S/4 Playground

The globally operating automotive supplier ZF Friedrichshafen tested the potentials and opportunities of S/4 risk-free with real data in advance and thus collected important input for roadmap planning. With the help of CBS, ZF created a realistic, individual test environment for an S/4 Playground in logistics.

Here, the department tested end-to-end processes with its own master and transaction data, discovered new logistics functionalities, and tested Fiori apps in realistic scenarios. The benefits: ZF was able to see how its own processes work in the S/4 environment. This test provided important insights into what a future transition scenario at ZF might look like. In addition, it was possible to get the key users on board at an early stage.

ZF has to replace around 80 legacy systems worldwide, including more than 30 non-SAP systems with a wealth of additional developments. The heterogeneously grown IT landscape is to be standardized and lifted onto an S/4-based global template. The planned reduction to a maximum of four systems is intended to form the technical and organizational basis for the Group's future growth strategy.

"Following the acquisition of the U.S. automotive supplier TRW, we wanted to be in a position to achieve synergy effects across all central departments, rapidly introduce global business processes and drive forward the digitization of the entire Group"explains Christophe Buchet, Senior Manager IT Market & Materials Management at ZF.

ERP reality vs. S/4

But the first steps ZF took on the way to a future-proof process and system landscape raised more questions than answers. What does ERP reality actually look like under S/4? Do my old business processes and data structures even fit the new SAP world? Which approach suits ZF - Green Field (new implementation) or Brown Field (conversion)?

Only real-life testing can provide tangible answers - in the new S/4 Playground. This realistic test environment makes the new SAP world tangible. After all, corporate IT wants to know: Are our current core processes even S/4-capable? And the only way to find out is to test end-to-end processes and new functionalities with your own data in the new system.

The advantage of the test phase for ZF: Those responsible were able to gain their own experience with S/4 for the first time. Afterwards, it was possible to make a statement about the future effort of the conversion, as well as about the return to the standard and the replacement of additional developments. "We wanted to know to what extent S/4 Hana in its current version already fits ZF processes and what adjustments are necessary," emphasizes project manager Christophe Buchet.

Business Partner Transformation

With the help of the CBS Enterprise Transformer, the client-specific and cross-client customizing including master data and representative company codes were transferred to a new ERP/ECC 6.0 system. Beforehand, the master data for the selective data migration had to be identified and cleaned up. Selected transaction data was also transferred.

In addition, business partners that were absolutely necessary for S/4 were created in a simplified but functional approach. Subsequently, the new ECC system was migrated to the Hana database and was ready for conversion to S/4. This was carried out by experienced consultants and also included the necessary pre- and post-processing activities, such as the transfer of the general ledger to the new universal journal and the adaptation of the material ledger, which is mandatory under S/4, or the new asset accounting. After three months, CBS was able to hand over the playground to ZF.

The S/4 Playground enables more in-depth testing of new functionalities, and the new SAP world has become tangible for the approximately 30 key users. This was very important for ZF, also against the background of the users' existing fear of contact with the new software. Many employees asked themselves: What does S/4 involve? What does the new SAP standard offer us? Are ZF processes even S/4-capable? Now all the employees concerned have an initial clear picture.

"The S/4 Playground helps us pick up key users early on"says project manager Buchet. Some have discovered new functionalities, others recognize the potential of the Fiori apps. This creates interest and curiosity about the future system, and employees see the potential for improvement. The gain in knowledge regarding the "readiness" of S/4 is also immense: Uncertainties regarding the procedure and planning have been clarified, synergy effects in ongoing projects have been used, and thus risk and effort have been reduced.

"We have found that the majority of our core processes can be run without additional developments. We are now in a much better position to assess the potential and effort involved in switching to S/4. The test phase in the Playground has provided us with valuable insights for S/4 implementation planning. On this basis, decisions regarding upcoming projects can be optimized and concretized"., says Buchet.

Accordingly, ZF has precisely adjusted its S/4 roadmap for the next few years. One thing is certain: Those responsible prefer the selective transformation approach, which is about specifically looking for value creation at the process level. "For us, CBS is exactly the right partner because the consultants combine deep industry process expertise and S/4 Hana pioneering knowledge"praises the IT manager.