McKinsey & Company: Rewiring value creation with Value Finder and SAP
en
Industry
Management consulting
Region
New York, United States
Employees
45,100 employees
About McKinsey & Company
McKinsey & Company, founded in 1926, is a global management consulting firm dedicated to achieving sustainable and inclusive growth.
Our mission is to help clients realize bold ambitions and drive lasting impact. We serve diverse sectors, including healthcare, public entities, and central banks, leveraging technology and data to deliver innovative solutions. We run an intelligent business by investing in knowledge development, strategic partnerships, and advanced analytics, ensuring our clients' success and global progress.
~$20-50m
increase in recurring value (EBITDA)
~$10-40m
cumulative value directly attributable to ERP program
~$50-90m
new value opportunities identified (pending validation)
Why SAP
We chose SAP for our solution partner because of its robust and comprehensive ERP capabilities that are essential for managing complex, multi-site operations across different countries. Specifically, SAP Signavio provides data-driven insights and benchmarks performance against industry and internal peers. The Process Intelligence tool also provides a data-driven approach to discover, analyze, and mine end-to-end processes. McKinsey has been a strategic partner with SAP for many years, leveraging its advanced solutions to drive significant value and operational excellence for our clients. Our long-standing relationship with SAP is built on a foundation of trust and proven success, making it the ideal choice for this transformative ERP initiative. In addition, McKinsey has implemented SAP S/4HANA as its own ERP platform.
Overall use case
Our major chemicals/agriculture client embarked on a $200m SAP S/4HANA greenfield program to integrate SAP S/4HANA, SAP Ariba, and SAP Fieldglass across 30+ sites in 5 countries, targeting Finance, Procurement, Maintenance, Sales, and Supply Chain. Market fluctuations, notably a 40%+ sales drop in 2023, necessitated the validation of their original business case, including proof of value from their pilot S/4HANA go-live. 3 months before go-live, we spent 4 weeks helping the client re-baseline their ERP business case using updated financial data and Value Finder measurements, establish metrics for success, identify additional value opportunities, and offer risk mitigation insights. SAP Signavio suites offer a distinct advantage as they easily integrate with client’s SAP ERP systems and measure process performance-related insights directly from the source. We collaborated with SAP Signavio product team on this project to create distinctive impact for the client.
Use of AI in the project
The Value Finder solution uses Lilli – a McKinsey GenAI tool/platform to 1) summarize process insights based on data points measured by SAP Signavio 2) propose additional digital use cases to supplement McKinsey’s use case library to help clients further drive value capture through various value levers
Outcome
The business case was adjusted based on Value Finder measurements and the latest financial data. This resulted in a projected ~$20-50m increase in recurring EBITDA value and a ~$30m boost in working capital. Additionally, the ERP program itself is expected to contribute ~$10-40m in cumulative value. We identified ~$50-90m in new value opportunities, pending validation, and benchmarked 21 system automation rates. To ensure a smooth transition, we also provided 11 go-live risk-mitigation recommendations. These comprehensive efforts aim to validate the initial estimates and demonstrate the program’s value effectively to executives and board members post-launch.
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