It takes courage to seek independent S/4 HANA transformation advice

For almost every SAP IT team I speak to, some aspect of an S/4 HANA transition is a a 2023 priority. It’s a massive undertaking, and from what I have seen, many struggle with determining the best way forward.

However, transitioning to S/4 HANA is not a single decision, it requires addressing a series of when, how, what, where, and who decisions. If managed logically, yes even multi-million dollar decisions are made emotionally, it’s a complex decision journey.

Independent SAP S/4 HANA transition advice, although hard to find, and is often discouraged, can be hugely valuable and put one in the box seat when or comes to negotiating with SAP or service providers; but it can take courage to stand out and seek it.

S/4 HANA transition evaluation

Typically an SAP team needs to decide things like the transition value, if and when to transition, the scope of the transition, where to host the newly transitioned systems, and who to contract to manage the transition.

How does an organisation economically justify?

Much is written about this, but in the end, it boils down to the value of the net gain of a transition vs the cost of achieving the gain. The challenge though lies in understanding what that net gain is when one doesn’t have a crystal ball. For most, the net gain and the cost is an estimation, usually based on advice from those who stand to benefit from a positive decision.

The SAP IT team’s careers are based on SAP technologies, SAP want their customers to move and account executives are incentivised to encourage it, and SI’s make their revenue for projects like these.

So who do you trust?

When should an organistion transition?

In the end, it will not be a matter of if, but when and so the timing depends on an organisation’s appetite for risk.

For example, one can be the last to transition meaning access to experienced people at reasonable rates but could result in losing really good people in the interim. Or one could go early, beat the rush, pay the premium rates, and retain quality staff.

What do you think your SI will recommend?

What is the scope of the transition?

When scoping a transition the following questions will provide clues as to the scope and type of transition most appropriate.

• What ECC processes can be exchanged for standard S/4 processes
• What ECC processes cannot be exchanged but are required?
• What ECC processes will no longer be required?
• What S/4 process adds value and should be used?
• What S/4 processes will need modification?
• What S/4 processes don’t add value and are not needed?

Your SI can help you make a determination, but since their revenue is direct to proportional to ‘bums’ on seats x days on seats its may not be the best determination for your business.

How many S/4 licenses?

The new S/4 licensing model is much simpler than the existing ECC model and includes just four user types, so a simple transfer on a one–one basis isn’t possible. An analysis is required to determine how many of each professional user, functional User, productivity user, and developer access user are required. Some negotiation as to what user will be allocated to what category too.

Expert assistance will be required, but who can be relied on to provide an unbiased recommendation?

Where will we host?

Until recently, there were just three or four options for very large infrastructures. On-premise, hosted (AWS, Azure), or a hybrid. However, recently RISE with SAP has come onto the scene as another option with a typical difficult-to-cost and compare price list. SAP account executives will help you prepare the numbers, of course, but how do you verify their accuracy?

Who shall we contract to do the work?

Once the decisions around scoping the transition project have been made, selecting the SI to assist is a little more straightforward. The scope of work will be understood, resource requirements will be clarified, and contract pricing can be better negotiated.

Independent advice

Already stretched SAP IT teams often find themselves caught up in carrying out the evaluation. The challenges they face are significant. There is pressure from a convinced business to get on with the evaluation. Of course, the SAP account executives, keen to get sales quota, will be happy to help, as will the preferred transition partner. But is their input unbiased, highly unlikely? SAP will be pushing a rapid transition, and to RISE, and the SI will be pushing for a larger scope of work than may be necessary.

Independent advisory

. What constitutes independent advice? Independent advice is advice from someone who doesn’t stand to benefit from you acting on their advice.

Independent advice is rare, and it takes a courageous SAP IT team to engage an independent advisor, but here is what an independent advisory team can provide:

• Independent evaluation of SAP’s RISE offer
• Independent evaluation of S/4 licensing needs
• Independent evaluation of hosting options
• Independent evaluation of the net gain available from an S/4 HANA transition
• Independent preparation of a transition scope of work.

With an independent evaluation of your S/4 transition, your SAP management team will be best placed to negotiate the best outcome for your business.

We can point you in the right direction here at Leg Up Software or you can start here with VOQUZ Labs; Invictus Partners, and Resulting IT