Preparation for the transformation to SAP S/4HANA PART2
Find Part 1 here. Part 3 here.
Maybe you have described now your strategic roadmaps and used some of the ideas/sources from Part 1. Terms like SAP Ariba, on-premise and Hybris are no longer foreign words.
Continue now to the refinement of the respective roadmaps.
Let’s take from Part 1 the Example 2, Cluster 2: You want to replace a current SAP ECC6.0 system with an SAP S/4HANA (on premise).
One of the first questions will be: how should the transition be done? It is therefore important to clarify whether you are inclined to a greenfield approach or a conversion approach (brownfield).
At least here in the SAP blogs and other websites there are a variety of helpful posts, beyond pays off at this point your involvement in the user groups and SAP contacts. The decision (brownfield or greenfield) has a significant impact on your roadmap design and project approach, as e.g. in the greenfield approach, no full (relevant) code adaptation is sought. In the brownfield approach, this will represent a not inconsiderable expense component in your project run.
Just search here for posts, e.g. by Roland Hamm (Roland Hamm), he has provided a lot of good information via blog or PowerPoint/PDF and is also SAP contact person in the board ‘SAP S/4HANA’ in the German speaking SAP user group ‘DSAG‘.
But I would like to point out again that I do not describe any technical or functional questions in this blog, but that I refer to some good sources, commitments and other offers of SAP.
Now that you are dealing with the transformation thoughts (How?), this is the perfect time to mention the SAP Adoption Starter.
SAP Adoption Starter
SAP Adoption Starter is divided into three main pillars that deal with the following questions: why, what, how. The goal is to creat your first transformation plan to SAP S/4HANA.
Pilot and scale a 90-day*, easy to consume format that helps customers to structure and assess their
transformation. Cover Business, Technical as well as Transformation view and summarize in an
executive-ready Transformation Plan 1.0
(picture by Michael Boss ).
The program uses via ‘CherryPicking’ individual blocks (or components of the blocks) that are in the engagement level of SAP.
Within the Adoption Starter there are helpful tools, templates and active support from SAP so that the customer is able to answer the basic questions of your upcoming SAP S/4HANA implementation. For example, let’s revisit the question from earlier on regarding Brownfield or Greenfield. Of course, the corresponding output is to be understood as a kind of “indication” and, if necessary, further parameters may be necessary to clarify such an important question. Nevertheless, the editing of these templates is very helpful to deliberately deal with the question “brownfield or greenfield”.
The really cool story at Adoption Starter is the orderly and very well structured process. The customer is in a ‘class’ with other SAP customers and receives homework after each instruction session based on a given timetable. Very effective!
Business Process Reality Check
One element of the Adoption Starter is the so-called “Business Process Reality Check”.
Goal: Check your current SAP ERP system to get answers to
- Improve working capital – serving process owners in the line of business for Days Sales Outstanding (DSO), Days Purchasing Outstanding (DPO), Days in Inventory (DII)
- Increase automation rates,
- Reduce transactional backlog, and
- Get rid of non-standard order types
… in order to reduce migration times, improve data quality, and ensure performance of your SAP S/4HANA system.
In doing so, SAP uses a customer’s SAP system to analyze its current situation on the system side and classify the results into four categories (Improve Working Capital, Increase Process Automation, Reduce transactional backlog, Reduce non-standard and types). Subsequently, SAP presents possible optimization potentials which the customer can unlock. Especially for customers who follow a brownfield approach a very useful evaluation.
Enclosed find also the complete overview of the output-documents from SAP Adoption Starter:
SAP S/4HANA Readiness Check
In addition, I would like to recommend the following tool (this is also used in the SAP Adoption Starter Program, but can also be used by customers without participation the Adoption Starter): The Readiness Check. From SAP:
“You are planning to convert your SAP ERP system to SAP S/4HANA and want to use SAP Readiness Check for SAP S/4HANA to check the following aspects of your SAP ERP system:
- Custom code impact
- SAP S/4HANA sizing
- Recommended fiori apps to replace existing transactions
- Relevant simplification items
- Business process analytics
- Data volume management
- Business warehouse extractor
- SAP Readiness Check runs as of ERP 6.0 (EhP 0-8) and the database can be non-Unicode or Unicode.”
Personally, I find this extremely helpful to get a good impression and to derive the first indications (or already activities).
Much more information about the Readiness check here:
- “Start SAP S/4HANA Planning with Readiness Check” by Carl Dubler
- “Should I use SAP S/4HANA Readiness Check or Simplification-item Check ?” by Monika Patel
- “SAP Readiness check for S4HANA” by Dipak Kumar
SAP Simplification List
At this point worth mentioning: the simplification list. Must Read!
SAP Transformation Navigator
Note: The SAP Transformation Navigator is also an active part of the SAP Adoption Starter. Of course, it can also be used by SAP customers without participation in Adoption Starter.
From the website:
“It assesses your current IT landscape, business strategy, and industry trends, and delivers one comprehensive report, which you can download immediately, containing custom recommendations of the SAP products and solutions required to realize your digital strategy.”
Note: In order to import your current IT structure (SAP products) into the Transformation Navigator, you can proceed manually or load automatically (“From Customer Profile”, the “Landscape Usage Agreement” must be accepted).
If you are not interested in pitching with your current product environment, you can also formulate your future requirements directly through the capabilities. The navigator then creates your possible future structure based on your capabilities. Disadvantage in this case is of course: a matching between the current system landscape and future landscape can not be done.
In the next step, you define your personal Value Driver and can further refine it using the data of the Aspiration Range, thus sharpening your target image.
Example – One of the output files, the BusinessGuide präsentation with ~130 pages:
SAP Value Lifecycle Manager
The purpose of the Value Lifecycle Manger is “Measure the expected value of your SAP initiatives with benchmarking surveys and business case tools”. So, what does that mean?
You can use the tool from my point of view for the following good reasons:
- Depending on the selected areas, the tool will ask you for many company key figures. This means for you in the first place: You are asked to collect the key figures. Sooner or later you will certainly need one or the other measure anyway
- You can do an industry comparison and see how well your business is in the industry context. From there you can start initiatives as needed to make improvements where appropriate.
- You can also derive business benefits locally and incorporate them into your presentations internally.
Cool function: Basic data does not have to be entered manually. Simply transfer them from the Transformation Navigator to the Quick Value Assessment Tool:
…Continue with Part 3.
Find Part 1 here.
Interesting read. Thx for sharing. 🙂
Thanks for sharing. Helpful.