S/4HANA Beyond Brownfield

No two S/4HANA projects are the same: The requirements are as different as the companies and their structures. Individual preparation, developing blueprints, cleaning up data, planning the project securely - all these are building blocks for a successful transformation.

In the interview explain Jürgen Löhle and Wolfgang Unkauf (both CONSILIO) on what they recommend for S/4HANA implementation, which transformation strategy they favor, and how to create real value after a brownfield conversion.

Both are also guests at the "SAP digital event "Innovation & Digital Transformation" on June 15, 2021, organized by it management and E-3 magazine.

In their presentation "S/4HANA Beyond Brownfield", they explain how you can benefit from the advantages and features of the new S/4HANA technology platform after a brownfield conversion if you carry out further changes and optimizations in the sense of "Beyond Brownfield".

Mr. Unkauf, which transformation strategy do you prefer?

When switching to S/4HANA, a distinction is made between three options: greenfield, brownfield and crossfield. The greenfield approach describes the complete new implementation of S/4HANA. For many companies, however, this is a very costly and not absolutely necessary scenario because the current SAP ERP solution largely covers the business requirements and there is a lack of adjustments and modifications that make upgrading or maintenance more difficult.

In this case, the brownfield approach is recommended. In this case, the SAP ERP system is transferred to S/4HANA in a similar way to a release upgrade. The crossfield variant is a mix of both worlds and enables the comprehensive adaptation of processes and organizational structures - including the retention of historical data.

The choice of the right approach therefore does not depend on a preference, but primarily on the respective customer situation.

What misconceptions do you observe in S/4HANA projects?

Sometimes management has very high expectations. For example, they assume that the entire application will run faster immediately after the switch to S/4HANA or that it will be possible to work completely in the SAP standard - without extensions and Z programs. However, the reality is different.

Depending on the requirements of the company, extensions are necessary, but one should limit oneself to the most important ones. The new concept and architecture are based on the Digital Core. Only those who really internalize the keep-the-core-clean idea and concentrate on the essentials will be able to reap the benefits in the long term.

Another example concerns the introduction of Fiori apps. Here, a UI strategy, the distribution of roles, and a correspondingly established change management are often missing in the company.

Mr. Löhle, why is there no automatic added value after a brownfield conversion?

S/4HANA provides a platform for the digitization of business processes. However, the added value cannot be created by technical conversion alone, because the system still runs largely analogously to ECC. In order to benefit from the new technology together with its functions, further steps must be taken.

How to add value after brownfield conversion?

In principle, S/4HANA offers interesting new functions. Those who exploit them after conversion can significantly increase the added value of their application.

With Fiori, a new UI is available. In order to take advantage of it, processes and role distribution in the company must be redefined.

In FI/CO, for example, the introduction of the Intercompany Reconciliation Monitor for the intercompany reconciliation process as well as the use of Advanced Compliance Reporting for tax reporting or the introduction of enhancement ledgers for mapping reporting requirements promise a performance gain.

By activating and expressing Margin Analysis, an improved and enhanced version of accounting-based profitability analysis is available for management reporting. S/4HANA Embedded Analytics analyzes transactional data in real time and prepares it for reporting.

In the area of logistics, the extended planning in embedded PP/DS enables the use of the optimizer and PP/DS heuristics. Thanks to an increased clarity in the planning steps, the planning process also achieves an even more stable planning reliability.

For material requirements planning, the optimized, high-performance version MRP Live on HANA is available in S/4. It displays the availability of materials in real time and allows multiple planning runs every day. This prevents bottlenecks before they occur. The Fiori app-based MRP Live Cockpit provides a completely new user experience.

Advanced ATP in S/4HANA differentiates itself from standard ATP checking by focusing on performance, simplification and integration of additional functions in the components of product availability checking, allocation, alternatives-based confirmation, backorder processing and delivery release through its new user interface.

Mr. Löhle and Mr. Unkauf, what will we learn from you at the SAP Digital Event Innovation & Digital Transformation on June 15?

In our presentation "S/4HANA Beyond Brownfield", we not only offer interested parties exciting insights into conversion, but also point out the advantages and features of the new technology platform. We will also show which optimizations are recommended in terms of the Beyond Brownfield approach.

Thank you very much for the interview.

The registration for the SAP Digital Event Innovation & Digital Transformation is available as of now at www.consilio-gmbh.de/beyond-brownfield possible.