Simplified and standardized business processes, more automation and a significant increase in efficiency with consistently high process quality: The reasons that led the Swiss technology group SFS Group (3.04 billion CHF annual sales, 13,700 employees) to decide to switch to SAP S/4HANA and thus merge the two ERP systems used were varied.

SAP platform first activated in the finance departments

SFS has been using SAP for 20 years. Now those responsible wanted to use the upcoming S/4HANA implementation for harmonization. “In the past, we had two ERP landscapes that grew historically. They had different dimensions and were therefore used for different areas. But ultimately we realized that we no longer needed these different versions and therefore decided on a joint transition project,” remembers Roland Tüscher, S/4HANA Transition project manager at the SFS Group. Reto Buchli, Head of Corporate Information Technology, adds: “Our goals were simpler structures, optimized processes and the merger into a future-proof, common system.” In the first project step, the finance departments in 27 countries and business processes of the Distribution & Logistics Switzerland division were migrated, where the SAP platform was first successfully activated.

Less risk and shortened project duration with Big Bang

For the second phase, in which all purchasing and sales organizations as well as the production plants were converted, the plan originally called for a pilot project at the production companies in Switzerland. But this was quickly abandoned after a risk analysis and intensive exchange with cbs. “Based on our experience from the first project phase, we realized that the pilot project would not minimize risk,” explains Tüscher.

An important reason was that a change that would have taken place exclusively in Switzerland would have made business between the individual national companies significantly more difficult. This would have required extremely complex transition scenarios to ensure smooth exchange between the two different systems. So SFS decided on a Big Bang with a view to shortening the project duration by a year. “From today’s perspective, it was the right decision. Because it meant our focus was much clearer from the start,” explains Tüscher.

Selective approach is convincing

A crucial aspect in choosing the right partner was the Heidelberg company’s selective transformation approach and decades of project experience. “Cbs has shown in some outstanding innovation projects in the industry that the selective approach makes the difference,” says Tüscher. In contrast to a more complex greenfield approach, the master data and architecture were only changed selectively. This made it possible to slim down the project and make it easier to manage and organize. The selective migration approach made organizational change much easier.

But there were also challenges. This primarily affected the simultaneous changeover in 20 countries and in companies with different product segments. Not an easy task, especially considering the variety of languages ​​and different time zones. In order to ensure a smooth process, the SFS Group carried out extensive tests with those responsible for the process in advance.

Requirements of the business units implemented

SFS approached this task by inviting all international key users. “For the fit-to-template workshop, the fourth and fifth integration tests and the user acceptance test, we brought all key users to our company headquarters in Heerbrugg. Those were very intensive, busy days. This was the easiest way for us to identify the peculiarities of the individual business units in the respective processes,” says Tüscher.

A positive side effect was getting to know the key users and the project team personally, which led to a lively exchange and discussions that significantly advanced the team. “For me, the great added value of the personal contact between the country representatives was an important learning. Physical participation on site and feeling the enthusiasm were crucial to the success of the project in the end,” reveals Buchli. This also resulted in a common knowledge base for the future, which forms an optimal basis for the next steps.

The existing trusting relationship with cbs was an important aspect throughout the entire project. The same thinking, which includes high quality standards but also focuses on open communication and positive interaction among employees, led to an excellent result. “It was important for us that we felt a sense of partnership. Right from the start we had the impression that we got along perfectly with cbs because we had the same mindset. This is important in order to react appropriately in challenging situations,” says Tüscher. “All discussions took place at eye level, regardless of the contact person.”

Harmonization meets innovation

With the successful Big Bang, SFS implemented the main goal of harmonizing processes. cbs was there as a partner who was able to advise on process adjustments and innovations. “We have already had some experience with the new platform. Our employees have new opportunities to work with high and rapid data availability as well as modern user interfaces. This is an important added value that makes SFS more efficient and faster,” explains Buchli.

There have also been further developments that will increasingly have an impact in the future: e-invoicing processes are handled via the cloud, as are the connections to the freight forwarders, which leads to significant economies of scale. In the printing area, a company-wide output management system was introduced that will make the implementation of new printer models more reliable and faster in the future. Employees’ SAP authorizations are now controlled using a group-wide model. However, the most far-reaching changes affect product lifecycle management. “I see the greatest innovation in the area of ​​PLM. Here we developed and designed new processes as part of the project. That was an important part of the project,” explains Buchli.

Basis for future innovations

Tüscher is very satisfied with the project: “If you can adapt the Hyper Care organization in the first week, there were no critical incidents. And that is a very positive result in the end.” Buchli emphasizes: “Our goal is to establish lean, agile and future-proof end-to-end business processes in order to remain competitive. Together with cbs, we were able to build a future-proof ERP core that supports our business globally and creates the conditions for the use of future developments and innovations.” No wonder that innovations in the area of ​​production and detailed planning are already planned and will be introduced with the next software release.

Fabian Schneider is program director in the Landscape Transformation department at cbs Corporate Business Solutions