CASA DE MONEDA DE CHILE PREPARING FOR THE FUTURE WITH mySAPTM ERP As the provider for coins, bank

notes, and public documents in Chile for almost 260 years, Casa de Moneda de Chile is repositioning itself as an international producer and service provider. To successfully compete in the global marketplace, Casa de Moneda realized that it needed an ERP system to provide business insight based on high-quality information. The mySAPTM ERP solution has been selected as the strategic tool to optimize employee productivity, improve process efficiency, increase customer satisfaction, and prepare the organization for the future. Casa de Moneda de Chile, the oldest public institution in Chile, is completely owned and directed by the Chilean government. Today, the organization that started as a medieval workshop producing gold coins has more than 500 employees and offers 710 different products in two core areas: the impression of security papers and public documents and the stamping of metal, especially coins and medals. Very proud of its long tradition, Casa de Moneda is by no means an organization entrenched in the past. During its history, the institution has been continuously modernized and has broadened its product and services offerings to public as well as private customers. The exploitation of new markets and the adoption of new technologies have been paramount to Casa de Moneda, and it is not by chance that they are the first public sector enterprise in Chile to deploy SAP solutions. STRATEGY AND ORGANIZATIONAL CHANGES REQUIRE A NEW BUSINESS SOLUTION The decision to implement an ERP solution at Casa de Moneda resulted from the realization that the institution is facing the fiercest business challenges in its history. Globalization also affects public services. Deregulation of markets, especially in the public sector, brings new opportunities as well as new participants. To compete effectively and to capitalize on new opportunities, management decided that it had to adapt the business model. A key element of the new strategy is the expansion to new markets. Casa de Moneda decided to reposition itself from a

national producer to an international service provider, addressing customers in the private sector, such as private banks, as well as governmental entities. To be successful in the global marketplace, Casa de Moneda also realized the need to make the organization and its processes more efficient. ACHIEVING INFORMATION INTEGRATION AND USING BEST PRACTICES To cope with these challenges, Casa de Moneda knew that it must become more competitive. The organization found itself in a highly dynamic market where product quality, production planning, cost control, and competitive prices are essential for survival. Management realized that to face external challenges they would have to conduct an internal review. Information quality was determined to be the critical factor. To make well-informed decisions, we need reliable information in real time. It was clear to us that our IT systems could not provide that, says Alfonso Stier, head of planning and IT at Casa de Moneda. Casa de Moneda had two self-developed systems that were not integrated, which made it very time-consuming to find the appropriate information and distribute it to decision makers. To have all critical information in one system and to deliver it in real time quickly emerged as the main driver for a new system. With mySAP ERP, we were able to design our organization according to approved best practices of successful private sector companies. Alfonso Stier, Head of Planning and IT at Casa de Moneda After evaluating a number of ERP solutions, mySAP ERP emerged as the solution that could best handle the institutions requirements. Management was especially impressed by the functional depth of mySAP ERP, which enables the integration of all information and administrative processes into a single system. The best practices in mySAP ERP provided another important argument. This aspect proved to be of critical importance, given the ongoing organizational changes, with new structures and redesigned processes. MAKING ORGANIZATIONAL STRUCTURE AND PROCESSES MORE EFFICIENT

Within only six months, Casa de Moneda implemented mySAP ERP. The most significant decision of the implementation was to completely replace the previous systems and rebuild the organization around the best practices defined in mySAP ERP. Results of this decision are already visible: the organizational design has been changed and 19 profit centers have been established. Together with selected suppliers, a just-in-time delivery process was established, significantly reducing inventory costs. With mySAP ERP, we were able to design our organization according to approved best practices of successful private sector companies, says Stier, pointing out that this has been pivotal in the transformation from a public service institution to a company led by private sector principles. DELIVERING BUSINESS INSIGHT TO IMPROVE COST PLANNING AND INVENTORY CONTROL The primary goal of the installation has been accomplished: mySAP ERP provides better business insight due to the high quality and availability of business-critical information. This proved to be especially beneficial in the areas of cost control and inventory planning and control: For the first time, it is possible to get a complete overview of all costs and allocate them precisely to each product, enabling the discovery of hidden costs. The precise knowledge of the current inventory status saves costs in daily operations. For example, the production of bank notes requires special paper that has to be imported from Europe, usually by ship. Previously, the lack of inventory monitoring resulted in situations where the paper for an order could not be delivered in time, resulting in a special shipment by plane at considerably higher cost. With mySAP ERP, this issue has been resolved. QUALITY, AVAILABILITY, AND TRUSTWORTHINESS OF INFORMATION IMPROVE PRODUCTIVITY, COLLABORATION, AND CUSTOMER SERVICE In addition to the real-time availability of information, there is another unexpected benefit. Now that business information is delivered to all users desktops through mySAP ERP, the information itself is much more accepted within the organization, improving internal communication and collaboration dramat-

ically. In the past, the planning department had to collect information from various systems and deliver it to the respective departments. Often, the quality of the information resulting from this semimanual process was questioned, leading to disputes between departments. With mySAP ERP providing reliable and trusted business insight, this issue has been removed. Since all functional areas now use mySAP ERP as the common, single source of business information, collaboration between the departments has improved. In addition, a significant increase in employee productivity was achieved as information-gathering resources are freed up to concentrate on business analysis. The benefits of mySAP ERP are also visible to Casa de Monedas customers. Delivery times have been considerably reduced due to improved order management, and the response time to customer requests has been significantly shortened. Because the security paper and coin industry is characterized by nonstandard products, it is essential to react quickly to customers demands for new, individual products. mySAP ERP provides Casa de Monedas customer-facing units with the capability to immediately calculate product cost and determine the final price much faster than before. mySAP ERP PROVIDES ADAPTABILITY TO FUTURE CHANGES Beyond these short-term benefits, there is a strategic rationale behind the implementation of mySAP ERP. Casa de Monedas management is convinced that their organization is prepared for the future and can adapt quickly to changes in a dynamic market environment. Casa de Moneda is an organization in the midst of a period of fundamental transformation internally and in its The broader goal of the mySAP ERP installation is to . . . successfully cope with the present and future challenges that this globalized and unpredictable world holds in store for us. Alfonso Stier, Head of Planning and IT at Casa de Moneda market environment. mySAP ERP provides Casa de Moneda with the adaptability and agility to face future challenges. The broader goal of the mySAP ERP installation is to make IT the driver for the development of this institution, with the over-

arching goal to successfully cope with the present and future challenges that this globalized and unpredictable world holds in store for us, concludes Alfonso Stier. An important element of Casa de Monedas organizational transformation is its long-term strategic commitment to SAP, with mySAP ERP as the backbone of the institutions strategic development. Likely next steps will be the implementation of SAP Business Intelligence, a component of the SAP NetWeaverTM platform, and closer integration with the information systems of Casa de Monedas customers and business partners.