The call of the times is for smart digital transition. However, not all transitions are a complete success. In fact, many such transitions fail to provide even a minimal level of ROI (return on investment), resulting in time and financial losses.
The reasons for this could range from poor implementation to inaccurate fit, incorrect methodology, or even insufficient, outdated technology that fails to address specific business needs. For SAP implementation, for example, these instances can easily stifle a company's success in realizing its full potential. It could result in costly down time and even sales losses, which could set a company back several years.
All of this, however, can be easily avoided when a company partners with the right managed service provider for fully optimized SAP ERP success.
What is SAP S/4HANA?
SAP S/4HANA is an ERP business suite built on the SAP HANA in-memory database, allowing businesses to perform transactions and analyze business data in real time.
S/4HANA is the centerpiece – or digital core – of SAP's strategy for enabling customers to go through digital transformation, a broadly defined process in which they can modify or create new business processes and models. This enables businesses to be more adaptable, responsive, and resilient to changing business needs, customer demands, and environmental conditions. This S/4HANA-based business environment is referred to as the intelligent enterprise by SAP.
Problems with Implementing SAP with the Wrong Partner
Inadequate data handling:
Mismanagement of critical business data is one of the most serious issues with the wrong SAP partner. Any breach in the security of such data can have serious consequences for the company.
Ineffective change management:
If the partner does not collaborate closely at every stage of SAP implementation, the enterprise will face numerous challenges in making a smooth and successful transition.
Disruption in business:
Poor change management will undoubtedly cause business disruption by disrupting normal work flow and lowering productivity.
Down-times are expensive:
Inadequate due diligence during SAP implementation can result in costly down times because the IT team will be under pressure to troubleshoot and fix errors as quickly as possible.
Overruns on costs:
More and more quick-fix solutions to resolve issues during the implementation stage would result in rising bills, which could have a direct impact on the overall company budget.
Inability to concentrate on key business objectives:
When top management is distracted by IT-related issues on a regular basis, their focus will inevitably shift away from core business goals and objectives.
Eventually, the company's sales will suffer because there are no available resources or IT capabilities to support sales planning and growth.
The last thing any business leader wants to see is their company shrinking. However, if the SAP implementation fails to deliver on its promises, degrowth is on the horizon.
As a result, it is critical that IT and business leaders track progress at each stage of their SAP implementation. After all, as the saying goes, "prevention is better than cure."
Key Measurement Steps for Your SAP Implementation
The key is to track progress in each critical aspect of your business that is utilizing SAP landscapes to scale up and succeed. Let us walk you through the key metrics for measuring the progress of your company's SAP implementation and ensuring long-term success:
- Employee Contentment
Customer experience is one of the most important metrics for determining project success. Customer experience is synonymous with employee experience at SAP. The level of employee engagement and productivity following SAP implementation can be used to assess employee experience. Are the employees pleased with the transition? Do they have any problems? These elements will have a direct impact on sales, growth, and longevity.
- Project Margins
Project margins are used in project-based industries such as construction to calculate how much a company makes after deducting its expenses for materials, labor, and overhead. Leading SAP systems integrate data from all of these metrics to provide businesses with an accurate picture of revenue and costs for each project. Is your company's SAP framework capable of delivering on this?
- Turnover of Inventory
A properly implemented SAP will track inventory turnover progress, provide clear visibility into inventory processes, and show how to move products more quickly. With more accurate demand forecasting, it also assists a business in avoiding losses due to overstocking or under stocking. It could be the key enabler for businesses to enter the market and increase their revenue.
- Business Worth
After all is said and done, the primary reason for investing in SAP implementation is to generate business value. The amount of money a company has made from the sale of its products and services with SAP determines its business value. This is commonly measured using metrics such as average profit per sale, operating margin, and order value. Companies that successfully implement ERP can identify their biggest revenue growth opportunities and increase business value.
- Greater Profits
The ideal SAP implementation is equipped to assist staff in making informed business decisions based on real-time data analytics. Furthermore, it can detect business inefficiencies, correct them, and save money. It will conduct a thorough analysis of profitability by identifying less profitable activities, products, or services. All of this helps businesses grow, capture greater ROI, achieve profits, and realize growth.
Planning, testing, and migration are essential components of a successful SAP implementation strategy. Remember that SAP implementations and transformations almost never go as expected. Due to this unpredictability, it can be very helpful for organizations to look for an SAP implementation company that has a profound technical understanding of both SAP and a thorough understanding of your goals and time-frames.
Because the creation, design, and tuning of an SAP landscape require a high level of knowledge and expertise, proper implementation can take months or years.
On the other hand, SAP implementations are crucial in streamlining the process of giving an organization a competitive edge that, over time, accelerates organisational growth.