11.5    Choosing How to Adopt SAP S/4HANA

In the following sections, we’ll discuss your options for how you’ll get SAP S/4HANA based on business priorities and IT dependencies. This sections corresponds to both the evaluate and enable phases of the IBM Better Transformation framework.

Each SAP landscape is different, so before moving to SAP S/4HANA, it’s important to understand how LoB processes from the SAP ERP in the past are currently covered between SAP S/4HANA and SAP cloud solutions.

11.5.1    Evaluate Phase

In this phase, you perform the following activities that can help evaluate your options:

• Rationalize
  Use component business modeling (e.g., IBM CBM) to align applications that support each component of the Gartner pace layered application strategy model. This will help identify opportunities for rationalization and make sourcing (build vs. buy) recommendations.
• Consolidate
  Conduct application consolidation analysis to identify where benefits can be realized from process harmonization and technical consolidation.
• Modernize
  Carry out application modernization analysis to define the ideal current and future state for the current and ported applications. Look at the new versions of SAP, for example, SAP S/4HANA and hybrid ERP (mix of on-premise and cloud SaaS applications).
• Determine the individual enterprise
  Carry out user productivity analysis—perhaps using Design Thinking client workshops—to identify use cases where the need for a “consumer-grade” UX will increase user adoption and productivity can be increased with the use of SAP UX modernization (SAP Fiori, SAP Screen Personas) and mobility.
• Identify target component architecture
  Complete product evaluations to identify the most appropriate technical component to deliver the business ambition. This activity will define the target component architecture—the FMO.
• Perform demos and create prototypes
  Build and demonstrate prototypes to bring the road map to life. Use time boxed iterations to maintain momentum.
• Address key issues
  Develop approaches for the key issues associated with digital transformation, integration, security, and data governance.

11.5.2    Enable Phase

Some of the additional activities that can be carried out to design the path to value by finalizing the road map to introduce the FMO are as follows:

• Develop and finalize the deployment road map. Use a framework such as the IBM application lifecycle management (ALM) framework shown in Figure 11.3 to break down the transformation journey into a series of manageable steps. This will set out an approach and time lines for the technology transformation from the CMO to the defined IMO and finally on to the FMO.
  

  Figure 11.3    IBM’s Application Lifecycle Management Framework

• Develop an implementation plan to validate the transformation time lines. This will also feed in the execute phase.
• Develop an approach to maintain architectural vitality. Periodically review the FMO in the light of advancements in technology or business ambitions.