GET THE RIGHT SAP S/4 HANA PARTNER FOR ERP MIGRATION
The business impact of digital transformation (DX) on enterprise organizations is substantial. Businesses with DX initiatives have recorded more than two percent compound annual growth rate (CAGR) in revenue and three percent CAGR in profitability because they have embraced digital technologies.
But moving to the digital world is a multi-layered process. It requires organizations to restructure themselves and, in the process, prioritize the activities that will enable faster transformation — and achieve the more significant revenue growth and profitability they seek.
Restructuring requires organizations to reduce the number of applications that are overlapping or uncoordinated, paving the way for more integrated applications. Through the restructuring process, organizations identify the systems that need to be retained, replaced, retired, or rebuilt.
Legacy ERP systems or back-office systems represent substantial assets to the business because they are the business backbone. Finance, procurement, and inventory and asset management remain at the center of ERP. Additional functions such as human capital management (HCM), manufacturing, supply chain, logistics, and distribution round out a full ERP platform. These backbone systems are quickly advancing in the digital economy to become the digital core for enterprises.
SAP has a modern ERP system, SAP S/4HANA, which organizations may be moving to from legacy SAP ERP systems such as ECC and R/3.
However, moving from a legacy ERP system can be daunting because of the many nuances that need to be understood and addressed before the actual migration. Legacy ERP systems have typically been heavily customized, have massive data sets, and are integrated into other systems.
When organizations start to think about modernizing ERP, they are investing in the future. Modernization may require external assistance and certainly a more thoughtful approach to transformation, strategy, and implementation.
Deployment models must be considered, along with the move itself and its structure, such as a system conversion or a new implementation, or a combination of both. Data migration and business process mapping must also be taken into account.
Migrating from one or multiple ERP systems to a new system requires many steps that, if not done correctly, can result in a failed ERP implementation. The right services and technology migration model enable a streamlined, fast, and efficient performance.
As mentioned, migration to a new ERP system is not easy. The entire process can take months or even years. Selecting the right approach and type of migration is a crucial decision point. Companies that also want to transform their businesses digitally must thoroughly understand the processes, which often require the help of an external solutions provider.
Top Attributes Desired of External Services Partners
- I have been there done that with the company before.
- Excellent cultural fit with your resources (people)
- In-depth expertise to handle IT issues
- Able to act as a ‘Catalyst’ between our IT department and our business units
- Has strong digital transformation skills
- Can clearly show the RoI benefits for specific business objectives
- Out-of-the-box ideator who can improve our business leveraging IT
- Has expertise in consulting capabilities in addition to IT services skills
- Flexible on pricing
- Has a good understanding of the industry
- Is very adaptable
- Has a strong understanding of our business.
When it comes to selecting the right services partner, an organization should consider that a services integrator can assist with SAP S/4HANA systems conversion and new implementations, helping the organization move forward at its own pace.
A result-oriented approach applies more automation to the migration of data sets to the new SAP S/4HANA platform. However, this process is not yet completely automated, so some human intervention is required. Yet, it still significantly shortens the cycle time of migration.
Migration to SAP S/4HANA is occurring daily within organizations worldwide. Selecting the right migration approach, understanding the need for a strategic migration plan, testing, and finding assistance from a solutions provider with an end-to-end software platform are essential options for making the journey successful. Services such as change management and training are critical to smooth out the transition.
As more companies migrate to modern technology systems, especially ERP, proper migration practices will make the difference between success and failure. Shortening migration time and making it easier for the entire organization to adopt a new ERP system is a significant opportunity for enterprise digital transformation success.