S/4HANA Migration Challenges and Use Cases Workshop

S/4HANA Migration Challenges and Use Cases Workshop
1 S4/HANA Migration Pol Schumacher, Distinguished Data Scientist, Celonis Peter Budweiser, Data Scientist, Celonis Tina Menke, Junior Data Scientist, Celonis Please use this link to give feedback during the session: https://goo.gl/forms/4ywuZDO5ikAAnw542
1. Introduction 2. Challenges in the context of S/4 migration 3. Discussion: Challenges from your perspective 4. From challenges to use cases 5. Open discussion Agenda
44 PROBLEM STATEMENT An IT system is only as good as the processes that run on top of it. After all, you can buy the best golf clubs in the world, but your game will still only be as good as your swing. Taken from: Understand Your Processes to Ensure a Successful S/4HANA Migration, Whitepaper
5 INTRODUCTION simple, standardized, fast, automated A B “Business as Designed” How things should be A B How things really are complex, inefficient, slow, manual “Day-to-Day” Reality
77 CHALLENGES IN THE CONTEXT OF AN S/4 MIGRATION LACK OF SKILLS AND KNOWLEDGE INSUFFICIENT PROCESS DOCUMENTATION UNCLEAN MASTER DATA BUDGET CONSTRAINTS COMPLEX LEGACY LANDSCAPE LACK OF FUNCTIONALITY HIGH CUSTOMIZATION NON-HARMONIZED BUSINESS PROCESSES
99 LACK OF SKILLS AND KNOWLEDGE INSUFFICIENT PROCESS DOCUMENTATION UNCLEAN MASTER DATA BUDGET CONSTRAINTS COMPLEX LEGACY LANDSCAPE LACK OF FUNCTIONALITY HIGH CUSTOMIZATION NON-HARMONIZED BUSINESS PROCESSES Which challenges do you see in relation to your upcoming S/4HANA migration? DISCUSSION: CHALLENGES FROM YOUR PERSPECTIVE 9
1111 FROM CHALLENGES TO USE CASES LACK OF SKILLS AND KNOWLEDGE INSUFFICIENT PROCESS DOCUMENTATION UNCLEAN MASTER DATA BUDGET CONSTRAINTS COMPLEX LEGACY LANDSCAPE LACK OF FUNCTIONALITY HIGH CUSTOMIZATION NON-HARMONIZED BUSINESS PROCESSES
1212 LACK OF SKILLS AND KNOWLEDGE UNCLEAN MASTER DATA BUDGET CONSTRAINTS COMPLEX LEGACY LANDSCAPE LACK OF FUNCTIONALITY NON-HARMONIZED BUSINESS PROCESSES 12 FROM CHALLENGES TO USE CASES HIGH CUSTOMIZATION INSUFFICIENT PROCESS DOCUMENTATION
1414 PROCESS DOCUMENTATION WITH CELONIS Celonis offers a standardized approach to consistently document your processes in a high level of detail DESCRIPTION HOW DOES CELONIS SUPPORT? HIERARCHY EMEA EU1 PROCUREMENT INDIRECT PROCUREMENT LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 CREATE PURCHASE ORDER ITEM_ME23N_B2_INTERFACE TO CE2, RECORD GOODS RECEIPT_ME52N_B2_OTHER, RECORD INVOICE RECEIPT_IW22_B2_BATCH, CLEAR INVOICE_F110_B2_OTHER, DUE DATE PASSED_F110_B2_OTHER CREATED BY CELONIS LEVEL 5 DESCRIPTION • ERP systems are constantly adapted to keep up with evolving requirements, where each change entails the creation or adaption of documentation • Typically, a heterogenous author group is responsible for the process documentation, resulting in documentation reflecting different conceptual mindsets • Doing so, huge amounts of documentation which cannot be comprehended by project teams are generated • Documentation is based on what is thought to be done in the system, not on what really is done • Celonis offers a standardized approach for low level process documentation, which can be used to complement existing process hierarchies that have been created in a top-down approach • It supports by giving a detailed analysis of how the processes are run on a high granularity (level 5) even incorporating information like document types, user types and used transaction codes • By doing so, Celonis can bring full transparency on how processes are documented vs how they are implemented vs how they are executed
1717 CUSTOMIZATION ANALYSIS OF CURRENT ERP ANALYSIS OF Z-TRANSACTIONS Celonis allows for a detailed assessment of where customizations are used as a basis for usage in the new system • Legacy ERP system contain a large number of custom transactions • Transactions can be used for different purposes than originally designed for • Deprecated transactions are still used • Traditional statistics only provide the frequency of usage but not the scenario of usage • Companies have a lack of understanding of where and how often custom transactions are used in their processes • Using Celonis an inspection of the usage of custom transaction and the related process scenarios can be done • Based on this analysis, a better risk assessment is possible, whether these customizations are necessary for relevant business processes or whether they are just a legacy of the past • Furthermore, by knowing the typical usage scenarios of specific transaction codes (at which step are they used, what are common predecessors and successors) testing requirements can be defined on a higher level of detail DESCRIPTION HOW DOES CELONIS SUPPORT? CELONIS UNVEILS THE USAGE OF SYSTEM CUSTOMIZATIONS
20 LACK OF SKILLS AND KNOWLEDGE UNCLEAN MASTER DATA COMPLEX LEGACY LANDSCAPE LACK OF FUNCTIONALITY 20 • How are you planning to use process mining in the context of an S/4 migration? • Which Celonis use cases do you have in mind? • Did you already tackle challenges regarding S/4 by using Celonis? • … OPEN DISCUSSION
Thank you!
2323 FIT GAP ANALYSIS OF BLUEPRINT Clear visibility of key deviations and their root causes and possibility to deep dive in dedicated analyses • After the As-Is Analysis is completed a first version of a blueprint ist developed based on best practices • For this blueprint a fit gap analysis needs to be conducted to test it on the current implementation and identify deviations • Based on the identified deviations the blueprint has to be refined or reinforced in the roll-out and plan change management • Finally, the root causes for unwanted deviations need to be identified and tackeld • Identify deviations from business process blueprint and find out which process steps cause conformance violations • Quickly view the impact of non-conformance on throughput time and other KPIs • Track the rate of conformance of the current implementation to the blueprint throughout the template development phase • Run automatic root cause analysis for each violation with powerful machine learning algorithms DESCRIPTION HOW DOES CELONIS SUPPORT? Refine business process blueprint Reinforce blueprint in roll-out and plan change management AUTOMATED FIT GAP ANALYSIS
2424 FIT GAP ANALYSIS OF TEMPLATE Clear visibility of key deviations and their root causes and possibility to deep dive in dedicated analyses • After the template design is completed S/4HANA is rolled out • During the roll-out phase a fit gap analysis needs to be conducted to test the designed template on the new implementation and identify deviations • Based on the identified deviations the template has to be refined or all users of the system need to be retrained • Finally, the root causes for unwanted deviations need to been identified and tackeld • Identify deviations from designed template and find out which process steps cause conformance violations • Quickly view the impact of non-conformance on throughput time and other KPIs • Track the rate of conformance of your actual process to the blueprint throughout the entire roll- out and post migration phase • Run automatic root cause analysis for each violation with powerful machine learning algorithms and optimize the newly defined processes based on these findings DESCRIPTION HOW DOES CELONIS SUPPORT? Refine designed process template Retrain users and plan change management AUTOMATED FIT GAP ANALYSIS
2525 HYPERCARE SUPPORT AND USER ENABLEMENT HYPER CARE SUPPORT Speed up the Hypercare period by enabling of users to improve their user behavior by themselves • The hyper care period refers to the phase between the roll-out of S/4HANA and the start of the productive usage • This go-live phase involves many unpredictable risks – like no/slow user adoption, technical problems or missing functionalities - and is crucial for the success of the entire migration project • Thus, there is intensive IT- and expert support provided during the hypercare period to ensure adoption by users and the success of S/4HANA migration • Monitor the adoption to S/4HANA with real-time process visualization and analysis • Find the root causes behind deviations from the developed template • Support every employee in conducting the new processes in the right way in the S/4HANA system • Personalize the communication of the incorrect use of templates • Enable employees to track their transactions and execute actions directly in the source system DESCRIPTION HOW DOES CELONIS SUPPORT? Action Engine  Continuous and autonomous data analysis for root cause analysis of deviations  Personalized communication of relevant findings and details  Supports taking the right action in the S/4HANA System Tackle fequent deviations from developed templates proactively
2626 CONTINUOUSLY MONITOR AND IMPROVE PROCESSES CONTINUOUS IMPROVEMENT CYCLE Celonis supports continuous process monitoring and improvement in a post migration scenario • In the post-migration phase it needs to be checked whether the new processes are run the way they are supposed to by continuously monitoring the new processes • During that stabilization phase of standardized processes it is essential to react to unanticipated process loops, to incorrect user hand-offs, etc. • 100% process transparency and self service analytics are necessary to identify inefficiences, continuously analyze and optimize the processes • Reduction of manual process interventions, esp. document changes • Increase of process automation for selected process activities • Optimization of process cycle times, e.g. time to invoice, payment term adherence, etc. • Benchmarks between entities implies a more efficient driven organization • High process quality ensures high customer satisfaction leading to increased revenue DESCRIPTION HOW DOES CELONIS SUPPORT? Iterative model for operational excellence Identify Opportunity Control & maintain Devise & Implement Improvement Plan Analyze Drivers

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