SAP GT Demystified: SAP Model Company

This may be a strange thing to open with, but stick with me… Laziness–at least a bit of it–can be a good thing. In my view, a healthy dash of laziness coupled with a pinch of procrastination usually leads to the quest of searching for the simplest solution, therefore fostering efficiency. And several great minds have talked about the fact that depicting the solution to difficult problems with simplicity is an expression of deep understanding.

SAP Model Company Business ModelTo avoid falling for the urge to reinvent the wheel during SAP implementations, isn’t there a way to utilize previous learnings, other people’s experiences? That’s where the SAP Model Company comes into the picture. It can be the seed or foundation for your SAP endeavor based on two flavors:

SAP Model Company by Industry 

The focus rests on the industry that the company operates in, be it Chemicals, Pharmaceuticals, Mining, or in another vertical altogether. All of them have best practices that are unique to the specific industry, which set them apart and require years of experience on the part of the SAP implementer. The respective SAP Model Company has that experience already “baked in” and can be a guiding light in the maze of the vast SAP functionality.

SAP Model Company by Line of Business 

These model companies are based on a department or part of any generic enterprise, like Finance, Shared Services, or Supply Chain Planning. They help you by putting a baseline into the sand that is rooted in the best practices and the experience collected from thousands of successful SAP implementations.

SAP Model Company Building Blocks

Photo credit: SAP

 

I also want to encourage you to watch this helpful 2-minute video from SAP, which lays out a compact and precise vision of the SAP Model Company.

Now, you might be wondering, how does it relate to a Global Template? Well, even a Global Template can benefit itself from a template. As I pointed out earlier, a little laziness could be the secret sauce in your Global Template recipe!

After having covered the basics, let me share my personal view of the SAP Model Company:

Don’t ignore a valid accelerator. (In some regards, your business needs are not as unique as you think!)

Of course you think your business is different than others. The common rules don’t apply, and certainly no one else could dictate how your business is run. Really? What would be wrong in learning from the findings that thousands of successful world class businesses have made? Why not gain from their experience? Don’t be arrogant when it comes to a helping hand–the SAP Model Company deserves a thorough thought!

Use it in a way that is suited for your business.

You may be a smaller company that can use the template as is. A typical example would be a Venture Capital firm that bought an idea and operationalizes it with the help of the world-class SAP software. While not having the appetite to overinvest in IT capabilities, use of the SAP Model Company gives reasonable assurance that you’re on the right track.

Or, you may represent a large-sized company that only uses it as a seed to tailor their own template. Think long and hard about what the right way is, as it will be nearly impossible to turn around for a complete do-over at a later stage!

Even if you think it does not fit, it will still have value.

Should you decide not to use the SAP Model Company for your Global Template or SAP deployments, you can still learn from it. There is so much experience there that it can serve at least as a guiding light! Analyze and understand the pieces and functionality that are utilized in the SAP Model Company that is most relevant to you, your industry, and your line of business. Use that knowledge as an accelerator, as well as a logical boundary for implementing what’s truly needed.

Have your own Global Template in mind!

While the SAP Model Company is a good starting point, never get lazy in your thinking! Have your strategy and road map in mind and assess how it furthers your goals, makes life easier, and helps bring value to the business. Let me state the obvious–while your business is probably not vastly different from some others in the field, a “one size fits all” solution will not be appreciated. Now is the right time to do cherry-picking, to shed the wasteful or flashy “bling” and create a solution that fits like a well-tailored suit! 

This brings us to the end of today’s post on SAP Model Company. In our next chapter of the Global Template series, we will talk about Business Process design. As always, thanks for your valuable time today! If you have questions about Global Template that you’d like to see addressed in future posts, we invite you to reach out via Twitter. 

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