SAP Global Template Demystified: Executive Message and Buy-in

When it comes to the implementation of an SAP Global Template, you have to be clear. You have to be bold. You have to shout it from the rooftops! Otherwise, you may end up hosting a lame party that people cannot wait to abandon.

Executive Buy-In: You need it to make the hard decisions stick. If not, the local crown prince may just decide to go on a software spending spree, while the king of a tiny ivy tower far, far away thinly veils a tantrum. Don’t get me wrong–it is not about dictating, but rather rallying support from the leaders of your organization.

Executive Message: Make it visible that the Global Template is at the core of your future business strategy. It’s not an “IT thing” that levels somewhere on the nice-to-have layer of your decision process. Achieve this by including C-suite executives in important milestones of the Global Template rollout, like the start of fit-gap sessions, key user acceptance testing dates, and the go-live. Allow the whole enterprise to see that you and key leadership speak with one voice.

SAP Global Template Meeting with Executives

I have experienced many times that the missing buy-in and participation of executive leadership results in local operations running astray. These unnecessary occurrences of leaving the chosen path to Rome never end in happiness. We all want to be recognized as independent thinkers, believing that only our own way is the way to go. In reality, the most successful companies find an acceptable level of standardization without ever abandoning diversity!

Ultimately, it is on you, the program director or Center of Excellence leader, to communicate the need for buy-in and participation to the executives. They are busy without you, even more busy when you come along with your ideas. Don’t throw random or generic sound bites about the necessity of a Global Template and see if it sticks. Make your touch points with executives meaningful so they can relate to the tasks at hand:

  • Be mindful of their time as their day has only finite hours! Schedule interactions in accordance with their availability. You do not want to compete with board meetings or annual budget sessions. Nurture positive relationships with executive assistants as they are the wonderful magicians that make things happen!
  • Be precise in what you need from them; prepare a specific executive summary of anything you want to convey. If you cannot summarize it, you may not have fully grasped it yourself–how can you expect them to weed through a hundred pages to figure out how to support you?
  • Be aligned with the company strategy on all levels. Don’t ask for funds that have not been budgeted except for rare, immediate needs. Understand the business’ direction to avoid asking for help that will not be supported by leadership. If you want to change directions, build alliances, and don’t be surprised if it takes more time than anticipated.

The point is that you need to acquire buy-in to keep things moving! When charged with building a Global Template, it is part of your job description to be the glue between the deciders and the doers. So be that link, the building block that manages up and downward. 

In our next installment of the Global Template blog series we will discuss the heart of the operations–the people that make it happen, the stakeholders, and those who are most impacted. If you’re looking for support with an SAP Global Template rollout, contact our team and see how Vortex Consulting can be a critical ally in the process.

SAP Global Template Demystified

Welcome to the first in a new series on the Vortex Consulting blog. Join us over the next few months as we explore the ins and outs of SAP Global Template.

It isn’t about configuration. It isn’t the business process. Nor is it about documentation. It is about all of that and much more. An SAP Global Template (“GT”) is a blueprint to success, a holistic view of all elements of your SAP journey!

To achieve the promise of cost savings, rapid deployment, efficient support, and a solid return on investment, the breadth of standardization must cross the enterprise as a whole, including people, process, and systems.

The challenge is that many consultants, and firms, attempt to give guidance about SAP Global Templates, but only a few truly understand it. When embarking on the exercise, many people quickly realize the complexity and either give up or go only part way. To avoid this frustration and expenditure, you need to plan a GT like a major project, then embed it into your business strategy and long-term deployment plan(s). Finally, it has to be supported with expertise and experience, either in-house or through external advisors.

Vortex Consulting SAP Global Template Guide

Today’s post is the first in a new blog series we are launching. In the coming weeks, we will explore the underpinnings of an SAP Global Template and touch on the topics that need to be considered for standardization. And yes, it’s all about streamlining and standardizing to avoid reinventing the wheel in endless blueprinting sessions. With the concepts we will explore, your team can develop the software fabric that will allow for rapid, agile deployments. This strategic activity will generate acceptance in the organization with a right-sized overall SAP environment that supports the business vision and strategy.

Elements of an SAP Global Template that we will explore in upcoming blog posts:

SAP Global Template Elements

All these elements need to be considered in the context of already existing enterprise IT and business structures. None of them can be seen as a stand-alone effort. Each is a critical part of the foundation that can support the weight of future SAP deployments. When done right, an SAP Global Template can turn a possible burden into an IT strength, leading to a deep acceptance throughout the organization as it generates a “common language” for the deployments of the SAP package across the entire fleet.

Before we end this post, let me take a moment to drill deeper into the idea of a “common language.” This is not a question of whether English is your worldwide project language. It is one of the single most important success factors of your SAP journey. You need to create a dictionary of SAP Global Template business terms and take the utmost care to teach it, reiterate it, and defend it! Yes, you need to defend it until it becomes ingrained into the business DNA! Why? It is difficult enough to bridge a potential gap of languages, cultures, and countless other variables when rolling out an SAP road map across the enterprise. You should not add the unnecessary complications of debating if you refer to a division as a “group” or a “business line.” Clarity minimizes confusion and could literally save millions in wasted dollars.

It is the clarity of thinking strategically, speaking with the vocabulary of convergence, and the holistic inclusion of all aspects that makes an SAP Global Template successful. And you can be the designer of this thriving system, with the help of your trusted advisors. 

Check back next week for the second post in this series, and be sure to follow us on Twitter to stay up to date on all the latest news from the Vortex Consulting team.

How to Start your S/4 HANA Journey: Operations First

From guest author Sven Wierzbicki. The fourth in our blog series on “How to Start your SAP S/4HANA Journey.”

You confront your challenges head on. You do not shy away from open heart surgery. You trust your ability to initiate and manage fundamental change. Welcome to the S/4HANA implementation option of “Operations First.”

Most companies, even the ones that had a rough SAP R/3 implementation, will finally get to the happy place where they have a stabilized ERP platform that meets the needs of their business operations. Can you call them out for trying to stay in their perceived “ROI zone?” 

These companies may feel much more at home with options to implement BW/4HANA or S/4HANA Central Finance before turning their operations upside down. 

There is, however, a different school of thought that exists. It subscribes to the idea to go after supporting the fundamentals of the business in the most advanced way possible. In the end, it does not matter how they arrive at the conclusion. What matters is that they right-size the effort to implement S/4HANA, by one of two options:

  • Shorten the period of parallel operations: When a company is centralized in its nature, it may make sense to strive for a shorter period of overlap between the R/3 sunset horizon and rise of the new S/4HANA star. If palatable, the idea of a big bang, or a small series of big bangs, should be the centerpiece of the digital transformation road map.
  • Or, extend the period of parallel operations: When the diversity of operations, the geography, or the limited appetite/funds dictate to refrain from doing “big bites,” an S/4HANA seed approach may be better. Acknowledge that you cannot do it all at once, and pick the right representative/business to be the seed for the future business template in S/4. Implement in reasonable chunks–with bigger steps–once experience gains traction.

Regardless of which way you go, never bite off more than you can chew. Doing so only sets you up for disappointment. Embracing the new functionality should be exciting for your business–especially those seen in Finance. Success should be experienced all along the journey!

So, which steps can you take to right-size your “Operations First” effort to implement S/4HANA? Let’s explore some key elements to avoid diving into an abyss:

  • Deployment Strategy – Build a road map that is custom fit to your company’s means and capabilities. Don’t shy away from tackling the S/4HANA journey; do, however, avoid overstretching your IT and business organization. Find a suitable seed business that fits your needs and go to the starting block. Do not wait too long, as there is still the R/3 sunset looming; you do not want to be pressured into a decision that may force your hand!
  • There is No Upgrade – We all like good news. That’s why it’s tempting to listen to relentless ‘experts’ claiming to have the tools “to make the upgrade easy.” The thing is, there is no true upgrade for the Business Suite. Yes, the technical HANA DB can be upgraded, but the functionality must be implemented anew. You may not need to reinvent the wheel–but see this upgrade as an opportunity to shed some of the snakeskin that is too tight, that you have outgrown!
  • Change is Inevitable – While it is undeniable that the knowledge of the S/4HANA product and its application to your business plays a big role, the Change Management aspect is even more important. You need to create a readiness for the project, within the C-suite, business, and IT organization, and choose a partner that you can trust. You will find that a well-prepared organization is, in the end, more important than a technical approach to the journey!

In closing, I want to reiterate that Vortex can be the trusted partner on your S/4HANA journey. Why? Because of the experts who can address the points raised above: 

  • Strategic Advisors who work with your senior management and help to build the S/4HANA roadmap and your Global Template based on real-life experience
  • Operations Experts in warehousing, manufacturing, supply chain finance, and more; who have worked in these key industries before becoming SAP consultants
  • IT Experts who translate business needs into programming of interfaces or add-ons, create BI applications, and much more

This concludes our blog series on choosing an approach to your organization’s SAP S/4HANA upgrade. Click through the links below to read the other blog posts in the series. We hope you find these insights helpful as you consider your best step forward. To learn more about how Vortex can be your main resource in this vital investment, contact us at 1.888.627.3640 or sales@vortexconsulting.net. 

#1: How to Start Your SAP S/4HANA Journey: Three Unique Approaches

#2: How to Start Your SAP S/4HANA Journey: Insight First

#3: How to Start Your SAP S/4HANA Journey: Central Finance First

How to Start your S/4 HANA Journey: Central Finance First

From guest author Sven Wierzbicki. The third in our blog series on “How to Start your SAP S/4HANA Journey.”

Let’s say you live on the banks of the powerful river of doubts. You know there is a new world on the other side of the river–and one way to get there is by building a bridge! This bridge needs to be strong, architected to last. It has to be founded in modern technology to carry the road to the new world. Well, SAP Central Finance can be your bridge to S/4HANA! Today’s post will focus on bridging the gap between seamless operations and painless innovations …

It is completely understandable that organizations want to embrace stability of their R/3 systems as long as they can. There are many factors playing into this notion, from limited budgets over avoiding the bleeding edge to simply the fear of making the wrong decision. The list of deterrents is lengthy. Also, the road map to S/4HANA needs to put a construct in place that lasts for 15-20 years to come. 

That’s where SAP Central Finance comes into the picture:

SAP S/4HANA Central Finance Options

Photo credit: SAP

 

Implementing something that supplements, rather than disrupts, operations can be a good option to “dip the toe,” so to speak, instead of making a big splash. Central Finance can be that sidecar solution that exposes the IT organization to the new technology. The benefits are certainly worth mentioning: it provides an excellent learning opportunity, contributes to the building up of an experienced resource, and creates a strong new foundation, while at the same time delivering new capabilities to the business.

Consider the following tangible benefits of SAP Central Finance:

  1. Systems Harmonization & Data Intake – Assuming that you have a systems environment that contains both SAP and non-SAP systems, SAP Central Finance offers a place to harmonize and centralize your financial data across the entire organization, with simplified and standardized interfaces and a robust platform for data transformation. It gives you the ability to elevate the level of systems integration after the fact, providing a cleaner set of data for central planning, processing, reporting, and financial consolidations.
  1. Reporting Capabilities – Regardless of the limited or diverse capabilities of the operational ERP systems, you can create homogeneous financial reporting by utilizing the strength of the new unified journal, enabling centralized profitability and profit center reporting right out of the box. Beyond that, the now harmonized data set can serve as input to the more sophisticated Business Intelligence tool sets like BW or BPC.
  1. Operational Centralization – While not yet perfect, the Central Finance system already has multiple functions available that play right into the concepts of shared services and business optimization. Noteworthy are the central payment option and certain tax features like tax withholding for centralized payments. 

Allow Vortex Consulting to assist you in implementing your SAP Central Finance system. We can help you start your S/4HANA journey without breaking the bank, focusing on these key actions:

  • Building a bridge to the new world of the S/4HANA technology
  • Educating your IT staff on the new capabilities and functionality
  • Delivering meaningful business features to your finance department & C-suite

In our next post, we’ll address the “Operations First” option for an SAP S/4HANA implementation, talking about a head-on approach that uses operations as the starting point. Click here to catch up on our first post in the series, “How to Start Your SAP S/4HANA Journey: Three Unique Approaches.” And be sure to get involved in the conversation on Twitter–you’ll find us here: https://twitter.com/VortexConsultng.

How to Start your SAP S/4HANA Journey: Insight First

From guest authors Sven Wierzbicki and John Louw. The second in our blog series on “How to Start your SAP S/4HANA Journey.”

As discussed in the first chapter of this series, there are many ways to reach the goal of successfully deploying SAP S/4HANA in your enterprise. Today’s post will focus on identifying the right starting point in your Business Intelligence environment. 

Let’s rewind a couple of years. You might recall SAP’s implied effort to “embrace divergence.” BusinessObjects (BOBJ), Business Planning and Consolidation (BPC), Business Configuration (BC), and Integrated Planning (IP) were just some of the new tools thrown at us. Now the fog has lifted and we are in front of a new maze: “in” or “on” HANA, embedded, hybrid, cloud-based. Allow us to offer guidance and a helping hand in sorting out this new mystery. It matters–a lot!

How to Deploy SAP S4HANA Graphic

Photo credit: SAP

 

Think about your planning efforts to get to a budget, to the projected sales figures, or to other important KPIs within the enterprise. Some people love Excel, some hate it. Others cannot live without their cloud tools like Salesforce. And really no one should have to choose a tool that is not up to the task. Why does this matter? You can build the starting point of your S/4HANA journey around this thought!

Consider the following sequence that puts the focus on Business Intelligence first:

1) Upgrade SAP Business Warehouse (BW) – Assuming that you have an existing Business Warehouse environment, consider upgrading to BW on HANA (database upgrade only). It is a right first step into the new world of HANA. It allows your technical resources to understand the new capabilities of the database and builds a solid foundation for your business intelligence environment. Also, it can be done in 2-3 months with very limited impact on the business. All existing objects, like InfoCubes, providers, and queries, will still work.

2) Deploy SAP Business Planning and Consolidation (BPC) – Embrace the different facets of the BPC tool, either as an all-in for planning and consolidation, or any subset of it. Here’s a strong example: the embedded planning capabilities allow for utilizing the modern database capabilities of HANA.

3) Transition Business Warehouse Capabilities – Over a period of time, transition your BW InfoCubes, providers, etc. to the new HANA technology. This allows time to prepare your system for the next step of the journey. 

4) Upgrade to BW/4HANA – Your BW is now ready to be upgraded from BW on HANA to BW/4HANA, allowing your enterprise to embrace the full capabilities of HANA.

5) Deploy and Connect SAP Analytics Cloud – Take the integration of all your planning capabilities to the next level. This will allow you to have each department working in their tool of choice and connect them into a real-time master plan.

Taking this multi-phased approach puts you on a strategic path toward a digital boardroom. It does not
dictate the pace of the operations going to S/4HANA. It can also be done in parallel to an overhaul of the operational SAP systems at any given stage of the road map as the ties between the ERP and the Business Warehouse stay intact:

Upgrade to SAP B4HANA Series

  • R/3 to BW on HANA, or
  • R/3 to BW/4HANA, or
  • S/4 to BW on HANA, or
  • S/4 to BW/4HANA, or 
  • S/4 with embedded BW

The choice is yours, and the pace is not externally dictated–a truly tailored approach with focus on the insights first!

In our next post, we’ll address the “Central Finance First” option, talking about a sidecar solution as the starting point. Click here to catch up on our first post in the series, “How to Start Your SAP S/4HANA Journey: Three Unique Approaches.” Stay tuned for our next chapter!