SAP S/4HANA Implementation – Common Pitfalls and How To Avoid Them

Our friends over at ASUG put out a great three-part article on how to avoid an SAP S/4HANA Implementation disaster. While we highly encourage you to check out the articles, if you’re in a pinch and don’t have time, we’ve summarized our key takeaways for you below:

Common traits of SAP S/4HANA Implementation failures:

• The project is too large
• Technical complexities
• Political complexities
• Organizational project frequency is generational

Early decision areas to mitigate S/4HANA project risk:

• Consideration of internal talent
• Selection of Systems integrator (SI)
• Creation of a compelling business case
• Contingency budget allocation

Critical first steps to any SAP S/4HANA Implementation:

• Engaging SI to identify key decisions required over first 3-6 months of project
• Alignment of key decision areas with governance structure
• Determining if the governance structure is adequate and includes the right people

Project milestones & decision making:

• Focus on crucial path rather than critical path (i.e. staying on track with key business decisions)
• Include key stakeholders in decision making process
• Involve SME’s in decision making process
• Introduce unbiased third party in decision making process

Components that contribute to poor decision making:

• Human nature
• Over emphasis on budget
• Over emphasis on schedule

Setting realistic budget expectations for an S/4HANA Implementation:

• Have an independent evaluation done on bids from SI’s
• Conduct a fact-based contingency analysis
• Analyze and develop contingency win-back tactics
• Be informed, but be flexible

Key considerations in S/4HANA SI selection:

• Talent (beyond the A-team)
• Tool sets
• Willingness to accept risk

Keeping the S/4HANA project within budget and on schedule:

• Utilize independent risk assessment for checks & balances
• Include key stakeholders early in the project (technical/functional managers and business process owners)
• Involve superusers early in the project
• Adopt a change management strategy that builds momentum and leverages ability to bridge the gap between the “as-is” and “to-be” organizational/operational states

The primary driver and common denominator of successful SAP S/4 HANA implementations lies within the organizations ability to make high-quality decisions. Despite this fact, organizations often times find themselves more focused on the critical path, rather than empowering high-quality decision making. For more on these topics be sure to check out the full-length articles via the links provided below:

Learn How to Avoid an SAP S/4HANA Disaster: Part One

Learn How to Avoid an SAP S/4HANA Disaster: Part Two

Learn How to Avoid an SAP S/4HANA Disaster: Part Three

Regardless of where you are at in your SAP and enterprise systems journey, we want you to know that BCTG is here to help. Whether that be through leveraging our network of technical and functional consultants, or through simply having a human conversation, we welcome the opportunity to become an extension of your team.