Solution overview

SAP S/4HANA migration: Putting a method to the madness

How Genpact's Readiness Maturity Model makes complex S/4 HANA transformations a breeze

Migrating and updating your company's enterprise resource planning (ERP) system is inevitable. Quite simply, having the most current, effective version of ERP software, especially SAP S/4 HANA, has become a must for competitive advantage. And the deadline for this is rapidly approaching.

But migration to SAP S/4HANA isn't always straightforward.

Challenge

Just how ready are you?

To fully capitalize on the value of an expensive SAP S/4 HANA update, one should not perceive it as merely a simple technology upgrade but a complete business process transformation that demands readiness across technology, data, integrations, processes and policies, operating structure, controls, and more. Companies that don't properly prepare for migrating to SAP S/4HANA, especially from the viewpoint of their end users or operations, can face significant challenges as they get close to going live.

They even risk the migration failing.

A failed migration can mean delayed shipments, late payments to suppliers, errors in statutory reporting and compliance, negative effects on working capital, and much more.

Given these potential risks, it is crucial for organizations to gain a comprehensive understanding of the common challenges that other companies typically face during the migration to SAP S/4HANA. By collaborating with experienced vendors who have repeatedly tackled these operational challenges, companies can implement ready-made solutions. The challenges can generally be categorized as follows:

Data integration issues when trying to bolt on other tools or technology platforms
Data sanctity problems arising from neglecting to harmonize and clean up master data
Limited understanding of new features, processes, and user interfaces, such as Fiori
Difficulty adapting to the new system due to previous customizations no longer being available, which then creates a need to learn new ways of working

Additionally, companies tend to focus on getting help with the build phase of their migration journey. But around 70% to 80% of problems that directly impact the business commonly arise during the test and run phases.

Solution

Complete control over your SAP S/4HANA migration

We have developed our unique SAP S/4 HANA Readiness Maturity Model to proactively address the typical challenges organizations encounter post implementation. The aim is to bring these issues to the forefront for new clients, preventing them from experiencing similar problems.

It helps clients objectively measure these challenges early in the migration journey, bridging the gap with insights and recommendations on how they can be up and running faster.

The model consists of four steps:

Discover the current state of migration readiness
Measure the impact of challenges on your readiness maturity
Recommend solutions to bridge that gap
Monitor the success of implementation

Figure 1: Discover step

First, we identify your migration method and assess the scope and current state of affairs. By collecting vital information from various sectors of your business, we are able to automatically populate the tool to evaluate readiness (figure 1). This foundational data collection exercise enables the tool to automatically generate tailored recommendations, addressing the unique needs of your organization.

Figure 2: Measure step

Next, we measure your as-is readiness for go-live (figure 2), as well as the types and size of challenges you'll face in the migration project. To do this, we use an algorithm that takes multiple factors into consideration, including your implementation approach and the options selected.

Using the information we collected from your business, our tool calculates your score. You'll see your overall readiness, readiness by module (major business area), and even subprocesses (specific tasks or operations that make up the module).

This granular perspective aids in pinpointing specific challenges along with their likelihood and severity of impact, thereby generating a readiness score. We then compare this score with those of your industry peers whom we have previously assessed.

But how do you bridge that gap?

Figure 3: Recommend step

That's where our recommendations engine (figure 3) comes into play.

This proprietary engine is built from a collection of real challenges our clients have experienced during their go-live stages. The engine analyzes your data and provides specific recommendations across six key areas, offering solutions that have worked for similar companies after go-live.

And not only does it calculate how significantly each issue could impact your business, but it also allows you to choose the most effective solutions for the problems identified.

These chosen solutions are then compiled into a PDF report that provides a clear overview of each challenge and its corresponding solution. The report also explains how your company's readiness will change once you put the recommendations into action.

Figure 4: Monitor step

These recommendations are the core of our solution, equipping you with the information and tools needed to overcome challenges before the go-live stage. This, in turn, means that you can ask your integration partner to solve them early in the migration process rather than scrambling for a post-live fix.

During the last stage of our Readiness Maturity Model, we track and monitor (figure 4) how well the suggested changes are working for you. We'll give you a confidence score that changes as you move through the stages of migration, allowing you to make tweaks to implementation as you go.

There's even a CXO cockpit where leaders can see the tangible and measurable outcomes of chosen recommendations.

Impact

Smooth sailing ahead

The impact of our Readiness Maturity Model is clear. It:

Gives you visibility over operating challenges – faster. Additionally, you'll get insights on your teams' preparedness and system readiness via executive dashboards, which allows for timely course correction
Increases the effectiveness of user acceptance testing tenfold
Reduces business teams' efforts by 50% during the transition and go-live
Increases the effectiveness of your systems integration partner's hypercare services threefold
Allows you to stabilize new processes twice as quickly by addressing key risks early in the process

The upshot? You'll reach a stable state faster, with fewer issues, less frustration, and no post-live firefighting.