Following its recent digital transformation, AGL Energy Limited has significantly reduced its suite of 50 legacy on-premise ERP applications, digitalised 78 business processes, and further improved its operational efficiency with SAP cloud-based solutions.
The transition from on-premise to SAP cloud-based solutions has empowered AGL Energy to have more transparency, consistency, and control over its extensive network of sites and functions. Adopting solutions such as SAP S/4HANA helped provide integrated and digitally-enabled platforms that support the company’s growth strategy.
With SAP at the forefront of providing reliable technology for businesses in the Australian power distribution industry, its position was further established since the implementation of AGL Energy’s “Extreme SAP” project. The modernisation program enabled AGL Energy to overhaul its SAP core to SAP S/4HANA, ultimately improving its overall system stability and creating flexibility in the SAP platform.
Fionn Gilmour, Delivery Manager of Operations Technology at AGL Energy Limited, shared that the technology department focuses on delivering new solutions and capabilities to AGL’s integrated business energy unit using the S/4HANA platform. He explained in an interview:
“What we also do is support AGL in our drive around acquiring new business. Every time we buy a new company, they come into our technology team to help bring them onto our existing S/4HANA platform.”
Gilmour also emphasised that having a single platform significantly improved AGL’s flexibility for managing changes in the ever-evolving business. He said that S/4HANA has enabled greater operational transparency across AGL’s business. He added:
“In recent times, we purchased a new energy business in Western Australia, and over a period, we were able to bring that onto our existing S 4/HANA platform so that business aligns with the AGL way of working, which has been great to see.”
Improving AGL Energy Limited’s Operations with SAP Cloud-Based Solutions
To fulfill its goal of moving away from paper and manually transmitted documents, the renewable energy services provider implemented other key SAP cloud-based solutions aside from SAP S/4HANA to standardise and streamline its internal processes. Gilmour said:
“Our business has a lot of contingent workers that support us, so we rely on SAP Fieldglass quite heavily for that. We’re also using SAP Ariba to support our procurement process.”
Gilmour stressed that integrating cloud products such as SAP Fieldglass and SAP Ariba into AGL’s platform has certainly given them greater flexibility as an organisation.
More and more businesses are turning to cloud-based solutions as they embark on their digital transformation journey. With this, Gilmour encouraged companies to consider migrating to S/4HANA despite “a lot of known unknowns in that space.” He continued:
“I highly recommend getting onto that platform and doing it as quickly as you can. All the incredible new capabilities that SAP are releasing are all built for the S/4HANA stack.”
Moreover, AGL Energy’s investments into technology are not only focused on its digital transformation. AGL has also taken steps to invest in its people processes, cyber security and customer experience transformation to drive operating efficiencies. This is in addition to a three-year Application Cloud Transformation Program, enabling AGL to transition all of its applications to a trusted public cloud by the end of FY22. It has also prioritised other backend processes which helped a majority of its 4,000 employees shift to a remote working set-up during the COVID-19 pandemic outbreak. Gilmour maintained:
“Ultimately, it’s a people-based solution, so you need to make sure you’re thinking about how they’ll be using the tool in the future and what sort of change impacts that might have.”
