Neste migrates its SAP platform to the public cloud

Client Challenge: Following the implementation of SAP S/4HANA using on-premise data centers, Neste wanted to enhance its cybersecurity, scalability, and align its systems with the company’s sustainability goals.
Solution: In coordination with Neste and their partners, transitioned its entire SAP platform to the public cloud, vastly expanding its flexibility and reducing its carbon footprint.

* Based on the calculation by Neste’s partner using the Sustainable IT Playbook Emissions Calculator

As the energy industry places an ever-greater emphasis on innovations in renewable energy, Neste has consistently led the way. Headquartered in Finland and with its main refineries across the globe, the company has spent the past decade exploring new ways to provide sustainable alternatives to oil, during which time the company built itself a competitive edge while also contributing to a better future. That effort has required constant innovation and a hunger for success that has prevented Neste from ever resting on its laurels.

So, when Neste completed the implementation of an SAP environment using on-premises data centers, it did not simply consider the job done. Instead, the company quickly set out to discover how they could improve upon the solution. This initiative led Neste to identify a transition to the cloud as the clear next step. Such a move would not only provide greater security, which only continues to become more important as cyber threats grow in number but would also enable the scalability necessary for building on its competitive edge while aligning the SAP platform with its sustainable practices.

To ensure success, Neste engaged Capgemini, its partner since 2015 to lead the SAP platform transition to the dynamic Microsoft Azure cloud environment. Capgemini, together with other partners formed a collaborative team that combined technical and industry expertise as well as an extensive history of impactful digital transformations.

Creating a collaborative environment

The project was initiated by engaging the key stakeholders. This early effort ensured that the project owner, steering group, and project team were completely aligned across the multivendor environment. First step was to establish the transition’s scope and identify a proven approach that suited the objectives and scale. Based on this information, Capgemini developed a clear roadmap that would enable a smooth transition from physical data centers to the cloud.

Marko Mäki-Ullakko

Head of ERP Transformation, Neste

“People are individuals, each a professional in their own field. Everyone brings their own individuality and skills to the project, forming a cohesive team. In this project, the team settled quite early and found a way to collaborate very successfully. Along the way, the people didn’t change much, and the core team remained intact, ultimately driving the success.”

Throughout the project, a consistent and open cooperation was maintained that maximized the value of all combined knowledge. Working within a complex and integrated environment the transition’s dependencies on other projects was effectively managed. As the project lead Capgemini made necessary adjustments, all the while ensuring that the effort remained in line with the key objectives.

Laura Jaakkola

Group Client Partner,
Capgemini

“Capgemini was selected to be the system integrator for the full scope of the multi-vendor program. Our global team was formed carefully, and each vendor diligently worked to procure the most qualified individuals for it. Our mandate to lead the entire project, coupled with Neste’s trust and support, truly shone, aiding our efforts toward the ultimate success.”

Cloud migration supports future goals

After a successful SAP implementation, Neste migrated the entirety of its SAP S/4HANA platform from on-premises data centers to a public cloud platform. As a result, the company enjoyed enhanced cybersecurity while enabling its digital infrastructure to scale up as needed in the future. This also decreased the maintenance burden placed upon Neste by eliminating the need for constant and costly updates to physical data centers.

With SAP S/4HANA now hosted on the public cloud, the company has substantially expanded its capacity for flexibility. When business needs change, Neste can more easily adapt while keeping system downtime and the negative impact on users minimal. Furthermore, this adaptability allows the company to adjust its cybersecurity approach in response to changing threats.
Moreover, the move to the public cloud has aligned Neste’s operations and systems with the company’s core sustainability values. Following the migration, the renewable product production company calculates that its greenhouse emissions have decreased by at least 35% because it no longer needs to support facilities that prove costly in terms of both finances and carbon footprint. Following this collaboration, Neste has now fully aligned its business practices, products, and IT foundation in the pursuit of its primary mission statement.
Moving forward, the company will continue to optimize its SAP infrastructure to eliminate inefficiencies and support future growth. By expanding its SAP development and capabilities, Neste will further cement itself at the forefront of innovation and sustainability within the energy industry.

“The project was a textbook example of great multi-vendor cooperation. Neste teams, our project manager and our key project delivery partners all gave their best to successfully deliver the project.”

Marko Mäki-Ullakko, Head of ERP Transformation, Neste

Neste in brief

Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. The company refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials.

As the world’s leading producer of sustainable aviation fuel and renewable diesel and a forerunner in developing renewable and circular feedstock solutions for polymers and chemicals, Neste helps its customers to reduce their greenhouse gas emissions by at least 20 million tons annually by 2030.

The company’s ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe. Neste is committed to reaching carbon-neutral production by 2035, and will reduce the carbon emission intensity of sold products by 50% by 2040. Neste has also set high standards for biodiversity, human rights and the supply chain. The company has consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2023, Neste’s revenue stood at EUR 22.9 billion.