Delek US Holdings

Delek US Holdings
SAP Applications migration to Hana Enterprise Cloud - Journey
Panel Discussion
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Panel Member introductions
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Danny Norris, VP & CAO, Delek US Holdings, Inc.
Jyoti Kakarala, Director, ERP & Refinery Systems, Delek US Holdings, Inc.
Ashley Dubler, Director of Accounting & Controls, Delek US Holdings, Inc.
Samer Kamal, Architect, Delek US Holdings, Inc.
Panel topic
SAP Applications Migration to HEC , journey
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Business Plan & IT strategies
Security and controls
Implementation challenges
Lessons Learned
Speakers
Danny Norris
VP, CAO
Delek US Holdings, Inc
[email protected]
 With Delek from 2006
 Has held several positions, Controller, Corporate Controller, and VP of Finance
before becoming the Chief Accounting Officer in 2013
 He has 18+ years of experience in the field of retail and wholesale petroleum
accounting working in various companies, Fast Petroleum, Arey Companies,
Hildreth Oil Company
 Served as an auditor with J.C. Holland & Company for 2 years
 Member of American Institute of Certified Public Accountants and a licensed
Certified Public Accountant in Kentucky
Speakers
Jyoti Kakarala
Director ERP & Refinery Systems
Delek US Holdings, Inc
[email protected]
 Strategic and Tactical Leader with 25+ years of experience
 Architect, plan & Implement innovative, scalable solutions supporting
dynamic business and marketing strategies
 Challenge the status Quo for continuous improvement
 Deliver innovative solutions that provide positive outcomes
Speakers
Samer Kamal
Architect
Delek US Holdings, Inc
[email protected]
 Systems Architect – Basis, Security, Cloud Applications and Cloud integration
 Expertise with different technologies, SAP Cloud, HANA, SuccessFactors, Fiori,
HANA Live, GRC, Solution manager, Etc…
 Hands-on experience with passion on serving the business what they need
before thy need it.
Speakers
Ashley Dubler
Director of Accounting & Controls
Delek US Holdings, Inc
[email protected]
 Oversees the company’s accounting polices, controls and consolidation
 Implementation and Maintenance of various accounting systems (SAP, SAP
GRC, BPC Blackline)
 Experience working with large international accounting firm
Corporate Overview
REFINING
Our refining segment operates 155,000
barrels per day in combined production
capacity at two moderate complexity
refineries in Tyler, Texas and El Dorado,
Arkansas
LOGISTICS
The logistics segment gather, transport and
store crude oil and intermediate products
and market, distribute, transport and store
refined products primarily in select regions
of the southeastern United States and
Texas
RETAIL
RETAIL
Our retail segment, MAPO Express, is one
of the 25 Largest company operated
convenience store chains in the United
States, and one of the leading C-store
operators in the Southeast. The Company
currently operates approximately 358
locations in seven states.
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Corporate Overview
Integrated Business Model
Flexible Crude Sourcing and Market Driven Production Enhance Performance
Flexible Crude
Oil Sourcing
• Pipeline access to Midland; Gulf Coast; Cushing
• Increase Gathering – Texas and Arkansas
• Access to Canadian crude
Crude
Logistics
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Crude oil pipelines supporting refineries
600 mile gathering system in Arkansas
Rail access at el Dorado
Trucking operations
Refining
• Currently 155,000 bpd crude throughput
• Crude slate flexibility
Product
Logistics
• 9 light product terminals
• Light product pipelines
Retail
Locations
• 358 locations
• Synergies with
logistics and
refining
Delek US growing through the years
Delek US
2001
Mapco Express
Tyler
Refinery
2005
Lion Oil Refinery
2011
IPO 2006
IPO MLP 2012
Migration of On-premise ERP to HEC – Planning & Approach
Assessment
• Business strategy
• Current and destination
architecture
• Enterprise datacenter
strategy
• Identify applications in
scope
• Current network
topology & bandwidth
• High Availability & DR
requirements
Upgrade &
Migration Planning
• Extend network (Sub-net)
• Network security &
Mobility requirements
• Data volume & Archival
strategy
• Infrastructure strategy
• Testing strategy
• Deployment strategy
• Provision HEC cloud
infrastructure
• Prepare two tier
landscape for Project &
Production support
Execution
• Review and remediate
Unicode conversion
issues
• DMO execution
• Initiate testing early in
Sandbox
• Prepare and leverage
migration cookbook
• Extensive functional
unit testing &
Integration testing in
Dev & Quality
• Automation using TAO
Hyper care &
Support
• Application incident
support and
monitoring
• Reactive monitoring vs
Proactive monitoring
• CCMS and Alert
Management
• Support transition
HEC Platform ( as a Service ) model
Application evolution and change management
Delek Manages
Functional Application Support
Delek Support Team
SAP Application Basis Support
SAP HANA DB Management
Operating system Maintenance
Provisioning of data center facility
Infrastructure Maintenance
Hardware component including setup
HEC Manages
Cloud and Managed services for HEC
HEC Security Compliance
Customer #1
SAP
Corporate
HANA Enterprise Cloud
MPLS
Customer #1
Customer #2
MPLS
Shared Admin
Infrastructure
Customer #2
Management Networks
Delek Private Cloud
managed by HEC
VPN / MPLS
Delek HQ
 Delek has an isolated, logical grouping of several virtual machines
and physical systems.
 All other customers networks are completely isolated from each
other
 HEC provides Secure operations including asset management,
changes, incident, Anti-virus & Malware management, Identity
mgmt. & Back-up/restore management.
 HEC data centers has stringent physical security mechanisms
implemented with uninterruptible power supply & biometric
access control.
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Security measures are audited & compliant for ISO Certificates
Compliant for SOC1 Type1 & SOC2 Type 1
Compliant for SOC1 Type 2 and SOC2 Type 2
HEC manages Network security including 2-factor, intrusion
prevention, proxies, & internet content filtering
 HEC manages threats & vulnerability including penetration testing,
vulnerability scanning, Security patch & 24X7 security monitoring
center
Unicode Conversion, Upgrade and Migration
Delek SAP ERP Project Landscape on premise
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Prepare
2
Unicode Checks
3
Database Migration
Option ( DMO )
4
Sandbox
ECC 6 Ehp 5
Non-Unicode
Microsoft Sql Server 2008
Windows Server
Development
ECC 6 Ehp 5
Non-Unicode
Microsoft Sql Server 2008
Windows Server
Quality
ECC 6 Ehp 5
Non-Unicode
Microsoft Sql Server 2008
Windows Server
Production
ECC 6 Ehp 5
Non-Unicode
Microsoft Sql Server 2008
Windows Server
Data Export
Sandbox
5
System Setup in HEC
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Delek Post-Processing ECC 6 Ehp 7
Unicode
HANA DB
SUSE Enterprise Linux
Development
ECC 6 Ehp 7
Unicode
HANA DB
SUSE Enterprise Linux
Quality
ECC 6 Ehp 7
Unicode
HANA DB
SUSE Enterprise Linux
Delek SAP ERP Project Landscape on HEC
Production
ECC 6 Ehp 7
Unicode
HANA DB
SUSE Enterprise Linux
Applications System Landscape Before
Delek Corporate Network
Retail Systems
Refinery Systems
Pipeline Solutions
SAP Solman
SAP GRC
SAP BW
SAP Bobj
SAP ERP
Fiori
SAP PI
Network
Storage
Delek SAP Landscape Before & After HEC migration
Delek Corporate Network
Retail Systems
Refinery Systems
Pipeline Solutions
SAP Solman
SAP GRC
SAP BW
SAP Bobj
SAP PI
Network
Storage
VPN/ MPLS
VPN/ MPLS
HEC Network
HEC Network
HEC – Delek Private Cloud
Primary
HEC – Delek Private Cloud
Disaster Recovery site*
Embedded
BW
Fiori
SAP ERP
* Production Systems only
Bobj
Network
Storage
Embedded
BW
Fiori
SAP ERP
Bobj
Network
Storage
Project Challenges and Lesson learned
 Business Challenges
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Verification of Bank files from major banks due to Unicode remediation
Treasury functionality change significantly from Ehp5 to Ehp7
 IT Challenges
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Several Diverse teams on SAP side to interact and co-ordinate including
o HEC Team
o HEC services team (backend processes like, backup jobs, etc.)
o Migration Team (SAP Services)
o Business functions team (BI, Fiori, etc.)
o AMS
o Testing (SAP Services)
No central authority over all these teams
HEC activity is driven by ticketing process & difficult to get dedicated resources
o Create tickets well in advance to reduce time
o Difficult to get the same group of resource for Dev, quality & Production
o SLAs are different between Project build phase & go-live phase
 Infrastructure Challenges
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Network Extension Challenges
o Manage and Maintain DNS across both networks
o Plan for FTP and SFTP requirements early
o Ensure accommodation for DR site in hostnames
Operating System
o Migrate from Windows to Linux
o File and folder permissions vary
o Cross mount NFS vs migrate
o Review file paths in job variants
Project Challenges and Lesson learned
 Infrastructure Challenges
• Server Certificates
o Load balancer & Web dispatcher signed certificates
 Technical Challenges
• Unicode Remediation
o Identify the programs used in last 365 days for critical path
• Personas
o Retrofitting Personas 2.0 takes good amount of work and a lot of notes to be applied
o Evaluate moving to Personas 3.0
• SAPGUI
o Upgrade to 7.4
o Ensure the SAPGUI updates to remote users
o Personal lists needed to be rebuilt after the upgrade
 Delek Project Team
• Small Team
• Long Hours
• Short Timeline
• QA Automation with TAO & Solution manager
 HEC knowledge – Know the big picture but not the details
Project benefits
Business Benefits:
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Speed of data analysis ( can crunch millions of BSEG in secs )
Long running reports run much faster after migration
Increased data visibility Supports effort for faster period closing
Key insights in to business by data segmentation & analysis
Reduction in TCO with simplified reporting solutions
Foundation for future business initiatives for pipelines expansion, merger & acquisitions etc.
Platform to establish linear asset management & predictive analysis of assets
Technology Benefits:
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Simplifies reporting platform ( HANA live, Embedded BW )
Combines real time OLTP and OLAP
Single source for ERP & Analysis reports reducing data duplication
Reduction in annual support cost post HEC migration
Reduced complexity & management of network, security & systems internally
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Questions?
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business
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opportunities