Mölnlycke Health Care Upgrades Its SAP System and Boosts the Internal Core Competence

Working in SAP's S/HANA in ERP and 3DEXPERIENCE from Dassault Systemes in PLM. Swedish medical technology company Mölnlycke Health Care has recently taken a big step forward on the digitalization side and when it comes to its business systems. This is through the deployment of a cloud-based system from SAP, a change that affects nearly 1,900 employees globally. The company is a world leader in its field with solutions that equip healthcare professionals around the globe with clinical material specialized in innovative solutions for wound care and surgical procedures.
When it comes to business systems, they have been working in SAP environment since 2000, while when it comes to product development, they work on Dassault Systemes' 3DEXPERIENCE platform. The latter is a state-of-the-art PLM platform that has meant a lot in terms of lead time savings within Mölnycke, which will be discussed in a coming article based on a presentation at PLM consultant TECHNIA's Innovation Forum 2024.
But it is on the ERP side that the company has now launched an upgrade to SAP's cloud-based solution, S/4HANA Private Cloud. The background is that Mölnycke has expanded considerably since the introduction of SAP around the turn of the millennium, which has created new needs for what the business system should be able to handle.
It was at the turn of the year 2024/25 that the decision was made to upgrade to S/4HANA Private Cloud, using the 'RISE with SAP' concept to accelerate continued digital development. RISE with SAP is a transformation set up that supports cloud migration with proven methodology, advanced tools and expert guidance.
Before the start of the project, Mölnlycke realized that much of the expertise surrounding the existing business system was in the hands of external service partners and to strengthen its own capabilities, the company has now chosen to invest in an internal skills upgrade to drive digitalization forward.
“Exactly, we are experienced SAP users and our business system already handles around half a million transaction events every day. However, we have noticed that much of the knowledge about what SAP can do for us has disappeared over time and therefore we have now chosen to invest a large part of the budget in a skills upgrade for our own employees. In this way, we secure our core competence in the long term,” says Mikael Björk, IT Manager at Mölnlycke.
It is noteworthy in this context that sustainability and digitalization efforts are at the center of the execution of the company’s mission towards its customers around the world. The IT department is organized around teams that take ultimate responsibility for solutions within different business areas, currently four: Wound Care, Operating Room Solutions, Gloves and Antiseptics. Mölnlycke’s current IT landscape is characterized by large COTS/SaaS platforms for ERP, CRM and PLM, which primarily support the internal core processes. In this perspective, they work according to agile development and DevOps methods, including end-to-end Software Delivery Lifecycle processes.
Initially, approximately 80–85 percent of existing processes will be moved to the new system – but what does the rest of the journey look like? How does AI come into play?