De-risking SAP S/4HANA Implementations

De-risking SAP S/4HANA Implementations

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Key Takeaways

⇨ Incorporating independent implementation quality assurance (QA) can significantly reduce risks in SAP S/4HANA implementations by providing an objective assessment of potential pitfalls related to requirements, testing, and data conversion.

⇨ Despite the additional costs associated with independent QA, the potential savings and risk mitigation achieved far outweigh the initial investment, preventing costly rework and business disruptions.

⇨ Organizations should proactively plan for QA in their SAP S/4HANA implementation roadmaps to ensure a smoother execution and avoid scrambling for support post-implementation.

Implementing SAP S/4HANA can be a significant undertaking for any organization, often involving substantial financial investment. For organizations undergoing an SAP S/4HANA implementation or upgrade, the costs can range from tens to hundreds of millions of dollars.

Given the scale of these projects, it is crucial to actively manage and reduce potential risks to ensure successful outcomes. One valuable approach highlighted in the sources for mitigating these risks is the implementation of independent implementation quality assurance (QA).

Assuring Quality

An independent implementation QA can be particularly beneficial in uncovering risks that an organization might be previously unaware of. Many SAP organizations are turning to partners like RSM to ensure that their deployments delivered what they promised.

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Independent assessments can help to identify specific risks, such as traceability, testing, and data conversion. By having an independent party review the implementation process, organizations gain an objective perspective that can identify potential pitfalls that internal teams might overlook.

Structuring the SAP S/4HANA implementation with a focus on risk reduction is another key aspect. An independent implementation QA can provide guidance on how to best structure the implementation to minimize potential issues. This proactive approach allows organizations to build a more resilient and well-governed implementation process from the outset.

The benefits of incorporating an independent implementation QA extend to creating the optimal environment for implementation success. By having a dedicated focus on quality and risk mitigation, organizations can foster a culture of diligence and attention to detail throughout the project lifecycle.

Implementation Risk

Independent QA programs like those from RSM play a crucial role in identifying potential implementation risks before they escalate and negatively impact the overall implementation. Early detection of risks allows for timely intervention and corrective actions, preventing minor issues from snowballing into major problems that could jeopardize the entire project.

Securing buy-in for the additional spending associated with an independent implementation QA is also addressed in the sources. While it might seem counterintuitive to add more cost to an already expensive implementation, the potential savings and risk avoidance achieved through effective QA can far outweigh the initial investment.

By proactively identifying and mitigating risks related to requirements, testing, and data migration, organizations can avoid costly rework, delays, and potential business disruptions that could arise later in the implementation process.

What This Means for SAPinsiders

An outside perspective minimizes risks. Reducing risks in SAP S/4HANA implementations can be significantly enhanced by incorporating independent implementation quality assurance (QA). This approach helps to uncover hidden risks related to requirements traceability, testing, and data conversion, provides guidance on structuring the implementation for risk reduction, fosters a better environment for success, and facilitates the early identification of potential issues before they become major problems.

Protect your investment. While it involves additional investment, the benefits of mitigating significant risks and ensuring a smoother, more successful SAP S/4HANA implementation often prove to be invaluable. Working with partners like RSM can help companies reduce the risk of needing to overhaul or redo SAP S/4HANA implementations right after they go live.

Plan for success. Companies should include plans for QA into their SAP S/4HANA implementation roadmaps. Ensuring that all parts of the implementation are correctly executed ahead of time prevents the need to scramble to find a QA partner following the digital transformation.

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