Supporting the transformation of business with global-standard systems infrastructure. Stories from behind the scenes of the ERP system renewal project and the sense of reward that it gives, as discussed by staff working on the next-generation core business (ERP) system

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With the promotion of DX, expectations are growing for the appropriate use of information about companies’ management resources. At Chugai Pharmaceutical as well, a program called “ASPIRE” is under way to update the core business (ERP) system to integrate and make efficient use of such information and implement company-wide business process reforms simultaneously.

We interviewed two employees who are leading this program and who are also SAP specialists. We asked them about how business will change with ASPIRE, how they actually are proceeding to update the ERP system, the skill sets required of employees involved in the installation of systems, and the sense of reward they find in their work.

*Reproduced from Chugai Pharmaceutical’s official Note website (https://note.chugai-pharm.co.jp/) Article details and employee positions are current as of April 2024.

The significance of ERP’s existence in companies —What kinds of roles does ERP play for companies?

Nakamura: ERP stands for “Enterprise Resource Planning,” and it is a system whose purpose is to manage information about an enterprise’s resources, such as its people, goods, money, and information, centrally, and use that information for efficient enterprise management. By bringing together in one place all of the information that is scattered throughout different parts of the company, it ensures the immediacy and consistency of information, making it possible to formulate management strategies efficiently and effectively.

 ERP is sometimes likened to the spine in the human body. The spine supports the body, connects the body’s various parts, and centrally controls the movement of the body. The stronger the spine, the healthier the body is and the more actively it can move. Similarly, the more resilient and high-functioning ERP is, the smoother the enterprise can conduct its business and the more it can speed up its business transformation.

 

—What kinds of benefits does the introduction of ERP bring?

Osawa: With the introduction of ERP, data that was previously siloed across different systems and business operations is integrated, and the real-time availability of all information is improved. For example, when a product is purchased, all of the related data in sales, inventory, accounting and elsewhere is updated in real time across the different divisions, so that all data within the enterprise can be kept up to date.

For companies that must respond swiftly to changes in the business environment, the centralized management of all of the latest information concerning management is critical to making the best decisions in the quickest time.

ealizing the business transformation at Chugai Pharmaceutical: Business process renewal program “ASPIRE”

—What exactly is ASPIRE?

Nakamura: ASPIRE is the name of a program that, taking the opportunity of the upgrading of our current ERP system, SAP, to the latest version, S/4HANA, will transform Chugai Pharmaceutical’s business processes for the next generation, enabling the efficient and effective conduct of business operations. Our unique business model based on the strategic alliance with Roche in Switzerland is one of Chugai’s most distinctive features, and collaboration between the IT owned by the Roche Group and Chugai Pharmaceutical’s IT is being pursued in a variety of systems. Of those collaborations, ASPIRE is the program with the largest scale.

 

Osawa: When viewed from a systems perspective, the integration and centralization of the information of all companies in the Roche Group will result in smoother collaboration across the Group. Currently, in the individual Roche Group companies, there are multiple business systems that have been optimized for the individual companies, and because information coordination among these systems has been insufficient, valuable data is dispersed across the Group. By integrating these existing systems, we can access the necessary data swiftly when it is needed, reducing the time spent on collecting and organizing data.

 

Nakamura: Because Chugai Pharmaceutical’s systems are being completely overhauled, operational flows will change significantly. To build up the ideal business processes for the future, we have taken an end-to-end view of the processes that cut across multiple business areas and organizing them based on a globally standardized business process framework. By reviewing business processes that tend to be partially optimized and designing the ideal processes from the perspective of total optimization, we will be able to align the entire Roche Group’s operations into a global standard of high quality.

ASPIRE is too massive to fit into the framework of a mere “large-scale systems introduction project.” It is a program that will become the foundation for Chugai Pharmaceutical’s business of creating pharmaceuticals and other new value and swiftly delivering them to people all over the world, and play a role in our digital transformation.

—What are your roles in ASPIRE?

Nakamura: To identify the systems that will remain necessary even after the introduction of ASPIRE, such as legal responses, I work with the operational divisions to ascertain their current functions and compile their operational requirements. I also ascertain those operational processes that are globally defined and compare them with current processes, considering the ideal vision after ASPIRE’s introduction together with the operational divisions. In addition, as a project related to ASPIRE, I am involved in a project to switch the data integration pathways with financial institutions to ensure that workloads do not increase significantly just before the system goes live.

 

Osawa: My role is to lead efforts to organize specifications for inventory and purchasing management, production planning, and business-related areas and to maintain data quality during data migration. Currently, our organization has many peripheral systems that are integrated with SAP. Together with Roche staff and Chugai Pharmaceutical teams, we are considering the optimal state of systems after the introduction of ASPIRE and the appropriate system options.

With the expansion of integration of systems with S/4HANA, the volume of shared data will increase, and the maintenance of data quality and consistency will become even more important. For this reason, I am working on the organization of master data and reporting requirements to enable the use of accurate and consistent data by all systems.

 

—What kind of reward do you feel in your work?

Osawa: I feel an immense sense of reward in participating actively as part of the Japan team for the ERP project that is being undertaken on a global scale. As an IT systems officer, the ability to be involved in such a large program represents an invaluable opportunity to take maximum advantage of my skills and experience, and, while it is challenging, the sense of fulfillment is immense.

 

 Nakamura: There is a real sense of fulfillment in working on such a valuable project that involves the fundamental review of business operations that have been cultivated over time. I feel a sense of reward in being able to put my own experience to date to use in such an invaluable opportunity. The opportunities to collaborate with the people from Roche have also been stimulating.

Career paths and high-performing personnel

—What are your impressions of the career path for IT systems personnel at Chugai Pharmaceutical?

Osawa: One thing that surprised me when I joined Chugai Pharmaceutical was that it has developed an environment in which people can take on a variety of challenges regardless of their background. I had imagined that I would carry over my background from my previous job into my current position, but an extremely appealing aspect of this company is that it offers opportunities for challenges tailored to the aptitude and preferences of the individual, such as roles in planning and infrastructure.

 

Nakamura: My sense is that the culture of encouraging and respecting employees in the challenges that they take on has much to do with the expansion of career possibilities. Chugai Pharmaceutical has programs that support personnel in carving out their own career paths, such as in-house side jobs and in-house internships. Of course, there are many people who have concentrated on a single specialization and are working as top professionals in their chosen fields. My impression is that there is a full range of support for the realization of each individual’s career aspirations.

 

—Finally, what do you see as the skills and mindset required to become a high performer in Chugai Pharmaceutical’s ERP team?

Nakamura: Communication as a member of a global team requires English communication skills. However, as well as possessing the necessary knowledge of ERP, it is even more important to be constantly keeping up to date with the skills and knowledge that you will need as you proceed with the project. There is also a huge variety of stakeholders, including the operational divisions, partner companies, and consultants. You need to be able to communicate smoothly with multiple members who all have different perspectives and to draw in the necessary stakeholders as you proceed toward a common goal.

 

Osawa: The mindset required of current IT systems officers at Chugai Pharmaceutical, including those working on ASPIRE, is the ability to enjoy change and to respond positively even in the face of challenging situations. The job of systems officers is to build the platforms for transforming Chugai Pharmaceutical’s business and greatly changing the way in which business is done. To that end, I look forward to working with people who have the strong will and flexibility to overcome difficulties and move forward without fear of new challenges, and to elevating each other’s skills.

Taku Nakamura (ERP Group, IT Solution Department)

Majored in Urban Engineering at university. In his previous job, he worked in the development and operation of back-office systems in the logistics industry and the introduction of ERP at overseas subsidiaries. Joined Chugai Pharmaceutical in September 2020.

Currently works in the accounting area of ERP.

Keichiro Osawa (ERP Group, IT Solution Department)

Majored in economics at university. In his previous job at an IT consulting firm, he worked on the introduction of core systems and the development of systems templates for the manufacturing industry, before joining Chugai Pharmaceutical in December 2020. Currently working in the areas of inventory and purchasing management and production planning.