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ERP risk versus S/4 innovation

S/4 is the all-dominant topic in the SAP Industry Community, but for many companies the new technology is initially out of reach. This is also the case for the Bauer Group from Upper Bavaria, which is active worldwide with 110 subsidiaries.
Markus Mayr-Svec cbs
April 6, 2022
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This text has been automatically translated from German to English.

In order to get a clear view of the topic and to optimally prepare for the changeover, those responsible took part in an S/4 Hana Strategy workshop by cbs. The workshop dealt with all elements of the organization. It was about processes, globalization, company-wide uniformity, data, the system architecture, governance, resources and costs. All areas were considered and evaluated in terms of their interdependencies. A plan of action with concrete recommendations for action was developed.

Result: Bauer will switch to the S/4 platform in a selective approach by spring 2023. Over the next few years, processes will be optimized and harmonized, innovations implemented, global standards created, systems streamlined, and data cleaned. In addition, Bauer is using an S/4 Playground to test processes under real conditions. 

Bauer has a mature process and system landscape. SAP was introduced 20 years ago. Now, the IT department was given the task by the Group's top management to check: What does the new S/4 product offer? Management also set the target of developing future-proof templates for the individual companies.

In the first conversation, Bauer agreed to start an S/4 workshop. The aim was to obtain an indication of S/4 Hana. In addition to Corporate IT, participants in the workshop included members of the Management Board and the SAP module managers, who are traditionally very business-oriented at Bauer. 

"Having an exact result in just two days of what a possible S/4 project could look like in practice - and approaching it from the -business perspective in addition to the IT side - was exactly what we wanted."explains Claus Baller, SAP team leader at Bauer. "After all, we knew in advance that there was huge potential for improvement in our ERP world." After the workshop, there was an initial program plan (high level) and there was clarity regarding the expected time needed for the S/4 changeover. In addition, those responsible received valid answers to the question: What is to be done next now, what are the next steps? Of course, a suitable transition concept was also discussed in concrete terms: Big Bang or roll-out in waves?

Selective approach enables transformation by 2023

In developing a transformation concept, Bauer again called in the S/4 experts from cbs. Those responsible wanted to find out: Which points bring the most added value to the company? "We were aware of some risk. We are implementing a new system including Digital Core with a range of functionalities - you have to be careful not to get lost."explains Claus Baller. "If we open up too many construction sites, at some point it won't be possible to implement all the innovations and carry them into the organization."

A plan of action with concrete recommendations for action was developed in the S/4 workshop. The result: Bauer will switch to the new future platform based on S/4 Hana in a selective approach by 2023. In the process, processes will be optimized in a targeted manner, innovations implemented, global standards created, systems streamlined, and data cleansed. The four phases of the project: preparation phase, prototype design phase, design, build and test, and finally the big bang go-live. 

As part of the preparation phase, Bauer also decided to use the "S/4 Play-ground" with all best-practice processes and its own master data. In order to test the potential of S/4 risk-free with real data and gather important input for further planning, cbs created a realistic test environment for the company. This enabled the business units to explore end-to-end processes with their own master and transaction data and discover new functionalities in realistic scenarios. The advantages: People were able to see how their own processes worked in the S/4 environment. This test provided important insights into what future best practices might look like. In addition, it was possible to get the key users on board at an early stage.

"The fact that our team can get to know S/4 in more detail in advance and see what processes will even exist in the future and what they will look like in the future already takes us a significant step forward"project manager Baller is pleased.

The advantages are clear. Bauer is now in a much better position to assess the potential and expense of the switch to S/4 Hana. The Strategy Workshop and the test phase in the Playground provided valuable insights for S/4 implementation planning. Bauer got answers to the questions: How do I get to S/4 company-wide as quickly as possible and in a way that adds value? What will my plan look like in reality? 

Now there is a roadmap to bring the existing process and system world to S/4: These must-do's exist and some should-do's will be added later. And this is what the overall plan looks like! Project manager Baller mentions another aspect that is important to him: "With cbs, we have an experienced partner at our side, as the company has already successfully implemented such a complex S/4 transformation at other well-known, internationally operating industrial companies."

https://e3mag.com/partners/cbs-corporate-business-solutions/
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Markus Mayr-Svec cbs

is a program manager in the Landscape Transformation division at cbs.


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Working on the SAP basis is crucial for successful S/4 conversion. 

This gives the Competence Center strategic importance for existing SAP customers. Regardless of the S/4 Hana operating model, topics such as Automation, Monitoring, Security, Application Lifecycle Management and Data Management the basis for S/4 operations.

For the second time, E3 magazine is organizing a summit for the SAP community in Salzburg to provide comprehensive information on all aspects of S/4 Hana groundwork.

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The event is organized by the E3 magazine of the publishing house B4Bmedia.net AG. The presentations will be accompanied by an exhibition of selected SAP partners. The ticket price includes attendance at all presentations of the Steampunk and BTP Summit 2025, a visit to the exhibition area, participation in the evening event and catering during the official program. The lecture program and the list of exhibitors and sponsors (SAP partners) will be published on this website in due course.