Cognex makes the move to SAP S/4HANA

Cognex is the world’s leading provider of vision systems, software, sensors, and industrial barcode readers used in manufacturing automation. It helps companies improve product quality, eliminate production errors, lower manufacturing costs, and exceed consumer expectations for high-quality products at affordable prices.

With a 20-year-old ERP system, Cognex needed to upgrade to keep pace with its growth and business-development plans. Working with Capgemini, Cognex implemented SAP S/4HANA with the applications hosted on Microsoft Azure. The Capgemini Cloud Platform (CCP) provides a single cloud-management system to leverage the efficiency and agility of cloud solutions.

Benefits:

• Consolidated, more accurate, and accessible data
• A single storage point for data
• Improved integration across the business with smoother communications between departments
• A strong digital-core foundation for future growth.

Cognex had not gone through a major IT upgrade in 20 years. The old ERP system included a handful of smaller applications that needed to be consolidated into a single system.

“We didn’t have the muscle memory in the company,” says Doug Curren, Senior Director, Business Applications, Cognex. “We started with a group of really smart and motivated people, but it was like we were a team that had never played this sport before, so we had to learn the sport while we were in the middle of the game.”

Cognex selected SAP S/4HANA for its ERP backbone because of its ability to provide cross-functional integration and connect all areas of the business to consolidate data and deliver more value. Cognex chose to work with Capgemini on the integration because of its manufacturing experience, SAP credentials, and existing methodologies. The process began in April 2017 and the implementation went live in July 2018, followed by a three-month stabilization period.

Following the transition, the SAP S/4HANA applications are hosted on Microsoft Azure. Cognex also uses Capgemini Cloud Platform (CCP) as a single cloud-management system to help the company leverage the efficiency and agility of these cloud solutions.

After a smooth launch, Cognex is seeing the benefits of SAP S/4HANA. The consolidation of multiple systems has also delivered more accurate and accessible data. Employees have multiple ways to access information, including standard S/4 reporting and Microsoft Power BI.

“We are a data-driven company, so we are very excited about the opportunities to use the data,” says Curren. “We are already seeing more sophisticated conversations across the business and more employees are seeing the potential value this project can bring.”