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Building a Value-Driven Business Case for S/4HANA Migration

  • SAP

In our new blog series, Dave Donnachie, Head of Evolve Business Consulting at Delaware UK&I, explains how you can build a solid business case for S/4HANA migration...

So the obvious questions about value need to be asked - but its SAP S/4HANA, that’ll be easy, right? While it's an exciting platform and is a significant technical upgrade, existing ECC6 users often find it challenging to pinpoint where the true value lies. S/4HANA is a significant technical upgrade and introduces an ultra-modern, enterprise-wide platform that promises enhanced technical integration, streamlined automation, and simplified processes. But, it's crucial to recognise that realising the potential of this upgrade requires extra investment and time.  

You might be thinking, 'But doesn't SAP's newest ERP offering come with large functional improvements?' 

Well, the user interface has finally caught up with modern world and there are clear improvements across the core modules. 

However, based on our conversations with various clients, many have shared that the benefits don't always justify the implementation costs, especially when considering the extensive customisations developed over decades with ECC6.

So, how do you justify an upgrade to SAP S/4HANA? 

This is an industry agnostic dilemma that we’ve been helping our customers answer – and in fact, the solution is simple. Look to the past!  

You’ve been using a system for 10-20 years, you’ve had resource attrition, knowledge attrition, process changes, process adherence issues, technical upgrades, customisations, data issues, acquisitions, divestitures, changing market conditions. In short, a lot has happened. With every change, you’ll have introduced variance to your operational processes, diluted your standard ways of working, and more likely than not, you’ll have created an environment of inefficiency without realising it.

So, the answer? Look to the past before you look to the future. The reasons are two-fold:

  1. You don't need to transform what works: either process, technology, or ways of working.
  2. You do need to fix what isn’t working: if you want to exploit the real potential of S/4HANA and build a solid business case.

By addressing both of these areas, you'll gain a clear understanding of the value of making changes through your S/4HANA implementation versus maintaining the current state. This means you'll embark on a selective transformation that optimises both future and legacy investments. 

Our approach to creating a business case for your S/4 migration involves deploying expert business and functional consultants who collaborate with your IT and business teams. Together, we assess what's functioning well, identify issues and their root causes, and devise solutions. 

We then quantify the benefits of these improvements for your organisation, ultimately constructing a transparent, objective, and attainable business case, categorised into three distinct areas:

It's easy, with the right support

Delaware’s Evolve Business Consulting Team has a proven track record, most recently demonstrated by our work with major players within the food manufacturing and publishing industries. Our benefit cases create a sustainable path to S/4HANA. With one particularly transformative case poised to revolutionise growth and boost cashflow in a hyper-competitive industry.

Now, you might be thinking, “We have a well-functioning ECC6 system.” That's great, but let's ask a simple question: “Do you truly understand how your system is utilised?”  

If you confidently answered yes, you're in good company. We've helped many clients discover and address process execution challenges, over-reliance on spreadsheets, and underutilised or misused systems with guidance and support. 

 

We will support you in fixing your system issues and help you map a clear, benefit-driven path to S/4HANA. 

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