Implementing SAP (Systems, Applications, and Products in Data Processing) software is a significant undertaking for any organisation, often involving a complex blend of technical and business transformation processes. This article will outline the key steps and considerations involved in the SAP implementation process, particularly focusing on SAP S/4HANA, as discussed by Chief SAP Architect, Paul Kelly in the accompanying webinar.
Content Breakdown
Paul Kelly, Chief SAP Architect, sharing his perspective on the SAP implementation process with the SAP Network+ community
1. Treat it as a Business Transformation (Not an IT Project)
- Successful S/4HANA implementation requires close collaboration between the business and IT teams, as it is a business transformation, not just a technical one.
- Investing considerable time and effort to understand the business needs and processes is crucial before starting the implementation.
2. Understand the AS-IS Ecosystem
- Before embarking on the S/4HANA implementation, it is crucial to understand the existing ERP ecosystem, including the current processes, data footprint, and customisations.
- Spending 12-18 months on this “AS-IS” assessment is recommended to ensure a successful transition.
3. Get a Clear Picture of Legacy Debt and Customisations in ECC Systems
- ECC systems are often 10-15 years old, resulting in significant legacy debt.
- Customers have typically customised their ECC systems heavily to fit their business processes and data models, making the journey to S/4HANA more complicated.
- The level of customisation and the “bending” of the ERP solution to fit the business purpose is very important to understand at the outset.
4. Design Your Implementation and Build a Business Case
There are ten steps in the design phase of an SAP implementation.
- What are the requirements of each business function (finance, marketing, payroll, procurement, sales)?
- What is the business actually trying to achieve with an ERP solution?
- What’s coming? What’s the product roadmap and rollout plan? Do they want to be more digital?
- Build a process taxonomy
- Complete a business process mapping exercise
- Take the process taxonomy and map it to a target landscape
- Look at all your data footprints (mapped back to the initial understanding of the business needs) – understand if you actually need this process brought forward into the new SAP system? Is it still relevant? Could it go somewhere else?
- Can SAP do what you need it to? Do your requirements match the functionality?
- Start to tick things off and make decisions – use this to build a scope for an ERP solution with contributions from all areas of the business
- Build a strong, well-structured business case.
5. Select Your Deployment
- Customers have the option to choose between a Brownfield approach (upgrading the existing ECC system), a Greenfield approach (starting from scratch), or a selective “mix and match” approach.
- The choice depends on the level of customisation, the business processes that need to be retained, and the desired end-state.
- Many customers are moving their ERP systems to the cloud, which brings additional considerations around data footprint, licence models, and operating model changes.
- The decision between public or private cloud should be based on the organisation’s specific needs and data requirements.
Conclusion
The key to a successful S/4HANA implementation is to treat it as a business transformation – not just an IT project. The business needs to spend adequate time understanding the current ERP ecosystem, legacy systems and customisations and designing an implementation that will fit the business needs.
