Idemitsu extends Rimini Street deal to future-proof SAP system
Idemitsu has expanded its partnership with Rimini Street to provide support for its SAP ECC 6.0 system, maintaining a strategic focus on maximising the longevity and adaptability of its core enterprise software.
Idemitsu began working with Rimini Street in 2013 during its transition from Oracle to SAP, relying on Rimini Street for support services.
The decision to continue with the third-party provider follows Idemitsu's review of future ERP needs as vendor support for SAP ECC 6.0 is scheduled to end in 2030.
ERP strategy
Executives at Idemitsu commissioned external analysis to assess the potential business impacts and costs associated with migrating to SAP S/4HANA but determined that their existing SAP ECC 6.0 system continues to fulfil their requirements as a stable and robust mission-critical platform. The company has chosen to avoid the risks and disruptions of a major system migration, instead preferring to invest in enhancements and long-term support for the existing system.
Takayoshi Sawai, Deputy General Manager of the Digital and ICT Promotion Department at Idemitsu, explained the rationale behind this strategy.
"The flexible nature of SAP ECC 6.0 is why we made the switch from Oracle to SAP in the first place. To accelerate innovation within the organisation and improve speed and quality to our processes, our strategy is to add capabilities to the core of the system, not replace it," he said.
"Rimini Street allows us to prioritise business needs over vendor demands, ensuring our technology roadmap is free and clear of obstacles. Rimini Street's expertise makes vendor-imposed end-of-support deadlines no longer a problem, giving us the ability to take full control over how we want to design our systems to best fit our vision."
The company's strategy involves creating new processes tailored to its specific business requirements, building on the existing SAP ECC 6.0 infrastructure.
Sawai described this approach as enabling business capability rather than disruption, saying that a forced migration to S/4HANA would not align with their needs.
Business transformation
Idemitsu operates across five major areas: petroleum, basic chemicals, functional materials, power and renewable energy, and resource development. The company is currently reorganising into three business segments, aiming to simplify and transform its business portfolio structure.
Sawai highlighted a shift in IT strategy to create a system capable of serving not only manufacturing but also the retail and service sectors. "A key component of our IT strategy is to transform from a siloed structure which was based on manufacturing standards, to a flexible one that covers retail and service industries. As part of our medium-term application strategy, we want to be in an advantageous position by adding needed functions without the time and cost required for version upgrades," Sawai said.
A recent focus for the organisation has been a restructuring of its accounting and reporting processes to support faster adaptation and composability in enterprise resource planning.
Regarding this project, Sawai stated, "If you try to retrofit business needs into the capabilities of a software, you will end up with a design that is restrictive. It is with this philosophy that we undid the initial design of our distributor invoicing process which combined SCM and accounting into one instance, creating gaps and delayed reporting. Now we are reimagining and adding functions to our existing SAP ECC 6.0 release supported by Rimini Street, resulting in improved data quality control and more automation. The partnership with Rimini Street helps accelerate our digital transformation initiatives without the disruption."
Technical support
As Idemitsu looks to the future, the company is committed to extending the lifecycle of its highly customised SAP ECC 6.0 system, with a focus on ensuring compliance and reliability. Rimini Street is working with internal teams to provide this steady technical foundation.
Sawai emphasised the value of the external expertise gained from the partnership.
"Rimini Street's technical expertise in all things SAP has been a great resource in expanding my team's ability to navigate our system needs. Our plans include many more years in partnership with Rimini Street, ensuring our mission-critical system is always available, and to maximise our SAP investment as we plan out the future needs of the business."
Nobutake Godo, Regional CTO for Rimini Street Japan, reflected on the partnership from Rimini Street's perspective.
"Rimini Street Japan is deeply dedicated to the success of our regional clients, which surpass 400 to date. We believe in restoring choice and providing agnostic guidance to business leaders worldwide on where they want to go and what systems they want to use while getting there."
"As the preferred third-party SAP support partner to esteemed clients such as Idemitsu and many others around the world, we are proud to deliver tangible financial and productivity results for our clients that help accelerate innovation and competitive advantage."
