SAP S/4HANA Implementation | SAP S/4HANA Implementation FAQ

SAP S/4HANA Implementation

Find out how to implement SAP S/4HANA ERP software using our free, independent guide. Discover how to derisk your SAP S/4HANA implementation below.

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Which SAP S/4HANA Edition Should You Implement?

SAP S/4HANA comes in three different editions, and you need to understand which one is right for your business before you sign contracts and kick off your S/4HANA implementation project. SAP itself is pushing customers towards the cloud editions of S/4HANA, but these aren't necessarily the best option for every business.

1) SAP S/4HANA On-Premise

SAP S/4HANA On-Premise is exactly what it says on the tin - the on-premise version, which can be hosted in your own data centre or with your chosen hyperscaler or data centre provider.

If you opt for an S/4HANA On-Premise implementation project, you'll need to ensure that your data centre or hosting provider can meet the technical prerequisites for S/4HANA. You'll also need an IT team capable of installing the system, managing it and keeping it online.

2) SAP S/4HANA Public Edition

SAP S/4HANA Public Edition (formerly Essentials) is the native cloud version of SAP S/4HANA. Although it is based on the S/4HANA On-Premise version, it has been built from the ground up to run natively in the cloud.

S/4HANA Public Edition is the best choice for companies wishing to implement SAP ERP with a low total cost of ownership and a fast implementation process. It is hosted and maintained by SAP, making it comparatively cheap and easy to install and maintain.

3) SAP S/4HANA Private Edition

SAP S/4HANA Private Edition shares the same codebase as the On-Premise version, but is hosted and managed by SAP in a hyperscaler or premium data centre of your choice, such as Amazon Web Services, Google Cloud Platform, Microsoft Azure and a few selected other partners.

Implementing S/4HANA Private Edition is the best choice for companies in complex and regulated industries such as pharmaceuticals, aerospace and defence, public sector or government, and those that want more control over their deployment. Although S/4HANA Private Edition gives you more control over your IT infrastructure and application, the cost of implementing and maintaining the system is higher than the Public Edition.

SAP S/4HANA Implementation Best Practices

SAP S/4HANA is a complex, enterprise-grade ERP system with endless possibilities - it can be configured, customised or integrated with external systems to meet almost any business requirement. But with all of that power can come great complexity, and to simplify things SAP provides its own set of out-of-the-box business processes - SAP Best Practices - to kickstart your S/4HANA implementation.

By leveraging SAP Best Practice processes you can reduce the cost, timeline and risk of your SAP implementation, avoiding reinventing the wheel by creating business processes and configuration from scratch.

Implementation of SAP ERP used to be the opposite of this: the system would be moulded, configured and customised to fit your existing business processes - requiring minimal change management, but incurring large consulting fees, lengthy implementation projects and a high degree of risk.

Whilst it's important to ensure SAP S/4HANA meets your business process requirements - and to cater to processes that genuinely require configuration or customisation - we recommend adhering to SAP Best Practices as much as possible.

Finally, SAP Best Practices don't remove the need for an SAP implementation partner or reduce your consulting fees to zero, but they will help considerably. An S/4HANA implementation partner will still be required to perform a high degree of configuration, run show-and-tell workshops, and guide the build and testing phases.

Choosing an SAP Implementation Partner

You'll need to recruit the help of an SAP implementation partner or systems integrator when implementing S/4HANA. SAP S/4HANA implementation partners bring knowledge, experience and best practices to your implementation to make sure things go to plan and budget.

There are many different types of SAP implementation partners to choose from:

SAP Systems Integrators

Larger systems integrators can bring a wealth of resources and global coverage to your SAP S/4HANA implementation. The likes of Capgemini, Accenture, IBM, Deloitte, PwC and KPMG - to name but a few - can implement S/4HANA worldwide, across multiple industries, and can bring in resources to specialise in almost any requirement.

On the other hand, larger SAP systems integrators are often criticised for being large, unwieldy and hard to work with on smaller, more agile SAP implementation projects.

SAP Partners & Resellers

If your business doesn't want to work with a large, global systems integrator, you may wish to opt for an SAP reseller or partner. This is often the preferred route for small and medium-sized organisations that wish to work with an equivalently sized SAP integrator.

SAP classifies its partners and resellers into various categories, and provides yearly awards recognising its most competent, innovative and best implementation partners. Browse our SAP implementation partner directory to compare SAP integrators by region, industry and specialisation.

Building Your SAP S/4HANA Implementation Team

As well as hiring the help of an expert SAP S/4HANA implementation partner, you'll need your own team to interface with your partner. Your team needs the right skills, knowledge, bandwidth, empowerment and motivation to get the job done. The size of your S/4HANA implementation project will determine how big that team needs to be, but at minimum you'll need:

S/4HANA Implementation Project Manager

You'll need at least one SAP S/4HANA implementation project manager internally to manage your entire end-to-end project and ensure you meet your objectives on time and on budget.

For larger implementations of S/4HANA, you may also wish to hire additional project managers for each functional area, such as finance and accounting, logistics, sales and distribution, supply chain and more. We also recommend setting your implementation project manager's KPIs and assigning a bonus tied to the project's success.

S/4HANA Key Users

One of the core themes of adopting S/4HANA as your new ERP system is empowering and appointing key or super users of the system, and having them be part of the implementation process.

For example, you may want to appoint your Head of Finance or Financial Controller as the key user for finance. They can then ensure the system is designed and built to meet your requirements, and act as a key resource in troubleshooting adoption and other issues during testing, go-live and beyond. You should also put key users in place across the other departments that will use the system, such as supply chain, logistics, production and procurement.

Executive Sponsor

Implementing SAP S/4HANA requires an executive sponsor who is willing to dedicate time and focus to the project. Inevitably, implementing SAP is not easy - it comes with risks and will undoubtedly have ups and downs along the way. An executive sponsor is a key part of your SAP implementation team who can push the project through the hard times and celebrate when you've implemented successfully.

Change Management

Change management is a big part of your S/4HANA implementation journey, especially if you adopt SAP Best Practices and change your processes to fit the system.

Change management professionals can help your organisation understand the impact of your S/4HANA implementation - quantifying the benefits, but also the changes to your employee profile and day-to-day activities - and build training, enablement and communication plans.

SAP S/4HANA Implementation Frequently Asked Questions (FAQ)

How do you implement SAP S/4HANA?

Implementing SAP S/4HANA is a complex and multi-step process that typically involves the following high-level steps:

Planning: Before starting the implementation, it's essential to plan the project's scope, timeline, resources, and budget. This phase involves identifying key stakeholders, creating a project plan, and defining the project's objectives and goals.

Preparation: In this phase, you will set up the SAP S/4HANA system environment, including hardware and software requirements, database migration, and data archiving. You will also identify any customisations or integrations required.

Installation: The next step is to install the SAP S/4HANA software and configure it to meet your business needs. This process includes setting up user access and authorisations, configuring organisational structures, and defining financial and operational processes.

Data Migration: You will need to migrate your data from your legacy system to SAP S/4HANA. This process includes data extraction, data mapping, data cleansing, and data validation.

Testing: After the data migration is complete, you will need to test the system to ensure that it's working as expected. This process includes testing business processes, data integrity, and system performance.

Training: Before going live, it's essential to train your users on how to use the new system. This includes training on business processes, system navigation, and reporting.

Go-Live: Once the system has been tested and users have been trained, you can go live. This involves deploying the system to your production environment and ensuring that all users can access the system.

Post Go-Live Support: After the system is live, you will need to provide ongoing support to users, including resolving issues and providing training on new features.

Implementing SAP S/4HANA requires expertise and experience, and it's important to work with a qualified SAP implementation partner to ensure a successful project.

What is the SAP S/4HANA implementation methodology?

Here are some additional details on each phase of the SAP S/4HANA implementation methodology:

Project Preparation: In this phase, the project team establishes the project's objectives, scope, and goals. This includes identifying the project's stakeholders, defining the project's budget and timeline, and setting up the project infrastructure. The project team also identifies the risks and issues that may arise during the implementation process and creates a plan for mitigating them.

Business Blueprint: In this phase, the project team works with business stakeholders to define the business processes that will be implemented in the SAP S/4HANA system. This phase includes identifying the gaps between the current processes and the new processes, defining the system configuration, and creating a detailed project plan. The business blueprint phase is critical because it sets the foundation for the entire implementation process.

Realization: In this phase, the project team configures and customises the SAP S/4HANA system to meet the organisation's specific requirements. This includes developing any necessary interfaces or reports, as well as testing the system to ensure that it meets the business requirements. The Realization phase involves a significant amount of technical work and requires expertise in SAP S/4HANA system configuration and customisation.

Final Preparation: In this phase, the project team prepares the system for production by conducting a final system test, training users, and preparing data for migration. The final preparation phase ensures that the system is ready for deployment to the production environment and that end-users are prepared to use it.

Go-Live and Support: In this phase, the project team deploys the SAP S/4HANA system to the production environment, monitors the system's performance, and provides support to end-users. The go-live phase is the most critical because it involves deploying the system to the production environment and ensuring that it meets the organisation's needs. The support phase is ongoing and involves providing assistance to end-users and resolving any issues that arise.

Overall, the SAP S/4HANA implementation methodology is a structured approach that helps organisations implement the SAP S/4HANA system efficiently and effectively. The methodology emphasises collaboration, communication, and flexibility, ensuring that the system meets the organisation's specific requirements and provides long-term value.

How long does it take to implement SAP S/4HANA?

The duration of an SAP S/4HANA implementation project can vary depending on several factors, such as the scope and complexity of the project, the level of customisation required, the size of the organisation, and the readiness of the organisation to implement the new system. However, in general, an SAP S/4HANA implementation project can take anywhere from six months to two years.

Smaller organisations with less complex requirements may be able to implement SAP S/4HANA in a shorter period, typically six to twelve months. However, larger organisations with more complex requirements may require a longer implementation time, typically one to two years.

It's worth noting that an SAP S/4HANA implementation project is a significant undertaking, and it's essential to allocate sufficient time and resources to ensure a successful implementation. Rushing the implementation process can lead to mistakes and errors that may have long-term consequences for the organisation. Therefore, it's essential to work with a qualified implementation partner to help plan and execute the project effectively and efficiently.

How much does S/4HANA implementation cost?

The cost of SAP S/4HANA implementation can vary significantly based on several factors, such as the size and complexity of the organisation, the scope of the project, the level of customisation required, and the implementation partner's hourly rates. However, implementing SAP S/4HANA typically involves the following types of costs:

1. Software Licences: The cost of SAP S/4HANA licences can vary depending on the organisation's size and requirements. SAP S/4HANA licences are usually priced based on the number of users, features, and functionalities required.

2. Implementation Services: The cost of implementation services can vary depending on the implementation partner's hourly rates, the size and complexity of the project, and the level of customisation required. Implementation services typically include project management, business process consulting, system configuration, data migration, testing, training, and go-live support.

3. Hardware and Infrastructure: The cost of hardware and infrastructure required for SAP S/4HANA implementation can vary depending on the organisation's size and requirements. The cost includes servers, storage, network equipment, and other hardware required to run the SAP S/4HANA system.

4. Training and Support: The cost of training and support required for SAP S/4HANA implementation can vary depending on the organisation's size and requirements. The cost includes end-user training, technical training, and ongoing support services.

Based on these factors, the cost of SAP S/4HANA implementation can range from tens of thousands of pounds to millions of pounds. Small and mid-sized organisations typically pay a lower cost, while large enterprises with complex requirements may pay a higher cost.

It's worth noting that implementing SAP S/4HANA is a significant investment, and it's essential to plan and budget for the project effectively. Working with a qualified implementation partner can help organisations estimate the cost of implementation and develop a budget plan.

Why implement SAP S/4HANA?

There are several reasons why an organisation might choose to implement SAP S/4HANA, including:

1. Increased Efficiency: SAP S/4HANA provides real-time data processing, which allows organisations to access data faster and make more informed decisions. This can lead to increased efficiency and productivity across the organisation.

2. Better Business Insights: SAP S/4HANA provides advanced analytics and reporting capabilities that allow organisations to gain better insights into their operations, identify areas for improvement, and make data-driven decisions.

3. Improved Agility: SAP S/4HANA is a highly flexible system that can adapt to changing business needs quickly. This allows organisations to respond to market changes, customer demands, and other factors that impact their operations.

4. Reduced IT Complexity: SAP S/4HANA simplifies IT systems and reduces the need for customisations and manual processes. This can lead to reduced IT costs and increased system stability.

5. Enhanced Customer Experience: SAP S/4HANA provides a 360-degree view of customer data, allowing organisations to personalise customer experiences, improve customer satisfaction, and increase customer loyalty.

6. Future-Proofing: SAP S/4HANA is built on a modern technology platform and provides a foundation for digital transformation. By implementing SAP S/4HANA, organisations can future-proof their operations and prepare for emerging technologies like artificial intelligence, machine learning, and the Internet of Things.

Can I implement SAP S/4HANA myself?

Implementing SAP S/4HANA is a complex and challenging process that requires significant expertise in SAP technology, business processes, and project management. While it's technically possible to implement SAP S/4HANA yourself, it's not recommended, particularly for organisations without prior experience in SAP implementation.

Here are some reasons why:

1. Lack of Expertise: Implementing SAP S/4HANA requires expertise in SAP technology, business processes, and project management. Without this expertise, it can be challenging to plan and execute the implementation process effectively.

2. Risk of Errors: Implementing SAP S/4HANA involves a significant amount of technical work, including system configuration, data migration, and testing. Making errors during these processes can have significant consequences for the organisation and may require additional time and resources to fix.

3. Longer Implementation Time: Implementing SAP S/4HANA yourself can take longer than working with an experienced implementation partner. This can result in delayed project timelines, increased costs, and frustration for stakeholders.

4. Lack of Support: Implementing SAP S/4HANA yourself means that you won't have the support of an experienced implementation partner. This can make it challenging to resolve issues that arise during the implementation process and may result in long-term issues with the system.

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ERP Implementation Methodology

If you're considering implementing ERP software, then download our free detailed guide to ERP implementation methodology.

Our guide will help you prepare your team for every step of ERP implementation from design to build. testing, go-live and more.

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SAP S/4HANA Pricing

SAP S/4HANA pricing is licensed on a subscription basis which is typically paid annually.

Licensing is dependent on the amount of users, their level or responsibilities within the system, advanced modules and third party extensions you require.

Let us know how many users you need and we'll be in touch to provide a quick, hassle-free SAP S/4HANA cost estimate.

Download our comprehensive guide to SAP S/4HANA

SAP S/4HANA is an ERP solution for medium- and large-sized businesses.

This comprehensive guide is your single source for everything you need to know about S4 HANA ERP software.

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