S/4 transformation with big bang go-live

Simplified and standardized business processes, more automation and a significant increase in efficiency with consistently high process quality: there were many reasons why the Swiss technology company SFS Group (annual turnover of CHF 3.04 billion, 13,700 employees) decided to switch to SAP S/4 Hana and thus merge the two ERP systems it was using. With the help of management consultants cbs, the digital transformation was planned in two project steps. In the first sub-project, the finance departments in 27 countries were migrated at the same time as the business processes of the Swiss trading company. The second step involved the conversion of business processes in the other internationally operating divisions of SFS. With around one million materials, 2.7 million parts lists and 23,000 production orders, the project was characterized by a comprehensive scope. SFS benefited from cbs' selective transformation approach in both project steps. 

First with the finance departments

After a finance and logistics big bang, SFS now relies on a harmonized system that offers numerous added values. SFS has been using SAP for 20 years. Now those responsible wanted to use the upcoming S/4 Hana implementation for harmonization. 

„In the past, we had two ERP landscapes that had grown historically. They had different dimensions and were therefore used for different areas. But ultimately we realized that we no longer needed these different versions and therefore decided on a joint transition project,“ recalls Roland Tüscher, S/4 Transition Project Manager at the SFS Group. Reto Buchli, Head of Corporate Information Technology, adds: „Our goals were simpler structures, optimized processes and the merge to a future-proof, common system.“ The first stage of the project involved migrating the finance departments in 27 countries and the business processes of the Distribution & Logistics Switzerland division, where the SAP platform was first successfully activated.

Less risk 

For the second phase, in which all purchasing and sales organizations as well as the production plants were converted, the plan originally envisaged a pilot project at the production companies in Switzerland. 

However, this was quickly abandoned after a risk analysis and intensive discussions with cbs. „Based on our experience from the first project phase, we realized that the pilot project would not minimize risk,“ explains Tüscher. 

One important reason was that a changeover taking place exclusively in Switzerland would have made business between the individual national companies much more difficult. This would have required extremely complex transition scenarios to ensure a smooth exchange between the two different systems. SFS therefore opted for a big bang, also with a view to a shorter project duration of one year. „From today's perspective, it was the right decision. Because our focus was much clearer right from the start,“ explains Tüscher.

Selective change 

A decisive aspect in choosing the right partner was Heidelberg's selective transformation approach and decades of project experience. „cbs has shown in a number of outstanding innovation projects in the industry that the selective approach makes the difference,“ says Tüscher. In contrast to a more complex greenfield approach, the master data and architecture were only changed selectively. This allowed the project to be streamlined and thus better managed and organized. The selective migration approach made the organizational change much easier.

But there were also challenges. This mainly concerned the simultaneous changeover in 20 countries and in companies with different product segments. Not an easy task, especially in view of the variety of languages and different time zones. In order to ensure a smooth process, the SFS Group carried out extensive tests with the process owners in advance. 

SFS approached this task with an invitation to all international key users. „For the fit-to-template workshop, the fourth and fifth integration tests and the user acceptance test, we brought all key users to our company headquarters in Heerbrugg. These were very intensive, busy days. This was the easiest way for us to identify the characteristics of the individual business units in the respective processes,“ says Tüscher. 

A positive side effect was getting to know the key users and the project team in person, which led to a lively exchange and discussions that helped the team make significant progress. „For me, the great added value of the personal contact between the country representatives was an important learning experience. The physical participation on site and feeling the enthusiasm were decisive for the success of the project in the end,“ reveals Buchli. For the future, this also resulted in a shared knowledge base that forms an optimal basis for the next steps.

The existing trusting relationship with cbs was an important aspect throughout the entire project. The same mindset, which includes high quality standards but also focuses on open communication and positive interaction between employees, led to an excellent result. „It was important for us to feel that we were working together as partners. Right from the start, we had the impression that we got on well with cbs because we have the same mindset. This is important in order to react appropriately in challenging situations,“ says Tüscher. „All discussions took place on an equal footing, regardless of the contact person.“

Harmonization meets innovation

With the successful big bang, SFS achieved its main goal of harmonizing processes. cbs was on hand as a partner who was able to advise on process adjustments and innovations in equal measure. „We have already had some experience with the new platform. It opens up new opportunities for our employees to work with high and rapid data availability and modern user interfaces. This is an important added value that makes SFS faster and more efficient,“ explains Buchli. 

There were also other developments that will have an increasing impact in the future: E-invoicing processes will be handled via the cloud, as will the connection to carriers, which will lead to significant economies of scale. In the area of printing, a company-wide output management system was introduced, which will make the implementation of new printer models more reliable and faster in future. Employees„ SAP authorizations are now also managed using a Group-wide model. However, the most far-reaching changes relate to product lifecycle management. “I see the biggest innovation in the area of PLM. We developed and designed new processes here as part of the project. That was an important part of the project," explains Buchli. 

Basis for future innovations

Tüscher is highly satisfied with the project: „If you can adapt the hyper-care organization in the first week, there were no critical incidents. And in the end, that is a very positive result.“ Buchli emphasizes: „Our goal is to establish lean, agile and future-proof end-to-end business processes in order to remain competitive. Together with cbs, we were able to build a future-proof ERP core that supports our business globally and creates the conditions for utilizing future developments and innovations.“ Unsurprisingly, innovations in the area of production and detailed planning are already planned to be introduced with the next software release.

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