Unlocking Business Opportunities at Siemens throug...

atsuko_eguchi · ‎2025 Mar 01

As a global business leader, navigating the complexities of local regulations and market specificities while maintaining a large-scale operation can be daunting. At SAP, we have seen the transformative power of localization — the strategic adaptation of business processes to meet local needs. Today, I want to share how Siemens is leveraging SAP's localization capabilities to streamline its global operations. We had the pleasure of speaking with two seasoned professionals at Siemens: Ms. Andrea Spandau and Mr. Uwe Stuerzenhofecker, experienced transformation leaders in the area of Tax and Customs processes. Their insights provide a deeper understanding of how the company is navigating this transformative process and the critical role of localization in ensuring global success.

Driving Enterprise Success - The Siemens Journey

Siemens serves various sectors, including industry, infrastructure, mobility, and healthcare. As a global powerhouse operating in more than 170 countries and boasting a rich history of innovation and reliability over its 175-year journey, Siemens has consistently adapted to the shifting business landscapes of digitalization and sustainability. The implementation of a clean core ERP system has been a game-changer. By aligning business processes with strategy and maintaining global standards, Siemens ensures lean operations and enhanced focus on delivering customer-centric solutions. This approach not only streamlines internal processes but significantly boosts customer satisfaction as clients experience tailored services that genuinely meet their local needs.

A key aspect of Siemens' transformation is the SHERPA X program, which aims to migrate the company's ERP systems to SAP S/4HANA. This ambitious project involves more than 1,000 legal entities across 60 different ERP systems, with SAP being the primary platform.

The Strategic Role of Harmonization and Localization

Localization is an integral part of the Siemens SAP S/4HANA transformation program. Siemens recognizes that a global template does not fit every country, and local legal requirements must be met. The localization process starts with deciding which country will be localized, followed by the creation of a country-specific blueprint that serves as a basis for future businesses operating in that country.

Siemens has a dedicated localization team that collaborates with regional experts to conduct fit-gap analyses and ensure that the template covers all legal requirements. This process involves a series of workshops and deep-dive sessions, engaging local experts to virtually discuss local legal requirements to be implemented for the end-to-end processes such as lead to cash, purchase to pay and record to report.

Siemens faces the challenge of aligning its vast operations across different regulatory, tax, and business landscapes. The solution? A robust localization strategy encompassed within their Siemens SAP S/4HANA transformation program. Here’s how they do it:

Developing Country-Specific Blueprint: Starting with a baseline blueprint that encompasses all legal requirements of a country, Siemens crafts a foundational layer essential for compliance. This strategic move allows the company to confidently and swiftly enter new markets.
Incorporating Business-Specific Adaptations: On top of this compliance layer, Siemens integrates specific business processes that are crucial for meeting the localized demands. This dual approach ensures that while the global standards are met, the solutions resonate well with local customers. Harmonization, in Siemens’ strategy, means standardizing core processes across the company while ensuring flexibility. The Siemens SAP S/4HANA transformation program focuses on creating a lean ERP core where indispensable functionalities reside, simplifying maintenance and integration of new technologies or processes.
Ensuring Integrity and Consistency: A key aspect of Siemens’ strategy includes employing SAP Master Data Governance (MDG) to uphold data integrity across all their ERP systems. With MDG, Siemens streamlines data modifications which are only permissible in the central system, thereby maintaining consistency across all customer transactions and financial processes. This strategic governance assures that regardless of geographical boundaries, every operation within Siemens aligns with the core business standards.

A Beacon for Global Enterprises

One of the guiding principles of Siemens' localization approach is maintaining a lean ERP core. Siemens’ commitment to a clean core and comprehensive localization not only benefits their operation but also empowers their clients.

Siemens employs a range of SAP solutions, such as SAP Document and Reporting Compliance (DRC) for e-invoicing, SAP Global Trade Services (GTS) for customs and export control, and SAP Business Integrity Screening. These solutions work in harmony with the ERP system, providing a comprehensive and efficient platform for global operations.

The journey Siemens is on serves as an inspiring blueprint for many other global entities. By sharing their strategies and successes, we aim to embolden more enterprises to embrace and leverage localization in their business transformation endeavors. As we continue partnering with companies across various industries and regions, SAP remains dedicated to offering the essential tools and insights required for mastering the intricacies of global operations.

Summary

Siemens' journey towards digitalization and standardization is a testament to the company's commitment to staying ahead in an ever-evolving business landscape. By leveraging SAP's localization capabilities and maintaining a clean core, Siemens is well-positioned to navigate the complexities of global operations and deliver value to its customers.

As the Tax & Customs team continues to drive the specific localization requirements within the Siemens SAP S/4HANA transformation program, they are not only transforming Siemens' internal processes but also setting an example for other global enterprises looking to streamline their operations. The strategies and practices developed during this journey will undoubtedly serve as a valuable guide for other organizations aiming for global success. Through innovative localization and a focus on clean core principles, Siemens is paving the way for a more efficient, compliant, and customer-centric future.