SAP S/4HANA early traction
There are 5,400 S/4HANA customers — up from <1,000 in Q2 2015, according to SAP. This represents approximately 11% of SAP’s ERP customer base. According to ASUG’s third-annual HANA adoption survey conducted during an eight-week period between mid-September and mid-November 2016, 33% percent of respondents say their organization have purchased SAP S/4HANA, 28% expect to buy it before the end of 2018, 19% are not currently considering a purchase, and 20% don’t know or aren’t sure about their organization’s plans.
SAP S/4HANA business benefits
SAP customers have spent years assembling complex systems in a compute- constrained world. SAP S/4HANA ends this, and the promise of a digital core holds unbridled and unprecedented opportunity.
SAP S/4HANA improvements over prior SAP ERP systems or competing, non-SAP systems include lower TCO, improved user interface, easier maintenance, better integration with other applications (especially cloud apps), faster reporting, real-time analytics, new business processes and business models, deeper customer interaction and improved customer service, and most importantly, simplification, simplification, simplification.
As determined by SAP Value Engineering, benefits of shifting from SAP Business Suite to SAP S/4HANA include:
- A savings of 400 working hours for each quarterly closing
- 86% faster reporting
- 26% faster year-end closings with a 61% cost reduction
- 24% revenue growth through new customer acquisition
- 30% increased market share
- 22% reduction in human effort
- 50% production acceleration
- 90% increase in speed of processes
SAP S/4HANA migration options
For net new customers, SAP S/4HANA is a no brainer. For existing SAP customers, S/4HANA is your future. But knowing where you are going and knowing how you will get there are different matters entirely in the world of enterprise technology. SAP customers considering their S/4HANA migration (read: all SAP customers), are riddled with questions spanning why, how, when, and where.
A selection of major decisions that must be made as you map out your S/4HANA migration strategy includes:
- Transition scenario (new implementation, system conversion, landscape transformation)?
- Approach: implement S/4HANA from scratch and migrate your existing data (greenfield) or transition your existing ECC to S/4HANA including all of its customizations and data (brownfield)
- Functional scope (SAP S/4HANA compatibility mode or full SAP S/4HANA suite)
- Test drive SAP Leonardo (IoT projects): predictive maintenance, asset intelligence network, connected goods
- Deployment model (On-premises, IaaS ((e.g., NTT DATA, HEC)) or SaaS ((NTT DATA PMC or S/4 HANA Cloud Edition))
As pointed out by WSJ blogger Irving Wladawsky-Berger, death-by-disruption is gathering steam:
“The topple rate, a measure of how rapidly companies lose their leadership position, has increased by almost 40% since 1965. The tenure of companies on the S&P 500 was 61 years in 1958; it’s now 18 years. If these trends continue, 75% of the S&P 500 companies will have changed over the next 15 years.”
With industry leaders toppled by disruption littering the business landscape at an alarming rate, the risk of not promptly and thoroughly executing a digital transformation strategy are painfully clear.
In today’s fast-paced, fiercely competitive digital world, hesitancy or failure to transform can be a business killer. And few, if any, industries are exempt, particularly if your industry has a low barrier of entry and/or your business relies on a large, legacy business model to generate the majority of your revenue.
As reported in Harvard Business Review, according to an annual survey conducted by Russell Reynolds Associates of more than 2,000 C-level executives across 15 industries, the lion’s share of respondents anticipate moderate or massive disruption in the next 12 months. In fact, more than 50% (or more) of execs in the following 10 industries see disruption striking in the year ahead:
- Media (72%)
- Telecom (64%)
- Consumer Financial Services (61%)
- Retail (57%)
- Technology (57%)
- Insurance (53%)
- Consumer Products (52%)
- Nonprofit (52%)
- Business and Professional Services (51%)
- Education (50%)
Tap an SAP partner to guide your SAP S/4HANA migration
SAP partners currently manage more than 80% of all projects focused on SAP S/4HANA, according to SAP, and play a major role in selling the software and helping customers plan, run and optimize implementation and digital transformation projects.
Accordingly, the onus is on SAP partners to identify for SAP customers where S/4HANA can provide the most value and develop best practices for achieving this value again and again. To this end, partner experience with S/4HANA goes a long way. (NTT DATA is proud to be an SAP Pinnacle Award Winner and to have been named an SAP S/4HANA Adoption Partner of the Year.)
There is no cookie-cutter tool for SAP S/4HANA migration. Each company has it’s unique ERP environment, market forces, corporate objectives, industry imperatives, customer expectations, and enterprise IT priorities — which is why NTT DATA provides a broad set of offerings that support your S/4HANA journey, from defining the roadmap all the way to full execution, including:
- Strategic planning and business case preparation to accelerate your implementation roadmap
- Maximizing your SAP investments, we support your design needs whether on-premises, hybrid or cloud-based solutions
- Assets and tools such as our Uptimizer to accelerate delivery and leverage SAP investment
- Balanced delivery — onshore, nearshore and offshore, enabling cost and timing efficiencies
- Change management — our consultants partner with you to ensure maximized adoption for your organization
In addition, proprietary tools and accelerators commonly used by NTT DATA include:
- Management Tools for the SAP Lifecycle — Uptimizer, ArchivePac, HotPac Analyzer, IQ DOT, SAP Health Check
- Business Process–Based tools — HCM Pro Solution, Supply Chain Efficiency Analyzer, BEST for Functional Health Check, IFRS Assessment framework, Process usage analysis by Uptimizer, 6 SAP Certified Business All In One (BAIO) solutions
- Execution/Delivery Tools — Request tracking, project management tool, reusable framework, test script library, knowledge management tool
- Co-innovation, Solution and Tool Development with SAP — Partner Delivered Enterprise Services (PDES), COIL participation, ALM accelerator development
- Accelerators for Activate and Solution Manager — Process, configuration, data conversion accelerators for Activate; integration of SAP lifecycle management tools with Solution Manager
Above all, business requirements should determine your SAP S/4HANA migration strategy, and good planning will ensure you realize maximum strategic benefits with minimal disruption.
Contact NTT DATA today to learn more about our SAP S/4HANA migration capabilities.