bühler s/4hana transformation @bühler group

Innovations for a better world.

Bühler S/4HANA transformation @Bühler GroupIG SAP CH

Innovations for a better world.

2

For internal use only

Agenda

Bühler S/4HANA transformation @Bühler Group | Ch. Stoos, Bühler | Th. Schmitt, Swisscom | 16.09.2021

SAP @Bühler

What is part of Bühler S/4HANA transformation?

Conversion governance

Identified risks

Conversion plan

Introduction

Testing management

Take aways

1

2

3

4

5

6

7

8

3


Introduction – initial situation

• One system solution, covers approx. 75% of turnover

• Current system: ECC 6.0, EHP8

• LOB: all (SD, MM, PP, PM, PS, CS, VC, FI, CO, WM, eWM, QM)

• Main items of transformation: Business Partner, New GL, Ledger, Asset Accounting, RAR

• SAP side car solutions: HCM, Hybris, FSM, GTS, MES, BW, PI, Portal, GRC, CRM, eWM

• Company Code: 198 (approx. 30 active)

• Controlling Area: 3

• Plant: 108

• Sales Org: 116

• Purchase Org: 32


4


Introduction – pre projects, system scans


Comprehensive system scan includes detailed analysis of system, application and developments.

Developed by SNP (Schneider, Neureither & Partner).

https://www.snpgroup.com/de/

Requires an SNP license and contract, available in an online version.

Product name is Crystal Bridge (LINK)

SNP Scan

Interface Scanner

With SAP Readiness Check for SAP S/4HANA, SAP provides an overview of the most important aspects for

an SAP ERP 6.0 system conversion to SAP S/4HANA. Access via dashboard (LINK), OSS User required.

Currently used functionality and compatibility with S/4HANA, compatibility of AddOns, simplification items,

customer specific development and more (82 simplification items remaining, approx. 10000 custom objects)

Readiness Check

The next-generation BSR report provides business insights based on the actual usage of your current SAP

ERP system. Available in PDF Format on the Share - LINKBusiness Scenario

Recommendation (BSR)

Specific scan development from Swisscom SAP Chief Technology OfficerSwisscom Scan

4 different Scans Available on the SharePoint - LINK

5


SAP @Bühler

6


Usage of SAP within Bühler.


Implementation of SAP R/3 in

1998

30+ Bühler Companies on same SAP ERP

8000+ SAP Users ww

Main Processes on ERP: Project

Execution

Customer

ServiceManufacturing Procurement

Finance /

Controlling

Main SAP Systems:

SAP ERP SAP CRM SAP HR E-Commerce

SAP PLC SAP FSM SAP GTS SAP BW/BI

SAP eWM

SAP ME

Single

Machine Business

Implementation of SAP R/2 in

1975

SAP IBP

SAP TM*

*by 01.12.2021

7


SAP R/3 – In the core of our company. (Yearly Figures)


Project Execution

2’500 projects

Customer Service

100’000 spare part orders

Purchasing

2’500’000 purchasing pos.

Logistics Out

140’000 deliveries

Finance & Controlling

13’500’000+ postings

Invoices

CHF 2.4 bn

Manufacturing

65’000 production orders

Single Machine Business

4’000 orders

8


What is part of Bühler S/4HANA

transformation?

9


Use the S/4HANA transformation as highlight for a new start.Cultural change developing Business Excellence to another level


Replace old ERP / secure investments / fast conversion to SAP S/4HANA

Discipline in E2E Business Processes Discipline in Data Management

Introduction of systematical performance management

10


INNOVATION GAP

gap:

- New value flow

- Data management

- Quality management

- Process re-engineering

- Haas integration

- Sustainability (CO2 footprint)

2017 2020 2023 2027

End of Life

R/3

End of Innovation

R/3

Investment protection• The more you install in R/3, the more you must convert/migrate later again.

• Move fast to S/4HANA without process re-engineering but get read of “speaking organizational keys”.• No double “integration” of latest acquisition first on SAP R/3 template and afterwards on conversion on S/4HANA.

We have to protect our investments.


11


S/4HANA conversion scoping.Fast S/4HANA conversion, no process redesign


*scope to be defined

Process re-engineering

and innovations

Actual ERP

R/3 ECC

Scope

Groundwork S/4HANA conversionEmbedded S/4

Innovations*

Redesign Fi/Co

Business partners

Custom-Code cleaning

SAP Basis/HANA

New G/L Assets

Organizational keys

Closing cockpit

Core processes

Data archiving

Custom code cleansing

Add-Ons/Interfaces

Fiori

Artificial intelligence

Process automation

Predictive

Climate 21

Digital board room

Reporting tools

Cash management

Group consolidation

Planning functionalities

S/4HANA conversion project scope

Business Intelligence

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Additional information

• Conversion general partner: Swisscom Enterprise Customer

• Bluefield transformation partner: SNP (Swisscom as contractor – Bühler only bought licenses)

• Interface management: 45 sub-systems connected to ERP (tendence increasing…)

• S/4HANA release: 2020

• Scope of organizational keys migration & transformation:

Merger of 2 controlling areas, renaming (BUZ 1000) Merger of 2 charts of accounts, renaming (BUZ 1000), cleansing

Selective company codes migration & renaming (e.g. BUZ 1020) Selective sales organization migration & renaming (e.g. BUZ 1020) Selective purchase organization migration & renaming (e.g. BUZ 1020) Merger & renaming of Divisions (e.g. MU C1)

Merger & renaming of Profit Centers (e.g. MU C1) Selective plant migration

• Take over of last 5 years & positive projects list


13


Conversion governance

14


S/4HANA Conversion.Sub projects organization (Bühler view)


Training –

Business Intelligence –

Steering Committee

Bühler – Swisscom – SAP

S/4HANA conversion – Ch. Stoos

HANA technology, Basis –Custom code, Interface –

Security, authorizations –

Data cleansing –Testing –

Solution Manager –

Redesign Value Flow –

Customer

projects

Service Single Machines ManufacturingFinancials

Change management – Ch. Stoos

Communication –

Program management – Ch. Stoos

Supply and Logistics

15


S/4HANA Conversion.Swisscom Team


Application

SCM / Sales / Procurement

Manufacturing / MES

Financials

Project (PS)

CS / FSM

QM

Warehouse

System Architecture

Development

Interface / PO

Archiving / Historization

Basis / Technology

Solution Management

Testing

Technology / Training / Solution Management

Thomas Schmitt (PM)

Reto Hildbrand

(Swisscom Management)

16


Project Governance .Risk and Issue Management – Escalation Procedure


Customer Care

Projectcoach

Developmentangel

Executive Steering Committee

17


Identified risks

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Updated Risk matrix.Unchanged assessment


1. Organizational structures changesAccording to concept huge efforts have to be invested in order to further

adapt the custom code (hard coding), the interfaces to surrounding systems and the surrounding systems.Mitigation: Test some modifications already in TM0 and confirm mapping rules.

2. ITP project portfolio managementParallel running projects lead to customizing and code mismatch (R/3 vs. S/4) and are not integrated in test cycle.Mitigation: introduction of soft and hard freeze and reduce ITP project portfolio: Q1-Q2.2022 / dual maintenance / additional test migration (TM3).

3. Resource availabilityITP: many running projects, Swisscom: consultant availability, business: (TM1: 12.2021 – TM2&TM3 Q1 & Q2.2022). Mitigation: Reduce ITP project portfolio, no Swisscom absences in

summer 2022, start with communication – testing plan available in 09.2021.

4. Redesign value flowToo many changes during go-live.

Mitigation: prioritize changes: still in ECC (budget 2022), for S/4HANA go-live and post conversion projects.

1

2

3

4

19


Conversion plan

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Go-live date: 04.07.2022.


SA4

S/4

EXPLORE DEPLOY RUN

TM2Simu-

lationGoLive

SA4ECC

REALIZE

P04ECC

SA4

S/4C

M04ECC

P04ECC

EA4 S/4

M04ECC

P04ECC

PA4

S/4

SA4 (separate client)

S/4

P04ECC

EA4

S/4

P04ECC

CRM

HRM

BW

Co

py

Legend:

Conversion ECC S/4C

DB Copy ECC ECC

System retirement

Further …

14.04.21 01.12.21

01.02.22

01.06.22

R Refresh (copy of production)

R

PA4S/4

EA4ECC

M04ECC

RESC Empty Shell Creation

SIM

C

(Copy from EA4)

Dual Maintenance (full)

TM1TM0

R

CRM

HRM

BW

Further …

Co

py

01.06.22

TMX SNP Migration

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Dual Maintenance (stepwise)

Soft Freeze Hard Freeze

TA4

S/4

CRM

HRM

BW

Further …

TA4 S/4

TM2

TM3

P04ECC

01.04.22

same procedure

like simulation R

01.04.2201.12.21 31.07.22

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Soft & Hard freeze


How to reduce the projects and changes in the soft and hard freeze.

1. Awareness in BECs for

planning 2022

2. Awareness in Core Teams forchanges in 2022

3. Clear guideline how to

deal withchanges in the

phases

4. Establish SAP Coordination

Meeting as CAB

5. Escalationpath: CAB

BEC EB

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S/4HANA conversion freeze Guidelines.


Always possible

• Daily Business

• Master-/Transaction data creation and

maintenance

Soft Freeze (1. Dec. 2021 – 01. Apr. 2022)

• Legal requirements

• „Critical“ Bug Fixes if no workaround

possible

• Only changes for approved projects!

Only the minimum No nice to haves!

• Dual Maintenance Changes must be redone in both systems immediately(if not only project in EA4)

• Testing Documents must be updated

• (DDIC-)Table changes must be aligned

with SNP and Swisscom in advance

• Report weekly to CAB summary of

done changes by Team Manager

Hard Freeze4. April 2022 until Go-Live & Stabilization

• Legal requirements if no workaround

possible

• „Critical“ Bug Fixes if no workaround possible

Every other project is frozen in the state of

the system copy So try to reach a stable state before!

Exception Handling: Change Advisory Board (CAB)

23


Testing management

24


Test migration TM0 & TM1.PoC – Processes tests – first interfaces


Test Level / Test

Type

Date Tester Interfaces/

3rd party system

Test target

TM1

1. Data Test / Sight-

Test22.11. – 03.12.

Core Project Team

MembersWithout interfaces

• Compare Source and Target Data

• Check completeness of migrated data – master and transactional data• Read-only! Top 20 critical transaction/Fiori

• Check consistency of document flows

• Check historical data

2. Process-Tests 06.12. – 23.12. Project team

Process owners

GTS – CRM – BPM

Cockpit – SLT/PLT -

eWM – myBühler – C4C – IBP – Processviewer

• Change, Delete data or create new data based on migrated data for

selected transactions/programs• Focus on all processes in selected business areas and countries,

incl. intercompany and IDOCs

3. Emergency buffer 27.12. – 30.12.Project team

Process owners• Sever issues with corrections

Test Level / Test

Type


3rd party system

Test target

TM0


Test

06.09. – 17.09.

13.09. – 17.09. (finance)

Core Project Team

Members (ITP)Without interfaces





2. Functional Test 20.09. – 19.11.21

Core Project Team

Members (ITP)

Project Team Members (only for finance)

GTS – CRM

• Testing of functionality - 50%

• Change, delete data or create new data based on migrated data• Focus on critical functions and major development packages (e.g.

BWM)

Update the conversion blueprint (improvements and issues)

Update the conversion blueprint (only with issues detected)

25


Test migration TM2 & TM3.Test content: full migration with full conversion scope


Test Level / Test

Type


3rd party system

Test target

TM2-

UAT


Test22.11. – 03.12.

Core Project Team






2. Process-Tests 06.12. – 23.12. Project team

Process owners

All countries with users

All interfaces


selected transactions/programs• Focus on all processes in all business areas and all countries, incl.

all interfaces

Test Level / Test

Type


3rd party system

Test target

TM3


Test22.11. – 03.12.

Core Project Team






2. Process-Tests 06.12. – 23.12.

Project team

Process owners

Selected countries with users

All interfaces


selected transactions/programs• Focus on all processes in all business areas and all countries

which are not captured with TM2

Confirmation of GoLive plan

1st GoLive decision

26


Take aways

27


Take aways

Organizational transformation leads to:

• Additional conversion risks

• Huge efforts in S/4HANA customizing

• Huge efforts in custom code conversion

• Huge efforts in testing

Even without any organizational transformation, with a relative brown field approach it is important to test, test and test….

Sales contracts simplification item implies huge effort in RAR implementation already in ECC and contracts migration still in ECC


Questions and answers.

Thank you.