Conares is a UAE based premier producer of quality steel products with an industry presence dating back to 1988. Strategically positioned at a geographic hub where the east meets the west, Conares serves the growing global requirement for steel rebars and pipes with an annual production of over 1,000,000 metric tons carried out at their fully-fledged manufacturing facility. A critical need was identified to upgrade the company’s ERP landscape, which was set up on on-premise datacentres and operating on the older SAP ECC solution (EHP8 for SAP ERP 6.0), supported by an outdated database version (SAP HANA 1.0). In addition, Conares’ ERP version too was outmoded and incapable of leveraging modern, intelligent technologies necessary for maintaining competitive strengths.
To enable the desired transformation of the status quo, Conares’ digitalization partner John Keells IT (JKIT) proposed that the company’s core ERP be upgraded to the latest version of SAP S/4HANA. It was further agreed (based on jointly assessing the needs of Conares) that the entire SAP infrastructure would be migrated to the RISE cloud ecosystem using SAP PCE (Private Cloud Edition). RISE with SAP would provide a comprehensive offering of cloud ERP capabilities along with extensibility of digital collaboration, enhanced analytics and outcome-driven services. As a key supplementary feature, the database version was also upgraded from SAP HANA 1.0 to SAP HANA 2.0. The final, essential touch of the implementation came with the revamping of reporting and analytical layers, which JKIT achieved by utilizing embedded analytics for S/4HANA. In addition, the number of on-premise servers was reduced by adopting SAP BTP offering for Adobe Forms services and Document Management services, with the intent of supporting Conares to reduce its total cost of ownership (TCO).
In simply transitioning to a cloud-based ERP landscape, Conares realized massive savings on hardware and systems maintenance expenditure. Costs were now directly attributable to only SAP services consumed. And, by not having to manage owned infrastructure, the company could fully focus on its digital transformation journey, planning for more ambitious technology adoptions such as IoT integration in building towards the vision of a ‘Smart Factory Operation’. The improvements made to the analytics/reporting aspect of the business through digitalization, allowed Conares to expand their mobile footprint and data-mining capabilities. More agile and responsive to volatility than ever before, the company could address opportunities and threats with remarkable speed, all through a seamlessly interlinked and accurately informed operational process.