Cloud ERP Strategy & Transformation I Best Practices I NuggetHub

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Best Practices
C L O U D E R P S T R A T E G Y &
T R A N S F O R M A T I O N

ERP Platform Transformation3
ERP Platform Strategy & Evaluation2
Cloud ERP Strategy Definition and Introduction1
Agenda

A best practice end-to-end process model defines the initial scope
of the cloud ERP functional evaluation
End-to-end processes in scope
Central Q-data
& process mgmt.
GR / GI Q-
inspection
In-production
Q-control
Non-confor-
mance mgmt.
Q-reporting
& KPI‘s
Quality Management
Quotation
negotiation
Quotation
adaptation
Order entry
Quote-to-Order
Goods receipt Stock transfer Goods issue
Physical
inventory
Inventory & WH Mgmt.
Receive
requirements
Inquiry / Bid
processing
Vendor
qualification
Purchase order
execution
Purchase order
tracking
Goods receipt
&
Q-inspection
Invoice
processing
Exception
handling
Purchase-to-Pay
Purchase order
release
SerialisedPartsManagement
ProductLifecycle
Mgmt.
UnitConfigurationManagement
(to-bestructure)
Requirement to
Quotation
Project
Execution to
Billing
Portfolio
Management
Engineering Scheduling & Capacity Planning
Authorisation
to executable
Project
Template
Management
Simulative
planning
Production
scheduling
Production
executing and
monitoring
Product
delivery to
warehouse
Reporting
and KPIs
Demand-to-Supply
Strategic
product planning
Product Design
Sales
preparation
Design
implementation
Product
Validation
Requirement-to-Product
Maintenance
strategy
Maintenance
planning
Material
and service
procurement
Maintenance
execution
Registration
and
documentation
Cost
accounting
and reporting
Master data
governance / MD
mgmt..
Customer &
vendor master
maintenance
Bill of Material
maintenance
Access control
& data security
(IPP)
Data Management
GL & asset
accounting
Accounts
payable &
receivable
Period end
closing
Finance-to-Manage
Material master
maintenance
Product
structure
Mgmt.
Document
management
Engineering
change
management
Product Data Management
Time Collection Plan Budget Reporting
Engineering Value Flow Controlling
Demand
Planning
Supply
Network
Planning
Forecast
Execution
Order
completion
Outbound
logistics
Invoice
processing &
closure act.
Order creation
Inquiry
Product/project
calculation
Technical &
commercial
clarification
Quotation
processing
Inquiry-to-Quote
Order-to-Cash
Planning
Project system
and reporting
Product costing
and reporting
Profitability
analysis and
reporting
Profit centre
accounting &
reporting
Record-to-Report
Supply chain
performance
management
Analytical
finance &
controlling
Analytical
human
resources
Business
performance
management
Business Intelligence
Overhead
management
and reporting
Forecast-to-Plan
Material
Requirements
Planning
Support processes
Maintain-to-Settle

ERP standards and best practices for critical E2E processes
Inquiry-to-Quote
Level-0 Level-1 Best practices
Inquiry-to-
Quote
Inquiry
 Editing all relevant sales-related information with synchronized central master
data
 Selection list of inquiries based on pre-defined criteria
 Inquiry evaluation incl. monitoring and controlling
 Integrated opportunity management
 Seamless process integration from Inquiry to Quote
Product /
project
calculation
 Integrated configure-price-quote process for standard, variant and custom
configuration (also BOM integration)
 Product template reuse
 Usage of synchronized prices and discounts
 Management of special discounts
Technical /
commercial
clarification
 Configure delivery times and commitment dates for sales orders
 Support in planning resources, materials and expenses
Quotation
processing
 Editing and monitoring of quotations
 Calculation of order probability
 All relevant business partners can be specified as sold-to parties

Quote-to-Order
Quote-to-
Order
Quotation
negotiation
 Present and negotiate products and conditions with customized quotes
 Contact and account management
 Opportunity and lead management
 Seamless process integration from Quote to Order
Quotation
adaptation
 Adaptation of quotation to changes (e.g. changed requirements)
 Integrated configure-price-quote process for standard, variant and custom
configuration (also BOM integration)
 Monitor quote status driven by dashboards and alerts
 Approve pricing
 Confirm order options
Order entry
 Support initial and recurring order entries
 Support intercompany functionalities

Order-to-Cash
Order-to-Cash
Order creation
 Utilization of the CRM system and fully integrated CPQ process (also BOM
integration)
 Order based on templates and catalogues for clear material requirements
 Support of standard, variant and custom orders
 Support of intercompany functionalities
Order
completion
 Thorough and strict limit check
Material
requirements
planning
(MRP)
 Automated run after order creation
 Automated material orders
Outbound
logistics
 Integration with system for transportation procurement, invoice processing and
goods tracking
Invoice
processing &
closure act.
 Sales order dashboards
 Milestone billing
 Strict order closing routines and regular check runs

Purchase-to-Pay
Purchase-to-Pay
Receive
requirements
 Material Requirements Planning as only source for direct material demands
Inquiry / Bid
processing
 Central procurement department to ensure "one face to the supplier"
Vendor qualification
 System-integrated vendor qualification to block sourcing from non-complying vendors or with outdated Q-
certificates
Purchase order
release
 Multi-level electronic release strategy with workflow and clearly defined thresholds
 Consistent & documented internal purchasing guidelines
 Order status is in real time; track & trace available
Purchase order
execution
 EDI transfer to vendor with shipping notification, PO transmission via EDI; mandatory request for PO approval
 Single purchase order execution system & global purchase order layout standard
Purchase order
tracking
 Order delivery tracking capabilities
 Usage of advanced shipping notifications via EDI; continuous KPI measurement
 Automatic delivery notification capabilities
Goods receipt & Q-
inspection
 Integration of quality management with material management to create inspection lot automatically at goods
receipts
 Centralized goods receipt & electronic goods receipts for services and indirect materials
 Utilization of scanner technologies
 Delivery scheduling
Invoice processing
 Usage of logistics invoice verification and evaluated receipt settlement (vendor self-billing)
 Increased use of EDI; electronic invoices; supplier invoice entry via web
 Invoices are sent to AP automatically
 Scanning of invoices
Exception handling
 Thorough design of "R" processes (reject, return, repair) and related value flow (invoice rejection, debit note
processing, …)

Demand-to-Supply
Demand-to-Supply
Simulative
planning
 Integrated planning with network planning and finite capacity planning for standard, variant and
custom products
 Integrated consideration of maintenance down-times in production planning
 Support for intercompany functionalities
Production
scheduling
 Use advanced planning and scheduling to support complex planning situation on bottleneck resources
(including dynamic scheduling, change of priority and sequencing)
 Integration with CPQ / PLM (BOM)
Production
executing and
monitoring
 Integrated manufacturing execution system to have actual situation of confirmation, consumption and
good receipt in the system
Product delivery
to warehouse
 Timely posting of material movements
 Support of scanner technologies
Reporting and
KPIs
 Aligned data base and reports to have full transparency on KPIs (e.g. DOT)
 Production and material analysis (e.g. material costs, product profitability)

Agenda

The detailed ERP evaluation methodology includes validation and
alignment phases with main stakeholders
Detailed ERP evaluation approach
Next
steps
Evaluation
alignment
Requirements
validation
Platform
recommendation
ERP
pre-evaluation
 ERP evaluation
finalized and
documented
 ERP platform
recommendation
aligned with Client
experts
 Next steps (incl.
transformation
scenarios)
recommended
 Critical Client
requirements
validated by core
team (focus
interviews; document
analysis)
 Best practices
complemented by
Consultant experts
1 3 42
 Short-listed ERP
platforms pre-
evaluated based on
criteria catalogue by
core team (focus
interviews) and
Consultant experts
 Criteria catalogue
aligned and
prioritized on
alignment workshop
with key stakeholders
and senior experts
 ERP pre-evaluation
validated and
feedback considered
on alignment
workshop
 ERP transformation
scenarios identified
and evaluated
Alignment
workshop
Project start Final
presentation
Focus
interviews
Key deliverables
 ERP evaluation and
recommendation
 Initial
criteria catalogue
 ERP pre-evaluation  Aligned
criteria catalogue

All relevant stakeholders set cornerstones and guidelines
to narrow the requirements on the future ERP platform
Cornerstones & Guidelines – overview
Cornerstones & Guidelines
Description
 Cornerstones & Guidelines
– represent design principles for the
development of a common objective
– define priorities for provisioning of
functionalities and technical features
– set clear limitations for feasible solutions
and the path to achieve the objective
– define conditions for the implementation
of an ERP Roadmap
 Strategic guidelines for the Client ERP
platform are valid for the entire Client group
Strategic guidelines
Cornerstones &
Guidelines
ERP
platform
Defined by
executive board
To be defined
in project

Leveraging of synergies, standardization and integration are
guidelines for a future ERP platform
Cornerstones & Guidelines – guidelines
Remarks
Increase automation of
processes and data flows
Focus on manufacturing-
relevant operations
 Ensure high degree of process automation possibilities
 Ensure high degree of data interface automation
 Focus on ERP platforms with industry solutions for manufacturing
 Focus on manufacturing industry proven ERP solutions
Maximize usage of ERP
platform standard processes
 Choose one global ERP standard
 Use standard processes as much as possible
 Adapt system only if necessary (e.g. localizations, Client specifics)
Leverage group wide
synergies
 Implement process best practices in the group
 Ensure reuse of ERP platform functionality
 Ensure leverage of synergies for system operations
Ensure easy integration  Ensure simple integration to and interoperation with other systems
 Ensure easy integration and separation of plants and partners (“plug
and play”)
Prefer one system  Ensure support of a wide range of processes with one system
 Focus on most relevant processes

All long list vendors are assessed using two dimensions: fitness of
product and ability to deliver
Long list assessment dimensions
How well does the vendor’s product fit
Client’s requirements?
Is the vendor able to deliver on the
scale required by Client?
Ability to
deliver
Fitness of
product
To qualify for the short list, vendors need to show sufficient strengths in both dimensions.
Assessment dimensions
Fitness of
product
strongpoor
Abilityto
deliverstrongpoor
Vendor
A
Vendor
B
Vendor
C
Vendor
D
Vendor
E
Assessment matrix

Depending on the placement along these dimensions, vendors
qualify for the short list or are eliminated
Long list assessment outcome
Matrix placement Outcome
Maybe
Short list
Knock-out
Abilitytodeliver
stron
g
poor
Fitness of product strongpoor
Short list
Vendor qualifies for short list
Knock-out
Vendor can be eliminated,
remaining information gaps do
not need to be closed
Maybe
Vendor can only be considered
further if gaps are outside of core
functionality or if it pairs with a
strong integration partner

Both dimensions are assessed using multiple criteria, each criterion
bundles multiple related requirements
Assessment criteria by dimension
Long list
assessment
Vendor characteristics
 Release strategy
 Support
 Resources
 Global footprint
Track record
 References
 Industry
 Number of customers
Functional requirements
 Standard software product
 Intercompany business
 Multi-client
 Multi-currency
 Multi-language
Non-functional
requirements
 Multi-modes of operation
(cloud, etc.)
 Availability
 Technology
Fitness of
product
Ability to
deliver
CriteriaDimensions
Assessment
criteria
Fitnessof product strongpoor
Abilitytodeliverstrongpoor

Functional requirements include all functionality necessary for use
in the manufacturing industry
Criteria for fitness of product (1/2)
Long list
assessment
Fitness of
product
Ability to
deliver
Functional
requirements
Non-functional
requirements
Vendor
characteristics
Track
record
 Standard software product
 Multi-client companies and countries /
jurisdictions
 Multi-currency contracts, invoices and
payments
 Multi-language independent system, interface
and output language
 Intercompany business companies and
countries / jurisdictions
Assessment
criteria

Non-functional requirements include technical and organizational
demands on software quality
Criteria for fitness of product (2/2)
Long list
assessment
Fitness of
product
Ability to
deliver
Functional
requirements
Non-functional
requirements
Vendor
characteristics
Track
record
 Availability & scalability 24x7 operations with
up to 20.000 active customers
 Technology
– Built on modern technologies that fit into Client’s IT
landscape
– Web services that enable “high-level” data access,
custom portals and steering
 Multi-modes of operation
– e.g. on-premises, IaaS, SaaS
Assessment
criteria

Vendor characteristics include major vendor -related risks of
procuring a software product
Criteria for ability to deliver (1/2)
Long list
assessment
Fitness of
product
Ability to
deliver
Functional
requirements
Non-functional
requirements
Vendor
characteristics
Track
record
 Release strategy clearly defined and reliable release
strategy and roadmap
 Resources sufficient resources (both human and financial)
for development, support and implementation
 Support coverage of CET business hours; “premium
support” option is available off-the-shelf
 Global footprint vendor operates on a global basis and has
customers in multiple countries
Assessment
criteria

Track record assesses a vendor’s market position and the trust and
confidence of our customers
Criteria for ability to deliver (2/2)
Long list
assessment
Fitness of
product
Ability to
deliver
Functional
requirements
Non-functional
requirements
Vendor
characteristics
Track
record
 Relevance of references strong track record of projects with
similar size
 Number of customers proven track record of collaboration with
market leader in relevant industries
 Industry proven track record of customers within manufacturing
industry

The qualitative assessment divide the long list into three clusters
with three clear leaders
Vendor assessment overview
Abilitytodeliverstrongpoor
Fitness of product strongpoor
 Infor LN is a clear short list
candidates that offer both strong
products and the ability to deliver
 SAP S/4 Hana and Microsoft
Dynamics AX also offers both product
and ability to deliver, but they have a
smaller customer base compared to
Infor LN
Maybe
Knockou
t
Short
list

Infor LN and SAP S/4HANA are the two most suitable candidates for
the future global Client ERP platform
Pre-evaluation overview – functional
SAP S/4HANAInfor LN Remarks
Functional Performance Score
 Infor integrated CPQ functionality ready
to use, relevant for inquiry-to-quote, quote-
to-order and order-to-cash
 SAP S/4HANA integrates CPQ with limited
functionality in v1709 (full in 1809)
 Infor LN provides manufacturing
execution functionality with its core
system whereas SAP provides a
manufacturing execution system as a an
additional application
 Regarding data availability, analytics and
reporting within the ERP platform Infor
LN provides better functionality and
usability (e.g. Widgets for business users)
 Infor implemented extensive and solid
intercompany functionalities with
release 10.5 (intercompany trading,
manufacturing, accounting and controlling),
SAP has best in class-functionality related
to financial and intercompany business
 SAP has a more intuitive and flexible
basic business intelligence functionality,
both vendors provide additionally licensed
application
Order-to-Cash 55
Purchase-to-Pay 55
Demand-to-Supply 45
Requirement-to-Product 45
Product Data Management 44
Forecast-to-Plan 44
Inquiry-to-Quote 45
Quote-to-Order 45
Quality Management 54
Engineering Sched. & Capacity
Planning
54
Inventory & WH Mgmt. 54
Maintain-to-Settle 44
Finance-to-Manage 54
Master Data Management 44
Engineering Value Flow Controlling 44
Record-to-Report 54
Product lifecycle Management 43
Business Intelligence 54
4,434,28

Strategic, non-functional and technical criteria of the two leading
vendors have been pre-evaluated
Pre-evaluation overview – strategic, non-functional and technical
Synergy potential
Vendor characteristics
Cost implication
Implementation
feasibility
Usability
Reliability
Performance
Automation
Supportability
Architectural
Security
Release Management
Infrastructure
4,424,42Overall Performance Score
StrategicNon-FunctionalTechnical
1 - low 2 – below average 3 –
average
4 – above
average
5 –
strong
SAP S/4HANAInfor LN Remarks
 Infor LN and SAP S/4HANA can leverage
similar synergies and have similar
characteristics from a vendor perspective
 Infor LN has lower cost implications than
SAP S/4HANA from a total cost of
ownership perspective
 There is a higher availability of internal
know-how for Infor LN but there is a
higher availability of external experts for
SAP S/4HANA
 The standard Infor LN comes with an
attractive graphical user interface –
SAP S/4HANA requires Fiori Apps
 The current Client ERP architecture causes
a possibly better integration of Infor LN
and a better implementation feasibility
of Infor LN
5
5
3
3
3
5
5
5
5
4
5
4
5
5
5
4
4
5
5
4
5
4
5
5
5
4
Other criteria score 4,384,62

The evaluation results include Client-specific criteria weights and
show […] as the recommended ERP platform
Evaluation results with weighted criteria
Category Weights Sub-category
Count
P
Count
V
Count
T
Weights Score
weighted
Score
Score
weighted
Score
Synergy potential 5 5
Vendor characteristics 5 5
Cost implications 4 3
Implementation feasibility 4 3
Inquiry-to-Quote 5 4
Quote-to-Order 5 4
Order-to-Cash 5 5
Purchase-to-Pay 5 5
Demand-to-Supply 5 4
Inventory & WH Mgmt. 4 5
Quality Management 4 5
Requirement-to-Product 5 4
Engineering Scheduling & Capacity 4 5
Engineering Value Flow Controlling 4 4
Forecast-to-Plan 4 4
Maintain-to-Settle 4 4
Finance-to-Manage 4 5
Record-to-Report 4 5
Product Data Management 4 4
Product Lifecycle Management 3 4
Master Data Management 4 4
Business Intelligence 4 5
Usability 5 3
Reliability 5 5
Performance 4 5
Automation 5 5
Supportability 4 5
Architectural 5 4
Security 5 5
Release Management 4 4
Infrastructure 5 5
Total Score 0% 4.42 0.00 4.42 0.00
Strategic
Functional
Non-
Functional
Technical
P: Physically present participants
V: Virtually present participants
T: Total present participants

All three candidates have manufacturing references, a solid
installation base and global support organizations
Company & Product Overview
Infor SAP
Customers
Company
facts
Microsoft
Founded: 2002
$2.7B total revenue FY16
15.500 employees
Founded: 1972
€22.1B total revenue FY16
85.000 employees
Founded: 1975
€85.3B total revenue FY16
124.000 employees
Evaluated
solution
Financing
Support and
Service
Availability
Installations
Lease, Owner Financing,
Lease to own
Lease to own
Lease to own
Offices in 41 countries Offices in 81 countries Only partner-based offices
Infor LN 10.5 SAP S/4HANA Microsoft Dynamics AX 12
Essential support, Premium
support, Elite support
Preferred Success, Preferred
Care, Enterprise Support
Enhanced Support, Professional Direct
Support, Premier Support
Bae systems, Ferrari, Wausau,
Sparaylat, Propper,
Mingledorff’s, DAB
Vectus Industries,
Veolia, Carl Stahl, CEITEC
Trelleborg, Würth Group, ROOS Dental
9.300 +1.000 +5.000 +

Client’s E2E processes have a profound global ERP standardization
potential and a few relations to other systems
Client-specific functional requirements (1/2)
Demand-to-
Supply
Requirement-
to-Product
Purchase-to-
Pay
Order-to-Cash
Product Data
Management
E2E process
ERP standard.
degree
Quality
Management
Forecast-to-
Plan
high
high
high
high
high
high
high
Global
Global
Global
Global
Global
Global
Global
Requirements on
other systems Critical requirements (Excerpt)
Inquiry-to-
Quote
high Global
Quote-to-
Order
high Global
high medium low Global Regional Local
Process stand.
requirements

Client’s E2E processes have a profound global ERP standardization
potential and a few relations to other systems
Client-specific functional requirements (2/2)
Finance-to-
Manage
Maintain-to-
Settle
Inventory & WH
Mgmt.
Eng. Scheduling
& Capacity Plan.
Data
management
E2E process
ERP standard.
degree
Record-to-
Report
Product Lifecycle
Mgmt.
Eng. Value Flow
Controlling
Business
Intelligence
Process stand.
requirements
Requirements on
other systems Critical requirements (Excerpt)
high medium low Global Regional Local
high
high
high
high
high
high
high
Global
Global
Global
Global
Global
Global
Global
high Global
high Global

The current validation shows a high potential to standardize and
harmonize the ERP platform
Key findings
Critical
requirements
Pain points
Strategic and
non-functional
requirements
 A high degree of critical requirements can be supported with ERP standard
functionality and do not need customization
 Many critical functional requirements are not supported by the current ERPs
 A significant amount of critical requirements address global process standardization
and master data harmonization
 Some critical requirements address other systems (e.g. PDM, PLM, CRM and CPQ)
 Many processes are lacking global standards and are inconsistent (can be
harmonized by central ERP platform)
 Consistent adherence to existing processes is missing (can be supported by
central ERP platform but organization and management is key)
 Missing system integration and inconsistent master data require a huge amount
of manual effort and hinder effectiveness and process improvements
 Strategic focus is put on cost efficiency, system standardization, process harmonization,
local adjustments, one global standard solution and automation
 There is less strategic focus on flexibility and digitization
 There is strong non-functional focus on usability, reliability, performance, automation
and supportability, but there is no focus on costs of the ERP platform
implementation (a failed ERP implementation creates much higher costs, compared to
an expensive ERP implementation)
Showstoppers for standard ERP platforms (Infor/SAP) could not be identified

The focus interviews followed a structured procedure including
functional discussions and evaluation scales
Interview topics and content
Gather
critical
Client
requirement
s and pain
points
 Identification of Client-specific ERP
requirements based on functional best
practice E2E process model to derive
standardization potential
• Perspectives: Global, regional, local
 Identification of Client-specific ERP
pain points to derive optimization
potential
• Perspectives: System-, process-
related
Gather
criteria
weights
 Assessment of relevance for strategic,
non-functional and technical
requirements to derive criteria weights
Further
opinions
 Expectations on “ERP Platform Evaluation” project
 Risks for ERP platform selection and implementation
 Strategic: Synergy potential, vendor
characteristics, cost implications,
implementation feasibility
 Non-functional: Usability, reliability,
performance, automation, supportability
 Technical: Architectural, security, release
management, infrastructure
 Order-to-Cash
 Purchase-to-Pay
 Demand-to-Supply
 Requirement-to-
Product
 Product Data
Management
 Forecast-to-Plan
 Inquiry-to-Quote
 Quote-to-Order
 Quality
Management
 Eng. Scheduling &
Capacity Planning
 Inventory & WH
Mgmt.
 Finance-to-Manage
 Maintain-to-Settle
 Data management
 Business
Intelligence
 Engineering Value
Flow Controlling
 Record-to-Report
 Product Lifecycle
Management
Functional E2E process model
15 interviews with a duration of 60-90 minutes

A pre-evaluation of the shortlist candidates excludes Microsoft
Dynamics - Infor LN and SAP S/4HANA remain
Reasons against Microsoft Dynamics
Considering the project objective to provide one global ERP platform with as much
standard processes as possible MS Dynamics AX is not a suitable candidate
E2E process
functionality
weakness
 Compared to Infor LN and SAP S/4HANA, MS Dynamics AX has a much
weaker support of E2E processes overall
Data analysis
weakness
 Provisioning of reporting and Business Intelligence functionality is very
complex and needs much higher effort than Infor and SAP
Standard process
availability
weakness
 Compared to Infor LN and SAP S/4HANA, MS Dynamics AX does not
provide many standard processes, but relies on partners to provide a
industry specific process implementation
 Implementation of business processes have a high customization need
Know-how
availability
weakness
 Availability of Microsoft Dynamics AX expertise is very limited outside Italy
 Performance of implementation partners for larger Dynamics AX
implementations is poor outside of Italy

The requirements’ ratings are rather uniformly distributed showing
relevant importance of each requirement
Strategic, non-functional and technical requirements
Strategic
 Synergy potential
 Vendor characteristics
 Cost implications
 Implementation
feasibility
Non-
functional
 Usability
 Reliability
 Performance
 Automation
 Supportability
Technical
 Architectural
 Security
 Release Management
 Infrastructure
Least
important
Most
important
In addition to the functional
requirements all further
requirements for the ERP
platform evaluation have
been assessed by the Client
experts and show high
relevance

Long-list of potential 8 ERP vendors identified
ERP vendor long-list (1/2)
Company Price
INFOR LN
Materials
Mgmt.
SalesOrderMgmt.
FinancialMgmt.
ProductionMgmt.
SupplyChain
Mgmt.
CustomerRel.Mgmt.
SAP S/4 HANA
EPICOR
sage
MS Dynamics
$25K-500K
$4K -500K
$2600/ user
$20K-750K
$25K -250K
References
Ferrari, Wausau,
Sparaylat
Indus Motor,
Veolia
LD Industries,
Unilever, Chrysler
Renault F1 Team,
Accu Weather
INTERTEC-Hess
GmbH, ROOS
Dental
Industry focus Customers
Industrial
Manufacturin
g
90.000
Industrial
Manufacturin
g
1.000
Industrial
Manufacturin
g
20.000
Financial
Services,
Accounting
250.000
Industrial
Manufacturin
g
20.000

Long-list of potential 8 ERP vendors identified
ERP vendor long-list (2/2)
Company Price
Oracle
Materials
Mgmt.
SalesOrderMgmt.
FinancialMgmt.
ProductionMgmt.
SupplyChain
Mgmt.
CustomerRel.Mgmt.
QAD Cloud ERP
IFS
proALPHA
$15K-400K
$300K-2M
TBD
$250/User
References
Starplast, Sako
Limited
Kendrion, Völkl,
Maxon Motor
Evco, DS Smith,
Renolit,
Anca CNC
Gaudlitz,
Aichelin, apra
Gruppe, H2O
Industry focus Customers
Manufacturin
g,Packed
Goods
11.000
Manufacturing
, Financial 4.000
Production,
Retail,
Manufacturin
g
2.700
Industrial
Manufacturin
g
1.800

The operation model evaluation shows Cloud IaaS and Cloud SaaS as
preferred options for the ERP
ERP operation model – evaluation
Client data center Hosted Cloud (IaaS) Cloud (SaaS)
Total cost of
ownership
- -
 High initial infrastructure
investment
 Ongoing infra./app.
maintenance costs
o
 Infrastructure and
application costs included
in hosting fees
 Partly ongoing infra./app.
maintenance costs
++/
+
 Usage-driven
infrastructure costs
 Remaining application
maintenance costs
++/
+
application costs included
in subscription costs
Implementati
on feasibility
-
 High transformational
efforts and low resource
availability o
 Implementation done by
hosting service provider
 High integration efforts +
 Fast, simple set-up (on-
demand) but high reqs. on
network and integration ++
 Fast, simple set-up (on-
demand) but high reqs. on
network
Operational
feasibility
-
 Low operational Infor/SAP
experience
 Data center know-how
needed
o
 Operations partially done
by hosting service
provider
 Own network
infrastructure necessary
 High alignment effort
o
 Less internal know-
how/resources about
maintaining IaaS and
Infor/SAP maintenance
++
 Ready-to-use
Infor/SAP maintenance
done by service provider
System
performance
o/-
 Probably limited system
performance
 Depending on investment
and know-how
o
 Good availability
(depending on SLA and
connectivity)
 Probably lower system
performance compared to
IaaS and SaaS
++
 Best-in-class availability,
highly reliable and
automated scaling
+
 High availability
 Probably lower system
performance compared to
IaaS
Security o/-
 Probably low data security
 Limited security
capabilities
 Depending on investment
and know-how
+/o
 High security and
policy/compliance
fulfillment
 Own network security
necessary
+
 Highest security and
policy/compliance
fulfillment on
infrastructure
 Application security
managed by client
++
 Highest security and
policy/compliance
fulfillment on
infrastructure and
application
Overall - o + ++
- - very poor - poor o neutral + good ++ very good
Client
Cloud
Cloud
ERP
Service
Provider

Cloud IaaS and Cloud SaaS are the best options for Infor LN
- for SAP S/4HANA Cloud IaaS is the best option
ERP operation model – comparison
Infor SAP
Cloud
(IaaS)
+
 Full support for deployment on IaaS
 Support for leading IaaS provider (e.g.
AWS)
 License purchase + yearly maintenance fee
+
 Full support for deployment on IaaS
 Support for leading IaaS provider (e.g.
AWS)
 License purchase + yearly maintenance fee
Cloud
(SaaS)
++
 Proven SaaS solution with full functionality
 Global high performance infrastructure
(AWS)
 Subscription instead of license purchase
o
 Introduced just recently in 2017 (FI);
incomplete functional coverage
 Subscription instead of license purchase
Hosted o
 Hosting services available in market
 Infrastructure partly managed by service
provider
 Application could be managed partly by
service provider
o
 Proven hosting services available in market
 Infrastructure partly managed by service
provider
 Application could be managed partly by
service provider
- - very poor - poor o neutral + good ++ very good
1 version 10.5.X 2 version 17XX
CloudCloud
ERP
Service
Provider
1
2

A first cost estimate indicates cost advantages for Infor - details
to be validated after vendor negotiations
ERP cost indication (direct internal and external costs without benefits
realization)
Operating Models
Client
data
center
Hosted
Cloud
(IaaS)
Cloud
(SaaS)
Client
data
center
Hosted
Cloud
(IaaS)
Cloud
(SaaS)
Net present value3 23M € - 58M € 16M € - 47M € 11M € - 38M € 9M € - 20M € 27M € - 71M € 24M € - 62M € 13M € - 48M € 11M € - 25M €
initial
Investment costs 17M € - 52M € 12M € - 41M € 7M € - 33M € 1M € - 6M € 20M € - 62M € 14M € - 50M € 9M € - 41M € 2M € - 6M €
Implementation costs4 15M € - 48M € 10M € - 40M € 6M € - 32M € 1M € - 6M € 17M € - 56M € 12M € - 46M € 7M € - 36M € 2M € - 6M €
Infrastructure
investment
1M € - 2M € 1M € - 2M €
Licensing5 ~1M € ~1M € ~1M € 2M € - 4M € 2M € - 4M € 2M € - 4M €
peryear
Operating costs 1M € - 2M € ~1M € 722k € - 1M € 1M € - 2M € 1M € - 2M € 2M € - 3M € 1M € - 2M € 2M € - 3M €
Subscription costs5 1M € - 2M € 1M € - 3M €
Vendor maintenance
fees
~270k € ~270k € ~270k € 431k € - 863k €431k € - 863k €431k € - 863k €
Application operations 200k € - 300k €100k € - 200k €100k € - 200k € 50k € - 100k € 200k € - 300k € ~800k € 100k € - 200k € 50k € - 100k €
Infrastructure
operations
646k € - 1M € 460k € - 1M € 352k € - 1M € 646k € - 1M € 483k € - 1M € 302k € - 1M €
10years
Net present value
for a 10 years horizon
in Mio. €
3: based on WACC 8%
Min-Max range
indication
1: version
10.5.X
2: version
17XX
4: templates and 14
rollouts
5: Infor pricing aligned with Infor for Client;
SAP pricing based on historical values (only indicative),
current licensing is different
1113
2427
911
16
23 25
48
62
71
20
38
47
58 MaxMin

A transition to Infor shows the lowest transition effort for locations
currently using BaaN and Infor
ERP transition evaluation – effort
Transition effort for future ERP
+
 Proven best practices for
migration from BaaN to
Infor
 Moderately more
advanced IT skills needed
 Moderate process and
system changes (training,
change mgmt)
-
 Complex technical
migration (data, reports,
interfaces, forms)
 Different IT skills
needed
 Extensive process and
system change (training
and change management
needs)
+
 Simple migration
 Sufficient current IT
skills
 No/moderate process
changes (training,
change)
o
 Moderate migration
 Similar current IT skills
 Many process changes
(training, change mgmt)
-
interfaces, forms)
needed
needs)
-
interfaces, forms)
needed
needs)
 Leverage BaaN/Infor know-
how and experience
 Maintain a manufacturing-
oriented ERP for mid-size
enterprises
 Similar change impact for all
companies and locations
 Easy setup of Center of
Excellence (CoE)
* DD=Dresden, AR=Argentina, BR=Brazil
Company Location
ERPs
today
Users
* DD=Dresden, AR=Argentina, BR=Brazil

Our SAP S/4HANA Strategy Assessment is based on the two main
phases including the assigned actions and work packages
SAP S/4HANA & Cloud Strategy Assessment

The structured and proofed impact analysis will set the stable
foundation for the further S/4HANA transformation
Impact Analysis
1
DESCRIPTIONRESULTSCOLLABORATION
WORKSHOPS & FOCUS
INTERVIEWS
 Assessment of criteria
based on structured focus
interviews with process
and IT departments
 Criteria are security,
flexibility, scalability or
readiness for new
business scenarios
BUSINESS AND IMPROVEMENT
POTENTIAL
Interviews
 (Bus. Stakeholder HC/CS)
 Process Area Owner
 Global Process Owner
 Enterprise Architect
 IT Domain Manager
 ERP Strategy Manager
ARCHITECTURE
ANALYSIS
 Analysis of the current
Client SAP architecture
landscape, functional
coverage and impact of
the S/4HANA application
architecture
 Analysis of critical and
relevant interfaces
IMPACT ON THE SYSTEM
LANDSCAPE
TRANSFORMATION
4
IT-Experts
CODE ANALYSIS
 Analysis of the code
repository to separate
between used and non-
used lines of code (LOC)
of additional code lines by
using smartShift
 Output of the analysis
gives an overview of the
recommended action
fields
BASELINE FOR DIFFERENT
SCENARIOS INCLUDING
COST ESTIMATIONS
3
IT Experts
 IT-Basis Consultant
 IT Security Officer
 IT Application Consultant
S/4 PROCESS COVERAGE
 Assessment of the
current business process
scope against the
upcoming SAP S/4HANA
core and cloud
capabilities
 Determination of the key
action points for the
transformation towards
S/4HANA
IMPACT ANALYSIS AGAINST
EXISTING SYSTEM
LANDSCAPE
2
Process Experts
 Process Experts to
guarantee access to
required data and the
alignment of the results
DEPENDENCY
ANALYSIS
 Based on started,
planned and defined
project initiatives
identification of impact
towards the S/4HANA
transformation
 Especially the big global
and important local
project initiatives have
to be considered
IMPACT ANALYSIS OF
DEPENDENT IT PROJECT
INITIATIVES
5
Project Stakeholder
 IT Project Leads
 Business Project Leads -
optional

The conception phase will define and structure the identified
measures for the step-by-step transformation
Conception
S/4HANA BENEFITS PER
SCENARIO
DIGITAL BUSINESS
MODEL
 Determination of benefits
for the S/4HANA
Transformation per target
scenario
 Concretion of the
business impact of each
of the selected scenarios
6
Business / IT Experts
 Process Area Owner
 Global Process Owner
TARGET ARCHITECTURE
TARGET ARCHITECTURE
 Analysis and conception
of the target application
architecture per domain
for each of the scenarios
 Definition of the long
term target scenario with
SAP Enterprise and
Technology Architects
8
IT Experts
SCENARIO
ROADMAPS
 Definition of multiple
scenario roadmaps to
compare the possible
scenarios
 The effects for the
organisation will be
transparent
COMPARABLE SCENARIO
ROADMAPS
7
IT Experts
 ERP Strategy Manager
DESCRIPTIONRESULTSCOLLABORATION
GOVERNANCE RISK
ASSESSMENT
PROJECT GOVERNANCE
 Analysis of the current
project governance in
terms of risks considering
the S/4HANA project
 Evaluation and
prioritization of measure
to mitigate the risks and
to improve the success
probability
IT Experts
10
RAMP-UP OF ACTIVITIES TO
GET BACK TO THE
STANDARD
RETROFIT ACTIVITIES
 Definition and alignment
of retrofit activities to get
back to SAP standard
 Combination of the code
analysis and facilitation of
SAP best practices lead
the way towards the SAP
standard
9
IT Experts
 IT-Basis Consultant

Agenda

Proposed Timeline 2019: Assessment, Template & Pilot
S/4HANA
Template Design
01/19 02/19 03/19 04/19 05/19 06/19 07/19 08/19 09/19 10/19 11/19 12/19 01/20
Scoping
Phase
Project
Initiation
& Prep.
Rollout Pilot
Template Design &
Build
S/4HANA
Assessment
Further
Rollouts
01.01.2019 – 31.03.2019
S/4HANA
Assessment
Rollout Pilot
Main Phases
Rollout
country 2
01/21
31.12.2019*31.08.2019*31.05.2019*
*All proposed dates to be evaluated jointly during assessment phase

Transformation to a harmonized ERP landscape could be conducted in
several possible scenarios
ERP harmonization scenarios
Scenario 1 Scenario 2 Scenario 3
Name Function-specific rollout Full-scope rollout Global big bang rollout
Key facts 1 ERP – 4 Templates 1 ERP – 1 Template 1 ERP – 1 Template
Templates
 4 central templates with local
adjustments for every plant
 Contract-based manufacturing
 Project-based manufacturing
 Trading
 Holding
 Amendment of local adjustments
to central template during rollout
 One central template with local
to central template during rollout
 One central template with local
to central template before and
after rollout
Roll-out  Phased rollout (sequential)  Phased rollout (sequential)  Big bang rollout (parallel)
Duration
 ~ 1 year pilot and central config.
 ~ 3 years rollout (8-12 per year)
 ~ 0,5-1 year pilot and central
config.
 ~ 5 years rollout (5-8 per year)
 ~ 1 year pilot and central config.
 ~ 1 year rollout
Resource
needs
 Medium resource needs (central
teams for templates and rollout)
 Low resource needs (smaller
team for larger time span)
 High resource needs (many
external consultants/experts and
internal experts)
Change
needs
 High change need (business
process change)
 High change need (business
process change)
 Highest change need (business
process change and fast
implementation)
Wave 1 – Region A
Wave 2 – Region B
Wave 1 – Region A
Wave 2 – Region B
Big Bang

Out of the three different scenarios the full scope rollout (phased )
has the least disadvantages
ERP harmonization scenarios
Scenario 1 Scenario 2 Scenario 3
Name Function-specific rollout Full-scope rollout Global big bang rollout
Pro
 Centrally defined business
processes with standards for
different entities
 Consideration of local
amendments during rollout
 2nd fastest implementation time
 Central resources for template
configuration
processes with standards for all
entities
amendments during rollout
 Lowest implementation risk
 Lowest resource needs
 Low maintenance effort (1
template)
processes with standards for all
entities
 Parallel availability of new ERP
platform for all plants
 Fastest implementation
 Fast realization of process
efficiencies
 Low maintenance effort (1
template)
Con
 Medium implementation risk
 Medium-fast realization of process
efficiencies
 Higher maintenance effort
(4 different templates)
 Longest implementation time
 Slow realization of process
efficiencies
 High one-time effort and costs
 Possible excessive demand of
employees (change of business
processes)
 High implementation risk
amendments during blueprint
Points 8 2 1
Wave 1 – Region A
Wave 2 – Region B
Wave 1 – Region A
Wave 2 – Region B
Big Bang

The future ERP harmonization should be separated in a pilot phase
and a rollout phase
Pilot and rollout phase for the future ERP harmonization
 Business processes and system implementation
 Data migration
 End user training
 User acceptance testing
 System cutover
 Change management
 Post implementation training
 Continuous improvement
 As-Is analysis and gap analysis
 Business case calculation
 Project setup and planning
 Pilot plant selection
 Business process analysis
 Central template development
 Implementation for pilot plant
 Implementation of central template
 Implementation of local specifics
 Further development of central template
with relevant amendments after rollout
at pilot plant
 Preparation and planning of ERP rollout
for plants and other entities
Phase 1 – ERP Pilot
Q1 2018 Q1 2019 2020 / 2022 / 2024
Phase 2 – ERP Rollout
The ERP harmonization is a major business project. ICT is just an enabler and provides the system
functionality – the implementation of the business processes has to be done by the business.
~0,5-1 year ~2-5 years
 Business processes standardized
 System rollout conducted
 Business processes analyzed
 System rollout planned and prepared

Concurrent transformation approach for harmonization projects with strong
business and IT alignment
Cloud ERP Program Approach
Process & Data
Technology
Current system setup analysis
Technical architecture and
system usage analysis
Future IT landscape design
Pre-configured system setup
Agile demonstration and realization
Data migration and test
concept creation
System set-up and
data migration
System configuration
Technical specification
and development
Cut-over planning
Final ITC and UAT
conduction
Migration planning
Unit testing and issue
fixing
Cut-over tracking and
execution
Local development
finalization
Go-Live
JOURNEY
Kick-Off
Initiation
Team
Stakeholder
Walkthrough
Change
Management Key users and stakeholder
identification
Training concept definition
Change Impact
Analysis execution
Train-the-trainer
execution Lessons Learned
compilation
Project roadshow execution
Communication and people mobilization
Figures
Business case structure
development
KPI measurementKPI definition
Business case calculation Test status reporting
Go-live readiness reporting
Go/No-Go
Decision
Kick-Off
Project Team
Project
Management
Governance structure
definition
Project planning
Resource and working mode management
Risk, issue, and quality management
Scope and change request management
S/4HANA Assessment
Agile Approach
EeE process design
and alignment on
business scenarios
Align Business
requirements
with SAP
Standard
Capabilities &
feature detailing
/ definition of
user story
Backlog
management,
sprints, scrum
coordination
Plan & conduct
testing (e.g. IT,
DataMig, UAT,
Regression)
Training people
Build support
organization
Establish
operational
routines
Define, Build & Test Pilot Roll OutInitiation

Example timeline: We see the timeline until DEC 2019 as a valid
starting point and like to detail and adjust activities and dates jointly
REGIONAL BUSINESS
CASE ALIGNMENTS
CONDUCT ORANIZATIONAL CHANGE
IMPACT ANALYSIS
IDENTIFACTION OF PROCESS EXTENSIONS / SATELLITES
ALIGN ON SAP CLOUD
PRODUCTS
RAPID
START
DEFINE TECHNICAL
GOVERNANCE MODEL
MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
SETUP INITIAL
BUSINESS CASE
DEFINE AND ALIGN
IMPLEMENTATION ROADMAP
DEFINE & ALIGN MIGRATION APPROACH
DESIGN
TARGET ARCHITECTURE
SETUP S/4 AND
SOLUTION (CG)
ASE1
ESTABLISH TRANSFORMATION
GOVERNANCE MODEL
A
IMPLEMENT VALUE
SCENARIOS
Q-GATE 1 Q-GATE 2 Q-GATE 3
CHANGE &
PROJECT
MANAGEMENT
BUSINESS CASE
BUSINESS
PROCESSES
ARCHITECTURE &
DEVELOPMENT
DATA MODEL FOR
PROTOTYPE
DEFINE
VALUE
SCENARIOS
A Prepare phase Foundation phaseB C BuildPrint phase Test phaseDLegend:
DEFINE DATA GOVERNANCE
ELABORATE TECHNICAL TRANSITION
FOR SEQUENTIAL ROLLOUT
DETAILE & ALIGN REMAINING
FUNDAMENTAL DESIGN QUESTIONS
COMPLETE
BUSINESS CASE 1.0
COMPLETE
BUSINESS CASE 2.0
ASE2
ASE3
A
A S/4 AGILE PROTOYPING => MVP for Client SALES COMPANYB C
C
A B
A B B C
DATA
Kick-Off SteerCo SteerCoSteerCo
MAIN RI(C)EFW list initialization & arbitration
A CHANGE STRATEGY,
COMMUNICATION PLAN
STAKEHOLDER
ANALYSIS
A
SETUP AGILE FRAMEWORKA
C
B
C
C
C
C
B C
C
C
PROCESS ALIGNMENT E2E WS (INCL. SYSTEM
DEMO) – DIGITAL CORE
B
C
PREPARE
PROCESS WS
A
B

Key success factor 1: A stringent top-down governance, successful
transformation programs mirror line organizations
ERP Transformation: Key success factors: 1) Governance
End-to-End Process Model
(End-to-end process flows, operating procedures)
IT applications & infrastructure
(Technology landscape (systems, applications,
interfaces), ERP transactions)
Line organization
Program management
& governance
Process & data programs
S4/HANA
transformation
program
Business governance
Process &
data governance
IT governance
Program organization
Vision
& Strategy
(Strategic
Directives &
cornerstones)
RTR
Record to
Report
PTP
Purchase
to Pay
OTC
Order to
Cash
FTD
Forecast
to Deploy
MTS/
MTO
Production
Business Model
(Interaction model with external
business partners, business
scenarios)
Operating Model
(Organizational set-up, interaction model
with internal business partners,
responsibility definition)
Governance
Governance
Frank internal culture of improvement and disclosure of project-relevant information
Approved business case to enable target-oriented design decisions and prioritizations

Detailed governance principles, structures, bodies and mechanisms
should be elaborated as a key success factor
ERP Transformation: Key success factors: 1) Governance
 Outlines the overall
governance principles (e.g.
maintain regional
independence)
Governance
Principles
 Outlines the overall decision
rights structure in line with
org structure, the defined
roles and the KPI
responsibilities (incl.
authorization competencies)
Governance
structure &
roles
 Outlines the overall
governance bodies structure
 Specifically designs each
governance body (Objectives,
frequency, members, etc.)
Governance
bodies
 Outlines the decision process
flow incl. RACI
 Outlines the mechanisms that
are applied to actually come
to a decision (e.g. majority
rule vs. consensus rule)
Governance
mechanisms

A remained focus should be put on the highest value-added business
opportunities and challenges
ERP Transformation: Key success factors: 2) Business focus
Interconnectedlayers
Strategy &
Operating Model
Organization &
Capabilities
Business
Processes
Technology
& Data
Your transformation is an
opportunity to intensify
collaboration across divisions
and markets for a holistic
business conversion:
Optimize entrenched processes
across division and markets
Rethink the business model &
open space for new business
models
Improve insights & business
steering & collaboration
Digital disruption of chemical and
pharmaceutical industry with new
business models
Necessity for new business capabilities
Standardization and harmonization
as strategic priorities
SAP S/4 HANA technology as enabler for
business benefits

Our proposed governance model enables Client to calculate a
collaborative transformation business case
Division perspective Market perspective
…
G
r
o
u
p
Fi & Co
Prod.
Procure-
ment
D
i
v
i
s
i
o
n
Fi & Co
…
Market 1 Market 2 … … Market n…
Log.
Group / Division
 Division Councils, Area Product Owner,
Business Process Manager p. Domain
 Limited support for market initiatives, yet
best suited for alignment on division level
 Shortest duration to achieve top-down
alignment across divisions
 Low w.r.t. manageability of scope
 Higher w.r.t. market involvement
 Best fit to division strategies and steering
 Better tailoring of processes
 Requires Area Product Owner to govern
Key market
 Area Product Owner aligned with country
Business Process Manager and Councils
 Improve collaboration between key
markets and x-division cost optimization
 Scope enlarged to key countries to achieve
bottom-up alignment
 Standardize and harmonize processes
 Higher w.r.t. organizational and technical
complexity
 Integration of business benefits
 Finance-related division activities are
aligned cross-market / cross-division
Group / Division, key markets (final
consolidation)
 Area Product Owner, Business Process
Manager and Experts, Councils
 Further improved collaboration and joined
alignment
 Standardization and process harmonization
across the program and aligned divisional
and market initiative
 Higher due to strong dependency on
governance and collaboration model
 Aligned finance- and logistics / Supply
Chain-related activities
 Highest potential for collaboration
…
G
r
o
u
p
Fi & Co
Prod.
Procure-
ment
D
i
v
i
s
i
o
n
Fi & Co
…
Log.
…
G
r
o
u
p
Fi & Co
Prod.
Procure-
ment
D
i
v
i
s
i
o
n
Fi & Co
…
Log.
Level
Governance
Support for x-division and market
initiatives
Benefits
Risks
Other
Domains in project scope
Harmonized processes / standards
Market specific harmonization approach
Legend:
SETUP INITIAL
BUSINESS CASE
COMPLETE
BUSINESS CASE 1.0
A REGIONAL BUSINESS
CASE ALIGNMENTS
ASE2
COMPLETE
BUSINESS CASE 2.0
Bridge to project phase
Final Business Case

We will make use of our use case library to propose cases for
digitization and identify change levers
 For each domain
determination of benefit / cost
levers / use case for
supporting overall business
case targets
 For each use case verification
of usage and benefits for the
markets
 Showcase not only in the E2E
process domain but also in
the reference S/4 HANA CORE
system by Demo
Rethink business
 Each use case with clear
aligned description of usage
and benefits for having a
standardized discussion within
the workshops with the
domain experts
 Clear verification of feasibility
within this market
 Leverage of S/4 HANA
transformation by the use
case library of Consultant
Improve insights
 Drill down of benefit / cost
efficiency tree
 Alignment of current benefits
with controlling, process
expertise in IT and business
process in functional domains
 Overall consolidation and
alignment of the KPI /
Business Case framework
according to Client standards
and regulation up front
Optimize operations

Change management is embedded from the start - developing the
culture, workforce and skills needed for the digital age
ERP Transformation: Key success factors: 3) Change Management
Effective Change Management is
embedded in all our transformation
projects (‘DNA’)
Our New Deal
Change Management Framework is
Consultant Invent’s globally
implemented change approach
Our innovative target-group specific
change architectures deals with the
dynamic environments and projects of
our client
By balancing the rational, political, and
emotional side of change, we ensure
sustainable transformations
Clear and transparent KPIs build the
‘backbone‘ of our sustainable change
work
All projects benefit from our strong
Thought Leadership
(e.g. change 2.0, our regular Change
Management Study)

To ensure you master your business transformation and prepare for
the future way of working we work collaboratively
Key
considera-
tions
Key
Outcomes
ORGANIZATIONAL CHANGE MANAGEMENT (OCM)
CHANGE MANAGEMENT COMMUNICATIONS ROLES & TRAINING
Need to align the leadership
team around a clear
transformation vision and
case-for-change
 Established change monitoring
 Analyzed key stakeholder groups
 Analyzed change impact for people,
process, organization and technology
 Continuous and iterative usage of a
change roadmap
Need to develop a robust
change plan, to achieve deep
and lasting organizational
change
Need to develop a
comprehensive, multi-phased
transformation roadmap
Need to establish an accurate
capability baseline, on which
to base the transformation plan
 Aligned communication plan with
identified measures and channels
 Established information strategy to
keep all stakeholders integrated in the
project progress
 Defined change story to enhance
commitment on a emotional level
 Identified training needs, objectives
and target groups
 Roles aligned to specific user groups
 Established training strategy in align-
ment with overall change strategy
 Developed training approach including
different channels for knowledge
transfer (online, offline)
Agile Agile

The “Change Deal”, is an iterative, and truly
agile approach that delivers lasting organizational change
1 3 4 5 62
Adopt &
Share
Backlog
(Change Tools)
Sprint
Planning
Adopt &
Share
Change Sprint
Plan for
Scaling
Change Sprint
Review
Embedded
Change Team
Change Experts
Transformation Project
Member
Key Stakeholder/
User
Comms
Plan
Stake-
holder
Analysis
Work
Hacks
Agile
Boot
Camp
Lean
Coffee
Vision
Digithon
Digital Am-
bassador
Network
…
Change
Impact
Assess-
ment
Training
needs
Leader-
ship
develop-
ment
Change
Story
 Refine and further detail - add new activities depending on the learning experience during sprint
Fill the Backlog with change
activities and order activities
according to priority. Then
define milestones beginning with
high priority activities
Select activities with high priority
for the sprint plan and define
sprint outcome (definition of
done“) for each activity
Develop change and
communication formats in
interdisciplinary teams and plan
the roll-out
Present formats to product
owner, proof maturity of the
formats and roll-out mature
formats. Collect required changes
to the backlog
…

Standard procedures and hierarchies are used to define the various levels of
process flows
ERP Level numbering and process classification
End To End
Process
Major Process
Business
Process
Process Step
Activity
(Transaction)
The critical 5 to 10 business processes that:
 Traverses the entire value chain,
 Crosses functional, geographic, company boundaries
 Have measurable outcomes
The process categories within an End To End Process that:
 Represents logical groupings of processes
 Typically demonstrates logical business “hand-offs” or integration
points across the E2E process stream
Typically 5-7 logical groupings within each major process that:
 Can be subdivided into process steps assignable to process roles
 Maintain discrete metrics unique to its specific activities
Logical groupings of business transactions:
 E.g. Create, Change, Release order…
 Must be uniquely assignable to a Role without
separation of duties conflicts
Lowest level of work activity in
Blueprinting
L0
L3
L4
L1
L2
End to
End
Process
Major Process
Business Process
L0
L1
L2
L3
Levelofdetailincreasing
-
1
1.1
1.1.
1

Consultant will help Client to follow SAP standard processes and
solutions and establishing a clear escalation pyramid

The right migration approach should be identified after check of
data and data quality in Client legacy systems
Lift-and-shift Cloud-enabled virtual
automation
A DevOps transformation
Workloads are migrated to cloud IaaS
in as unchanged a manner as possible,
and change is done only when
absolutely necessary
IT processes are modified in this
approach to take advantage of
automation and some cloud-native
capabilities
IT and some business processes are
transformed, and a cloud-native agile
approach is used as much as possible
during the migration
Legacy systems SAP Data
Services (ETL)
Source 1
Source 2
Source 3
Source 4
To-Be landscape
Extract
Transform
&
Load
(ETL) data to
primary systems
S/4HANA
Working Assumption => ETL for Client Data Migration because of data quality and redundancy in PSG, PSI and PS3
+
• Profiling
• Cleansing
• Harmonization
Usual Cloud Migration Approaches

End-to-End Process to migrate of one application instances
2.
Data
cleansing
3.
Data
harmonisation
1.
Data
profiling
 Inspection of data source for
validity and completeness
 Collection of statistical
information at the data source
and identification of anomalies
 Decide on migration objects in
scope (master & transactional
data)
 Repair data in a staging area
(SAP DS) or in legacy
applications
 Deals with incorrect, incomplete
or obsolete data
 Only the data in scope will be
cleansed, according to the
scope definition & extraction
rules
 Removal of duplicate records
 Golden record selection
 Validation and repair of target applications specific fields
 Add information needed for S/4HANA, MDG etc.
1. Profiling 2. Cleansing
3.
Harmonization
& Completion

Example Extract, Transform & Load (ETL), the classical data
migration approach
SAP DS (ETL)
Custom program
(Scripts, file transfer)
Manual conversion
(Excel, flat files)
Legacy
System
Secondary
System
Primary
System
Other
System
Target file
Staging &
TransformationSource File
Secondary
System
Further distribution to other consuming applications: Standard Interfaces
Initial load to primary systems: ETL (AUTO), Custom program (AUTO) and manual conversion (MANUAL)

Example Cloud Migration: End-to-End Process for migration of one application
instance
60
Customer Activities
Consultant
Migration Activities
Legend
Customer Activities
supported by
Consultant
Governance, Security, Planning, Tracking
Migration Phases for a single migration
TransitionPreparation
Design &
Implementation
Migration & Testing
Go /
No Go
Go /
No Go
Analysis
Go /
No Go
Customer Service
Management
Plan
Consultant
Remediation
Activities
Consultant
Process Phases
Consultant
Decommissioning
Activities
Consultant
Optional Activities
Project
Kick-off
Input & Environment
Access
Program Kick-off
Project Governance
Setup
Migration Program
Planning
Functional (UAT) Test
Execution
Migration Execution
Validation of
Migration
Prerequisites
Migration Tests
Execution
Remediation
Migration Design
Definition
Migration Execution
Planning
Application
packaging
Application Pack
definition
Migration & Affinity
Pack Implementation
Warranty
Decommissioning
Handover of to RUN
team
Last data
synchronization &
Service switch
Sign-off
Rollback
Live Test Execution
Application Pack &
Package Analysis
Migration
Project Planning
Quality
gate

Clear definition of project roles and responsibilities for each rollout should be
part of the overall project and team planning
Project roles per team
Template Team
Process Owner R O R R O O R R O O R O O O O R R O
Application Owner R O O R R O O R O O O O R R O
Offshore Build Team
(Factories)
R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R
Business (already live) R R R R
Rollout Team
Application Manager O O O O O O O O O O O O O O O O O O O
Deploy. Team Member R O R R O O R R R R O O R R O O R R R R R O O O R R R O O O R R O
Local Team
Local key user O O O O O O O O O O O O O O O O O O O O O O O O
Pre-Assessment
Pre-Configuration
Fit / gap workshop
Localization & Gap Implementation
Integration Test
User Acceptance Test
Regression Test
Final Preparation
Post Go-Live Support
Other project
activities (e.g. data
cleansing)
O Onsite R Remote
Further description
 Process- & applications owners are the bridge to discuss the template with the rollout team, e.g. fit-/gap analysis
 The rollout team is working primarily on local training, data migration and testing
 Business (key) users in countries already live perform regression test and benefit from updates, supported by test automation

Embedded Change Management integrates specific Change
Management activities in the regular project / roll -off work
Methodology: Embedded Change
Methodology: Embedded Change
Change
Management
Business and IT
Architecture and
validation workshops
 “Align” results early
 Create buy-in and
understanding on
harmonization needs
 Early consider change
impact – start re-thinking
Communication of
results
 Workshop
documentation
 Alignment weeks before
Steering Committees
 Results presentation,
e.g. via Live Meeting
Interviews and
LoB/ board area
workshops
 Involve and create
understanding
 Consider positions
and actively plan
involvement
Leadership commitment
& buy-in
 Unify leaders around the
change vision with initial
workshop
 Ensure commitment and
respective communication
 “Walk-the-talk”
Initial
stakeholder
analysis
 Collect stakeholder
as input for
interview/ workshop
planning
 Understand setup
and position
 Communication
needs
Scoping and
roadmap workshop
 Actively involve
stakeholders in the
initial design to
create buy-in (Think
Tank)

Our training approach ensures learning success and a smooth
Go-Live by providing training on a global and local level
Define Training
Approach and Plan
Design Training
Curriculum
Deliver Training
Prepare for Training
Delivery
Develop Training and
Support Materials
 Identify system roles
and training
requirements
 Identify people who
need to be trained
 Assess corporate
learning aspirations
and logistical resources
 Define/confirm guiding
principles and plan
training development
 Outline plan for
training delivery
 Analyze “to-be” job
roles and respective
training needs
 Define training
modules and methods
(e.g. web-based
training, train-the-
trainer, micro learning,
classroom)
 Confirm outlined plan
for training delivery
and key user learning
journey
 Agree standards and
templates
 Create and validate
training materials & set
up training content
 Create global and local
training plans
 Dry run of key user
trainings
 Support for dry run of
end user trainings
steered by key users
 Tailor data and content
for web-based
trainings, train the
trainer and classroom
trainings
 Conduct train-the-
trainer
 Set up training rooms
and equipment
 Send joining
instructions (especially
for eLearnings)
 Prepare training
assessment and
evaluations
 Monitor training
interventions regularly
 Conduct training
 Track attendance
 Make online support
materials available
 Ongoing training
evaluation and user
satisfaction with
resulting corrective
measures
 Modify training
materials & re-train
trainers as required
Training need
analysis
Global training
concept
Key User learning
journey
E-Learning &
Teach-Try-Learn
Tailored Training
Packages
Learning
Management
system
Training
evaluation
Interactive
Learning

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