Organizationally, technically, and culturally, an SAP S/4HANA migration project is complex in many areas. It’s not simply an IT project where data is transferred from one system to another. Rather, it’s a company-wide transformation that affects the entire business.
On the path to successful project completion, there are typical stumbling blocks that must be avoided. Here is a look at the most common — and how to navigate them.
1. Developing a realistic expectation horizon
Every migration project begins with an inventory. The company in question must realistically assess its own resources and capacity for change to define a feasible project framework.
In practice, a structured approach to this step has proved effective. A combined analysis of process mapping, system inventory, and data evaluation is recommended. Identifying technical dependencies and areas for action early on creates a realistic picture of the initial situation, providing a basis for the subsequent assessment of the SAP S/4HANA migration strategy.
It is equally important that the project team understands the organizational change potential within the company’s business units and assesses the company’s existing know-how and change capability.
Early involvement of all stakeholders makes it possible to resolve conflicting expectations. This is a prerequisite for adapting the subsequent transition approach to the maturity level and culture of the company.
Based on these findings, it’s then possible to assess which project framework is realistic, for example, whether a phased approach or a big-bang scenario is appropriate. Crucially, the planned approach must align with the company’s actual capacity for change and its available resources. Only then can successful implementation be prepared.
2. Defining the target image and target design
A second hurdle concerns project preparation. The project team must first define the target state, including all requirements and realistic time management, on a technical and technological basis.
Based on this, a system vision is developed and anchored within the company. This includes a description of the system landscape and architecture, as well as all key principles.
Different key principles come into play depending on the industry.
• Mechanical engineering: Focus on modular production processes, integration of CAD and PLM systems, real-time monitoring of production lines, standardized bills of materials, and variant management
• Pharmaceutical industry: Strict compliance and audit trails, full batch traceability, integrated quality management, validation of processes according to regulatory requirements
• Chemical industry: Safety and environmental regulations, integrated production and laboratory processes, harmonization of material master data, process safety and traceability of raw materials
• Automotive/vehicle manufacturing: Just-in-time and just-in-sequence logistics, supplier integration and traceability across the entire supply chain
• Retail/consumer goods: Omnichannel strategies, efficient merchandise management and warehouse logistics, integrated customer relationship management
By clearly defining such key principles, companies align their system vision specifically with industry-specific requirements. They ensure that processes, interfaces, and data structures are optimally supported from the outset.
Closely related to this is change management planning, which involves all employees and familiarizes them with the requirements and the target system. Without early buy-in from specialist departments, IT, and top management, as well as the establishment of a governance structure with clear responsibilities, a shared path to the goal is difficult and the change impact is lost.
3. Developing migration scenarios flexibly
A key aspect for the success of an IT project is the flexible development of the migration scenario. Many companies opt for a standard approach without considering their specific requirements. Sometimes this even happens before the target state has been defined. As a result, tools or solutions take priority over the vision.
It makes more sense to think from the end result and to develop the migration path in an open-ended manner. Depending on the project, greenfield, brownfield, or selective approaches each have their place.
Which scenario is most promising depends on the target vision. Only once the path has been determined can decisions be made about tools and platforms.
4. Planning sufficient test scope and cycles
Testing is a crucial project step. It’s far more than just a necessary exercise. On the one hand, testing provides companies with essential groundwork for the go-live; on the other hand, it’s a critical aspect of change management.
A successful testing approach encompasses several levels:
- Unit and integration tests are used to check technical components and interfaces early on.
- Functional tests are used to systematically check processes for technical correctness.
- User acceptance tests (UATs) are a process in which end-users test the target system under realistic conditions and with real-world use cases — a dress rehearsal for the go-live. They bridge the gap between technical implementation and operational use — and create the necessary acceptance for the change.
Migration tests are particularly important, especially for selective approaches such as Selective Data Transition. Those responsible must ensure data consistency, completeness, and quality before going live.
To identify problems at particularly critical points at an early stage, the following procedure is recommended:
• Risk-based test planning: Identify processes or interfaces that are particularly vulnerable or business-critical and prioritize them in the tests.
• Simulation of exceptional scenarios: Also test borderline cases, high loads or unusual data constellations to identify possible sources of error.
• Continuous feedback: Evaluate test results quickly so that corrective actions can be implemented immediately.
• Test managers for critical areas: Let experienced subject matter experts take responsibility for sensitive modules to ensure well-founded decisions and adjustments.
• Use of special testing tools: Utilize automated testing suites or data validation tools to consistently monitor sources of error and ensure data quality.
Without sufficient testing scope and cycles, as well as early planning of resources, roles, and test participants, delays, inconsistencies, and acceptance problems can arise during the project. Therefore, project teams should prioritize this step from the outset.
5. Ensuring early and comprehensive concept development
Most companies understand the value of conceptual work. However, a truly thorough blueprinting phase before implementation is often lacking. Frequently, the target vision contains gaps, either because individual decisions are deliberately postponed or simply overlooked.
However, this means the project plan lags behind reality, and delays due to changes in the project scope during the project, as well as, in the worst case, time-consuming and nerve-wracking problem-solving during the go-live phase, are inevitable.
A well-thought-out and complete blueprint facilitates implementation. Consulting firms can provide support as trusted advisors in the development and documentation of clearly defined processes, data objects, roles, and test concepts. Examples of critical details that are often overlooked include:
• Interfaces to adjacent systems: Are all dependencies correctly documented and tested?
• Data consistency and master data quality: Which data needs to be cleaned or harmonized before the migration starts?
• Special processes and exceptions: Are there processes that only occur in certain countries, companies, or departments?
• Regulatory and compliance requirements: Are all industry-specific regulations taken into account, such as validations in pharmaceuticals or audit trails in financial accounting?
• Role and authorization concepts: Are all responsibilities clearly defined, including for special cases?
By integrating these points early into the blueprint phase, project teams can avoid late surprises, keep the project plan realistic, and make the go-live phase significantly more efficient.
6. Establishing stable project governance
Constant scope adjustments and departments changing their minds: these are hardly ideal conditions for a successful project. With so-called “scope creep,” the uncontrolled and continuous growth of the project scope, all time and resource plans are thrown into disarray.
Robust project governance is therefore essential. It creates clear decision-making processes, defines roles and responsibilities, and ensures consistent management of change requests.
This allows new requirements to be systematically evaluated, prioritized, and, if necessary, integrated into the project in a controlled manner — without jeopardizing the overall project. Project stability need not come at the expense of flexibility in implementation. On the contrary, it offers those responsible control and planning certainty.
7. Setting a comprehensive and robust transformation roadmap
A successful SAP S/4HANA transformation requires more than a single project. It demands a holistic and robust roadmap. It’s rarely possible to address all modernization needs in a single step. Without clear prioritization, there’s a risk of either tackling too much at once or postponing important issues, thus missing out on the transformation’s opportunities.
A transformation roadmap helps to clearly define the core S/4HANA project and to strategically plan follow-up projects, for example, for process harmonization, master data cleansing and governance, or the integration of further systems. It provides orientation and decision-making certainty, for instance, regarding which topics the project team consciously addresses directly and which it will specifically address in later phases.
Companies should approach the process of creating a transformation roadmap systematically by first identifying all relevant modernization needs from a technical, organizational, and procedural perspective. This is followed by prioritization based on business impact, dependencies, and urgency. It is recommended to structure milestones into phases, such as core systems, process harmonization, data quality, and integration of other systems, in order to create added value step by step.
Additionally, those responsible should keep the roadmap flexible to respond to changes in the business environment or new requirements. Project portfolio planning tools and visualizations support transparency and communication with stakeholders. A continuous review process allows companies to adjust priorities and make progress measurable.
On this basis, companies ensure that the transformation is not only technically successful, but also that they position themselves for the future in terms of organization and processes.
Overcoming these challenges requires a holistic approach. When companies consider strategy, IT landscape, and innovation capabilities within a comprehensive context, they create the foundation for a successful transformation — and thus the opportunity to generate real added value in the long term.
Read More from This Article: The 7 biggest S/4HANA migration hurdles — and how to overcome them
Source: News