In the wake of progressive technology developments like cloud, social media, mobility and in-memory computing, companies have transformed workflows, business models and overall business strategies. This technology revolution is increasing the pressure on IT organizations, but its effects are not limited to IT. Regulators, financiers and shareholders all demand high levels of transparency into companies’ financial status, pushing CEO’s to adapt to change, as well.
SAP S/4HANA is the latest generation of the SAP Business Suite, characterized by streamlined transactions, a better user experience, simplified data flows and new functionality. These new technologies, leveraged with strategic insight, can unlock new opportunities, evolve business processes, or solve previously intractable challenges. By leveraging SAP S/4HANA, organizations can make the strategic leap forward, but the road to get there can be challenging.
PwC and Strategy& have been involved in the planning and execution of multiple S/4HANA transformation programmes and we derived six key learnings from these projects.
Key Success factors for S/4HANA Transformations:
01
'One size fits all' doesn't apply - approach must be tailored to industry-specific business needs, which demands business engagement and leadership
02
Business-led transformations enable companies to drive from their strategic 'way to play', or differentiating way of approaching the market
03
IT architecture should reflect a company's way to play in the balance between 'Core' and 'Edge' functionality
04
Migration strategy decisions - 'Brownfield' vs 'Greenfield' - should reflect both the readiness to invest and innovate within the company and the willingness or need to safeguard past investment and develop competitive advantages
05
S/4HANA transformation is increasingly seen as much more than a technical conversion; the true value of transformation comes from the opportunities to enable advanced, digital business models
06
An SAP S/4HANA roadmap should be supported by test practice models, proven methodology and agreed design principles based on strategic 'ways to play'
How PwC can help
PwC possesses a unique blend of business, experience and technical expertise necessary to assist organizations in transforming their business. From strategically addressing their most complex business problems through planning and implementing systems like SAP S/4HANA.
The bottom line
Our approach puts the business at the centre of the transformation
To engage the business and make sure the solution meets business needs, business representatives must be involved right from the beginning in the Prepare phase. During the Prepare phase, the programme will agree on design principles and the direction taken by the solution. The appropriate transformation approach (greenfield vs brownfield vs mixed approach) is evaluated, using the opportunity to review processes and existing SAP solutions.
With the business fully engaged and at the centre of the transformation, the programme can confidently engage in the design and innovation of the solution during the Explore, Realize and Deploy phases to ensure that the company executes according to its strategic way to play.
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