The Situation

Big or small, everyone is looking for ways to increase efficiency and agility in the back office that allow them to respond quickly to market demands and regulatory pressures. In 2011, British American Tobacco (BAT) committed itself to a 50% reduction in its legacy application estate by 2017. This initiative complements the company’s “TaO” transformation program – the introduction of a fundamental above-market Target Operating Model (TOM) and the deployment of a global SAP template – with the strict aim of increasing responsiveness while simultaneously lowering the total cost of ownership.

The Solution

BAT is today the result of its many acquisitions, having acquired more than just new brands and new markets into its portfolio: It also has an equally diverse application portfolio inherited from the businesses in the end-markets in which it now operates. The TaO transformation program will implement the TOM, supported by the global SAP template, but the question remained: How to simplify the legacy estate?

Capgemini was invited to join the global architecture team, owners of the application portfolio, and help define best practices, leveraging many aspects of their proven WARP application rationalization methodology from the Application Lifecycle Services portfolio. A phased approach was adopted, following a proof-of-concept that defined a reusable toolkit to map TOM processes to the as-is application catalog. Four global regions were evaluated in turn during 2012 to produce a 5-year roadmap for each.

The Result

BAT is confident of the alignment between the TOM, which will drive efficiency into every corner of its business in the coming years, and the harmonized Global Application Portfolio that will support it. The 5-year reduction plan contains per-annum targets with continual review cycles to maintain the critical process-to-application alignment to ensure the 2017 target is always in sight.