Continuous Conversion

The time is ripe:

"Firstly, with the current S/4 Hana release 1709, a certain level of maturity of the solution itself as well as the functional coverage has been reached. Secondly, with a view to an S/4 Hana conversion in particular, adjustments can already be made in the ECC system today that will make the later changeover easier. Transition checks help to become aware of possible effort drivers and showstoppers in good time".

defines Frank Scharpenberg, Head of SAP at Atos Germany, right at the beginning of the conversation.

Thus, it is also a task of the existing customers to determine the time for transformation and conversion according to their own specifications and evaluations. Of course, SAP is "pushing" for a quick release change, but that is nothing new:

Even in the days of R/3 version 4.6c, SAP tried to lift existing customers to R/3 Enterprise (4.7) or mySAP ERP 2005 as quickly as possible - back then it was a touch easier because they were allowed to keep the database.

Hana is both a curse and a blessing for the SAP community: Hana as a platform is a revolution that eclipses almost everything that has gone before; but this digital transformation must also be organized, planned, and evaluated.

"New functionality in the application space, as we're seeing now with S/4 and Hana, ultimately always requires new functionality in the database itself."

Scharpenberg explains.

"From that perspective, the product development of the database technology will be no more complete than the development of the application itself."

The astonishment of some existing customers about a version 2 of Hana could therefore continue with ever new in-memory computing metamorphoses.

Life is continuous change, and IT life is no exception:

"In principle, we advise every customer to look at switching to S/4 Hana"

emphasizes Frank Scharpenberg.

"However, depending on the initial situation, motivation, and expected benefits, we recommend different paths to our customers. At Atos, we have developed dedicated customer journeys for the different paths to S/4. In this context, we see S/4 Hana as an essential technological component and enabler to drive digital transformation."

From SAP's perspective, S/4, Hana and Leonardo should support Big Data scenarios, machine learning, real-time analytics and the Internet of Things (IoT). In addition, with S/4 as the digital core of the IT architecture, integrated end-to-end processes should now be created.

Last but not least, SAP Fiori is the long overdue modernization of the user interface. Whether an existing customer can achieve this with a big bang must be evaluated on a case-by-case basis. The fact is that digital transformation with and without S/4, Hana, and Leonardo will be a continuous conversion and transformation in the vast majority of cases.

It is relatively easy to start on the "greenfield", but "in contrast to the greenfield approach, where the focus is on realizing new functionalities from the very beginning, the conversion is initially pragmatically about getting an ECC system running stably and reliably again under S/4 Hana with its existing process chains"

explains Thomas Offermann, Head of SAP Offering, Atos Germany.

How can a successful S/4 conversion be determined in detail?

"Taking the question further, it is important for us to show our customers the added value to their operations; to identify the effort as well as the stumbling blocks through sound, tool-supported analysis of today's systems; and to automate adjustments to reduce risk and runtime"

Offermann specifies.

How can a standardized approach to S/4 conversion be adapted to company-specific requirements? Ulrich Frommholz, Offering Manager ERP Consolidation & Harmonization and S/4 Hana at Atos, answers:

"Since every company is different, in our experience the requirements are also always customer-specific. We offer our customers different building blocks that they can combine to create an individual transformation roadmap.

Examples include the aforementioned customer journeys to jointly identify the most suitable transformation scenario, S/4 Hana readiness assessments to determine effort and duration. Or value assessments to show the added value of S/4 for individual customers."

A much-discussed question in the SAP community: Evolution or revolution? Is S/4 the logical successor to ERP/ECC 6.0 or a completely new beginning, leaving aside the licensing issues?

"Customers with heterogeneous system landscapes do not have to change their entire architecture in one step"

Ulrich Frommholz, Offering Manager ERP Consolidation & Harmonization and S/4 Hana at Atos, knows from his professional experience.

A successive transition, e.g. as part of a central finance concept to which both SAP and non-SAP systems are connected, is also conceivable.

"Heterogeneity is not the sole decision criterion for choosing a transition scenario; the desire for process redesign or consolidation also influences the decision"

adds Frommholz.

"In our experience, a customized combination of brownfield, greenfield and landscape transformation often comes into play in heterogeneous system landscapes. Areas that are to be retained tend to be converted, while areas in need of consolidation are relaunched in a greenfield approach."

Simplification List

To cushion the sometimes heated debate, SAP has published the Simplification List for SAP S/4 Hana as a white paper.

"The customer may not actually be expected to deal with the Simplification List, which is now even 894 pages long."

says Frank Scharpenberg.

"Not to mention estimating the implications on customer-owned developments and programs. The good news for customers, however, is that ultimately only a small percentage of these simplification items will be truly relevant, and technical checks will help identify them."

SAP consultants such as Atos can then help to assess the implications and effort involved and make any necessary adjustments. Meanwhile, some conversion and transformation tasks can also be automated.

"In terms of automation, Atos works with SmartShift, which not only analyzes the custom code of existing SAP ERP systems, but also automatically converts a significant portion of it to Hana right away"

explains Joachim Stumpf, S/4 Hana Offering Manager, Atos Germany.

If complex system landscapes are converted with several conversion and test cycles, machine learning can support the selection of test scenarios by identifying particularly error-prone areas so that they can be tested especially intensively in the next test cycle.

"The evaluation of the Simplification List is partially automated".

Stumpf says.

"Transition check reports can be used for analysis, while implementing the adjustments usually still requires subject matter experts."

First of all, the leaner the source system, the fewer potential sources of error in the conversion. This is why, for example, the use of the Usage Procedure Protocol is recommended in order to adapt only those customer programs that are actually used.

"Due to the far-reaching changes in the data model under S/4 Hana, the effects on customer coding are also correspondingly extensive. The custom code checks of the Abap Test Cockpit help to identify corresponding coding, which is then adapted manually or automatically.

adds Joachim Stumpf.

Where do Atos think the real challenges lie? Technical, business management or organizational?

Frank Scharpenberg: "There are different challenges in all three areas. In technical terms, it is first of all the analysis of today's systems, as this is the only way to identify the true effort and possible stumbling blocks, which in turn form the basis of a reliable roadmap.

Furthermore, there are meticulous preparations that a changeover requires. The challenge in the business environment lies in demonstrating the actual quantitative benefits of S/4 for the operational business.

In the organizational environment, the challenge lies in change management, as the introduction of S/4 also changes roles, responsibilities and ways of working."

"Fully automated conversion is certainly not going to happen in the foreseeable future"

emphasizes Thomas Offermann, Head of SAP Offering at Atos Germany.

Sub-areas such as the analysis of the custom code or the simplification items are already tool-supported and partially automated today, as is the conversion itself via the Software Update Manager.

Customer coding adjustments and testing can also be automated.

"If you look at runtime drivers in conversion projects, these are often costly preliminary projects for the introduction of the new general ledger or the conversion to the business partner"

Offermann knows from numerous successful projects.

"This is where we currently see the greatest potential for improvement through - better - integration with the actual conversion."

Even the best S/4 conversion can't do without testing, trials and training - can it?

"In a conversion project, the training effort per se is lower than in a greenfield approach because there is a deliberate decision not to redesign the processes"

Dieter Ferdinand, Offering Manager User Excellence and Learning Solutions at Atos Germany, describes the situation.

Therefore, those processes that were identified in advance on the basis of the aforementioned Simplification List are particularly relevant for training. For example, when previous functionalities are replaced by successor products (e.g. revenue recognition by SAP Revenue Accounting and Reporting).

"With regard to the testing effort, we do not want to give our customers any illusions at all: If the analyses in the run-up to the conversion have revealed extensive adjustments to the customer coding and the relevance of many simplification items for the specific customer system, extensive tests are required with a conversion to S/4"

Atos manager Ferdinand emphatically emphasizes.

Perfect testing and learning systems are necessary because a sword of Damocles hangs over the SAP community: Will the SAP community make the 2025 deadline?

Frank Scharpenberg once again: "From our point of view, fear scenarios are always a bad driver and motivator. That's why we prefer to try to convince our customers of the advantages of S/4 and the business benefits that can be generated from it, instead of stressing the necessity due to a deadline.

Especially when it comes to conversion, thoroughness goes before speed, and ultimately no one can predict the actual existing customer situation in 2025. As Atos, we will definitely be happy to work with our customers to help meet the deadline."

SAP, at any rate, is trying hard to achieve the goals it has set and publishes new milestone versions every year: Atos has its own S/4 Hana demo landscape, which plays a key role in helping interested customers understand the benefits of S/4.

"Currently, we are working internally to upgrade the systems to the latest release, Shipment 1709, in order to demonstrate the new functionalities to our customers as soon as possible."

is how Ulrich Frommholz, Offering Manager ERP Consolidation & Harmonization and S/4 Hana at Atos, describes the infrastructure.

As an SAP partner, what does Atos want from SAP in 2018?

"Atos would like to see more transparency regarding SAP Leonardo, as many SAP customers clearly demanded at the DSAG Congress 2017. It will continue to be important to ensure the earliest possible, comprehensive and reliable transfer of knowledge from SAP to the partners so that they can successfully implement new SAP solutions in the customer's projects. This would require a clear and reliable roadmap for all components currently used by the customer".

Frank Scharpenberg, Head of SAP at Atos Germany, emphasized at the end of the discussion.