Navigating Security and GRC Optimization During S/4HANA Conversion

With organizations expected to consistently adapt to new emerging technologies to stay competitive, for a midstream energy service provider committed to operational efficiency, sustainability, and safety, an upgrade became pivotal. 

This organization faced the complex task of replacing its highly customized SAP R/3 legacy system, originally designed for an integrated oil company, with an SAP S/4HANA environment tailored to midstream business needs. With the transformation touching critical business functions, ensuring robust security and governance, risk and compliance (GRC) measures was paramount. 

Comprehensive Approach to Security and Controls 

Partnering with Protiviti, the project team identified four key focus areas to optimize security and controls: 

S/4HANA and Fiori Security Design – End-user roles were redefined to support production access while adopting a least-privilege approach. This minimized excessive access and reduced Segregation of Duties (SoD) conflicts by 99%. Alignment of roles with organizational needs ensured future scalability. 

SuccessFactors, Ariba and Business Warehouse Security Design – Security roles for these platforms were restructured to enforce least-privilege access and streamline data restrictions. For Business Warehouse, dynamic data restrictions and task-based roles were incorporated into the upgraded environment. 

GRC Access Control Implementation – GRC Access Control 12.0 was embedded into the S/4HANA stack. This enabled advanced functionalities, including Access Risk Analysis, Emergency Access Management and automated user provisioning through SuccessFactors integration. A leading-practice SoD ruleset was also implemented to enhance compliance. 

S/4HANA Automated Controls Assessment – A benchmarking process against best practices ensured effective internal controls throughout the implementation lifecycle. Configuration validations reinforced these controls across SAP and Ariba platforms. 

Outcomes and Insights 

The transformation yielded a secure and sustainable SAP environment, enabling improved compliance and streamlined operations. Automated user provisioning and SoD checks further reduced manual intervention, enhancing efficiency. 

Key lessons from the project highlight the importance of early integration of the security workstream, proactive stakeholder engagement and strict adherence to design phase commitments. Incorporating control requirements into system configurations from the outset also proved critical. 

This SAP S/4HANA conversion exemplifies how a strategic approach to security and GRC optimization can drive operational excellence. By leveraging industry best practices, this organization is well-positioned to navigate future challenges while maintaining a strong foundation for growth. 

What it Means for SAP insiders 

Empowering ERP Professionals with Enhanced Security and GRC in SAP S/4HANA: For ERP professionals like IT managers, security analysts and compliance officers, navigating an SAP S/4HANA conversion introduces a game-changing opportunity to elevate their day-to-day impact. By streamlining governance, risk and compliance (GRC) processes and adopting a robust security design, these roles can shift from reactive issue management to proactive innovation. Protiviti’s strategic guidance in redefining end-user roles and embedding GRC Access Control transforms manual, labor-intensive workflows into automated, scalable solutions. This means fewer access conflicts, enhanced compliance and greater efficiency – empowering focus on driving strategic value for organizations. 

Market Trends Highlighting the SAP S/4HANA Advantage: The SAP S/4HANA conversion aligns with global trends in digital transformation, projected to grow at a CAGR of 13.5% from 2023 to 2030, reaching a market size of $1.56tn. As businesses prioritize agility and data-driven decision-making, the need for modern ERP systems with integrated security and GRC capabilities has surged. SAP S/4HANA competes with offerings from Oracle ERP Cloud, Microsoft Dynamics 365 and Workday, each addressing critical market demands. However, SAP’s extensive integration capabilities and tailored solutions for industries like midstream energy solidify its competitive edge in high-complexity environments. 

Key Evaluation Criteria for Choosing Technology Providers: When selecting technology providers for SAP S/4HANA conversions, prioritizing security, scalability and customization is crucial. End-users should seek partners with proven expertise in least-privilege security design, automated controls and advanced GRC implementations. Evaluating alignment with industry best practices and the ability to address your organization’s unique operational needs is equally critical. Additionally, proactive stakeholder collaboration and a track record of measurable outcomes – such as significant reductions in Segregation of Duties conflicts – should guide decision-making to ensure a seamless and future-ready transformation.