Illumiti Innovation Blog

Moving to SAP S/4HANA: Tips to a smooth transition

Date: January 10, 2023
By: John Hilborn

Construction and engineering companies are often steeped in tradition and reluctant to change. But every enterprise needs to take action to evolve their business models, avoid disruption, find new efficiencies, pursue innovation, and transform critical systems in a world where complexity and the pace of changes continue to accelerate.

That’s why SAP and Illumiti work with our customers to implement SAP S/4HANA rapidly and effectively with out-of-the-box, end-to-end solutions. Moreover, our implementation experience has given us several insights into how companies can ensure their SAP S/4HANA implementation is successful.

  • Build a shared vision. It’s vital that decision makers throughout the organization understand the end goal of the implementation effort: upgrading the business to be more agile, flexible, and responsive in a fast-changing world.
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  • Use innovation initiatives to strengthen the business case for SAP S/4HANA transformation. Some construction and engineering companies already have ambitions to improve equipment management, gain better insights into their mobile workforce, industrialize the building process, and innovate in other ways. These innovation initiatives can be used as a launchpad to a broader ERP transformation—and help build a strong business case for doing so.
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  • Ensure there’s support from the top and the middle. Implementing a new ERP system represents a big change management effort. For it to succeed, executive sponsorship and championing is essential. But perhaps even more critical is for leaders throughout the middle of the organization—the people that connect head office to the construction site—understand, believe in, and support the new systems and processes being introduced.
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  • Focus on what drives value and differentiates the business. Every construction or engineering company is unique, but their key business processes are often virtually identical. Companies should focus on customizing their ERP implementation only around real points of competitive differentiation or advantage. There’s no need to tailor the standard business processes included with the platform, which are typically well-designed, best-practice processes from the outset.
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  • Keep track of prior decisions. To keep the implementation moving forward, it’s vital that company leadership and the project team identify what decisions need to be made and when. It’s equally critical to record those decisions once they’re made to avoid delays and setbacks because stakeholders repeatedly revisit old issues and change their minds.
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  • Deliver appropriate training. As with any change management initiative, it’s important that the people understand how the new systems impact business processes and what it means to their work. Ensure staff have the training they need to use the system effectively and reap its benefits, taking time to train them on the process, not just the transaction.
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  • Ensure a clear escalation process is in place. Construction companies are often home to big personalities, and these decision makers can have very strong views on the business. When it comes to a major, enterprise-wide change like implementing S/4 HANA, it’s vital to establish a clear process for escalating key decisions so that progress isn’t stalled by competing perspectives or disagreements.
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  • Maintain momentum. Change can be challenging, especially in industries that take a more conservative approach to evolving how they do things. Once implementation is complete, companies should monitor the workforce to ensure that people are using the new systems and processes effectively and not slipping back into old habits and traditional ways of working. It’s key to ensuring you reap the rewards of your ERP investment.
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Read Illumiti’s new white paper, Reach new heights with SAP S/4HANA, to learn more about how Illumiti and SAP can help your construction or engineering company become more innovative, responsive, agile, and successful. Questions? Contact us today.

 

 

 

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John Hilborn

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