Implemented SAP Business ByDesign as the IT infrastructure platform for 8 overseas subsidiary locations. Achieved business process standardization, centralized data management, and governance enhancement through common template rollout.
FANUC, a global leader in factory automation, decided to implement cloud-based ERP "SAP Business ByDesign" as the IT infrastructure platform for 8 overseas subsidiary locations (*1). The key points of adoption were the all-in-one solution for field services, accounting, and finance, along with a balanced approach to functionality and cost. For the partner, they prioritized technical capabilities, business understanding, and consulting skills for global project management, selecting OneAyle Consulting. Through this partnership, they overcame technical challenges and language barriers, deploying templates across overseas locations. They were able to build a foundation for visualizing management conditions while also improving business efficiency, such as reducing monthly accounting report preparation time from half a day to 10 minutes.
*1: Thailand, Malaysia, Philippines, Oceania, South Africa, Indonesia, Vietnam, Singapore


Background
Leveraging the EOL of core systems for overseas locations to introduce cloud ERP as IT infrastructure platform
In 1956, FANUC successfully developed Japan's first NC (Numerical Control) device in the private sector. CNC (Computer Numerical Control) devices that automatically operate machine tools using computers are indispensable for FA (Factory Automation). The company has developed robots that contribute to automation in various fields such as automotive, electrical, food, and pharmaceutical industries by applying its basic CNC technology. FANUC boasts the world's largest market share in CNC and manufacturing robots, continuously refining its technology and research and development to shape the future of manufacturing.
The company, which provides products supporting factories, has established over 270 service locations worldwide. By practicing "Service First" with advanced maintenance services and the principle of "lifetime maintenance" - supporting equipment for as long as it is used - they bring significant assurance and trust to their customers.
In 2020, the End of Life (EOL) for the core system "PRISM" supporting IT infrastructure for overseas services was approaching. Akira Yamada, Manager of the Business System Department at FANUC's IT Division, discussed the previous challenges and the direction of the next core system:
"PRISM was created from scratch 20 years ago and repeatedly modified. When migrating legacy systems during its EOL, we faced three challenges. First, shifting from on-premises to cloud. To effectively utilize resources in the head office IT department, we needed to reduce the management load for hardware and software. Second, business standardization. We were spending significant person-hours responding to various requests from different countries. Third, IT infrastructure platform integration. PRISM was specialized in field services, with accounting using a separate package, sales using Excel, and thus insufficient as an ERP for overall management."
In June 2020, the company began selecting a cloud ERP to solve the challenges faced by PRISM and build an IT infrastructure platform supporting overseas locations.
Selection Criteria
All-in-one solution, balance of functionality and cost became key points
Partner selection prioritized consulting capabilities for global projects
The PRISM update project investigated over 20 ERP packages, narrowing down to three after reviewing functions and features, and requesting presentations. The high-scoring proposal came from OneAyle Consulting, a professional group specializing in SAP SaaS ERP, who proposed the cloud ERP "SAP Business ByDesign". Hiromitsu Eguchi, Senior Development Engineer of Business System Department at at FANUC's IT Division, recalls that time:
"Since this was PRISM's replacement, field service functionality was essential. We also prioritized having accounting, sales, and other ERP functions provided all-in-one. Additionally, the balance of functionality and cost relative to the scale of target overseas locations was a crucial element. SAP Business ByDesign met our requirements."
The company set global support as a necessary condition for implementing in overseas locations. OneAyle Consulting would support ERP implementation at overseas locations with consultants experienced in global projects. "Their track record of implementing cloud ERP in Japanese overseas subsidiaries was also a key point," said Akira Yamada.

Since this was PRISM's replacement, field service functionality was essential. We also prioritized having accounting, sales, and other ERP functions provided all-in-one. Additionally, the balance of functionality and cost relative to the scale of target overseas locations was a crucial element. SAP Business ByDesign met our requirements.
Mr. Hiromitsu Eguchi
FANUC CORPORATION
Senior Development Engineer, Section 4,
Business System Department, IT Division
Rollout Process
Utilizing templates for global rollout
Solving language barriers and different rules for each country one by one
In August 2021, the company selected OneAyle Consulting, who proposed SAP Business ByDesign, based on comprehensive considerations. With the premise of pilot implementation in Thailand, the largest of the overseas locations, they conducted an assessment of package standard functions and business FIT & GAP. Over six months, the company and OneAyle Consulting compared PRISM's business manuals and screens with SAP Business ByDesign's functions, determining that over 80% would fit.
The Thailand project started in April 2022, with the aim of creating a template for global rollout. The implementation process was complex due to the massive number of parts exceeding 400,000, which required significant time and effort for data migration. Shusuke Fujie from Business System Department at FANUC's IT Division discusses the challenges:"The price list data was also enormous. While extracting data from PRISM and converting it to text files, we encountered data quality issues that made some data unusable in SAP Business ByDesign. We spent a month meticulously cleansing data, splitting text files that couldn't be processed in one go, and ensuring complete migration through trial and error."
Accounting data migration also required significant adjustments, as explained by Takahiro Komatsu, Section Manager of the Financial Control & Tax Section, Finance & Accounting Department at FANUC's Corporate Finance & Facility Planning Division: "Existing data had five decimal places, while SAP Business ByDesign uses two decimal places, and there were unusable characters. We also had to modify data handling. Additionally, exchange rate rules differ by country - some use month-end rates for transactions, others use daily rates for sales - so we needed to develop innovative solutions to handle these variations in a single system."
While extracting data from PRISM and converting it to text files, we encountered data quality issues that made some data unusable in SAP Business ByDesign. We spent a month meticulously cleansing data, splitting text files that couldn't be processed in one go, and ensuring complete migration through trial and error.
Mr. Shusuke Fujie
FANUC CORPORATION
Section 4, Business System Department,
IT Division

Chin Yee Chia, Manager at OneAyle Consulting, who served as PM (Project Manager) for the Thailand implementation, comments on FANUC's unique characteristics: "For example, when replacing repair parts, they always collect the old parts and repair and reuse them if possible. We had to devise ways to implement this unique business process in SAP Business ByDesign. Additionally, each country has its own price list with different calculation formulas. Implementing these requirements in SAP Business ByDesign was a technical challenge."
In February 2023, the new core system using SAP Business ByDesign was released in Thailand. However, operational challenges quickly emerged. Akira Yamada explains:
"Although we believed we had completed necessary adjustments after the business analysis and FIT & GAP phases, we discovered numerous functional gaps and specification discrepancies during actual operation. User education for the new core system was insufficient, leading to incorrect operations and data inconsistencies. To address this, IT division staff worked directly with OneAyle Consulting members, meeting face-to-face with users to explain functions, coordinate with on-site work, and promote standardization understanding."
We had to devise ways to implement this unique business process in SAP Business ByDesign. Additionally, each country has its own price list with different calculation formulas. Implementing these requirements in SAP Business ByDesign was a technical challenge.
Chin Yee Chia
OneAyle Consulting


We decided to adopt Malaysia's business processes, which were simpler and more suitable for standardization. By adopting the Malaysia’s business processes and modifying the template developed in Thailand, we improved the template's completeness.
Jun Hamaura
OneAyle Consulting
By October 2023, the implementation in Malaysia incorporated lessons learned from the Thailand experience. Jun Hamaura from OneAyle Consulting explains:
"We discovered that the template based on Thailand's workflow was largely incompatible with Malaysia's processes. We decided to adopt Malaysia's business processes, which were simpler and more suitable for standardization. By adopting the Malaysia’s business processes and modifying the template developed in Thailand, we improved the template's completeness."
The new system in Malaysia went live in June 2024, with the Philippines location currently in the implementation phase. Yoshimi Yamada from Section 1, Business System Department at FANUC's IT Division notes:
"In September 2024, we conducted training for key users in the Philippines. These key users had already participated in the Malaysia training, so they were well-prepared. Moving forward, with online support from the IT division, key users will train end-users. We've accumulated implementation know-how, including training processes."

Moving forward, with online support from the IT division, key users will train end-users. We've accumulated implementation know-how, including training processes.
Ms Yoshimi Yamada
FANUC CORPORATION
Section 1, Business System Department,
IT Division
Results and Future Outlook
Monthly report creation time reduced from half a day to 10 minutes
Expanding to remaining overseas locations with a sense of speed
The effects of implementing SAP Business ByDesign in Thailand and Malaysia are already apparent. Shifting from on-premises to cloud has reduced the IT division's operational load. Hiromitsu Eguchi adds, "To realize business efficiency, we're also advancing automation through RPA (Robotic Process Automation)."
Monthly report preparation time for the head quarter’s accounting department has been reduced from half a day to 10 minutes. Data collection from locations no longer requires manual input; reports can now be created by downloading data directly from the system. Takahiro Komatsu notes, "Using the document flow function, we can drill down to transaction-level accounting data, quickly verifying the details of any specific amount."
Using the document flow function, we can drill down to transaction-level accounting data, quickly verifying the details of any specific amount.
Mr. Takahiro Komatsu
FANUC CORPORATION
Section Manager, Financial Control & Tax Section, Finance & Accounting Department,
Corporate Finance&Facility Planning Division

The new system has centralized data from services, sales, purchasing, and accounting, creating a foundation for visualizing management conditions. The key point is the improved data consistency and quality. Akira Yamada explains:
"SAP Business ByDesign has strict transaction rule regulations, allowing only correct route processing. Previously, we couldn't accurately understand what data existed in overseas locations. Now, we can provide necessary feedback to quality control and research departments as needed. By aligning business processes with package standards, we've enhanced global governance and reduced implementation and update costs by minimizing additional development."
Even when we made seemingly impossible requests during Thailand and Malaysia implementations, they never said 'it's impossible' but always proposed 'how we can do it'. Their support was essential in overcoming challenges and getting the project on track.
Mr. Akira Yamada
FANUC CORPORATION
Manager, Business System Department,
IT Division

Yamada highly praises OneAyle Consulting as a crucial factor in successfully expanding to overseas locations: "Their consultants are not just technically and professionally knowledgeable, but their approach is truly professional. Even when we made seemingly impossible requests during Thailand and Malaysia implementations, they never said 'it's impossible' but always proposed 'how we can do it'. Their support was essential in overcoming challenges and getting the project on track."
Takeo Kan from SAP Japan's Partner Success Services offers insights into successful ERP implementation: "Selecting a product that meets corporate requirements and a partner who can effectively realize it is crucial. Projects often face difficulties, so partnership becomes key. SAP wants to reflect customer feedback, including localization, into product development."
Selecting a product that meets corporate requirements and a partner who can effectively realize it is crucial. Projects often face difficulties, so partnership becomes key.
Mr. Takeo Kan
SAP Japan Co., Ltd.
SAP Business ByDesign
Partner Success Executive/
Customer Success Partner

Regarding future outlook, Akira Yamada states: "We want to roll out to the remaining overseas locations with a sense of speed. We're also exploring themes like improving service and efficiency through data utilization at customer sites using tablets. We hope to continue the project with OneAyle Consulting members and look forward to their team expansion."
FANUC, delivering innovation and assurance to manufacturing sites worldwide, will continue to be supported by OneAyle Consulting, who will leverage their technology and consultants to support the FANUC's overseas business foundation.
* The information provided is accurate as of October, 2024.
Key Takeaways
CHALLENGES
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Wanting to replace the core system supporting overseas locations due to End of Life (EOL)
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Seeking global support for cloud ERP implementation
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Desiring speedy and smooth expansion to overseas locations
RESULTS
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Implemented cloud ERP as the IT infrastructure platform for overseas locations, achieving business standardization, centralized data management, and governance enhancement
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Supported by consultants experienced in global projects who communicated with location employees to help resolve challenges
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Completed template through implementations in Thailand and Malaysia, enabling smooth and rapid expansion