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MHPDeepDive: Transformation nach SAP S/4 HANA

Ganzheitlich und in einem mehrstufigen Prozess

Viele Unternehmen stehen vor dem Umstieg auf SAP S/4HANA. Laut der Lünendonk-Studie „Mit S/4HANA in die digitale Zukunft“ aus dem vergangenen Jahr verfügen bereits 30 Prozent der befragten Anwenderunternehmen über eine Roadmap für die Umstellung. Das angekündigte Wartungsende für SAP ERP bis 2027 mag für einige Unternehmen der einzige Grund für eine S/4HANA-Transformation sein. Diese Notwendigkeit sollte jedoch auch als einmalige Möglichkeit begriffen werden, die Vorzüge eines modernen ERP-Systems zu nutzen.

Der maximale Nutzen lässt sich allerdings nur mit einem bewährten Transformationsvorgehen aus SAP S/4HANA ziehen. Unser ganzheitlicher und mehrstufiger Ansatz unterstützt Sie bei einem schnellen und effizienten Umstieg. Zentral ist hierbei Ihre individuelle Situation. Darauf abgestimmt wird ein maßgeschneiderter Weg erarbeitet – von der Ist-Analyse bis zum Go-live und darüber hinaus.

In unserem MHPDeepDive „Transformation nach SAP S/4HANA” stellen wir Ihnen unser Vorgehensmodell im Detail vor. Wir zeigen Ihnen, welche Faktoren bei der Einführung wichtig sind, welche typischen Hürden Sie kennen sollten und wie ein beispielhafter Weg aussehen kann.

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MHPDeepDive: Transformation nach SAP S/4 HANA

  1. 1. ENABLING YOU TO SHAPE A BETTER TOMORROW
  2. 2. Transformation nach SAP S/4 HANA
  3. 3. © MHP Management- und IT-Beratung GmbH MHPDEEPDIVE TERMINE 30.07.2020 Future Retail – Was Hersteller und Händler jetzt tun können Sommerpause bis Anfang September
  4. 4. MHPDEEPDIVE: Transformation nach SAP S/4 HANA Dennis Hansmeier Senior Consultant Diplom Wirtschaftsinformatiker, Business Information Systems ThemenOwner S/4HANA Cloud Hybride Systemlandschaften Mike Juchem Consultant
  5. 5. AGENDA 1. Why Transform 2. S/4 HANA enabled Transformation in a nutshell 3. From strategy to technological platforms – the MHP way 4. MHP‘s Hybrid transformation approach
  6. 6. WHY TRANSFORM?
  7. 7. JUST A NORMAL EVOLUTION BUT WHY UPGRADE AND HOW TO TRANSITION? SAP R/3SAP R/2
  8. 8. TAYCAN911 S VS. MHP
  9. 9. WHY UPGRADE TO THE TAYCAN? 1970 911 S 2019 Taycan “Better performance” “Increased connectivity services“ “Superior user experience” “Limited spare parts” “Maintenance complicated“ “Performance outdated” MHP
  10. 10. THERE‘S MORE THAN ONE WAY TO TRANSITION CHOOSE THE RIGHT ONE! MHP
  11. 11. CHALLENGES ON THE WAY TO THE DIGITAL TRANSFORMATION AGE “We want to transform our SAP ECC System to S/4HANA in a short period of time” “The mission critical processes we developed over the last years should be retained; but we also would like to have the chance to optimize the other processes by using new S/4 functionalities” “We haven’t archived our data for years” “We would like to know how we can integrate data and business process optimization in a technical system conversion”
  12. 12. BUSINESS STATEMENT “If you digitize a s*** process… you will get a s*** digital process!” Thorsten Dirks: CEO Telefonica Germany, SZ Wirtschaftsgipfel 2015
  13. 13. S/4HANA ENABLED TRANSFORMATION IN A NUTSHELL
  14. 14. WHAT IS YOUR MOTIVATION? End of Maintenance 2027 “We need to move to S/4HANA because maintenance contract for SAP ECC ends in 2027” Quick & Low Effort “We need to move to S/4HANA to get a modern ERP software but with minimal effort and time investment” Transform Our Company E2E “We want to move to S/4HANA by using the once in a lifetime chance to transform our company towards a digitized company” Others “We do not have a clear picture so far”
  15. 15. MYTH OR FACT? S/4HANA is only available in the cloud… There’s an SAP Fiori app for every GUI transaction… We do not have to use S/4HANA in order to use Fiori apps… To convert to S/4HANA from an older SAP release (i.e. 5.0), I need to upgrade to ECC 6.0 EhPx first… SAP HANA and SAP S/4HANA are basically the same… With S/4HANA, we can drastically reduce our custom developments…
  16. 16. S/4HANA FOUNDATION AND KEY FACTS 1 2 3 4 NEW FUNCTIONALITIESSIMPLIFICATION FOUNDATION FOR DIGITIZATIONUSER EXPERIENCE S/4HANA – THE NEXT ERP SUITE FROM SAP CURRENT RELEASE 1909 | YEARLY RELEASE CYCLES ANYPREM | QUARTERLY ON S/4 CLOUD
  17. 17. FROM STRATEGIE TO TECHNOLOGIE PLATFORMS – THE MHP WAY
  18. 18. FROM STRATEGIC TARGETS TO HOLISTIC TRANSFORMATION MODELS… REQUIREMENTS CHALLENGES GUIDING PRINCIPLES2 FOCUS AREAS4 CAPABILITIES & PROCESS5 ARCHITECTURE6 HOLISTIC MODEL7 Process Execution Time OVERALL STRATEGIC TARGETS TO CM Customer Experience 1 PROGRAM PRINCIPLES PROGRAM GOALS PROJECT GOALS ARCHITECTURE PRINCIPLES USE CASE VALUATION3
  19. 19. WE PRIORITIZED THE FOCUS FOR THE TRANSFORMATION… 0 1 2 3 4 5 Cost & process efficiency Innovation enablement Customer dedication Standardization Process orientation User centered design PROGRAM PRINCIPLES PROGRAM GOALS PROJECT GOALS ARCHITECTURE PRINCIPLES
  20. 20. … DERIVING THE PROGRAMS PRINCIPLES (CUSTOMER EXAMPLE) Program principles 1. The program is business driven 2. Harmonization is mandatory (reduction of variants) – exceptions only after approval 3. Minimum of risks & emphasis on secure implementation vs. business disruption 4. We focus on sustainable and future-proofed solutions 5. ERP system is the core data engine for transactional data and respective master data (single source of truth) 6. The ERP platform is integrated, scalable and automated where possible 7. Implement end-to-end processes in a new technological platform based on S/4 ERP 8. Decisions are made sustainable and responsible, but as fast as possible 9. We accept failures, but we expect to learn from them 10. We align with principles, expand if necessary PROGRAM PRINCIPLES PROJECT GOALS PROGRAM GOALS ARCHITECTURE PRINCIPLES
  21. 21. WE ENABLED THE CUSTOMER TO DETERMINE THEIR STRATEGIC TARGETS AND REQUIREMENTS The guiding principles have been developed in 4 steps towards a holistic mission statement for the transformation program Briefing of division heads with regard to strategic targets Execution of 7 sector- specific workshops to identify challenges and derive requirements based on strategic objectives Deriving guiding principles during workshops based on requirements Consolidation of the workshop results into a comprehensive overall picture of guiding principles Briefing Execution Guiding Principles Consolidation2 3 41
  22. 22. FOUNDATION FOR GUIDING PRINCIPLES – ONE PAGER PER AREA Meeting market, customer and sales requirements Process reliable and efficient working with state-of-the-art technology Consistent pull principle in distribution logistics Standardized processes and interfaces Securing and expanding competitive advantage In-house handling Logistics Flexibility in the implementation of sales and/or logistics strategies Creation of transparency and control options in the supply chain Standardization of processes, key figures, interfaces, expenditures REQUIREMENTSCHALLENGES STRATEGIC TARGETS Integrated, demand-driven planning and control of the supply chain Systemic fulfilment of legal requirements (foreign trade / customs / environment / dangerous goods ...) Correct, up-to-date and transparent information E2E Reliable and up-to-date dates for SC partners Dynamic connection of modern technologies Material flow = information flow (real- time, digital twin) Binding delivery date - determination, naming, compliance and change communication Availability and archiving of data and documents Traceability where useful Sensible synchronization of the projects S/4 and … MHD handling where appropriate Multisourcing in logistics/production Self-service for determination/output ("logistics cockpit") / change of unique key figures Exception Management Harmonization of printouts, forms, labels, ...) also iPDF Standardized process templates Standardized interfaces to business partners and authorities Merging of different transactions for the same/similar flows of goods System-supported set processing Reservation for orders Unique identification of a product where it makes sense Track&Trace Improved blocking quality Consideration of Dangerous Goods Management Cross-area, system-integrated planning and control of the global SC Consideration of handling unit in the processes (also of supply sources) Picking system-supported/optimized single-stage/two-stage Automatic weighing and labelling Third country processing (label, taxes, ...) Planning and control of transport service providers and transport schedules (inbound and outbound) Ensure/optimize returns processing & recall campaigns Optical support/check of processes (setup/picking) Processing of third-party business incl. customs clearance Decentralized shipping incl. customs clearance Packaging optimized order compilation including consideration of customer requirements (carton/pallet/container/truck/...) Flexibly definable (customer request, deadline, quality, feasibility, costs), system- automated determination and handling of transport processes B2B/B2C Customer order processing necessary
  23. 23. SUMMARY FOUNDATION GUIDING PRINCIPLES Planning Master Data Reporting Connectivity Standards E2E-Processes Automatization Planning Master Data Reporting Flexibility Standards E2E-Processes Inter Company Roles & Authorization Procurement Sales Logistics Planning Master Data Customs Interfaces Reporting Standards/Templates E2E-Processes Track&Trace Supply Chain Distribution & Transport Warhouse Processes Manufacturing Planning Production Supply Track&Trace Supply Chain Interfaces Master Data Order Management Reporting Standards Inter Company Service Finance Planning Reporting Master Data Standards E2E-Processes Usability IT Architecture Reporting Sub Projects ITSM = Cross area topics Legend: Inter Company Inter Company Maintanance Standards E2E-Processes Reporting Mobility & Usability Digitization Strategy= Area specific topics
  24. 24. GUIDING PRINCIPLES PER AREA We want a cross-divisional, globally aligned, system-supported, logistical demand and capacity planning oriented towards the customer. We want an enterprise-wide, cross-process and system-controlled (workflow) master data management with an established governance with secured data quality. Customs & Foreign Trade: We want system-supported, standardized and legally compliant customs and foreign trade processes. We want a future-proof, maintainable, uniform, system-supported interface landscape aligned to the standard. We want an understandable, clearly and uniformly defined system of key figures which is based on the "Single Source of Truth“ principle and can be independently applied and visualized by the employee. Tracking & Tracing: We want global tracking & tracing where it makes sense. We want to design a standardized end-to-end processes that promotes efficiency, customer-orientation, transparency, sustainability and auditability, and supports them with modern technologies in order to generate competitive advantages. P M R S E OverarchingLogisticsspecific Planning Master Data Reporting Standards E2E-Processes
  25. 25. DERIVATION OF FOCUS TOPICS BASED ON GUIDING PRINCIPLES WORKSHOPS Planning Integrate product planning into existing sales planning; tool-supported planning; simulation- capability; global, integrated SnOP; cross-divisional; integrated; current KPIs on an hourly basis Reporting Real-Time Reporting; Single Source of Truth; same understanding of key figures; integrated, system-supported key figure system Multisourcing Consistend mapping of multisourcing E2E-Processes Introduction of E2E processes; E2E process consideration; Increased transparency in the process flow; Higher transparency within the customer group; Establishment of process security Harmonization Process harmonization Masterdata Management Improve master data quality; integrated master data and master data governance concept; Delivery date Implementation of a global availability check; binding delivery date Track & Trace Traceability where necessary and useful Intercompany Standardization of the intercompany process; automated processing Standards Use of standards where possible and useful; setting of unique form standards; reduction of in- house developments; comprehensive, standardized interface concept; Container Management Introduction of loan/empty goods management; container management Digitization Digitization of the supply chain; digitization to external partners; unified mobile device concept The following cross-divisional focus topics were identified by the guiding principle workshops and will be taken into account in further elaborations.
  26. 26. WITH THE USE CASES OUR CUSTOMER WILL GET A CLEAR PICTURE OF WHAT SHOULD BE DONE AND WHAT VALUE IT GENERATES MATURITY LEVEL KPI/FUTURE BENEFITS INTERDEPENDENCIES TO OTHER USE CASES OPERATIONAL TECHNOLOGY PROCESSES/CAPABILITY IT FUNDAMENTALS
  27. 27. WE DETERMINED THE VALUE OF EACH USE CASE TO SET THE DIRECTION FOCUS STANDARDIZE OPTIMIZE INVEST Costreductiontoincrease Not Differentiating Differentiating FOCUS STANDARDIZE OPTIMIZE INVEST Costreduction Not Differentiating Differentiating TOincrease
  28. 28. WITH THE MHP PROCESS HOUSES WE DELIVER AN E2E CONCEPT INDUSTRY SPECIFIC Scope Core Processes Management & Support Processes Lead to Quote Configure to Order Order to Cash Engineer to Order Forecast to Stock Record to Report Procure to Pay Service to Retention Plan to Produce Maintain to Settle Strategic Planning Product Management Financial & Investment Planning Strategic Procurement Quality Management Human Resources Management Operational Finance Controlling Risk Management
  29. 29. MHP'S HYBRID TRANSFORMATION APPROACH
  30. 30. WITH THE MHP PROCESS HOUSES WE DELIVER AN E2E CONCEPT INDUSTRY SPECIFIC 1 | Requisitioning 1 P2P0 2 | Purchase Order 4 | Invoicing3 | Goods Receipt 2.1 Create Inbound Delivery 2.2 Yard Processing 2.3 Inspect incoming Goods 2.4 Post Goods Receipt 2.5 Repacking 2.6 Quality Check 2.7 Putaway of Goods 2 2.7 Own storage type for inspection lot quantity; Scanning the HU at the ID point, now run through storage type search; Cross-docking from I-point to setup station if minimum quantity in AKL is not reached; Logic to detect a cross-docking situation must be defined location dependent; Storage type determination must be defined as location-dependent; Storage area determination must be defined as location-dependent; Storage bin determination must be defined as location-dependent; One- or two-stage acknowledgement must be defined as location-dependent 2.3 Print unloading list; distribute unloading list to MB; scan of external HU identification; execute formal GR check; Performing the Clearing Process for Variances  Use of quality notification  cost tracking  Attaching documents via DIS  Consider subsequent processes depending on Incoterms 2.4 Post goods receipt for goods in FREI; Post goods receipt for container / packaging material; Post goods receipt for goods in Q stock ; Recording of batch, MHD and serial number where necessary; Revision-proof scan of GR documents with printing of a barcode for batch scanning; Print goods receipt label 2.6 Run Inspection Rule, create Inspection Lot, record Inspection Results, make Usage Decision (optional) 2.5 Repacking for storage in the HRL; split of a package for storage according to type; Print new HU label, if necessary with multi-level packing structure 2.1 No Planning of inbound transports; Create inbound delivery manually/per EDI supplier web portal incl. Packaging data; creation of handling units possibly with packaging structure Matching S/4  J45 - Direct Material  BNX - Consumables  J82 – Automated P2P with Ariba  2TX (Direct Procurement with Inbound Delivery) Compon ents … … … … … … … 2.2 Execute Yard Planning; Create alerts if plan deviates from avis Fiori F4150 … F2502, F0843 F2343, F1685 F1705, F1706
  31. 31. COMPONENTS MHP PROCESS MANAGEMENT FOR TRANSFORMATION PROGRAMS 1) Process Scoping a) BPML Scoping b) BPML Alignment/ Match 4) Design a) Process Design based on MHP Process Maps b) End2End Alignment 2) Process Assessment a) Process Assessment based on BPML b) Impact Determination c) Establish Global Process Ownership 3) Evaluation a) Determination of Use-Cases b) Alignment Focus Areas
  32. 32. BPML DESCRIPTION Stand: Prozessbeschreibung 1-Geschäftsfeld 2-Hauptprozess 3-Teilprozess 4-Subprozess 5-Prozessschritt 6-Prozessschritt 7-Prozessschritt 8-Prozessschritt 9-Prozessschritt 10-Einzelprozess InScopeofERP Toberedesigned Backtostandard Automation Potential Businessmodel specific Future Organization impact Clientdiffer- entiating Drivestop-lineor costreduction Legal/Regulatory requirements Processgenerates datapointswhere theERPisthe leadingplatform Materiality MP.0.0.0.0.0.0.0.0.0.0 MP.1.0.0.0.0.0.0.0.0.0 Strategic Planning Strategic Planning MP.2.0.0.0.0.0.0.0.0.0 Product Management Product Management PR0672 MP.3.1.0.0.0.0.0.0.0.0 Control Corporate Communication Control Corporate Communication MP.4.1.0.0.0.0.0.0.0.0 Financial and Investment Planning Financial and Investment Planning MP.6.1.1.0.0.0.0.0.0.0 Leadership & Governance Leadership & Governance MP.6.1.2.0.0.0.0.0.0.0 Strategic Sourcing Strategic Sourcing KP.8.1.1.0.0.0.0.0.0.0 Marketing Marketing KP.8.1.2.0.0.0.0.0.0.0 Innovation and Development Process Innovation and Development Process PR0672; PR0728; PR0732 KP.9.1.0.3.0.0.0.0.0.0 Sales and Offer Management Sales and Offer Management PR0218 WS4-SD KP.11.1.1.1.0.0.0.0.0.0 Offer Negotiation Offer Negotiation PR0218 WS4-SD KP.11.1.1.1.1.0.0.0.0.0 Product Development Process Product Development Process PR0672 KP.12.1.1.2.0.0.0.0.0.0 Order Managemnet Process Order Managemnet Process PR0218 WS4-SD KP.13.1.4.0.0.0.0.0.0.0 Service and Aftersales Process Service and Aftersales Process UP.15.1.4.0.0.0.0.0.0.0 Liquidation Process Liquidation Process UP.15.1.5.0.0.0.0.0.0.0 HR HR PR0246 UP.16.2.1.0.0.0.0.0.0.0 Information Management Information Management PR0167 UP.17.1.1.0.0.0.0.0.0.4 Purchasing Purchasing PR0634 UP.1.1.0.0.0.0.0.0.0.0 Legal Legal UP.1.1.1.5.0.0.0.0.0.0 Finance Finance PR0234 UP.2.1.1.2.0.0.0.0.0.0 Controlling Controlling PR0241 UP.2.3.1.3.0.0.0.0.0.0 Risk Management Risk Management UP.2.3.2.0.0.0.0.0.0.0 Quality Management Quality Management PR0630 WS4-EQ UP.3.1.2.0.0.0.0.0.0.0 Warranty Management Warranty Management PR0490 WS4-EQ UP.4.10.0.0.0.0.0.0.0.0 General Services General Services Flagging Criteria Customer Link Prozessüberblick / Process overview Prozessbeschreibung (Anmerkung:1-2Sätzezur Erklärung,damitein allgemeinesVerständnisüber denProzessvorhandenist) Customer Process No. German Prozessbeschreibung 01.02.2019 English Customer specific Description SAPRelation FlaggingCriteria Customer Process Description Workstream Link to GUIDING BOUNDARIES (Strategic Level) Processdescription MHP BPML Automotive Supplier(DE/EN) Process Scope Management processes Core processes Supporting processes Customer BPML Mapping Map customer processes if documented Guiding Boundaries Map processes to possible Guiding Boundaries Process Assessment Flag relevant critieria per process 1.1) BPML Scoping 1.2) BPML Alignment/Match 2.1) Process Assessment based on BPML
  33. 33. FLAGGING CRITERIA FOR PROCESS ASSESSMENT CRITERIA Must be filled EXPLANATION In Scope of ERP, CRM HCM, … Y Process cluster will be performed within the new S/4HANA ERP plattform or other components To be redesigned Y Process cluster needs to be redesigned Back to standard Y Process cluster can leverage SAP standard with configuration but no customization (development) Automation Potential Y Process cluster can increase automation Business model specific Y Process cluster requires a business model specfic variant (e.g. variant for BU1 due to different customer channels) Future Organization impacted Y Process cluster is part of the FB discussions Client differentiating Y Process clusters drives a unique selling proposition in the market, differentiating customer from the competition Drives top-line or cost reduction Y Legal/Regulatory requirements N Is there a need to reflect regulatory or legal requirements in this process (cluster); applicable country to be entered in commentary Process generates data points where the ERP is the leading platform N In case this process generates a key data point which is also leveraged beyond the ERP system, it should be noted 2.1) Process Assessment based on BPML
  34. 34. RESULT OF PROCESS ASSESSMENT – DEFINITION OF CRITERIA EXPLANATION PROCESS ASSESSMENT EXPLANATION IMPACT CRITERIA Criteria Description In Scope of ERP, CRM, HCM, … Process cluster will be performed within the new S4 HANA ERP plattform To be redesigned Process cluster needs to be redesigned Back to standard Process cluster can leverage SAP standard with configuration but no customization (development) Automation Potential Process cluster can increase automation Future Organization impacted Process cluster is part of the FB discussions Client differentiating Process clusters drives a unique selling proposition in the market, differentiating Customer from the competition Drives top-line or cost reduction Leads to cost reduction or increase of revenue Criteria Description Impact on approach What is the impact on the approach (Brownfield, Greenfield, Hybrid) by the future setup of the Workstream? Impact by SAP strategy Does the SAP strategy impacts the transformation (timeline, function, scope, …) Impact by Future Org Do the requirements of Future Org impact the transformation? (process redesign necessary, timeline, ...) Impact on actual landscape Does the actual landscape change by the requirements of the future setup? (e. g., additional components like Ariba, …) Impact on deployment strategy Is there an impact on the deployment strategy by the future setup of the processes and tools? Impact Subsystems Is there an impact by the connection and use of the sub systems (e. g., number range adaptions, …) GENERAL LEVEL OF IMPACT RED: High impact on transformation by workstream due to process assessment and impact criteria YELLOW: Medium impact on transformation by workstream due to process assessment and impact criteria GREEN: Minor impact on transformation by workstream due to process assessment and impact criteria 2.1) Process Assessment based on BPML
  35. 35. RESULT OF PROCESS ASSESSMENT – DEFINITION OF CRITERIA DEFINITION IMPACT CRITERIA Criteria Description Impact on approach  Low--> no approach excluded  Medium --> one approach excluded  High --> Only one Approach possible Impact by SAP strategy  Low--> no impact on timeline, function, scope  Medium --> impact on one component  High --> impact on at least two components Impact by Future Org  Low--> no impact on timeline, process, scope  Medium --> impact on one component  High --> impact on at least two components Impact on actual landscape  Low--> no impact  Medium --> one additional component e.g. Ariba  High --> two or more additional components Impact on deployment strategy  Low--> no impact, all deployment scenarios possible  Medium --> one or more deployment scenarios excluded  High --> only one deployment scenario possible Impact Subsystems  Low--> no impact, only minimum adaptions necessary on 1-10 systems  Medium --> adaption of 10-25 systems with higher impact (e.g. number ranges, changed tables in S/4)  High --> adaption of more than 25 Systems 2.2) Impact Determination
  36. 36. RESULT OF PROCESS ASSESSMENT – DEPENDENCIES ASSESSMENT AND IMPACT ON TRANSFORMATION Statement process assessment WS4 - SCM Impact on transformation … of processes are in scope of ERP … of the processes will be redesigned Possible degree of back to standard Automation potential … of processes are impacted by Future Org … of processes lead to differentiation XX% of processes drive top-line or cost red. XX % XX % XX % XX % XX % XX % XX % Impact on approach Impact by SAP strategy Impact by Future Org Impact on actual landscape Low Medium High Impact on deployment strategy Impact Subsystems
  37. 37. RESULT OF PROCESS ASSESSMENT – STATEMENT PER PROCESS CLUSTER Statement process assessment WS4 - SCM Impact on transformation … of processes are in scope of ERP … of the processes will be redesigned Possible degree of back to standard Automation potential … of processes are impacted by Future Org … of processes lead to differentiation XX% of processes drive top-line or cost red. 87 % 19 % 11 % 2 % 5 % 22 % Impact on approach Impact by SAP strategy Impact by Future Org Impact on actual landscape Low Medium High Impact on deployment strategy Impact Subsystems 2.2) Impact Determination WS 4 consists of 1 process cluster relevant for the assessment. Total number of processes within this clusters is 192 Redesign of processes besides Future Org design is driven by the changed functionality that comes with S/4HANA and identified optimization potential of existing processes. Changed functionality of S/4HANA is e.g.: Global Trade, WM EWM/Stockroommanagement, Change in MRP run, Change in credit management, Change in availability check. Process redesign will impact the actual data structure Replacement for LE-TRA needs to be identified & Solution for selfbilling need to be identified No Impact in Future Org activities Global trade will be covered by system MIC & PP/DS included in S/4Core Processes are designed to run in an highly integrated system and scenario Process redesign will have impact on other systems. X
  38. 38. Business Organization & Processes Application Software & Engineering Data & Analytics Governance & Reporting Technology Systems & Integration
  39. 39. …OPERATIONALIZED IN 4 KEY AREAS REQUIREMENTS CHALLENGES GUIDING PRINCIPLES2 FOCUS AREAS4 CAPABILITIES & PROCESS5 ARCHITECTURE6 HOLISTIC MODEL7 Process Execution Time OVERALL STRATEGIC TARGETS TO CM Customer Experience 1 PROGRAM PRINCIPLES PROGRAM GOALS PROJECT GOALS ARCHITECTURE PRINCIPLES USE CASE VALUATION3 DRIVING BUSINESS & IT VALUE
  40. 40. MATCHING BUSINESS AND TECHNOLOGY  Results of the projects as input (design principles / guidelines)  Definition of Use Cases incl. evaluation to determine potentials  Matching of strategy/processes/technology based on MHP house of processes and capabilities up to level 4 MATCHING BUSINESS & ITE2E TRANSFORMATION ADDITIONAL IT PROJECTS WITH IMPACT DRIVING BUSINESS & IT VALUE ADDITIONAL BUSINESS PROJECTS WITH IMPACT 1 2 3 4 BUSINESS VIEW TECHNOLOGY VIEW
  41. 41. KEY ELEMENTS OF AN E2E FOCUSED TRANSFORMATION APPROACH Guiding Principles  Prooven methodology to determine Guiding Principles Process Assessment  BPML for Scoping  BPML based process assessment  Use Case evaluation Process Landscape To-Be  E2E process maps  Process integration with SIPOC methodology  S/4HANA integration Architecture Principles & Alignment  Consideration of all architecture domains  Ensure traceability  Design architecture based on process landscape Strategic Targets  Dieser Text demonstriert, wie Ihr Text aussehen wird, wenn Sie den Platzhaltertext austauschen.  Setting the guiding direction for the company and the transformation
  42. 42. TAKEAWAYS BENEFIT FROM MHP‘S EXPERIENCE IN DIFFERENT INDUSTRIES AND THEIR RESULTS ALIGN THE TRANSFORMATION TOWARDS COMPANY’S STRATEGY POTENTIALS ARE THE FOUNDATION FOR THE BENEFITS THERE ARE BENEFITS – BUT NOT JUST BY INTRODUCING S/4HANA1 2 3 4
  43. 43. AGENDA FROM STRATEGY TO TECHNOLOGICAL PLATFORMS – THE MHP WAY! ARCHITECTURE IN AN END TO END APPROACHMHP‘s HYBRID TRANSFORMATION APPROACH S/4HANA ENABLED TRANSFORMATION IN A NUTSHELL WHY TRANSFORM?
  44. 44. CLASSIC TRANSFORMATION APPROACHES MOTIVATION  Main target: ensure SAP maintenance after 2027  Low change preferred, limit change to mandatory tasks  Keep historical data  Stick with current Business Processes  Stick with current Custom Developments MOTIVATION  Main target: take opportunity for a bigger change (e.g. best practices implementation)  Option to restructure SAP Org Model to current needs  Option to optimize and / or (globally) harmonize Business Processes  Option to limit Custom Developments to strategic differentiators and move to SAP standard elsewhere “BROWNFIELD“ “GREENFIELD“ S/4HANA IMPLEMENTATION AS PURE TECHNICAL UPGRADE S/4HANA IMPLEMENTATION AS ENABLER FOR A BIGGER CHANGE SYSTEM CONVERSION NEW IMPLEMENTATION ?
  45. 45. BRINGING MHP HYBRID APPROACH IN PLACE AS THE OPTIMAL TRANSFORMATION APPROACH CONVERSION Only adopt the minimum S/4 triggered requirements  Technical upgrade ALL THE PAIN. NONE OF THE GAIN. NEW IMPLEMENTATION An all-new implementation. FINISHED? SEE WHAT HAPPENS ONCE THE SYSTEM IS LIVE MHP HYBRID Holistic MHP approach with optimal allocation of effort, risk, benefit NEW, OPTIMIZED S/4 SYSTEM GOES LIVE. On Premise SAP S/4 HANA ERP System ERP System Non SAP- System On premise S/4 Cloud ERP System On premise S/4 Cloud TARGETED DEGREE OF CHANGE
  46. 46. DETAILED COMPARISON OF POSSIBLE APPROACHES Conversion New ImplementationHybrid P01 ECC P01 P01 Preparation Execution Production P01 P01 P01 Preparation Execution Migration P01 Production S01 S01 S01 Preparation Execution Migration S01 Production ECC S/4 S/4 S/4 S/4S/4 S/4 ECC S/4 Data Cleansing Execution SUM Execution DMO Error Correction Delta Setup Document Split Rework Authorization Test (I-Test, UAT) CutOver GoLive (BigBang) Empty Shell creation Convert to S/4HANA (SUM/DMO) Adoption of processes Activation/setup new processes/functions Fiori activation Authorization Test (I-Test, UAT) Introduction NewGL Introduction NewAA CVI Material Ledger activ. Data Cleansing Data Migration and -transformation (selective) CutOver GoLive (BigBang, Waves, compressed waves) Migration from ECC like in hybrid approach CutOver GoLive (BigBang, Waves, compressed waves) Setup new system from scratch Take over necessary developments Fiori activation Authorization Test (I-Test, UAT) Migrationdatatransform/map S/4 ECC S/4
  47. 47. COMPARISON OF POSSIBLE APPROACHES  Low impact on organization  Trainings effort reduced to new functions  Test effort may be reduced due to focus on new and impacted functions/processes  Only possible at fiscal year change  Increased risk due to BigBang  Increased risk due to technical challenges (customizing, developments)  Minimum 2 phases if processes wants to be harmonized/adopted (not always possible)  No focus on actual business and strategic requirements  Everything is copied to new world  Risk that downtime over weekend is not sufficient  No ensured time frame for correction of errors and data matching Brownfield GreenfieldHybrid + - + -+ -  All rollout scenarios possible at lower risk  Empty system enables process adoptions, harmonization and setup of new functions/processes and master data ( e.g. numbering change)  Focus on business and strategic requirements  Selective move over of data and developments  Possible during fiscal year  Compress wave rollout possible to reduce time  Training of new functions / realized potentials  Increased number of temporary interfaces (depending on roll-out scenario)  Synchronized master data, number ranges in case of phased rollout  All rollout scenarios possible at lower risk  Empty system enables process adoptions, harmonization and setup of new functions/processes and master data( e.g. numbering change)  Focus on business and strategic requirements  Selective move over of data and developments  Possible during fiscal year  Compress wave rollout possible to reduce time  Higher effort  Increased number of temporary interfaces (depending on roll-out scenario)
  48. 48. CHARACTERISTICS OF THE APPROACHES I Brown Field Green FieldHybrid Focusonvalue Brown Field Green FieldHybrid Risk LOW HIGH LOW HIGH
  49. 49. CHARACTERISTICS OF THE APPROACHES II Brown Field Green FieldHybrid Focusontime Brown Field Green FieldHybrid Possibilitytoadoptprocesses FAST EXTENDED LOW HIGH Brownfield oriented Greenfield oriented
  50. 50. COMPARISON OF POSSIBLE DEPLOYMENTS Rollout BigBang + - + -  Lower Risk, because systems can be slowly implemented and tested without pressure  The ability to revert systems or make adjustments can lower the risk to the business  Employees also have more time to adjust, which in turn helps to keep the business running smoothly throughout the transition.  Easier to adjust to new system  More time to train  Comprehensive UAT and focused training plans  Scalable regarding resources  Higher implementation costs  Delay in ROI, the return on the ERP investment in a phased approach is a much slower process, lengthening the time between system purchase/installation and measurable benefit  A phased approach can lose its motivation, causing the implementation to lag and delay the full deployment  Temporary interfaces  Longer timeline  Shorter implementation Time  Lower Costs as the current system is replaced on a single day  Companywide usage  Legacy systems are decommissioned  ROI: The return on investment is realized faster, as all departments go live at once and the time to implementation is quicker from start to finish  Easier Integration with legacy/subsystems  No temporary interfaces  Higher risk, if something goes wrong, the process of reverting systems can be complicated  Full testing difficult prior to GoLive, will not cover all corner cases  Large data migration  Wider scope of potential System issues  Temporary lack of initial productivity  Change management and training issues  Blocks most of the resources
  51. 51. COMPARISON OF POSSIBLE OPERATING MODELS Customer managed Customer managed SAP / Partner managed Customer managed SAP managed SAP managed SAP S/4HANA On Premise SAP S/4HANA HEC SAP S/4HANA Single Tenant SAP S/4HANA Multi Tenant Software (as a Service) Application Platform (as a Service) O/S, Runtime, Middleware, Development, Integration Infrastructure (as a Service) Server, Storage, Network
  52. 52. COMPARISON OF POSSIBLE OPERATING MODELS On Premise Single TenantHEC Multi Tenant Description Interface Modification Custom Development Release/Updates/ Testing Add Ons Data management 3-System- Landscape S/4HANA System analog existing SAP ERP Possible HANA Certification necessary (see SAP List) 4 times a year 4 times a year System in own data center System in SAP Data Centre with own instance SAP S/4HANA Cloud SAP S/4HANA Cloud Yes Restricted Strongly restrictedNo restrictionsNo restrictions Possible via SCP Yes Analog SAP ERP Not Possible No restrictionsNo restrictions Possible via SCP S/4HANA System hosted by SAP in St. Leon-Rot Possible Yes Analog SAP ERP Comparable to SAP ERP ECC based on Simplification List Comparable to SAP ERP ECC based on Simplification List S/4HANA on Cloud, functional scope analog S/4HANA on premise Possible via SCPI Framework S/4HANA on Cloud, one client in shared system, Currently reduced scope Possible via SCPI Framework -
  53. 53. MHP DEVELOPED A TWO-STEP APPROACH TO SUPPORT YOU ON ALL LEVELS OF THE TRANSFORMATION 1. MHP TAILORED ASSESSMENT 2. MHP TAILORED TRANSFORMATION
  54. 54. MHP’S TWO-STEP APPROACH TO PERFECTLY FIT TO CUSTOMERS REQUIREMENTS MHP TAILORED ASSESSMENT MHP TAILORED TRANSFORMATION BASICS PROGRAM/PROJECT ARCHITECTURE VALUE MIGRATION/DATA TRANSFORMATION CUSTOMTAILOREDTRANSFORMATIONSTRATEGY STRATEGY NEW IMPLEMENTATION SYSTEM CONVERSION MHP HYBRID APPROACH MHP LEADING PRACTICE MODEL COMPANY INITIAL SYSTEM SNP EMPTY SHELL & CODE CONVERSION FOCUS ON INNOVATION FOCUS ON KEEP THE LIGHTS ON New Functions Guiding Principles PortfolioMethodology Process Management Data Management Application Technology Use Case Validation Cost Case/Business Case KPI Measurement Technical Assessments Organizational Change Management Migration Concept Tool Selection Enablement RoadmapBudget TransformationApproachFutureArchitecture RolloutStrategy Analytics
  55. 55. DIVERSE FACTORS ARE INFLUENCING THE PROJECT COSTS OF THE S4 TRANSFORMATION strongweak Availability Customer Key-User and IT Full timePartial time Distribution of activities in responsibility matrix CustomerMHP Change Management and Training approach lowhigh Automated Custom Code Conversion and Complexity parallelsequential Leverageeffects €€ € €Project costs Reduced costsHigh costs Close-to-Standard implementation; Target-Architecture-Governance and Complexity
  56. 56. IMPLEMENTATION OPTIONS I. Convert current system including all data to S/4HANA II. Code Remediation III.Optimization Projects upfront in ECC IV.Optimization Projects on S4 platform I. Build up new S/4HANA system II. Configure system from scratch, Model Company or MHP Leading Practices III.Selected Code Transfer IV.Migrate data selectively according to concept I. Optimized Template copy from current SAP ERP II. Reengineering processes III.Code Remediation or selected code transfer IV.Migrate data selectively according to concept A SAP SYSTEM CONVERSION HYBRID APPROACH BASED ON LEADING PRACTICES HYBRID APPROACH BASED ON EMPTY SHELL I. Reengineering and process simplification based on latest innovations II. Implement innovative business processes with pre Implement content on a new platform III.Perform initial data load IV. Retire old landscape A NEW IMPLEMENTATON DECOUPLING OF SYSTEM FROM DATA
  57. 57. MHP’S EXPERIENCE IS BASED ON MULTIPLE TRANSFORMATION PROGRAMS RECOMMENDATIONS GUIDING PRINCIPLES & TARGET ARCHITECUTRE Define a target solution commonly accepted by all, Business and IT PROGRAM SETUP IDENTIFY DEEP DIVES Establish an enterprise-wide, commonly supported program approach and governance Realization of quick wins and short term transformation objectives OBJECTIVES Transformation Perspective Business Process Perspective Organization Perspective  Maximum committment & engagement  Ensure enablement of new business & IT TOMs  Standardized E2E processes  Harmonized E2E processes  Global Process Owner  Target Architecture encompassing all Business & IT objectives  Business & IT follows Transformation  Determine the best fitting approach
  58. 58. TAKEAWAYS CHOOSE TWO-STEP APPROACH TO BE PERFECTLY PREPARED YOUR TRANSFORMATION APPROACH DEPENDS ON CRITERIA MATCHING YOUR COMPANY’S REQUIREMENTS MATCHING BUSINESS AND IT IN ALIGNMENT WITH THE TRANSFORMATION CONSIDER: BUSINESS MODEL TARGET OPERATING MODEL SYSTEM INTERGRATION IT PLATFORM 1 2 3 4
  59. 59. LET‘S GET CONNECTED Dennis Hansmeier Senior Consultant Mobil: +49 (0) 152 3314 5053 E-Mail: dennis.hansmeier@mhp.com
  60. 60. © MHP Management- und IT-Beratung GmbH MHPDEEPDIVE TERMINE 30.07.2020 Future Retail – Was Hersteller und Händler jetzt tun können Sommerpause bis Anfang September
  61. 61. VERPASST? KEIN PROBLEM! Alle vergangenen MHPDeepDives finden Sie hier: www.slideshare.net/MHPInsights www.youtube.de/MHPProzesslieferant
  62. 62. WELCOME TO TOMORROW

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