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ENTERPRISE APPLICATIONS

JUNE 2017
HANDBOOK

SAP S/4HANA
ERP platform
options expand
but raise
deployment
questions
FOTOLIA
ENTERPRISE APPLICATIONS
HANDBOOK

 tart planning your SAP S/4HANA


S
In this handbook:
implementation here
Editor’s Letter

JIM O’DONNELL
 AP makes choosing
S
S/4HANA modules easier,
but path unclear for some Questions have swirled around SAP S/4HANA from the moment the next-
generation ERP platform was released in 2015. Although it appears that most
 /4HANA Cloud adoption
S
SAP ERP users are keenly aware of S/4HANA, the vast majority of them have
starts to flourish in fast-
growing companies not yet made concrete efforts to move to the new platform.

 illarys Blinds speeds SAP


H But there are indications that rapid change is in the air; SAP claims S/4HANA
S/4HANA upgrade with implementation projects are on the rise. Much of this growth is being spurred
Panaya tool
by greenfield implementations, but increasing numbers of existing SAP ERP
instances are getting moved to an SAP S/4HANA implementation as the
roadmaps become clearer, use cases develop and better migration tools
become available.

Another driver toward more adoption is the increasing functionality in


S/4HANA as the core processes of finance and procurement are joined by
applications like supply chain, sales and distribution, and digital boardroom.

2   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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There are a few fundamental factors you need to consider in any SAP
In this handbook: S/4HANA implementation. You must fully understand your current
Editor’s Letter
environment and know what critical functions you want in S/4HANA. You
need to know when to make the move based on a number of criteria, including
 AP makes choosing
S the time it will take and how much an SAP S/4HANA implementation will
S/4HANA modules easier,
but path unclear for some disrupt current business processes. You must decide whether to deploy the
on-premises, cloud or hybrid option. And if you decide to deploy in the cloud,
 /4HANA Cloud adoption
S
you need to choose among public cloud, private cloud or a combination.
starts to flourish in fast-
growing companies
This handbook provides a valuable starting point on your road to an SAP
 illarys Blinds speeds SAP
H S/4HANA implementation, with detailed information about the S/4HANA
S/4HANA upgrade with
roadmap, a discussion of various cloud deployment options and a real-world
Panaya tool
example of how some tools can make a huge impact on the speed and cost of
an upgrade.

3   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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 AP makes choosing S/4HANA modules easier,


S
In this handbook:
but path unclear for some
Editor’s Letter

DAVID ESSEX
 AP makes choosing
S
S/4HANA modules easier,
but path unclear for some SAP continues to build out S/4HANA -- its next-generation ERP system --
by adding modules for common business processes such as procurement,
 /4HANA Cloud adoption
S
inventory management and logistics. In doing so, the way forward from
starts to flourish in fast-
growing companies on-premises ERP is becoming clearer for some users. But ongoing questions
about the completeness of some S/4HANA modules -- along with apparent
 illarys Blinds speeds SAP
H
S/4HANA upgrade with
differences in the on-premises and cloud versions -- are causing most SAP
Panaya tool users to hesitate.

A case in point is Varian Medical Systems, Inc., a provider of cancer-


treatment products and services based in Palo Alto, Calif. Seeking better
performance, the longtime SAP customer is running Business Suite on HANA,
a version of the previous on-premises ERP platform made to run on SAP’s
HANA in-memory database. But lately, the company has been analyzing
the impact of moving to S/4HANA, according to Snehashish Sarkar, vice
president of enterprise applications at Varian. Migrating to S/4HANA modules

4   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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would require changing Varian’s business processes, he said. “You have to


In this handbook: reimplement [ERP]. The old way is not compatible.”
Editor’s Letter
Much of Varian’s analysis is focused on the business-process effects. “You
 AP makes choosing
S have to make sure what is working in your current system works in S/4,”
S/4HANA modules easier, Sarkar explained. For example, the materials requirements planning module in
but path unclear for some
S/4HANA “doesn’t work the same” as the one in Business Suite on HANA. On
 /4HANA Cloud adoption
S the other hand, reconciling currency-exchange records in the accounting and
starts to flourish in fast- controlling processes in Business Suite promises to be dramatically simpler in
growing companies
S/4HANA, he said.
 illarys Blinds speeds SAP
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S/4HANA upgrade with Sarkar noted that Varian has talked with SAP about its infrastructure as a
Panaya tool service (IaaS) option, HANA Enterprise Cloud, but rejected it. “The cost-
benefit analysis of it for us is not there,” he said. “We have invested heavily in
our on-premises system. ‘Cloud ‘ is an entirely different enterprise model. I just
don’t know if it’s ready.” He said cloud versions of S/4HANA are better suited to
newer users, especially those with greenfield sites that don’t already have ERP.

None of that changes Varian’s commitment to move to S/4HANA eventually,


according to Sarkar. “We always want to keep our system current,” he said. “We

5   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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have spent a huge amount in the past [on maintenance] when we have not kept
In this handbook: it current.”
Editor’s Letter
SAP CLAIMS BUSINESS SUITE REWRITE MOSTLY COMPLETE
 AP makes choosing
S
S/4HANA modules easier,
In his keynote at the 2017 Sapphire Now conference, Hasso Plattner, SAP SE
but path unclear for some
co-founder and chairman of the supervisory board, said most of the porting of
 /4HANA Cloud adoption
S Business Suite functions to S/4HANA modules has been completed, and the
starts to flourish in fast-
growing companies vendor is now turning to new features. “Our impression is that we have covered
[all the Business Suite functions]. It could be there are gaps because we retired
 illarys Blinds speeds SAP
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software,” Plattner said. “Don’t panic. We can look at it, we can talk about it.”
S/4HANA upgrade with
Panaya tool
Yet Plattner also made clear that the software as a service (SaaS) version of
S/4HANA, which runs on the SAP Cloud Platform, will be where most future
applications are developed, partly because it eases integration with other
vendors’ data and SaaS offerings. “The whole race in our industry is to go as
quickly as possible with as many users as possible to the cloud,” he said.

While S/4HANA modules have been released at a steady pace since the
product debuted in February 2015, there’s still some debate about whether

6   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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S/4HANA is functional enough for most users, though SAP is quick to dispel
In this handbook: any doubt.
Editor’s Letter
“It is full-fledged ERP,” said Sven Denecken, an SAP SE senior vice president
 AP makes choosing
S and head of product innovation and co-innovation for S/4HANA. Denecken
S/4HANA modules easier, said the roadmap will next lead to S/4HANA modules for vertical industries,
but path unclear for some
often co-developed with SAP customers in those industries. By early
 /4HANA Cloud adoption
S 2018, SAP plans to add blockchain capabilities to the S/4HANA treasury
starts to flourish in fast- management module.
growing companies

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NAVIGATING THE S/4HANA MODULES ROADMAP
S/4HANA upgrade with
Panaya tool
When asked for more specifics on the roadmap, SAP usually points people
to its Transformation Navigator, a password-protected online tool that lets
customers enter their current configurations and business processes and map
them to S/4HANA modules in cloud and on-premises versions. The navigator
also lists 5,000 integrations to other software, according to SAP.

As for the deployment decision, Denecken said there are three choices:
on-premises, single-tenant SaaS (private cloud) or multi-tenant SaaS.

7   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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Specific requirements sometimes dictate the choice. For example, German


In this handbook: government regulations won’t permit cloud deployment of healthcare
Editor’s Letter
software, and some manufacturers don’t like the idea of sharing a multi-tenant
SaaS application with competitors. “It’s the same code base, and the data
 AP makes choosing
S semantics underneath is the same,” Denecken said.
S/4HANA modules easier,
but path unclear for some
Nevertheless, the vast majority of S/4HANA modules are deployed on
 /4HANA Cloud adoption
S premises, according to Holger Mueller, vice president and principal analyst
starts to flourish in fast- at Constellation Research. Mueller said the 1,000-plus S/4HANA customers
growing companies
claimed by SAP are almost entirely choosing on premises, “which surprised
 illarys Blinds speeds SAP
H everybody,” he said. “I would have expected 30% to 50% would be cloud. Real
S/4HANA upgrade with
SaaS -- that’s a real minority,” a total barely reaching double digits.
Panaya tool

SHOULD S/4HANA MODULES WORK THE SAME AS IN BUSINESS SUITE?

SAP officials say customers shouldn’t expect the old modules to be completely
replicated in S/4HANA modules, especially the SaaS versions, since two major
benefits of the cloud are simplification and standardization of best practices.
“That’s never the intention,” SAP’s Denecken said. “Your future is a simplified
way on HANA.”

8   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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But Mueller said such distinctions are the crux of the S/4HANA migration
In this handbook: decision for users and the reason companies with more complex needs have
Editor’s Letter
been the slowest to consider moving. He’s also not sure how well the SaaS
version of S/4HANA meets the needs of manufacturers, which tend to have
 AP makes choosing
S complex on-premises production systems that must integrate closely with
S/4HANA modules easier,
but path unclear for some ERP. In contrast, customer relationship management and human capital
management (HCM) have long since proved themselves to be well suited to
 /4HANA Cloud adoption
S
SaaS delivery.
starts to flourish in fast-
growing companies

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ON PREMISES VS. TWO FLAVORS OF CLOUD
S/4HANA upgrade with
Panaya tool How can users make sense of the possible configurations and deployment
options for S/4HANA modules? “It’s a pretty simple formula,” said Joshua
Greenbaum, founder and principal analyst of Enterprise Applications
Consulting. “The on-prem and private cloud versions are sort of the original
flagship versions, so they’re much more extensive. They [have] much more of
the industry functionality. They’re really significantly more robust. Most of the
clients I work with, who are in the large enterprise space, have either migrated
to one of those platforms or are planning that.”

9   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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Introduced last February, S/4HANA Cloud was a “significant subset” of the


In this handbook: on-premises and private cloud versions, Greenbaum said, but SAP is devot-
Editor’s Letter
ing major resources to bringing the public cloud version up to parity as quickly
as possible. Parity, however, is a moving target because all three versions of
 AP makes choosing
S S/4HANA are under continuous development. For example, the software for
S/4HANA modules easier,
but path unclear for some the oil and gas industry has not been fully replicated in S/4HANA modules.
“There’s a lot of work to be done,” he said.
 /4HANA Cloud adoption
S
starts to flourish in fast- The picture is even muddier in HCM. SAP has designated SaaS-based
growing companies
SuccessFactors its primary HCM platform and upgrade path from the
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H on-premises SAP HCM suite. But the HCM capabilities in S/4HANA are limited
S/4HANA upgrade with
to time recording, and the vendor pushes integration with SuccessFactors
Panaya tool
Employee Central as the way to get full HCM features on S/4HANA.

“That’s a big dilemma,” Greenbaum said, adding that SAP HCM users
are struggling with the S/4HANA roadmap, deciding whether to migrate
to SuccessFactors and the importance of integration with S/4HANA.
Organizations that aren’t interested in bringing innovation to their human
resources functions should stick with what they have, but if they want
advanced talent management, for example, and are moving to S/4HANA

10   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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Cloud, anyway, they should consider SuccessFactors.


In this handbook:
Greenbaum was complimentary about several S/4HANA modules. One of the
Editor’s Letter
very first, S/4HANA Finance, brought significant change to the management
 AP makes choosing
S of basic back-end financial processes, and its use of SAP Fiori technology
S/4HANA modules easier, improved the user interface, he said. The S/4HANA modules for supply
but path unclear for some
chain and logistics introduced last year promise to be a major improvement
 /4HANA Cloud adoption
S over SAP’s long-in-the-tooth, on-premises offering, Advanced Planner and
starts to flourish in fast- Optimizer (APO), which Greenbaum called “a dog.” The ability to now run
growing companies
supply chain planning in-memory will be “pretty powerful,” he said.
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S/4HANA upgrade with “SAP’s job in general is to lay out this strategy where the sum of all these pieces
Panaya tool makes sense to the customer and they leverage each other,” Greenbaum
explained. “When you have advanced supply chain functionality in S/4, and you
tie that to logistics and you tie that to your manufacturing and parts delivery,
you suddenly have this extremely effective digitized company.”

11   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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 /4HANA Cloud adoption starts to flourish in


S
In this handbook:
fast-growing companies
Editor’s Letter

CHRISTINE PARIZO
 AP makes choosing
S
S/4HANA modules easier,
but path unclear for some SAP S/4HANA adoption seems to still be a predominantly on-premises
phenomenon, but if new S/4HANA Cloud implementations are any indication,
 /4HANA Cloud adoption
S
organizations may want to take another look at both public and private cloud
starts to flourish in fast-
growing companies options.

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H Plans for rapid growth, coupled with a desire to keep infrastructure costs
S/4HANA upgrade with
low, have inspired several companies to deploy S/4HANA, SAP’s newest
Panaya tool
ERP platform, in public and private clouds. During a panel discussion at this
month’s Sapphire Now conference, SAP customers shared their reasons for
eschewing a traditional on-premises installation.

For Vivint Inc., outgrowing its existing infrastructure spurred the Provo, Utah-
based security systems provider to examine other options. Vivint has been in
business since the mid-1990s and has more than 1 million customers. Its CEO
set a growth target of 10 million customers in the next three years, according to

12   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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Jerry Druce, senior director of program management and ERP operations.


In this handbook:
“Being a young company, our infrastructure was largely homegrown,” Druce
Editor’s Letter
said.
 AP makes choosing
S
The company was running a hodgepodge of applications, with an off-the-shelf
S/4HANA modules easier,
but path unclear for some financial application and two inventory systems, which meant the field service,
sales and other teams couldn’t view inventory, transactions or other data
 /4HANA Cloud adoption
S
starts to flourish in fast- easily.
growing companies
“We needed the agility to grow on demand,” Druce said.
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S/4HANA upgrade with Vivint chose to deploy S/4HANA on the S/4 private cloud through the SAP
Panaya tool
enterprise cloud organization without going through a request-for-proposal
process.

“We wanted to have just one name, one chokeable throat,” Druce said.

As an organization, Vivint didn’t have the skill set or resources to maintain a


complex infrastructure and architecture, and keeping the software current and
healthy was a priority.

13   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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S/4HANA CLOUD CAN PROVIDE A PATH FOR FAST GROWTH


In this handbook:
Meanwhile, MOD Super Fast Pizza LLC, a fast-casual restaurant chain founded
Editor’s Letter in Seattle in 2008, experienced triple-digit growth in the past three years. It
 AP makes choosing
S needed something that would continue to grow with the business and that
S/4HANA modules easier, could be deployed quickly, according to Tara Gambill, director of MOD Pizza’s
but path unclear for some
SAP center of excellence.
 /4HANA Cloud adoption
S
starts to flourish in fast-
The company chose an S/4HANA Cloud deployment, along with
growing companies SuccessFactors, SAP’s software-as-a-service HR suite, so it could continue to
operate as a lean IT organization and cloud-only shop.
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S/4HANA upgrade with
Panaya tool
S/4HANA was deployed in a public cloud model, which took months instead
of years, Gambill said. The company worked to implement standard best
practices to ensure adoption.

“Have an understanding of the stakeholder community, key processes and


business transformation items that you’re hoping to achieve to right-size your
technology decision,” she said.

Additionally, she said change management is key to understanding how much

14   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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the organization can handle and how flexible it is.


In this handbook:
As her advice suggests, going with S/4HANA will enable MOD Pizza to
Editor’s Letter
continue to grow at a rapid rate. Future plans involve point-of-sale integration
 AP makes choosing
S and a restaurant-specific platform that needs to be integrated using APIs,
S/4HANA modules easier, Gambill said.
but path unclear for some
“Having an idea of what the architecture is today and where it needs to go is
 /4HANA Cloud adoption
S
starts to flourish in fast- what we try to focus on,” she said.
growing companies

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H PUBLIC CLOUD OFFERS QUICK TURNAROUND TIME
S/4HANA upgrade with
Panaya tool Other companies, particularly those with multiple locations and short
timelines, find that the public cloud model can help them get online a lot faster.

Deploying S/4HANA in a public cloud model took 10 weeks for Adita


Technologies Ltd., according to Kumar Govindarajan, the company’s CEO and
chief architect. The systems integrator, which is based in Sydney, expects to
deploy its S/4HANA Cloud system in India in four weeks.

“We’re using the same solution as the best companies in the world,”

15   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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Govindarajan said.
In this handbook:
Like the other companies on the panel, Adita wanted a system it could grow
Editor’s Letter
with, as well as software that would be around for the long haul.
 AP makes choosing
S
“A lot of these cloud solutions won’t be with us,” Govindarajan said.
S/4HANA modules easier,
but path unclear for some

 /4HANA Cloud adoption


S PRIVATE CLOUD GUARDS AGAINST LATENCY
starts to flourish in fast-
growing companies Not all companies were sold on the public cloud, and three of the panelists
chose a private deployment for their S/4HANA Cloud: Vivint, Karma Automo-
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H
S/4HANA upgrade with
tive LLC and Vectus Industries Ltd.
Panaya tool
Karma Automotive and Vectus Industries chose private clouds primarily due to
the timing of their implementations. In 2015, when they were working on their
projects, there weren’t a lot of choices. India in particular didn’t have a lot of
options for the public cloud, according to Manish Sinha, head of IT at Vectus.

However, latency was also an issue that concerned Vectus.

“When [the software] goes to the end user, and they feel that [transactions]

16   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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aren’t happening instantly, the acceptability is reduced,” he said.


In this handbook:
On a private cloud, if there is lag time, the IT team can at least have control over
Editor’s Letter
troubleshooting.
 AP makes choosing
S
Bad experiences have also driven customers to private clouds. According to
S/4HANA modules easier,
but path unclear for some Vivint’s Druce, a cloud-based customer relationship management package
with limits, thresholds and concurrent transactions created an IT mess, and the
 /4HANA Cloud adoption
S
starts to flourish in fast- company didn’t want to deal with that.
growing companies

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H STAYING ON PREMISES MAXIMIZES EXISTING INVESTMENTS
S/4HANA upgrade with
Panaya tool Other SAP customers who were not on the panel chose to conduct greenfield
installations of S/4HANA to replace legacy R/3 ERP systems -- but did so on
premises to maximize their existing infrastructure investments.

According to Faizan Mustafa, head of information technology at Pakistan-


based Indus Motor Company Ltd., this was the driver to stay in-house when his
company upgraded its ERP system. That choice has resulted in real ROI for the
data center.

17   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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“Because S/4HANA has a more simplified architecture as compared to R/3, it


In this handbook: has reduced our data footprint by 40 to 50%,” Mustafa said.
Editor’s Letter
From what these customers said, the choice of public or private cloud or on
 AP makes choosing
S premises comes down to risk tolerance, growth plans and whether existing
S/4HANA modules easier, infrastructure can support S/4 HANA. The advice, whether from panelists or
but path unclear for some
customers, boils down to this: Do your research and understand your organi-
 /4HANA Cloud adoption
S zation before taking the leap.
starts to flourish in fast-
growing companies

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S/4HANA upgrade with
Panaya tool

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 illarys Blinds speeds SAP S/4HANA upgrade


H
In this handbook:
with Panaya tool
Editor’s Letter

JIM O’DONNELL
 AP makes choosing
S
S/4HANA modules easier,
but path unclear for some Upgrades are never a walk in the park. They usually come with costs,
uncertainties and enough business disruption for most organizations to avoid
 /4HANA Cloud adoption
S
the pain if they can.
starts to flourish in fast-
growing companies
An upgrade to SAP S/4HANA appears to be a painful exercise for many SAP
 illarys Blinds speeds SAP
H shops, as they fear the complexity of the job and are skeptical of the return on
S/4HANA upgrade with
investment. This may be a reason why only small minorities of customers have
Panaya tool
taken the plunge.

This is not the case with every company, however, as evidenced by the
experience of Hillarys Blinds, which completed an upgrade to S/4HANA in
record time. A longtime SAP shop with several upgrades under its belt, Hillarys
used the Panaya CloudQuality Suite, a cloud-based testing and validation tool,
to test, scope and execute the on-premises SAP S/4HANA upgrade in just six
months, rather than the three years that was projected.

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Hillarys is one of the U.K.’s leading vendors of made-to-measure window


In this handbook: treatments, including blinds, curtains and shutters. Founded in 1971 by Tony
Editor’s Letter
Hillary in his garage, Hillarys now generates a turnover of about £170 million.
This is all done without storefronts or showrooms, as Hillarys makes all of
 AP makes choosing
S its products to order for each individual customer. A nationwide network of
S/4HANA modules easier,
but path unclear for some sales advisers travel to customers’ homes to sell and fit products, which are
manufactured and shipped to the sales adviser, who then installs the product
 /4HANA Cloud adoption
S
in the customer’s home.
starts to flourish in fast-
growing companies

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MANAGING A COMPLEX BUSINESS MODEL
S/4HANA upgrade with
Panaya tool This has been a successful model, but it has inherent business management
challenges, according to Julian Bond, Hillarys’ head of information,
communications and technology. Hillarys makes up to 30,000 products each
week, no two of which are the same, and the products don’t have SKUs.

“The challenge of managing all that is part of what brought us to SAP in the first
place,” Bond said. “We implemented SAP in 1999, and even then it was one of
the few standard, off-the-shelf products that could cope with the complexity
that every product [we] make each week is unique. It could help us cope with

20   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
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fairly short turnarounds on blinds that are made to order for every customer
In this handbook: order we receive.”
Editor’s Letter
Hillarys implemented SAP R/3 in 1999 and steadily upgraded or added new
 AP makes choosing
S applications over time. They implemented SAP CRM in 2004, upgraded
S/4HANA modules easier, to ERP Central Component (ECC) 5 in 2006, implemented SAP Business
but path unclear for some
Warehouse and reimplemented CRM with CRM 7.0 in 2010, and added SAP’s
 /4HANA Cloud adoption
S mobile platform in 2014, Bond said. So they were no stranger to upgrades and
starts to flourish in fast- adding new technology, but they were not chomping at the bit to move to SAP
growing companies
S/4HANA (Business Suite for HANA).
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H
S/4HANA upgrade with “Like most SAP businesses, we don’t relish and jump at doing an upgrade any
Panaya tool quicker than [we] have to, but for us, the noose was closing around our neck in
terms of ECC 5,” Bond said. “We’d come to the end of enterprise support and
were starting to get locked out of some of the newer SAP tool sets that were
coming through, like Fiori or all of the new technologies you just can’t do with
ECC 5.”

Hillarys knew the upgrade was inevitable, but the company was wary of the
overall project cost and the amount of business disruption that it would entail.

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Added to this was the fact that, as a retailer, Hillarys had a very limited window
In this handbook: of opportunity to complete an upgrade during its slowest time period, between
Editor’s Letter
Christmas and New Year’s.

 AP makes choosing
S
S/4HANA modules easier, PRIORITIZING FUNCTIONS SHORTENS UPGRADE TIME
but path unclear for some
This is where the Panaya CloudQuality Suite came in to help Hillarys get the
 /4HANA Cloud adoption
S job done in a vastly shortened time frame that would not have been possible
starts to flourish in fast-
growing companies without it.

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H “The business doesn’t relish an upgrade, and it’s hardly excited by that
S/4HANA upgrade with prospect because it’s going to cost a lot of money, it’s going to take a lot of time,
Panaya tool
a lot of business resources and opportunity costs in terms of what else we
could be doing,” Bond said. “It’s not really a very compelling business case, and
that’s where the Panaya tool was really a part of what helped transform us this
time around.”

One of the functions performed by the Panaya CloudQuality Suite is an


analysis of an SAP ERP system’s program code, giving you a full picture of
what’s most useful and what’s not. This helps speed an upgrade by focusing

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on upgrading the most important functions and setting aside those that are
In this handbook: used the least. For Hillarys, this was vital because they had developed a large
Editor’s Letter
amount of complex custom code over the years.

 AP makes choosing
S “It gives you a very objective view of ... what state you’re in with your bespoke
S/4HANA modules easier, code [custom code],” Bond explained. “Our bespoke code had grown up from
but path unclear for some
1999 all the way through to 2016, and it’s very difficult to benchmark that -- to
 /4HANA Cloud adoption
S say this is where you are compared to other people, these are the areas where
starts to flourish in fast- you are complex, these are the areas in which you are very simple -- so that
growing companies
was very good.”
 illarys Blinds speeds SAP
H
S/4HANA upgrade with This allowed Hillarys to identify and rank functions in terms of priority for
Panaya tool testing, which it did by taking the transactions done on the system in a given
period and determining which ones were used the most and what impact they
had on the business processes. Something that was done once a day had a
high impact and needed to be tested accordingly, while something that was
done once a year might not need testing. Fewer tests meant a faster upgrade,
but Bond maintained one of the real values was that it saved a great deal of
resources and caused less business disruption.

23   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
ENTERPRISE APPLICATIONS
HANDBOOK

“If you extrapolate and say that this is how much testing was needed, you could
In this handbook: say it would have taken years because, if everybody had done six times as
Editor’s Letter
many tests, it would have taken years to do,” he said. “But the truth is we would
just have had to put far more resources [into the upgrade] to have done it in that
 AP makes choosing
S window that we did because it would have [caused] us much more interruption,
S/4HANA modules easier,
but path unclear for some it would have cost us much more hard cash, so I’m not sure if this is a case
where it saved us elapsed time. It certainly saved us cost, risk and disruption.”
 /4HANA Cloud adoption
S
starts to flourish in fast- As it was, the upgrade project began in September 2015, and SAP S/4HANA
growing companies
went live in February 2016, which was actually two months longer than
 illarys Blinds speeds SAP
H anticipated due to a few technical glitches in the SAP code.
S/4HANA upgrade with
Panaya tool
SAP S/4HANA SPEED ASTONISHES

The upgrade to S/4HANA also paid off in terms of speed, with significant
impact on business process improvements, particularly with CRM, Bond said.

“The SAP CRM system is not known for being a swift beast, and there’s
only so much you can do no matter how much hardware you throw at it, but,
clearly, putting it onto the HANA database platform has made a phenomenal

24   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS
ENTERPRISE APPLICATIONS
HANDBOOK

difference,” he said. “In the old days, you could almost have finished the call
In this handbook: with a customer by the time you’d managed to bring their details up on the
Editor’s Letter
screen. It was that bad at times. There aren’t too many times when you’ve done
an upgrade and your internal customers are wowed by that, but this would
 AP makes choosing
S have been one of those occasions. They were just astonished with the speed
S/4HANA modules easier,
but path unclear for some difference of the upgrade.”

 /4HANA Cloud adoption


S This upgrade has enabled Hillarys to re-embed CRM into the business
starts to flourish in fast- processes, a critical benefit for a business that relies so heavily on close
growing companies
customer contact. It has also allowed it to run the business more efficiently,
 illarys Blinds speeds SAP
H getting jobs completed faster and doing it without having to add more staff,
S/4HANA upgrade with
even in the peak periods, Bond said.
Panaya tool

Finance functions in ECC have also benefited from the boost in speed. “A
monthly tax report went from taking 20 to 30 minutes to literally within a
minute,” Bond said. “Some of the longer running jobs that we used to run
overnight, we can now do multiple jobs in a day, whereas before we had last
night’s snapshot and had to live with that until we got another snapshot tonight.
Now we’ve got a chance to make business decisions throughout the day
because we can afford to run them far more frequently.”

25   SAP S/4HANA ERP PLATFORM OPTIONS EXPAND BUT RAISE DEPLOYMENT QUESTIONS

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