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Supporting the Transition to SAP S/4HANA with Business Process Improvement #SAPTechEd

Source: SAP

This has been presented at SAP TechEd (s)

Please register for Introduction to SAP Data Volume Management webcast – a key next step to after this session.

Source: SAP

The legal disclaimer applies; things in the future are subject to change.

Source: SAP

Always some room for improvement

Old and open documents – cannot archive

Source: SAP

In your role, you may have seen these tools

Above shows a selection of tools/services

BSR – what S/4HANA can do for your company

500+ participants in S/4HANA adoption starter program; piloted with DSAG

20K companies have used transformation navigation

Readiness check to analyze software prereqs and custom code adaptions, migration requirements

Pathfinder may have been used

Tools and services that contain parts of business process improvements

Creates awareness for your project

Source: SAP

Different processes in system could run better; optimize existing SAP investment

An SAP service offering; initial analysis

Activates Solution Manager tools with key figure content

Goal is to achieve tangible improvement results that could be business or IT driven

Source: SAP

Applicable to both business / IT

Apply in every lifecycle phase

From left – plan and build phase – “support foundation for digital transition” – improve transaction quality – fast close

Support clean up of old and obsolete data – prepare for data archiving

Reduce complexity – inactive document types, org units

Need excellent master data quality; maintained correctly

During go-live, can provide hyper care; after care

Optimize value drives such as day sales outstanding, fast close

Increase process automation

End users may not know how to use system correctly (new employees) or may not want to use systems as they do not trust the results; may create work around to download to Excel

A reverse business process improvement; start with information from your running system

Screen shots:

Prepare the move from SAP ERP to SAP S/4HANA and close open documents to

  • keep the migration data footprint small and hence speed-up migration,
  • avoid unnecessary memory consumption and related hardware costs,
  • avoid inaccurate transactional data undermining the anticipated SAP S/4HANA benefits in all kinds of planning functions. (source: SAP)

Source: SAP

Using Solution Manager

Dependency diagram, KPI tree, used to “differentiate cause and effect to improve the right thing”

Visualize most important key figures

Show cause and effect

“out of the box key figures”

Source: SAP

Start key figure – # schedule lines still open – planned GI date is one day in past

-Not delivered on time to your customers

-92K old and obsolete in your system – cannot be archived, might impact processes

-Investigate significant backlogs; clean up potential towards S/4HANA transition

Exceptions may be an influencing factor; incomplete sales orders with missing field

Source: SAP

Benchmarking; org units such as sales org

Business Process Analytics – identify root cause

Filter, sort characteristics, number of documents, items, monetary value

Graph at the bottom – immediate visualization of filtered selection – 2 sales org are the problem

Source: SAP

Switch analysis type

Planned goods issue date, split data into relevant data, and old obsolete data to be cleaned up

Age in system

Source: SAP

Can select additional drill down dimensions; select sales org

Source: SAP

Colored in blue, all of backlog from sales org 0001 is older than 2013; clean up open documents

Close old obsolete documents, prepare for archiving

Sales org 1000 – current issue

Source: SAP

Detail – enables forward navigation to business system

Source: SAP

Another option is tabular dashboard – a distribution of backlog across regions

Dashboard provides “continuous tracking/break-down across org units” (source: SAP)

Source: SAP

Overview – most of sales overdue items are from APJ

Drill down to business process analytics

Source: SAP

How improved?  A progress management board – “what shall be improved and what is the process”

Source: SAP

Left – measurement of key figure – the baseline from beginning of year, then a delta to baseline, improved by 42%, compare to last month value

Source: SAP

Business process improvement – can help before migration, reduce memory footprint, improve data quality

Help during go live

Run phase – hyper care

#1 – example – how and why consider transactional data quality by closing old transactional documents – lead more accurate results

-MRP – outdated requirements, outdated purchase orders

-Look at input of MRP runs – does it include old and obsolete orders?

-Clean these cases

-Reduce data volume that has to be migrated

-Efficiently use S/4HANA such as MRP cockpit

#2 – improve master data quality

-Key figure categories – usage, changes and exceptions

-Master data with low usage or not used at all

-Key figures help identify

-Vendors can be archived or deleted – not take to the new system – speed up migration process, improve usability of S/4HANA value helps, less testing effort, processes less prone to error

-Key figures can identify master data with high usage – template, used as it should be

-E.g.  Payment terms that differ from vendor master

#3 Hypercare

Successful go-live

Full value of SAP solution not realized after go live

-Insufficient master data quality

-Configuration not match reality

-Users not trained sufficiently

-Reasons for unused process automation

Source: SAP

Browse online KPI catalog to get an overview of what can be applied in your company

1K problem oriented key figures

Get an idea of what SAP offers

Link to catalog https://go.support.sap.com/kpicatalog (S-user required, I think)

Source: SAP

  1. Based on initial analysis, decide focus areas to optimize
  2. Business process improvement applied – key figures activated for analytics in Solution Manager – ready for analysis – use root cause to analyze key figures, identify systematic issues
  3. Track progress with board
  4. Bundle in workstreams

Dashboards – implement from the beginning

Source: SAP

The key 3 takeaways

More:

“Prepare the move from SAP ERP (ECC) to S/4HANA and close open documents to:

  • keep the migration data footprint small and hence speed-up of migration
  • avoid unnecessary memory consumption and related hardware costs
  • avoid inaccurate transaction data undermining anticipated S/4HANA benefits in planning functions”

Link to the replay is here

Has anyone used this?  Experiences?

Please register for Introduction to SAP Data Volume Management webcast – a key next step to after this session.

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