consumer, and business customers worldwide. Apple Computer reported sales of $7.98 billion for the fiscal year ending September, 2000.

“Today we have instant access to a wide range of data, from manufacturing to financial. Every day we are discovering new ways to take advantage of this.”

— Niall O’Connor, vice president of information systems and technology

The Challenge

Apple Computer’s business operations were distributed over 16 legacy applications operating on a legacy platform. Apple had a vision for a new business model centered on an integrated supply chain. That vision included the implementation of an enterprise resource planning system from SAP. However, implementation of a large-scale SAP system would typically require two to three years of concentrated effort. That wasn’t fast enough for Apple.

The Solution

Working with BearingPoint, Apple devised an implementation strategy that focused on those SAP functions—finance, sales and distribution, and manufacturing—that would most significantly help its business. The consulting team deployed leading-edge functionality to realize Apple’s new business model:

• Build-to-order and configure-to-order manufacturing capabilities
• Web-enabled configure-to-order order entry and order status for customers buying directly from Apple at Apple.com
• Real-time credit card authorization
• Available-to-promise and rules-based allocations
• Integration to advanced planning systems

In 12 months, the BearingPoint/Apple team replaced 16 legacy applications and Apple’s core legacy hardware platform, linking 80 interfaces to Apple’s new SAP system, including electronic data interchange. Two hundred users participated in data cutover, and 100 Apple trainers educated 1,300 users at 5 sites during intensive 24 x 7 training.

The Benefits

Since its SAP system went live, the company has experienced substantial benefits in many business areas, including having measurable improvements in their manufacturing processes. Build-to-order and configure-to-order cycle times have shrunk by 60 percent, an improvement achieved while processing more than 6,000 orders a day.

Newfound efficiencies have rippled through to Apple’s supply and demand chains. In addition to enabling Apple to keep its finger on the pulse of customer demand, users from across the company are discovering the powerful benefits of access to real-time data.
View/Download the Apple Americas case study (167 KB)