Enterprise resource planning systems - ERP systems for short - form the backbone of corporate IT. They are used as a central hub for data for the uniform planning, control and documentation of a company's value chain. The pressure on companies to prepare for the digital transformation and the age of Industry 4.0 does not stop at ERP systems. More than ever, they need to become smarter, faster, more flexible and more integrated.
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01 Why Change Management is needed in S/4HANA projects
The switch to S/4HANA is more than just a a core technological transformation. It is a genuine real realignment of the company.
Christian Klein
CEO of SAP SE
However, companies and public institutions often lack the necessary capacities, especially when it comes to Organizational Change Management (OCM), and there are also few specialized services on the market - apart from IT and process consulting - that focus on changes in the organization and among people. The assumption that the SAP system integrator covers all the requirements of the S/4HANA transformation can lead to hurdles during the transformation. After all, it is important to remember that system integrators and SAP consultants specialize in process management, the configuration and setup of S/4HANA systems, but rarely in managing the human component of organizational change.
02 The 8 biggest challenges in S/4HANA projects
Companies that want to get the most out of the S/4HANA transformation should not only look at processes and systems. People are also important and are becoming the focus of change. This is also shown by the results of a survey on the top transformation challenges among SAP customers: over 60% of the challenges are people-related issues.
In addition, the introduction of S/4HANA not only affects a specific and homogeneous area of the company, but usually affects the entire company. Companies therefore have to overcome numerous challenges in parallel. The biggest challenges from a Change Management perspective are:
01 Different target images
Company divisions often have different views and ideas about the goals of the S/4HANA implementation. The initial situation often lacks an overarching vision or it is not clear. This leads to additional work in project collaboration in the form of additional coordination loops and repetitive discussions and decisions
02 Conversion of processes
The S/4HANA transformation promotes end-to-end processes and a change to company-wide best practices. Right at the start of the project, companies are often faced with the challenge of establishing a functioning process organization, replacing existing processes and reassigning responsibilities and decision-making powers.
03 Changed user interface: GUI becomes Fiori
Fiori differs considerably from the familiar SAP GUI user interface in terms of its structure and functionality, its graphical interface and its availability on mobile devices. The opinions of end users differ widely: one user group sees this change as a major breakthrough in terms of user experience. In contrast, many other users see Fiori as a risk of having to change their established user behavior.
04 Changes in behavior become necessary
To ensure that S/4HANA is not only "used", but that the added value of new functionalities and use cases can fully unfold in the company, numerous different user groups in the company must learn new skills and behaviors. Employees need to get used to the new way of working. In order to implement these changes sustainably, new behaviors must be practiced, encouraged and demanded.
05 Cleaning up in-house developments
In the past, large corporations in particular have added SAP in-house developments in order to map company-specific requirements. Although these so-called "Z" and "Y" transactions accelerate and simplify the company's own processes, they increase the effort involved in release changes. In line with the prevailing requirements in companies today to harmonize processes and follow the SAP standard, in-house developments are being switched off. Customized working methods that have been cherished for years are suddenly eliminated, which can lead to dissatisfaction among employees.
06 Breaking open silos
Cross-divisional collaboration is an important factor for a successful S/4HANA implementation. S/4HANA is based on the idea of creating a central data core so that company divisions use the same data and exchange information in real time. As a result, departments suddenly have to share responsibility for certain data along the end-to-end processes. This requires breaking down silos, standardizing the data landscape, thinking about processes end-to-end and redefining responsibilities.
07 Cooperation between business and IT
In addition to IT, business managers also play an important role in a successful S/4HANA transformation. Corporate IT in S/4HANA projects must position itself as a gatekeeper for standardization, a driver of digitalization and a technical innovator. Business, on the other hand, should focus on designing the new end-to-end processes and future collaboration within the company. This requires a strong dual leadership in the project with alternating responsibility as the driver of the transformation.
08 Heterogeneous changes
The introduction of S/4HANA affects the entire organization. Managing the associated, often very heterogeneous changes for different target groups is quite challenging. This is because employees are affected to varying degrees by the S/4HANA changeover, work in different locations and have different information and participation needs. A precise impact analysis of the transformation is necessary to ensure that the various target groups are sufficiently informed and involved at the right time.
03 S/4HANA Change Initiation
S/4HANA transformations are major projects that quickly take up the full time capacity of those involved in the project. Especially in the initial phase of S/4HANA implementation projects, countless questions buzz through the minds of project managers and employees:
- How do we manage the many tasks?
- How do we quickly gain certainty so that everyone involved is on board?
- How do we tie up the many loose ends to form a convincing overall picture?
- How can the project be a success?
We know from practical experience that the human factor plays a decisive role in all of these questions. This is because discussions often arise during the initiation phase and different ideas about the first steps and priorities in the project develop. As a result, the first employees typically withdraw and "let the others do it".
To ensure that change projects are already moving in the right direction during the initiation phase, every S/4HANA transformation requires a high level of employee focus in addition to professional project management. Moods must be picked up on and important information must be made openly and honestly transparent for all stakeholder groups. Otherwise, resistance will arise very quickly. For a successful Change Management , managers need to take action quickly and together. This role model function provides security and orientation for all those affected by the transformation.
Our solution
- We identify all relevant target groups in the organization in order to create the best conditions for the necessary acceptance by actively involving all those affected.
- Together, we build a Guiding Coalition for the project, which acts as a central driver and enabler of change.
- Together with the Guiding Coalition, we define the target image of the transformation and develop a change story. The story explains the transformation project in a comprehensible way for all departments and has a convincing and motivating effect.
- We develop all the necessary change measures in a clear change architecture and roadmap. This promotes employee acceptance and commitment. Typical measures include Involving those affected in designing solutions, empowering those involved, target group-oriented communication as well as recognition and rewards.
What added value does our S/4HANA Change Initiation offer?
- Acceptance and commitment-promoting change measures are defined as an important component for further project management and integrated into the project plan.
- There is clarity about the composition of all important program committees.
- Organization-wide project communication has been established as the first point of contact.
- The guidelines for the program team are defined.
- The project team knows the reasons for the transformation and has a clear and uniform target picture in mind. This leads to a high level of motivation and focus in the collaboration.
With Change Initiation, you create a solid basis for shaping the S/4HANA transformation in such a way that people are at the center of the change.
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04 S/4HANA Change Management
Every S/4HANA transformation is a mammoth project. When it really gets going, the core problems quickly become apparent: the project not only has to run well and be successful. Rather, everyone involved must work with a great deal of commitment and dedication over the long term. But how can project managers achieve this? Especially as they are faced with the challenge of having virtually no time for the human component of the project - in addition to the many technical issues, planning and management tasks.
Because one thing is clear: if the S/4HANA transformation does not go well, it will quickly become expensive for companies due to the necessary troubleshooting. On the other hand, many employees who were open and positive about the project but were not sufficiently addressed will be more reserved in future:
- IT and business employees who feel reinforced that joint collaboration is not worthwhile because potential rifts have not been overcome.
- End users who, after their experiences in the project, have lost their appetite for change - especially in the SAP context.
- Employees who felt a lot of uncertainty and resistance during the project instead of being trained to deal confidently with the new functions and processes.
Our solution
S/4HANA Change Management is a solution for companies that want Change Management support from the start of the project through to the hypercare phase. It is the all-round carefree package for all project participants and takes the pressure off project managers. With this solution, we address all stakeholders in your company right from the start. We create the conditions for those involved to collaborate to the extent that their work is required. In particular, this implies that end users are addressed and informed at an early stage and feel involved in the corporate change. By supporting Change Management , managers are equipped with the skills and information they need to navigate the change well themselves and take their employees with them on the journey.
Our tried-and-tested "CH/4NGE" framework, which was specially designed for S/4HANA transformation projects, focuses on the following objectives:
- Those affected in the company understand the reasons for the S/4HANA conversion and are convinced that the change is necessary.
- Furthermore, management, executives and employees accept their impact on the organization and daily work.
- Key central and local stakeholders are actively driving the S/4HANA implementation in their area of responsibility.
- SAP end users are familiar with the changes that will be introduced as part of the program. They understand the harmonized processes and are able and ready to use the new S/4HANA system in their daily work.
How do we go about achieving these goals in your S/4HANA project? Once again, change initiation forms the foundation. All of the Change Management tasks that build on this are based on the typical program phases of IT projects. This means that the required approach can be adapted flexibly and quickly to your chosen project approach, such as SAP Activate.
CH/4NGE - Our S/4HANA Change Management Framework
The modular "CH/4NGE" framework comprises six success elements that are necessary to implement any S/4HANA transformation sustainably:
What added value does our S/4HANA Change Management
- The project participants, managers and end users have a high level of acceptance of the organizational and procedural changes driven by the S/4HANA introduction.
- The managers have practical knowledge of change methods that can also be used for subsequent projects.
- The effects of the transformation are transparent and related to the different target groups. This allows the right information and enabling measures to be provided and implemented in a targeted manner.
- The communication tools can be used in the long term to keep managers and end users regularly informed and to build up the necessary knowledge about upcoming changes.
- The organization-wide network of change agents supports the transformation and provides communication measures as well as integration and empowerment activities as required during the project.
With our "CH/4NGE" framework, you can exploit the potential of your employees over the entire course of the project. You will also achieve the sustainable change in the company that you need for the success of your S/4HANA project. As a result, employees are ready to help shape the company's new direction with the S/4HANA system.
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05 S/4HANA Training Management
What we experience time and again in S/4HANA projects is that the project managers and employees are buried in the development of the new processes and the new ERP system until shortly before go-live. As a result, the topic of training management is tackled far too late. Typically, however, one of the tasks of the project team is to create the training for the often very specific new company processes. And depending on what is changing, the training requirements go far beyond simple step-by-step instructions.
The idea of hiring experts for these tasks then quickly arises. However, the external consultants also first have to familiarize themselves with the new processes and the new system. In addition, the experts are dependent on input from employees when creating the training material. But, as we all know, they don't have time.
As the training phase approaches, the time pressure is suddenly enormous. The S/4HANA training courses have to be set up immediately and often even the management board gets involved.But our experience shows that user training in S/4HANA transformations - especially in large organizations - is very complex. Their success is hard work. This is because the various target groups need training content that is tailored to their needs and prior knowledge. This is the only way they can have a positive learning experience.
Once the training courses have been set up, the next hurdle awaits the project managers: If the training courses are too boring, too technical or not interactive enough, this will affect the learning outcome. It is important to use exciting teaching methods that actively involve the participants and enable them to apply what they have learned in practice.
Our solution
Because training in large ERP implementation projects can make or break the success of the project, we have developed a training management approach specifically for S/4HANA transformations. In our training courses, we provide participants with all the key information they need and that is relevant to them. This enables them to learn how to use the new system safely and optimally. To achieve this goal, we start planning and managing the training courses in S/4HANA transformation projects at an early stage.
And this is how we proceed:
- We continuously determine the change impact during the development phase. This enables us to identify the changes that the S/4HANA transformation will bring for the target groups at an early stage. From this, we derive the relevant training requirements and needs for the key target groups.
- Depending on how extensive the changes are, we select the type of training used. For small technical or procedural changes, simple step-by-step instructions are sufficient. However, if organizational units, processes and system content change fundamentally, your company needs training that gets employees excited about the new structures.
- We are experts when it comes to designing exciting learning journeys and monitoring learning success. We also take into account your organization's experience from other projects.
- We work together with your project team to create the learning content. As we are typically part of the S/4HANA project, we do not have to spend a lot of time familiarizing ourselves with the system, which saves your employees' time.
- On request, we can also take over the entire training organization: we plan and manage the training courses for all employees. This takes additional pressure off the project managers, who can then devote their time entirely to the content of the project.
What added value does our S/4HANA Training Management offer?
The basis of what needs to be trained is always the change impact analysis. It describes which processes and system content will change for the different target groups. Depending on how extensive the changes are, we select the type of training to be used. For small procedural changes, step-by-step instructions are sufficient. For larger changes, we need training programs with live training, change stories and trainers who get employees excited about all the changes.
- This gives participants exactly the training they need to make optimum use of the new S/4HANA system. This increases acceptance
- Productivity also increases in your company, as the new system can be operated by all employees.
- The "value gap" is closed, which means that the system has not only been installed, but also implemented. This allows your organization to make optimal use of the new S/4HANA functionalities and actually tap into the potential of S/4HANA.
- The number of tickets in the hot phase after the go-live remains low.
Once introduced, the new S/4HANA technology will permeate almost every aspect of your company. High-quality S/4HANA training is therefore an invaluable tool for strengthening the individual skills of your employees. With our training management, we take care of the S/4HANA success factor "knowledge transfer" in good time. This increases employee acceptance, motivates them to work with the new system and fully unlocks the potential of S/4HANA.
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06 Our S/4HANA Reference Cases
With a portfolio of successful S/4 HANA projects in various sectors, we have established ourselves as a trusted partner for companies and public institutions of all sizes. Whether technology, healthcare, education or retail - we have industry-specific expertise and adapt to the needs of our clients' S/4HANA projects. You can find reference cases here to get to know our work better.
07 Whitepaper for download
Often enough, S/4HANA transformations fail because people are left out of the equation when it comes to implementation. Yet they play a central role when it comes to changing daily behavioral routines.
The S/4HANA change is hugely important for the future competitiveness of companies. So how can you ensure that this mammoth project becomes a lighthouse project right from the start with regard to the critical success factor "people"?
We address this question in our whitepaper Change Management in S/4HANA Transformations - Focusing on People at the center.
08 How we come into contact
Our CPC experts for S/4HANA transformation projects have developed an integrated, tried-and-tested approach that focuses on people. As a leading change consultancy in Germany, we are happy to support you with your project: We would be happy to present our change approach for S/4HANA projects to you in detail and work with you to develop your individual change strategy.
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09 FAQs
01 What is SAP S/4HANA?
Thousands of companies worldwide rely on SAP's ERPLösungen . SAP's answer to the challenge of making ERP systems fit for the future is S/4HANA. As the latest generation, S/4HANA promises nothing less than to transform and automate customers' business processes with the help of artificial intelligence. The "S" stands for Simple, "4" for the fourth product generation and "HANA" is the name of the "High Performance Analytic Appliance" database technology on which the system is based. As a real-time ERP suite, S/4HANA is based entirely on the powerful SAP HANA in-memory platform. It offers a significant simplification of the data model and numerous innovations thanks to the SAP HANA cloud platform. The role-based SAP Fiori interface makes S/4HANA particularly user-friendly and intuitive to use.
SAP offers support for the previous SAP R/3 and ECC systems until 2027, which means that companies do not have much time left to switch to S/4HANA. They already need to focus on measures that will accelerate the changeover.
02 What advantages does S/4HANA offer?
Companies expect SAP S/4HANA to offer numerous advantages over previous versions:
- Industry-specific, consistent and automated best-practice business processes
- Modern user interface with role-based user interfaces on multiple devices
- Collecting and processing data and self-service reporting in real time
- Access to new technologies such as AI, IoT and machine learning for e.g. business forecasts and scenario simulations and as a basis for digital business models
- Increased transparency thanks to harmonized master data from a single source
- Standardization and complexity reduction in the IT system landscape
- Increased performance thanks to the HANA database (in-memory storage)
- Lower IT operating costs due to reduced storage requirements
S/4HANA forms the basis for digitalization and opens up future business opportunities. Future-oriented technologies such as embedded analytics, Fiori apps and artificial intelligence will become increasingly important, especially with the changing requirements of today's VUCA world.
03 Why is now the right time to make the switch?
SAP S/4HANA forms the basis for state-of-the-art business processes and the digital future of many companies:
In addition, unlike simple system upgrades, the S/4HANA transformation offers many companies the opportunity to tackle the standardization and harmonization of historically grown processes and system landscapes and thus leverage further efficiencies.
04 What are the typical changes associated with the S/4HANA transformation?
The transition from SAP ECC to SAP S/4HANA entails both functional and strategic changes. Many organizations initially focus on the technical aspects of the changeover. However, even small changes in the system, such as replacing transactions used by long-standing SAP users, require professional Change Management support to avoid resistance.
The changeover to S/4HANA also entails changes in relation to the SAP business partner, the Universal Journal and the deactivation of obsolete transactions. Organizations must decide how to deal with these changes and how to prepare users for them. It is important to note that the choice of transition approach (brownfield, greenfield or selective data transition) has a massive impact on the degree of change experienced by the affected users. Brownfield allows users to work largely as usual, while greenfield and selective data transition require more changes.
In addition to functional changes, the transformation often also requires major strategic changes. These include the introduction of a company-wide process organization, the repositioning of corporate IT and the handling of increased data transparency. The vision and commitment of top management are crucial to the success of the strategic goals.
Find out more about the typical changes in S/4HANA implementation projects in our technical article in the magazine ERP Information to.
S/4HANA Change News
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