The four focal points for an S/4HANA migration

Many companies are currently choosing to migrate their ERP to the cloud. However, it is important that several persistent myths are dispelled during this process. Fairy tales can be beautiful and exciting, but when it comes to your organization's digital transformation, we prefer to stick to the facts and best practices. This article will tackle some of the most common myths about S/4HANA.

That would be great, but the reality is more frustrating. Many companies will be moving to the cloud in the (near) future. Prior to making the move, your organization needs to be ready. People are skeptical and many are putting the digital transformation on hold. They see a migration as complex, long-lasting and expensive. However, with a clear vision and good guidance, that does not have to be the case.

It's normal for the process to take some time. The implementation of an ERP in the cloud must be done with care. The process itself, however, is not that complicated. From a technical point of view, it is all about making sure you are well prepared. Creating a shift in culture within all areas of the organization is important. If all stakeholders are fully committed and communicate this to employees, your organization will be mature enough for a migration. S/4HANA is an attractive option for large and small organizations.

If only that were true. It is naive to think that everything will be rosy after a migration. Post-migration, the stress of managing systems from an operational perspective is gone. This allows your organization to take an increasingly agile and cost-efficient work approach.

However, you will not see the benefits immediately as it takes time to discover them. So, be cautious about promising your stakeholders a strict timeline regarding when they will begin to see the benefits.

Keep in mind that problems will also arise in the (public) cloud after migration. As an IT department, you need to sail close to the wind. Make sure the interaction with the rest of the business and your suppliers is well organized. All systems need to be properly maintained and updated to ensure that you continue to derive value.

This is a major misconception that many organizations experience. For clarity, a migration to S/4HANA is not a Spotify app that you download, install and operate with a few touch functions. After migration, there is a completely new way of working with SaaS, particularly for end-users who use it day in, day out. This has a huge impact. Therefore, it is important that people from different areas of your organization are involved in the migration at an early stage. You should train coaches so they can spread the knowledge within your organization before, during and after the transformation. Users will also need additional mandatory training with each new release. For this, the software supplier will determine the planning, not the business. This sounds strict, but it is important to ensure your systems are always up-to-date and working with the latest applications so that you get the most out of your ERP.

A good implementation requires experienced data experts who can help throughout the migration. However, your organization remains responsible for data quality and completeness of the organization's systems. In such migrations, KPMG helps you to define a common vision, provides proven models such as KPMG Powered, and takes the reins throughout the implementation and subsequent optimization. Make sure data is prepared on time and is in a correct and clean format to avoid duplicates and mistakes during the migration. It is better to spend more of your budget during this phase.

Remember you are the ultimate owner, stakeholder and visionary. After the migration, you will be able to use your data more efficiently. This is just one of many reasons why organizations are taking the transition to S/4HANA seriously. With a whole host of SAP specialists at KPMG, we can help your organization make the switch to S/4HANA.