In order to remain competitive, companies must continuously optimise their business processes. The implementation of SAP S/4HANA is a crucial step in this process and a successful introduction essentially depends on five success factors that must be carefully considered.

In this article, we examine the five most important success factors in detail and show how they can be taken into account in a structured transformation process. After all, an SAP S/4HANA implementation is more than just an IT project – it paves the way for the digital future of your company.

The five most important success factors for an S/4HANA transformation

The five most important success factors are a clearly defined corporate strategy, a future-proof IT strategy, the optimisation and harmonisation of business processes, the development of new skills and professional change management for employees and managers. Only if all these aspects are addressed holistically can an SAP S/4HANA implementation realise its full potential and help companies remain competitive in the long term.

1. Corporate strategy and development: The starting point for a digital transformation is a clearly defined corporate strategy. Individual goals such as growth, innovation or stability determine the focal points, for example the automation of transactions in finance and HR or the introduction of a central shared service centre. A common understanding at an early stage is particularly important for top decision-makers: What does digital transformation mean for my company? What does my digital strategy look like? What initiatives are on the agenda and what role does IT play in this?
2. IT strategy: A long-term view of the future IT landscape is essential. How can the company keep pace technologically? What role does SAP play in this, and what is the roadmap for the next 3 to 5 years? Which SAP implementation strategy is relevant, what can we do ourselves and where do we need support? Taking into account the technical status quo and the available expertise on the one hand and the strategic and process-related requirements on the other, a new IT landscape is designed, for example with SAP S/4HANA as the digital core. Implementation takes place with suitable control functions as part of a digital product pipeline such as project governance and portfolio management.
3. Business processes: In line with the corporate strategy, existing and new business processes are prioritised and aligned with the new functions of an SAP application landscape. Efficient data models are developed. The greater the degree of adaptation and renewal of the processes through optimisation and harmonisation, the greater the effort and the greater the structural and cultural implications (e.g. roles, responsibilities, cross-departmental awareness of responsibility, process thinking). A change impact analysis that takes a comprehensive view of the interactions between organisational aspects is crucial to success here.
4. Competences and empowerment: With technological transformation, new competences must be developed in business and IT. This cannot be achieved with frontal training alone, but requires a long-term learning concept in the sense of a learning organisation. Different and individually effective methods enable learning and sharing of experience in the team across departments and on an ongoing basis. This is the only way to enable the effectiveness of the SAP S/4HANA transformation and increase work efficiency.
5. Employees and managers: New working methods, roles and responsibilities as well as the automation of business processes have an impact on employees. Fears of job loss or excessive work demands must be addressed with the help of professional change management. A development from the independence of business units to a highly networked and standardised operation also requires a new quality of cooperation – interdisciplinary, cross-divisional and cross-hierarchical.
   The automation of transactions allows more freedom for employees and is usually associated with the assumption of higher-value tasks in the role of knowledge worker. Continuously familiarising all those affected with the planned changes and involving them as appropriately as possible can help to avoid incalculable risks. Regardless of whether they are managers or employees, no one will support an initiative if they fear being disadvantaged or losing their job as a result.

Holistic consulting for a successful transformation

Successful transformation management takes all these success factors into account at an early stage of the project and identifies measures in the form of a roadmap that divides an SAP S/4HANA transformation into clearly defined development phases and expected results. This makes it possible to plan resource expenditure and costs – not just the technological implementation. mgm consulting partners uses the ADDVALUE Transformation Framework, which consists of eight phases and takes into account all the success factors and challenges described in each phase. In this way, mgm pursues a holistic approach and enables a comprehensive orientation in an S/4HANA transformation that goes far beyond the technical challenges and brings together people, technology and organisation.

When is the right time?

The question remains: when should you start? Both the urgency and the scope of the transformation depend on the individual strategy and status quo.

The right timing includes

• rough planning,
• necessary preparations such as analysing the existing system landscape,
• consideration of the project portfolio,
• outlining the strategic requirements and, if necessary, pre-selecting the appropriate ERP system (does it even have to be SAP?).

Service providers like us can already provide valuable support in this regard, but what counts above all is the determination of the management team to embark on the path of transformation.

Conclusion

An SAP S/4HANA implementation is a complex endeavour that goes far beyond mere technical implementation. By taking the above-mentioned success factors into account and pursuing a holistic approach, companies can make the most of the opportunities offered by a digital transformation and secure their long-term competitiveness.

Would you like to find out more about our consulting services for S/4HANA transformations? Talk to us!