How to Develop

your S/4HANA Roadmap

with a Conversion Assessment
ASUG Philadelphia Chapter | June 2, 2022

Alexander Paulus
Managing Director
CNT Management Consulting Inc
 Sponsored by:

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 Agenda

• Introduction
• SAP S/4HANA Transformation Basics
• Assessment Approach (brown- or greenfield)
• Simplified Assessment (brownfield only)
• Case Study Miba Group
• Summary, Q&A

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 Agenda

• Introduction
• SAP S/4HANA Transformation Basics
• Assessment Approach (brown- or greenfield)
• Simplified Assessment (brownfield only)
• Case Study Miba Group
• Summary, Q&A

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 CNT Management Consulting – By the Numbers

300+ 85+ 22+

SAP Consultants Million USD Years of history
at 10 global locations revenue 2021 and innovation

200+ 300+ 60+

Customers in EMEA, SAP ECC projects SAP S/4HANA projects
Americas, APAC in 50+ countries in 40+ countries

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 SAP Competences

SAP S/4 HANA – The Digital Enterprise Core

Greenfield Implementation, brownfield conversions, pre-studies, Run2S4 Conversion Package

SAP Ariba SAP IBP SAP EWM/ SRM/ WM SAP CX/ CRM

End-to-end intelligent Integrated Business Extended Warehouse Customer Experience,

spend, Digital Supplier Processes, Digital Supply Management, Stock CRM, Sales and Service
Network, Fieldglass Chain, APO Room Management Cloud

SAP BI/ Analytics SAP EAM/ IAM SAP ETO/ PP SAP HCM/SF

BI, Planning, and Enterprise Asset- and Engineer to Order, SuccessFactors, Human
Predictive Analytics Intelligent Asset Production Planning Capital Management,
Management Concur

SAP SCM SAP MM SAP OTC, FI-SD SAP FI / CO

Inter-Company Logistics Material Management Order to Cash, Finance Finance and Controlling
Intra-Company Logistics and Sales Integration

Business Process Consulting

Business process templates, SAP Business Technology Platform,, GRC, release management, development, …

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 Agenda

• Introduction
• SAP S/4HANA Transformation Basics
• Assessment Approach (brown- or greenfield)
• Simplified Assessment (brownfield only)
• Case Study Miba Group
• Summary, Q&A

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 Conversion versus Transformation

Processes
Reuse Redesign
Implementations

Brownfield Greenfield
Conversion Transformation

Brownfield Conversion Empty Shell Conversion Mix & Match Conversion Greenfield Transformation

Reuse >90% of existing Reuse >50% of existing Reuse <50% of existing Redesign of processes /
processes/implementation processes/implementation processes/implementation implementations

Clone current ERP system.

Create a new S/4HANA system.
Perform S/4HANA upgrade. Setup new S/4HANA system
System Conversion Partially migrate existing processes.
Migrate existing processes. Implement new processes.
Implement new processes.
Implement new processes.

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 S/4HANA Assessment & Transformation Roadmap

Challenges and Opportunities of the S/4HANA Transformation

• Many unknowns • Difficult to articulate the business case

Challenges • Complexity and cost • Lack of resources

• Enables consolidation • Improves process efficiency Opportunities

• Improved UX • Launchpad for future innovation

Transformation Assessment Transformation Roadmap Transformation Project

▪ Structured approach for all transformation aspects ▪ How to implement and run the transition project
▪ Identify S/4HANA potentials and benefits ▪ Aggregate assessment data
▪ Identify status quo of current ERP implementation ▪ Defined clearly the transition phase
▪ Identify activities prior to transformation ▪ Augment the SAP Activate transformation method
▪ Involve stakeholders; build positive momentum ▪ Estimate scope, timeline, and resource

Develop S/4HANA Strategy Develop S/4HANA Transition Path

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 Why a formal Assessment?

Benefits of a Formal Assessment

• Answer the “Why” and “How” of the transformation project

• Structure approach to cover all critical aspects of the transformation
• Get good data from stakeholders with the right questions
• Dedicated focus from stakeholders during and after assessment
• Set expectations for the transition
• Better decision on transformation approach
• Have a ready-to-go transformation template

• Develop a better S/4HANA strategy

• Get the transformation project off on the right foot

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 Agenda

• Introduction
• SAP S/4HANA Transformation Basics
• Assessment Approach (brown- or greenfield)
• Simplified Assessment (brownfield only)
• Case Study Miba Group
• Summary, Q&A

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 Selected Key Stakeholder Questions
Brownfield Greenfield
1 2 3 4 5

Required process adjustments to match strategy

low high

Number of custom applications to be converted

many few

Importance of minimizing transition steps

high low

Requirement to consolidate systems

low
Example high

Retention of historic data

much little

S/4HANA considered an IT- or business projekt

IT business

Expected support from the different business areas

low high

Number of Interfaces to other systems

many few

Tolerance for transition risks

low high

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 Assessment Phases

Scope Project
General conditions, limiting factors, risks,
expectations, and overall goals
Transformation Project

Assess Status Quo

Identify impacted processes, systems, Transition Plan
deep-dive areas, strengths & weaknesses Detailed plan including all preparation
projects; template for project execution

Fit-Gap Analysis
Scenario Selection
Outline future system/ process
landscape and transition scenario Outline and rate scenarios and their
impact. Develop decision-making criteria

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 Phase 1 – Scope Project
1 Scoping & Readiness Check Deliverables

Scope ▪ Goals, expectations & mission

Work Package Tasks
Project statements
▪ Agreed-upon templates of road map
▪ Define overall project goals result document
2
Overall Goals &
▪ Coordinate expectation of project- and roadmap scope ▪ Summarized results of stakeholder
Expectations
Assess ▪ Coordinate (strategic) expectations from management interviews
Status ▪ Result of environment and risk-
▪ Inventory of general conditions and limiting factors
Quo assessment of parallel projects
Environment & ▪ Execute targeted stakeholder interviews ▪ Results Readiness Check 2.0
3 Risk Analysis ▪ Strategic alignment and competing projects ▪ Relevant system documentation
▪ Scope project risks and identify risk-minimizing initiatives
Fit-Gap
Analysis ▪ Identify relevant organizations, systems, and applications
High-level
▪ Outline the organizational structure of the relevant business areas
Scoping
4 ▪ Identify relevant documentation (BPML, …) Benefits
▪ Execute SAP Readiness Check 2.0
Scenario ▪ Mutual understanding of goals and
Technical ▪ Execute Custom Code Analysis expected results
Selection
Scoping ▪ Analyze interface list and end-to-end tests ▪ Defined in-scope and out-of-scope
▪ Check system readiness and third-party software areas
5
▪ Stakeholder participation and buy-in
Transition S/4HANA ▪ Identify and present relevant S/4HANA functionality & features ▪ Incorporated strategy and competing
Plan Enablement ▪ Workshops and demos for selected innovations topics projects

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 Phase 2 – Assess Status Quo
1 Assess Status Quo Deliverables

Scope ▪ Business process master list (BPML) with

Work Package Tasks
Project at least L3 processes in critical areas
▪ Business process workshops. L3 process map and BPML ▪ Documentation of strengths, pain points,
and leftover topics.
2 Level 3 Business ▪ Identify current strengths and potential
▪ Documentation of as-is landscape
Process Map ▪ Identify current pain points
Assess ▪ List of critical additional developments
Status ▪ Identify ‘leftover’ topics
Quo
▪ Identify as-is system landscape
3 ▪ Identify as-is application landscape
As-Is Landscape
▪ Identify as-is interface landscape
Fit-Gap
▪ … based on existing documentation and process workshops
Analysis

4 Additional ▪ Identify critical additional developments within SAP Benefits

▪ Identify critical additional developments outside SAP
Developments &
Scenario ▪ Select deep dive areas in processes, as-is analysis, and additional ▪ Step-by-step evaluation and analysis of
Deep-dive Areas the business processes for each critical
Selection developments for fit-gap analysis in phase 3
area
▪ Early detection of deep-dive areas
5
▪ Early evaluation of required developments
Transition within and outside SAP
Plan

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 Phase 3 – Fit-Gap Analysis & Target Scenario
1 Fit-Gap Analysis & Target Scenario Deliverables

Scope Work Package Tasks ▪ Outlined To-be landscape with mapped

Project processes, systems, interfaces and
additional development
▪ Develop and jointly scope: ▪ Outline possible and suitable transition
2 To-Be ▪ … To-be system landscape scenarios
Assess Landscape ▪ … To-be application landscape ▪ Optional: Fit-gap documentation of Level
Status ▪ … To-be interface landscape 4 processes
Quo
▪ Outline possible transition scenarios
3 Transition ▪ Coordinate with the Lines of Business from respective areas
Scenarios ▪ Pre-select suitable transition scenarios and migration approach
Fit-Gap
▪ Prepare documentation of the results
Analysis

4 To-Be Processes ▪ Execute fit-gap process workshops based on level-4 processes Benefits
including Fit-Gap ▪ Execute fit-gap workshops for critical additional developments
Scenario ▪ Detailed fit-gap analysis based on SAP
(optional) ▪ Document process gaps and outline draft solutions
best practices
Selection
▪ Early identification of additional
developments relevant for S/4HANA
5

Transition
Plan

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 Phase 4 – Scenario Selection
1 Scenario Selection Deliverables

Scope ▪ Catalog with individually rated criteria

Work Package Tasks
Project ▪ Finalized requirement
▪ Decision matrix
▪ Develop and define decision criteria ▪ List of priorities
2 Define Decision ▪ Coordination and expand key transition questions ▪ Answers to key questions
Assess Criteria ▪ Coordinate and expand requirements and the decision matrix ▪ Finalized rated results
Status
Quo
3 ▪ Execute decision criteria rating
Assign Ratings and ▪ Answer key questions
Fit-Gap Assess Risks ▪ Prioritize and sequence possible scenarios
Analysis

4 ▪ Finalize the assessment Benefits

Prepare Selection ▪ Outline impacts and risks of each scenario
Scenario ▪ High-level outline of the transition for each scenario
▪ Meaningful decision criteria relevant to
Selection the organization
▪ Stakeholder-vetted rating of scenarios
and mapped with SAP best practices
5
▪ Present scenarios to decision-makers ▪ Defined process leading to organizational
Select Transition ▪ Present ratings to decision-makers decisions
Transition
Scenario ▪ Present priorities including impacts and risks
Plan

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 Phase 5 – Transition Planning
1 Transition Plan Deliverables

Scope ▪ Content and scope of pre-projects and

Work Package Tasks
Project sub-projects
▪ Transition plan
▪ Outline all required pre-project and sub-projects for transition
▪ Resource estimate
2 Identify pre-projects ▪ Detailed scope of pre-projects and sub-projects regarding time,
resources, and expenditures ▪ Final roadmap
Assess and sub-projects
▪ Align dependencies between pre-projects and sub-projects ▪ Roadmap presentation
Status
Quo
3 ▪ Create a high-level roadmap plan
Plan Transition ▪ Coordinate detailed roadmap with customer
Fit-Gap ▪ Outline assumptions and environment
Analysis Benefits

4 ▪ All pre-projects and sub-projects identified

▪ Identify relevant SAP license cost
Scope Resources ▪ Assess internal and external resource requirements ▪ Complete high-level road map plan is
Scenario available
Selection ▪ Resource estimate is available
▪ Results are documented
5 ▪ Finalize roadmap document ▪ Enable to kick off transformation project
Written Roadmap ▪ Coordinate roadmap with stakeholders (roadmap vs expectations) immediately
Transition and Result ▪ Create result presentation
Plan Presentation ▪ Joint result presentation and next steps

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 Agenda

• Introduction
• SAP S/4HANA Transformation Basics
• Assessment Approach (brown- or greenfield)
• Simplified Assessment (brownfield only)
• Case Study Miba Group
• Summary, Q&A

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 The need for Simplified Conversion

Transformation Bottlenecks Simplified Assessment and Conversion

• Already at capacity managing day-to-day business • Focus limited resources and energy on S/4HANA
• Competing projects conversion first

• Lack of internal and qualified external resources • Clear expectations for the business and stakeholders

• Financial constraints • Outline concrete scope, timeline, and outcome

• Limited management buy-in • Convert first, innovate second

• Approaching deadline for transformation • Follow clearly defined conversion path set out by SAP
with SAP Activate
• Significant investment in current business processes
• Fully converted S/4HANA system as a launchpad for
• No organizational consensus on strategy innovation

Unrealistic for some to rebuild existing business “Don’t mix conversion and innovation”
processes from scratch and map to new ERP

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 Simplified Conversion via #run2S4

Highlights Benefits
✓ Predefined and standardized scope project. ✓ Fixed scope and timeline
✓ runAssessment as S/4HANA conversion launchpad ✓ Convert first, innovate second
✓ runConversion for end-to-end conversion. ✓ Predictable outcome

Conversion Milestones and Timeline

M1 M2 M3 M4 M5 M6 M7 M8

runAssessment runConversion
S/4HANA readiness
and cornerstones Execute S/4HANA conversion of entire landscape
of transformation based on findings and results of runAssessment

SBX1 SBX2 QAS DEV DH PRD

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 #runAssessment - Steps

S/4HANA Potentials Technical Influencing Required Conversion

and Benefits Convertibility Factors Adjustments Roadmap

Why should we move to Is the conversion possible, What are the main influencing What prep-work needs to be
S/4HANA? what are the necessary factors of the conversion? done for the conversion?
adjustments?

• Stakeholder interviews • Assess system convertibility • Scope compatibility of the • Must-have Simplification Items
application landscape
• Discovery workshops • Assess required prep-work • Prepare transformation (e.g.,
• Scope compatibility of the business partner)
• Move In Motion workshop • Assess custom code interface landscape
conversion • Data quality checks
• Customer value of S4/HANA

Tools: Tools: Tools: Tools:

• SAP Next-generation BSR • SAP Readiness Check • SAP Transformation Navigator • SAP Simplification Item
Catalog
• SAP Value Lifecycle Manager • SAP Maintenance Planner • System Landscape Analyzer
• SAP Conversion Pre-checks
• SAP Custom Code Analyzer tool

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 #runConversion – Steps

Sandbox Test System Dress Rehearsal Ready for Live on

Conversions Conversions and Go-Live Innovations S/4HANA

SBX1 QAS Dress Rehearsal Innovation Discovery

Validate add-ons and licenses Convert from a refreshed Convert from a refreshed PRD Business scenario
PRD system including corrective actions recommendations
Identify & handle showstoppers
Execute following dress Final validation of cookbook Hands-on workshops on
Analyze long lead tasks and S/4HANA System
rehearsal cookbook
long-running tables Final check of runtime
Reuse corrective actions
Implement S/4HANA pre- Hard freeze PRD
requisites (BP, CVI, etc.) Conversion and import of Business Case and Value
relevant transports in one step Approval
Assess values of recommended
SBX2 process improvements
Build a test environment with
all interfaces PRD Value Lifecycle Manager
Identify corrective actions form
SBX1 Prepare during up-time
Validate conversion runtimes DEV Execute during down-time Innovation projects and
release management
Validate corrective actions Convert from a refreshed Convert and import relevant
QAS system transports in one step Gain innovations with defined
Start dress rehearsal projects and release cycle
cookbook Start of the retrofit process Validate run-time depending
on system performance

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 Agenda

• Introduction
• SAP S/4HANA Transformation Basics
• Assessment Approach (brown- or greenfield)
• Simplified Assessment (brownfield only)
• Case Study Miba Group
• Summary, Q&A

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 Miba Group – CNT Assessment Case Study

• Family-owned manufacturing company founded in 1927 in Austria

• 7,800 employees, ~1bn$ annual revenue
• Leading strategic partner to the international engine- and automotive industries
• Miba clients are in energy generation & transmission, oil & gas, and plant engineering

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 Miba Transformation Assessment

Prestudy ✓ Miba already decided on brownfield conversion. Target partial transformation

Project assessment in form of a pre-study focused on business enablement
Drivers ✓ Plan, scope, and execute pre-study with a focus on S/4HANA Innovation Topics

✓ Prepare the IT teams for the S/4HANA conversion

Project
✓ Maximize cooperation between IT team and business
Goals
✓ Create positive momentum for the project

✓ Know-how transfer: Structured training for new S/4HANA solution

✓ Build a custom test- and training system (sandbox)
Project
Scope ✓ Execute Miba-specific process workshops on S/4HANA standards
✓ Create Miba specific documentation to support standard operating procedures
✓ Hands-on and help during internal tests on the sandbox system

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 Miba Enablement Prestudy – Covered Topics during Prestudy

S/4HANA EAM Asset manager mobile apps, work manager, asset manager, EAM FIORI apps,
Enterprise Asset Management

Asset Accounting, new general ledger/ asset accounting, cash management, cash operations, financial
S/4HANA FICO closing cockpit, investment management, material ledger, simplified COPA profitibility analysis, FICO
Finance/ Controlling
FIORI apps, ...

S/HANA PPM Handling embedded PPM in S/4HANA, web dynpro handling, mapping of RPM (resource and portfolio
Portfolio and Projectmanagement management), PPM FIORI apps, ...

S/4HANA SCM Embeded analytics in MM/SD, GBT (Global Batch Traceability), settlement management, S/4HANA
Supply Chain Management sales/logistics live KPIs, APO/PPDS (Production planning detailed scheduling), SCM FIORI apps, ...

S/4HANA MM Standard mobile device usage, goods movement without exclusive material valuation locking,
Material Management statistical moving average price, MM Fiori Apps, ...
S/4HANA SD Fiori Apps in SD master data, Fiori apps in sell from stock, Fiori apps for analytical, ...
Sales & Distribution

S/4HANA GTS New customer module introduction, ...

Global Trade Services

SAP Cloud Miba opportunities for SAP Ariba and SAP CX/ CS

Others S/4HANA output management, Adobe forms, release management, FIORI app development

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 Miba Prestudy Takeaways

Transformation Key points Downstream Business Case

• Ahead of the pre-study, Miba was already set on • Miba used the Prestudy to develop a
brownfield conversion. Downstream Business Case.
• Miba preferred to do a minimalistic and very • Clearly set the business expectation that the
pragmatic approach to the conversion. technical conversion will have minimum
workflow changes
• At the conversion stage, SAP functionality should
only be enhanced if absolutely required. • Clearly communicate the technical conversion is
a base investment only.
• Miba’s primary goal of the Prestudy was to get the
organization ready for technical conversion and • Clearly outline the innovation projects and
involve stakeholders in developing a joint S/4HANA business value that are scheduled on top of
vision and strategy. the converted system
• Opportunity for a six- to the eight-week dedicated
focus of key stakeholders on the future landscape

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 Agenda

• Introduction
• SAP S/4HANA Transformation Basics
• Assessment Approach (brown- or greenfield)
• Simplified Assessment (brownfield only)
• Case Study Miba Group
• Summary, Q&A

30 © 2022 ASUG Confidential

 Five Takeaway from Todays Presentation

01 S/4HANA is more than a new release. It is a launchpad for innovation

02 A formal assessment brings clarity to vision, strategy, and roadmap

03 Focus on the SAP S/4HANA potential, not only the technical conversion

04 You must find your sweet spot in the brownfield-greenfield spectrum

05 You will greatly benefit from an experienced SAP partner

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 Questions?
For questions after this session, contact us at

Alexander Paulus, CNT Atlanta

[email protected]

Bernd Baier, CNT Atlanta

[email protected]

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 Thank you.

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