Identifying Key Process Improvements to maximise ROI​

In most cases, companies upgrading to S4 HANA simply copy their old SAP R/3 solution into S/4 HANA, resulting in a costly expense with little or no return on investment (ROI). When going through such an expensive implementation cycle, which includes testing, training, and go-live, it makes sense to seize this opportunity and implement new functionality that delivers value to the organisation.

To realise the ROI potential of an S4 HANA project, companies should first identify key process improvements along with the cost savings or expected business benefits. These improvements should be aligned with the company’s overall strategy, for example inventory reduction or backorders fulfilment improvements, and ideally include at least one key performance indicator (KPI) to measure the benefits.

This should be an undertaking as an in going position to the S/4 HANA upgrade project.

Engaging Senior SAP Enterprise Architects for Effective Implementation​

In the project itself, engaging senior SAP Enterprise Architects to design and implement these key process improvements is crucial. They will be tasked with designing a cost-effective solution rather than simply pushing back and wanting to implement the standard R3 SAP solution.

Once the go-live stage is reached, tracking the results and monitoring the effectiveness of the process improvements is crucial. Companies should continuously follow up on these improvements using the established KPIs to determine if the desired outcomes are being achieved. If not, it is essential to understand why and consider implementing further improvements to ensure optimal performance.

By taking these proactive steps, companies can maximise the value and ROI of their S4 HANA projects, transforming them from mere cost expenditures into strategic investments that drive growth and success.

In conclusion, upgrading to S4 HANA offers companies the opportunity to not only modernise their ERP systems but also unlock new levels of efficiency and productivity. By focusing on process improvements, cost justification, and ongoing KPI measurement, companies can ensure that their S4 HANA projects deliver substantial returns as aligned with the company’s overall strategic objectives.