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An increasing number of businesses are reorganising around SAP S/4HANA in every sector of business, with reasons for making the change. Most of the time, these transformation efforts are not merely seen as a technical improvement but instead as a chance to assess the organisation and improve how it operates.
In this paper we will introduce the difficulties and benefits of the typical migration strategies in large S/4HANA transformations, as well as the approach that PwC has developed and applied with multiple clients to guarantee that they consistently achieve their business value goals in their transformation initiatives.
This approach is called Smart Greenfield.
Why organisations are moving to SAP S/4HANA
The need for a more agile, scalable, and value-driven business process chain and IT landscape is high on the agendas of both CEOs and CIOs.
We observed that the cases for change at our clients frequently involve common levers:
Once organisations achieve a consensus about the case for change supported by a strong business case, at the start of the journey to transform the SAP landscape towards S/4HANA, one of the critical factors is to select the appropriate migration approach.
How organisations are moving to S/4HANA
One of the major cornerstones of the S/4HANA transformation journey is to decide on the right approach when it comes to implementation.
The two most common implementation approaches offered by the market are Greenfield and Brownfield. Standard Greenfield and Brownfield approaches do not meet the market requirements.
Clients often want more flexibility than the two options outlined above, and many of them therefore start searching for various ‘hybrid’ alternatives, which combine technology upgrade with selective renovation. The challenge is to find the hybrid option with the best ROI and balance in terms of cost/disruption.
PwC has created the Smart Greenfield strategy for S/4HANA conversions, an ‘hybrid’ approach which helps clients to achieve their desired ROI and a balance in terms of cost/disruption.
Transformation with PwC Smart Greenfield
To help companies maximise the business value of their S/4HANA transformation, our PwC Smart Greenfield approach includes multiple components for comprehensive coverage of all aspects of an S/4HANA transformation and enables clients to choose from multiple options.
- Develop and safeguard the roadmap with a partner known for strategy and trust
- Use of pre-configured PwC Edge Industry Solution as reference system helps to evaluate the back-to-standard potential
- Selectively redesign certain aspects of your system while also keeping the ones that work, at the same time that you’re cleansing and moving selective master and transactional data (including their history) into the new S/4HANA system
- Aggressively clean up unused code, perform automated conversion of custom objects to HANA, S/4HANA, modern coding standards and automated dual maintenance
- Automated testing for execution of thousands of test cases in a matter of minutes, not days
What is a Smart Greenfield for SAP S/4HANA?
The Smart Greenfield approach includes two migration strategies supported by proven frameworks and platforms, which have been successfully applied at our clients.
The choice is usually tied to factors such as key drivers, degree of change, business benefits vs. risks, and organisational readiness.
The two migration strategies are: the ‘Mix & Match’ and the ‘Shell Conversion’ strategy.
These two migration strategies are described below:
Mix & Match strategy
With Smart Greenfield ‘Mix & Match’ you build a new SAP S/4HANA system in the cloud or on-premise, install the pre-configured PwC Industry Edge solution, adopt selected custom coding, interfaces or data from the productive SAP ECC.
Shell Conversion strategy
Smart Greenfield ‘Shell Conversion’ is based on the selective data transition approach into a copy of your SAP ECC (shell) upgraded to S/4HANA.
How do we apply the Smart Greenfield approach?
The starting point is a two-step phase to build the right consensus:
Definition of the target operating and process model
The global process owners are supported in defining the target process model and detailing it to process level 4-5, where it is possible to accurately assess the impact on specific business units or geographies. PwC uses proven tools and services to capture and analyse key information.
Roadshows and alignments
Roadshows and alignment meetings are conducted with local and regional process leads to ensure that localisation aspects have been sufficiently covered in the target process model.
Once the process model is agreed upon by the process owners (global and local) and as well as users in the organisation, it is important to lay out the roadmap for the process changes to be activated.
This is typically the start of the S/4HANA journey for organisations that take the opportunity to simplify, standardise, harmonise, digitise and automate their processes as part of the upgrade from SAP ECC to SAP S/4HANA.
The results of this enabling two-step phase will support the execution of the selected migration strategy, either ‘Mix and Match’ or ‘Shell Conversion’.
This paper describes how these two migration strategies work in detail.
Why PwC Smart Greenfield?
PwC accelerators and our trusted partnerships, together with a tried-and-tested and structured approach will boost your transformation to S/4HANA and de-risk large, complex technology change programmes.
PwC's 'Industry Edge' solution - an integrated enterprise model system to address each of our clients' unique industry needs.
We will accelerate your journey by a proven structured approach, leveraging unique best-in-class automation and intelligent conversion platforms.
We will put in place a lean delivery model, with no compromise on quality but a close eye on reducing risks and efforts.
We will enable your vision in a fast, agile and secure way.
This paper includes additional details about PwC’s ‘Industry Edge’ solution and our trusted partners.
Final conclusion
PwC’s Smart Greenfield strategy for SAP S/4HANA conversions is a ‘hybrid’ approach which helps clients to achieve their desired ROI and a balance in terms of cost/disruption and mitigate many of the risks associated with making the jump to SAP S/4HANA.
It allows questions about process re-use to be answered for the different solutions and application areas separately, accelerating their migration to SAP S/4HANA through automation tools provided by our trusted partners
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Download our paper
https://pages.pwc.ch/core-asset-page?asset_id=7014L000000IGbnQAG&embed=true&lang=en
