The Art & the Science: A Strong S/4HANA Business CaseCategory: SAP S/4HANA Posted:Jun 23, 2020 By: Alvera Anto
Creating a reliable S/4HANA business case is both a science and also an art. The science part is easier to handle. SAP offers you tools as well as you probably have your own that you devise and use such as metrics and KPIs which help you identify the measurable elements of what you want out of S/4HANA.
Art is the harder aspect since that no two customers are alike. You can not use a one size fits all approach. I approach each business case discussion with a minimum set of success factors or criteria. Here are a few of the key elements:
- Business Drivers: Don’t fail to remember words business in ‘business transformation‘. You need to derive your organization situation for implementing/converting to S/4HANA from your enterprise company strategy & KPIs
- Pain Points: A lot of companies hate this cliche but there’s no leaving it. You can rephrase it to difficulties or perhaps enhancements needed. This aspect is related to business drivers however whereas business drivers are strategic, pain points are tactical and emanate from the business user community.
- Key Success Factors (KSFs): Qualitative Key Factors such as better user experience, opportunities for innovation as well as real-time analytics.
- Stakeholder Analysis: Even one of the most air-tight business case will not be successful if you do not have the appropriate level of stakeholder engagement and support. So, it is essential that you assess and ensure that you maximize stakeholder buy-in.
- Organizational Readiness: Some organizations do not consider an assessment of their organizational readiness before embarking on a business transformation journey. There needs to be an organic appetite for change.
Let’s move to the science aspect of a S/4HANA business case. SAP provides customers with lots of tools to help quantify their case for S/4HANA. Amongst the tools we employ are SAP Transformation Navigator and Business Scenario Recommendations (BSR). Some customers utilize their own tools, methods, and calculations. Popular financial KPI’s include Net Present Value (NPV) and Internal Rate of Return (IRR). KPIs can be leveraged in every functional/business process area the business transformation is covered.
Hope you understand the aspect of both sides- the art and the science side of the S/4 HANA Business Case. The key elements will help you to understand in a better way.
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