Implementation

If you’re worried about an efficient SAP S/4HANA® setup and migration, you’ll want to be aware of this.

Planning an S/4HANA implementation and migration the right way

Enterprise resource planning software integration initiatives, such as SAP deployments, are difficult to manage. Why? Because these are significant choices for your company! You’re dealing with high stakes, which could, with luck, lead to even greater commercial benefits, but the drawback is that you’ll need to be aware of the important dangers connected with implementations and migrations, as well as how to avoid them.

The good news is that you’ll learn right here how to avoid poor SAP implementation results like brand damage, declining revenue, poor customer experiences, a frustrated workforce, and inflated expenses. Right now, you’re going to read about the risks associated with this SAP bandwagon.

You first need to consider the most realistic view of time and cost for your S/4HANA implementation

Cost is arguably the largest problem that many businesses have with S/4HANA implementations as a SAP solution. Some migrations frequently end up being far too pricey. You should stay away from doing it.

Why? Because the cost of your S/4HANA implementation could increase if you don’t have a strong plan and framework in place! Time is also money.

You can see the larger picture if you can imagine spending hundreds more each day just to decide what to do. Consider these very real metrics regarding your typical SAP implementation project as you make your preparations:

SAP solutions typically cost three to five times as much as the software investment.
Migrations to S/4HANA might quickly cost 3% to 4% of your company’s annual sales.
The worst part is that these figures can change drastically based on a variety of difficulties in your company.

You might have to seriously align your culture with the transition

Pay close attention to the culture of your own business. Are your employees ready for the transition? Maybe not. Therefore, before adopting S4/HANA into your business infrastructure, you should first create a “phasing strategy” that is in line with that culture.

Although most businesses want to change as soon as possible, it is easy to skip the logical approach to all of this. Don’t do that. You must take into account things like:

Internal resource availability
Team deadline adherence
Risk tolerance
And perhaps a host of other variances or factors!

Before even considering an S4/HANA setup or migration that you’d want to be managed within a few weeks, consider the fact that your team takes several months to finish any other projects. Don’t make your team vulnerable to failure.

Determine what needs to change and if you’re willing to change it/them

Contrary to popular belief, not all SAP implementations are the same. Don’t jump on the SAP S/4HANA bandwagon without knowing your end goal because what you’ll want to modify may differ from even your rivals depending on your business model, industry, and aspirations. The bandwagon will make numerous stops on its journey!

This is not to imply that you shouldn’t be as ambitious as you can be with your SAP conversion, but you must first determine what is acceptable rather than just what seems and sounds great. The main consideration here is cost. You must limit this as much as possible.

Make sure your project vision is in line with your corporate strategy because S/4HANA and SAP represent significant overhauls. Ensure that the project’s scope and phasing are both sufficiently flexible. In other words, before people get on the bandwagon, make sure the horses are fed.

Ensure you have internal and external resources in place

Regardless of how you handle it, you’ll need to “shut off” some of your operations in order to complete any successful SAP setup or S/4HANA migration. Any business would be terrified and ask the dangerous question, “What about our revenue? Our gain? Our endurance? Will we make it through this change?”

Naturally, you will. Make sure you have the resources to support it, then establish clear definitions and roles between:

Your organization
Your SAP system integrator
Third parties
Onshore developments
Offshore channels

Reallocation will undoubtedly occur. If you are able to fill in the gaps when the S/4HANA migration is taking place when parts of your operation shut down, odds are strong that everything will go well.

Don’t be hesitant to employ or outsource those additional external resources. Sure, outsourcing and hiring will cost extra, but compared to the month, two months, or three months of lost revenue because your business is basically “shut down” during the changeover, the expense is well worth it. Over time, you’ll eventually return your investment, especially considering how much faster and more smoothly the S/4HANA and/or SAP migrations run thanks to your planning and risk reduction.

Speaking of smoother transitions and faster implementation…

It is imperative to create an organisational change management plan, carefully planning:

Design and readiness
Training for everyone
Workforce transition
Benefits realization
Cultural transformation
Executive and stakeholder alignment (because everyone needs to be on the same page!)
And, of course, communications (everyone needs to be able to communicate with…everyone!)

Make one person responsible for transforming culture. Make the workforce transition manager responsible. Make a person responsible for training. And the list goes on. The building is necessary. It’s important to hold everyone accountable.

Naturally, this should all be thought out before beginning the SAP implementation project.

But don’t forget about your IT department

The foundation of your bandwagon is represented by those specialists in that division. Although the horses are fed and ready to pull, if the wheels break, you’ll be stuck. Thus, specify your IT transformation strategy.

Your IT specialists will need to learn new skills if they haven’t previously as the new migration will result in a variety of new architectures. Make certain they are equipped with:

A seamless application decommissioning plan
Transitioning skills and training new ones
Who has reporting responsibilities?
And what about post-go-live support processes?
And get a longer-term “Center of Excellence” going

Why? As your IT department will be responsible for maintaining the new installation long after SAP consultants and other project team members have created the bandwagon, you should make sure they are prepared with all the necessary parts.

And what’s a “Center of Excellence”?

We’re glad you inquired because you’ll need a centralised headquarters to maintain that new operation continuously since your SAP S/4HANA implementation won’t cease with completion.

SAP is not a “start it, run it, and leave it” type of project. Your IT department—as well as anyone else involved in the project, for that matter—will require a location where they can renew, consolidate, and reinvest in the new S/4HANA apps, procedures, and technology.

Additionally, a Center of Excellence will provide:

An even clearer support plan for the future
Increased integration between operations and IT
Better transitioning for your IT staff

It’s all about education, in a manner. The business is incorporating something new. You would undoubtedly want all of your important players to be up to speed on new information, methods, approaches, and tactics. Right?

Although you are aware that these S/4HANA installations are not simple, you are interested in SAP migrations if you are reading this. The good news is that ARIS can do more than simply assist you in doing it correctly; they are well worth the work if you do it correctly.

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