5 ways to align business and tech at the beginning of your S/4HANA journey

Companies who view migrating to S/4HANA as just an IT upgrade are making a serious mistake, according to Melanie Byrne, Director of Business Analysis and Business Process Management at Expleo.

“This is an opportunity for businesses to transform, not just upgrade,” she says. “It’s a chance to look at their processes and how they can realise the benefits of this change.”

With opportunity comes risk, and the impact of getting it wrong can be catastrophic. One leading confectionery company’s sales dropped by 25% after their failed implementation, while another large supermarket chain’s losses amounted to half a billion euros.

Success, argues Melanie, depends on business and IT being aligned right from the start. Here, she outlines five ways to ensure everyone buys in to the journey from the very first step.

1. Demonstrate the benefits

Moving to S/4HANA is as much a business project as it is an IT one. So it’s vital both sides are on the same page from the outset. If businesses think, ‘Oh, this is IT’s headache,’ they’re asking for trouble. We’ve seen implementations go live only to be rejected – people either can’t or don’t want to use it.

This can be avoided if everyone is clear about how the migration will benefit them from the outset. For IT, it could be less customisation for easier long-term maintenance, for the business, it could be about optimising their processes. If teams across the organisation can see the potential pay-off for them, they’ll be much more motivated to help make the migration a success.

2. Collaborate on a clear strategy

Make sure business and IT collaborate closely on the programme strategy. Together, they can look at the organisation’s current state, home in on areas for improvement and decide on the best approach for migrating to S/4HANA.

They need to ask and agree on the big questions: ‘What do we want to get out of this on both sides? Do we want to go completely out-of-the-box? If not, what level of customisation can we bring in?’ The business will probably need some customisation, which will require extensive collaboration with IT because they have to manage that into the future. A clear and shared strategy and vision means organisations can avoid misunderstandings and make sure the migration aligns with the overarching business goals.

3. Define your communication plan

It’s vital for people to feel involved and heard from the very beginning. So you need a strong communication plan.

First you need to understand each audience, so you can tailor your communications accordingly. Then, from your kick-off meeting to presentations and updates, explain to every business area what’s in it for them and what their involvement will be.

People take comfort from the norm, relying on systems which might not have great usability or working through clunky processes. Change is scary, but this transformation gives organisations a real opportunity to tidy up their processes, making things easier for the business. Plus it’s a chance for IT to optimise its tech landscape. Making these benefits clear will help people feel, and want to be, part of the journey.

4. Involve business users early and often

At Expleo we discuss the importance of upfront discovery work to understand your business needs. It gets your users involved early on, which is vital.

As an IT leader it can be tempting to bring the business into the conversation when it suits you. It comes from a kind of cautious scepticism. But if stakeholders don’t feel heard they’re far more likely to take a dismissive standpoint.

Bring them on the journey by asking what they need. Show them the journey map and say, ‘Here’s where we plan to go. What do you need the destination to look like?’ Then control any scope creep by saying, ‘We might not end up there, but let’s make sure it works for you wherever we do end up.’

Make sure you keep everyone up to date, too. That ties in with your comms plan – understand who you need to speak to in the business, how you’re going to speak to them and how often. This ongoing engagement means better decision making and course corrections if needed along the way.

5. Understand your journey

Both sides must understand where you are as a business. And how this SAP transformation will fit in with your long-term business plan.

By aligning on strategy and desired benefits, organisations can make sure everyone is working towards a common goal. That will help minimise the risks and maximise the benefits of switching to S/4HANA.

A neutral partner like Expleo can be the bridge between your IT division and your business at the crucial early stages of your migration plan. By doing the upfront discovery work before bringing in a system implementor, we involve the business early on, and at the right time in the project, setting the path to a successful migration that delivers lasting value.

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If you’d like help with this or any other part of your journey to S/4HANA, please get in touch