Intuitive Add-On Migration to S/4: Standing Still Is Not an Option

With the establishment of the joint venture ZF Foxconn Chassis Modules (ZFFCN), ZF Friedrichshafen’s global axle assembly business was separated from the existing SAP landscape without interrupting just-in-sequence production. To create a future-proof digital core, this step was taken in conjunction with the migration from SAP ECC to SAP S/4HANA Rise.

With cbs as a partner and the Selective Data Transition approach, the ambitious transformation was successfully completed within 20 months. The global big-bang go-live, with downtime of just one hour, resulted in nearly perfect business continuity. „There are at most four hours between when an axle is finished and when it is installed at the OEM,“ explains Thomas Spalthoff, Head of Project Management and Strategic Projects at ZF Foxconn Chassis Modules. „The project’s business continuity requirements were therefore exceptionally high.“ The automotive supplier ZF Foxconn has implemented a complex SAP transformation within a just-in-sequence/just-in-time production environment that leaves no room for error.

SAP Rise in the Cloud

ZF Friedrichshafen AG, one of the world’s largest automotive suppliers, and Foxconn, the world’s largest electronics manufacturer, have entered into a strategic partnership in the form of a joint venture. For the newly created company, ZF Foxconn Chassis Modules, the axle business had to be separated from ZF Friedrichshafen’s existing SAP ECC system and migrated to its own environment.

In addition to the actual carve-out, the company decided to migrate to SAP S/4HANA and switch to SAP Rise in the cloud.

A small internal IT organization, evolving governance structures within the new joint venture, and a parallel business transformation carried out without disrupting operations presented additional challenges.

Unparalleled ability to get things done

ZF chose Foxconn as its partner, along with the global consulting firm cbs Corporate Business Solutions: „This transformation required the highest level of experience and execution capabilities. Our successful joint projects with cbs at ZF Friedrichshafen gave us the confidence to embark on this journey together,“ emphasizes Thomas Spalthoff.

The first step was to systematically prepare the existing ECC landscape for the upcoming transformation. In collaboration with cbs, the structures to be migrated from the ZF system landscape were analyzed, and preparations were made for the organizational separation of company codes, plants, and business processes.

The goal was to establish ZF Foxconn’s operational independence without disrupting ongoing business operations. Subsequently, a preliminary study conducted in collaboration with cbs provided the necessary transparency regarding the project. The study examined the future SAP S/4HANA target architecture, key transformation requirements, and the need for adjustments to in-house developments and interfaces.

The results were evaluated in collaboration with senior management, IT leadership, and the various departments. The preliminary study confirmed that the risk was well under control.

Global Challenge

In total, the transformation project encompassed 23 production sites on various continents as well as 26 of ZF Friedrichshafen’s 120 accounting units. The goal was to separate the relevant companies—along with their logistics, production, and business processes—from ZF Friedrichshafen’s complex structure within 20 months, migrate historical data and in-house developments, and simultaneously carry out a transformation to SAP S/4 HANA.

The volume of data posed a particular challenge: more than 16.5 billion data records had to be analyzed, validated, and migrated. The data history spanned a period of six years.

Selective Data Transition

ZF Foxconn, in collaboration with cbs, adopted an innovative selective data transition approach in which relevant data and structures were selectively migrated to the new system landscape. Due to global just-in-sequence production and delivery processes, business operations could be interrupted for no more than six hours during the cutover at the start of the project, while production at a single plant even had to continue during the go-live.

Early and thorough preparation in SAP ECC as part of the preliminary project reduced the risk associated with the transformation. In addition, some of the data was transferred to the new environment via Uptime Migration even before the actual go-live.

On the day of the go-live, the remaining delta was migrated simultaneously across all global locations in a "big bang" over the course of a weekend. The result: just one hour of business downtime.

The cbs ET Enterprise Transformer played a key role in the successful migration. The software made it possible to carry out complex transformation and migration steps in an automated, traceable, and repeatable manner: „There’s hardly anything on the market comparable to the ET. We migrated large volumes of data without any errors. In both finance and controlling, as well as logistics, we achieved 100 percent implementation and data quality,“ emphasizes Thomas Spalthoff.

A shared goal

Other key factors contributing to the project’s success included strong project management, effective collaboration between IT and business—all the way down to the shop floor—the trust of stakeholders, and, last but not least, a special team spirit: „Whether it was ZF Foxconn or cbs, everyone shared a common goal. “The atmosphere was reminiscent of a startup. Everyone took responsibility and gave it their all to ensure success,” sums up Thomas Spalthoff.

ZF Foxconn has completed an ambitious transformation project in just 20 months. As a result, the company now has an independent, future-proof system architecture that goes far beyond simply separating itself from the former corporate environment.

„The new digital platform provides the foundation for continuously improving processes, increasing the level of digitalization within the company, and making targeted use of new SAP features,“ confirms Thomas Spalthoff.

Additional Opportunities for AI

SAP S/4 HANA Rise unlocks additional potential for AI, automation, and optimization across the entire value chain. For ZF Foxconn, the successful carve-out to SAP S/4 HANA was therefore not the end of the transformation, but rather a milestone in its long-term future development.

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