How S/4 optimizes the corporate strategy

And it is just as imperative that companies align the digital transformation with their individual, strategic business goals. This requires a very high-performance real-time ERP suite such as the S/4 platform.

It combines the advantages of an intelligent next-generation ERP system with those of the SAP world. However, in order to benefit from all the advantages that Hana and S/4 open up, it is not enough to approach the implementation solely from an information technology point of view.

The strategic level is equally important. For companies, it is important to implement digitization in their thinking and culture as well. The S/4 implementation in particular provides an opportunity to examine every single process, the entire structure, and all policy definitions to determine whether they are really stringently aligned with the company's strategic goals and where there is potential for optimization.

To do this, it is essential to first be clear about the key points of the medium- and long-term business strategy and, in a second step, to derive from this the goals that you want to achieve by converting to S/4. And like any complex IT project, the S/4 implementation also requires thorough preparation.

It is imperative to plan the individual project phases in advance and to involve the managers directly affected as well as IT from the very beginning and to inform all stakeholders at an early stage.

In the digital age, there is only one constant for many companies: that of permanent change. A fundamental change such as the migration to a new ERP suite should therefore be used by the management to pause for a moment and become aware of exactly how and where the company should develop in the medium and long term.

It is not enough to be clear about the corporate strategy. It must be ensured that any strategy derived by the specialist departments really fits into the overall concept.

It goes without saying that this cannot be done beyond legal and economic aspects. Even ongoing and firmly planned projects must not be left out of these considerations.

Once the end goal has been defined, the objectives of the transformation can be clearly defined. These, in turn, are the guard rails for setting up the S/4 project in such a way that it contributes effectively, significantly, and sustainably to the implementation of the corporate strategy.

These goals then determine which specific transformation method is the most suitable: greenfield or brownfield approach. In order to be able to decide between a fresh start and migration, it is first necessary to know what the process map in the company looks like, how it should be structured in the future, and which critical processes exist in the company.

A structured approach to strategic transformation also involves consistently planning through the various project phases and their execution and delineating them with milestones.

Furthermore, responsibilities and the respective process scope must be defined in this context. Companies are also well advised not only to identify the business-critical processes, but also to verify them against industry standards.

It is useful to set specific objectives for each phase of the project, prepare an indication of effort for the next steps, and develop a proposal for how individual elements can be carried out.

There is only one way to meet users' demands: You first have to find out what they want. It is therefore essential that the company identifies all stakeholders who are important when it comes to the strategic transformation to the new S/4.

One should find out what ideas the various departments have regarding their ideal processes and whether these correlate with the company's short- and long-term goals.

In addition to the opinions of the relevant decision-makers, the ideas of the IT team must also be captured and aligned with both the wishes of their peers and the corporate strategy.

After all, it is the IT department that will empower employees to independently implement digitization in their department without losing sight of the corporate vision. Here, the focus is on interdisciplinary collaboration.

What is true for projects in general is even more true for transformation projects of a strategic dimension, the effects of which are usually felt throughout the company.

Sometimes each stakeholder has a different perspective on the project and associates different intentions and expectations with it. That is why it is crucial to create a sustainable basis for the transformation project.