In the past, many of our customers from the automotive industry have decided to carry out their transformation projects based on fundamental process restructuring (greenfield). However, more and more customers are also requesting concepts with shorter project durations that are nevertheless as efficient as possible to sustainably improve the current complexity and heterogeneity in selected business processes. To achieve the most significant benefit from a conversion to S/4HANA in this way, an intelligent hybrid approach is required. This approach aims to quickly leverage the benefits of S/4HANA through “quick wins” while avoiding a time-consuming, very extensive redesign of business processes.
Our S/4HANA Transformation Framework and its methodology aim to adopt the harmonized and standardized system scopes of the current solution that also have future potential in S/4HANA. Simultaneously, it identifies quickly realizable scopes with a high business benefit, which ensure a low-effort implementation in the context of S/4HANA. The BearingPoint methodology is based on three steps.
In the first step, the system scopes that will be adopted in the future S/4HANA solution are identified. With the help of segmentation according to process-related scopes combined with automatic scanning of the system and interface complexity, those future-proof system components that are highly compatible with S/4HANA can be identified quickly.
After successfully identifying the system scopes to be adopted, the second step is to merge the old scopes into the new S/4HANA system. In doing so, we ensure that a smooth and effective data transfer takes place and that the transferred scopes function without restrictions in the S/4HANA system.
Finally, in the third and last step, we define those scopes that allow the generation of “quick wins” based on the new S/4HANA solution, taking into account effort and business benefits. That is supported by an extensive database with thousands of industry-specific leading practice processes – our “Business Transformation Framework.” In addition, we play through our extensive, preset automotive leading practice processes together with the customer in our S/4HANA demo systems, thus promoting process understanding. In this way, tried and tested optimization potentials are directly considered. Furthermore, this approach allows a substantial shortening of the design and build phase.
Our S/4HANA Transformation Framework and the methodology behind it allow for the full exploitation of the innovation potential arising from S/4HANA while achieving a reduction in current system complexity at the same time. Furthermore, our methodology offers the possibility to reduce project runtimes and project budgets significantly. Compared to classic and holistic S/4HANA transformation projects, project cost savings of 20 to 40 percent can be realized, depending on the complexity of the current system landscape.
The automotive industry is in the process of digital transformation. In addition to the digitalization of the product, the modernization of the back-office system landscape is of essential importance to make companies modern, agile, and future-proof.
Dr. Stefan Penthin, Global Leader Automotive at BearingPoint