AMD “AXCENT” Project: A Journey of SAP ERP Transformation

In the fast-paced technology sector, companies need to evolve to stay competitive. Over two years, AMD significantly modernized its ERP system through a project codenamed “AXCENT”. This transformation involved many stakeholders and complex operations and was key to creating a single, scalable ERP for AMD. The transition to SAP RISE S4/HANA (Cloud) unfolded in two distinct phases, marked by significant milestones reached in January and July 2023.

Why the Change?

Three objectives drove this transformation:

• Streamline: Simplify and standardize business processes, minimizing customization to enable faster operations and more straightforward adaptation of future improvements.
• Experience: Improve usability and interactions for both AMD users and external partners/customers.
• Scale: Build a flexible and stable ecosystem that supports AMD growth and adapts to evolving business conditions. As technology continued to progress, AMD recognized the importance of real-time data, streamlined processes, and a flexible system capable of supporting future growth and innovation.

The Two-Step Approach

The “AXCENT” project was executed in two phases:

Phase 1: Over a year, AMD transitioned from ECC to SAP RISE S4.

Phase 2: The subsequent six months focused on migrating processes from another large NON-SAP ERP system acquired from a recent significant acquisition into the new AMD SAP S4 ERP architecture.

These phases enabled AMD to unify its operations under a modern ERP framework.

Project Duration and Involvement

The “AXCENT” project began with extensive planning over two years. Teams across all BUs collaborated with Deloitte, an implementation partner, to align business requirements with SAP functionalities and ensure a smooth transition.

Key Project Strategies

To navigate this complex transformation successfully, a structured approach was crucial. Key strategies included:

Blueprinting and Change Control
The initial blueprinting phase involved mapping AMD business processes to SAP capabilities. Deloitte provided expertise throughout, and a robust change control process was established to assess and approve modifications at high levels of the organization.

Business Engagement
Regular steering team meetings, involvement of high-level executives, and bi-weekly progress reviews were vital to keeping all stakeholders informed and engaged. This open communication environment helped to quickly address issues and foster a sense of ownership among team members.

Infrastructure Planning
The project emphasized comprehensive initial testing to validate network performance and cater to user needs. These preparations contributed significantly to robust system performance during the go-live phase.

Testing Process
Multiple rounds of testing were conducted, with testers co-located, when possible, during critical phases. Deloitte identified this meticulous approach to testing as a key success factor for the project's readiness.

Customization Control
To control costs and timelines, AMD aimed to minimize customizations, striving to retain out-of-the-box functionalities. Any necessary customizations required high-level executive approval to maintain focus on project scope.

Post-Go-Live Support
AMD committed to an extended period of post-go-live support. This included a robust focus on system optimization during the first three months post-launch, followed by another three months for ongoing adjustments to maximize the system's benefits.

Challenges with Integration
Integrating non-ERP systems brought unique challenges, in addition to the migration from Oracle to SAP. However, the AMD team's experience during the first phase of the project facilitated a smoother transition for the second phase, as they were already familiar with SAP functionality.

Lessons Learned

Reflecting on the “AXCENT” project revealed crucial lessons for future initiatives:

• Clear Objectives and High Executive Engagement: Defining clear goals and maintaining strong executive involvement were essential for timely decision-making and overcoming challenges.
• Structured Project Management: A formal sign-off process for deliverables and testing phases kept the project organized and on schedule.
• Rigorous Testing and Risk Management: Extensive testing allowed for early detection and resolution of potential issues, reducing transition risks.
• Learning from Experience: Engaging with best practices and previous experiences significantly enhanced the overall process, leading to successful implementations for both AMD and its recent acquisitions.

Internal accountability and external collaboration: While a partner like Deloitte brings critical expertise, industry knowledge, and proven methodologies, the success of a transformation program depends even more on the ability of internal teams to collaborate closely, make informed decisions, and escalate issues rapidly. Maintaining this agile internal engagement ensures the organization can keep pace with the demands of implementation and fully realize the benefits of the partnership.

Follow through: AMD committed to an extended period of post-go-live support. Key business KPIs such as order volume, number of shipments, invoices, and payments were measured during the first three months after go-live to ensure there were no adverse business impacts. This was followed by another three months dedicated to adjusting system capabilities to maximize the business benefits.

The “AXCENT” project underscores our commitment to innovation and operational excellence. By focusing on effective project management, ensuring executive involvement, and promoting teamwork, AMD successfully modernized its ERP systems and positioned itself for future growth in a dynamic industry. The insights gained from this transformation serve as a valuable guide for future projects, emphasizing that adaptability and proactive planning are crucial for success in today's competitive landscape. The AMD “AXCENT” initiative stands as a model for effective ERP transformation, demonstrating the significant impact of aligning technology with strategic business goals.