KBS halves SAP maintenance costs, redirects savings to AI plans

Korean public broadcaster KBS has reduced software maintenance fees after transferring support for its SAP ECC 6.0 platform to Rimini Street.

KBS has used SAP systems for approximately 20 years for financial accounting, purchasing inventory, asset management, and year-end payroll settlement. Pressured to consider a migration to SAP S/4HANA, KBS determined that an upgrade did not present sufficient value or return on investment, particularly as bespoke customisations posed support challenges with the original vendor.

The broadcaster's decision to move support from the vendor to Rimini Street was motivated by a desire to control costs and extract greater value from existing IT investments. According to KBS, annual software maintenance fees have been reduced by 50% since the change, and resources have been reallocated to support the company's artificial intelligence (AI) initiatives within its broadcasting operations.

ERP strategy

When faced with the decision to upgrade, KBS opted for what it described as a composable ERP approach, enabled by third-party support from Rimini Street, rather than undertaking what it felt would be a costly and disruptive transition to SAP S/4HANA. The broadcaster stated that this approach gave them more flexibility and control over IT planning.

"Our highly customised SAP ECC 6.0 system is our competitive differentiator, and it stores an incredible amount of data on our talent, financials and operational processes, all of which will serve as fuel for our AI initiatives," said Goo Yub Nah, IT Director at KBS. "We carefully evaluated our options and decided keeping our existing systems expertly supported by Rimini Street would be the smartest, fastest path to realising our AI vision, and funding it too."

KBS said that the data stored in its SAP system, reflecting over two decades of operations, will underpin multiple planned AI projects. The strategy involves using historical and operational information to create AI-driven programmes intended to maximise workforce capability, shorten the time to market for new shows and increase efficiency throughout the organisation.

Cost management

With the transition to Rimini Street support, KBS noted that its spending on maintaining the SAP environment has halved - a result not only of lower annual software maintenance fees, but also of fewer resources tied up in repeated upgrades and internal engineering for the system's many customisations.

KBS highlighted that Rimini Street offered broader coverage and ongoing access to technical knowledge that filled gaps previously experienced with the original vendor's support. Rimini Street handles issues related to bespoke system elements that were outside the original vendor's standard service agreements.

"From a practitioner's point of view, beyond the cost savings, the greatest benefit to my team is having access to Rimini Street's global engineering talent, 24/7. When we put in a call, they respond quickly. Their team is highly experienced, proactive and able to resolve our toughest issues with ease," said Eun Bi Park, SAP ERP, HR Module (Tax) Manager at KBS.

Partnership role

Rimini Street, which provides software support and management for Oracle, SAP and VMware platforms, said it has helped KBS avoid the need for forced upgrades by maintaining the existing SAP landscape. The company claims its support model enables organisations to allocate IT budgets towards new development and innovation projects, such as AI or other broadcast-related initiatives, rather than to mandatory software upgrades.

"KBS is an essential part of everyday life for the citizens of Korea, beloved for nearly 100 years for its memorable, even life-changing programs," said Hyungwook Kim, GVP and General Manager of Rimini Street Korea. "We are proud to serve as a trusted IT partner in ushering the next generation of growth, entertainment and storytelling for the broadcasting icon."

The partnership between KBS and Rimini Street is focused on support for SAP, with the public broadcaster reallocating operational savings towards the development and implementation of AI-based strategies within its programming and operations.