IBM’s Journey to SAP S/4HANA on RISE: A Blueprint for Global Transformation
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Key Takeaways
⇨ IBM's successful migration to SAP S/4HANA on RISE, executed in partnership with SNP, demonstrates the effectiveness of strategic partnerships and innovative methodologies like selective data migration to achieve rapid modernization with minimal risk.
⇨ The transition led to significant business outcomes, including a 30% reduction in costs, a 25% reduction in data footprint, and improved operational efficiency, highlighting the tangible benefits of ERP modernization for organizations.
⇨ The project showcased the feasibility of executing large-scale ERP migrations efficiently, with IBM completing a seamless deployment for 150,000 users in just 34 hours, emphasizing the importance of meticulous planning and iterative testing in ensuring business continuity.
For business technology decision-makers, the complexities of modernizing enterprise resource planning (ERP) systems are all too familiar. The need to balance innovation with operational stability presents a significant challenge. IBM’s recent large-scale global transformation, migrating its SAP ECC environment to S/4HANA on RISE, offers valuable insights into navigating this intricate process. This project, executed in partnership with SNP, stands as a compelling case study in achieving rapid modernization with minimal disruption.
Addressing Core Challenges and Embracing Strategic Goals
IBM’s decision to embark on this 18-month journey, involving 150,000 users across 175 countries, was driven by the need to modernize its vast and aging SAP ECC system. This legacy environment presented challenges in streamlining critical operations, particularly in areas like quote to cash, record to report processes, and finance. The overarching strategic goals were clear: to modernize IT infrastructure, streamline operations, improve user experience, and enhance operational efficiency for future scalability and agility. By leveraging the capabilities of SAP S/4HANA and RISE, IBM aimed to capitalize on insights from their data, reduce costs, and gain a competitive edge.
The Implementation Process
Recognizing the complexities involved, IBM strategically partnered with SNP, leveraging their expertise in selective data migration and their CrystalBridge solution. This approach, combined with SNP’s BLUEFIELD™ methodology, allowed IBM to selectively migrate critical data while integrating new functionalities into the S/4HANA environment. This was a game-changer, enabling a faster time-to-value with minimal risk.
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The project also involved collaboration with smartShift for code remediation and leveraged SAP MaxAttention to address infrastructure and data migration challenges stemming from a DB2 mainframe. Through multiple iterative test cycles and optimization, the technical go-live was remarkably smooth, completed in just 34 hours, two hours ahead of schedule. This minimized downtime was crucial for maintaining business continuity across IBM’s global operations.
Measurable Business Outcomes
The strategic move to SAP S/4HANA on RISE, facilitated by the partnership with SNP, has yielded significant business benefits for IBM. These include:
- 30% cost reduction through streamlined infrastructure and operations, lowering server and data management expenses.
- Accelerated time to value due to faster deployment with minimal risk and disruption.
- 25% data footprint reduction by migrating 10 TB of critical data out of 14 TB, optimizing storage.
- Enhanced operational efficiency through improved report execution and batch processing performance.
- Real-time insights by leveraging embedded analytics for faster, data-driven decision-making.
- A simplified IT landscape, achieved by remediating 30,000 custom code objects and modernizing 320,000 lines of code, reducing complexity and maintenance costs.
- A successful global transformation with a seamless big bang deployment for 150,000 users worldwide.
Simone Porcu, Partner at IBM Consulting, described the partnership with SNP as a “powerful catalyst” for IBM’s internal transformation journey, driving a “flywheel of growth” for the organization. This successful migration underscores the importance of strategic partnerships and innovative solutions like selective data migration in navigating complex ERP modernization projects. For business technology decision-makers contemplating similar transformations, IBM’s journey provides a compelling blueprint for achieving agility, efficiency, and tangible business value.
What this means for SAPinsiders
Strategic partnerships and tools accelerate transformation with minimal risk. IBM’s collaboration with SNP and smartShift highlights the critical role of specialized partners and advanced tools (like SNP’s BLUEFIELD™ methodology and CrystalBridge platform) in reducing complexity. These partnerships enabled selective data migration, rapid code remediation, and a seamless go-live—minimizing disruption while accelerating time-to-value.
Modernization drives tangible business outcomes and operational efficiency. By transitioning to SAP S/4HANA on RISE, IBM achieved 30% cost savings, a 25% data footprint reduction, and enhanced performance in reporting and batch processing. These outcomes demonstrate how modernizing ERP with RISE can streamline infrastructure, improve efficiency, and enable real-time, data-driven decision-making.
Global scalability and business continuity are achievable with the right approach. IBM’s successful deployment across 150,000 users in 175 countries, completed in just 34 hours, proves that large-scale ERP migrations can be executed efficiently. Their iterative testing, phased optimizations, and simplified IT landscape enabled a smooth big bang go-live—underscoring the importance of thorough planning and execution for global business continuity.
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