ANZSAP Issue 01 by anzsapmagazine

INSPIRING THE SAP ECOSYSTEM

ISSUE 01

TECHN O LO GY

WHAT IS BLOCKCHAIN? F EATU RE

BUILDING A STRATEGIC SAP BUSINESS CASE CASE ST U DY

HOW SAP’S S/4HANA DROVE TASNETWORKS BIG TRANSFORMATION

LEVERAGING SAP CLOUD TECHNOLOGY TO HELP

ELEPHANTS RHINOS & PEOPLE MUSTAFA BENSAN

JAMIE LEE

Demystifying SAP Business Technology Platform

The important contribution of SAP Technical Consultants

EDITORS LETTER ISSUE 01

FROM THE EDITOR

WELCOME SAP COMMUNITY

am beyond excited that we are presenting this first ever edition of ANZSAP Magazine to you. It feels like it’s been a long time coming, but with the help of our many contributors from the ANZ SAP community, we’ve finally got a magazine to be proud of.

And it’s certainly fitting that it has been such a collaborative, team effort to get to this point, because that is what ANZSAP is all about - community and collaboration. If we’ve learnt anything over the last few years it is just how crucial both of these, alongside the basic need for human connection, are. That collectively we are so much stronger. The magazine was subsequently born from this ethos. Out of a desire, by founder Shane Morgan, to help those within the ANZ SAP Ecosystem to come together, facilitating conversations and sharing knowledge to build connections. This issue features our inaugural search for the Most Influential People in the ANZ SAP Ecosystem. We’ve really loved seeing the votes come in and reading the comments from the voters. It got me thinking what an honour it must be for those featured to have had enough of an impact on another human being, that they actually take precious time out of their day to acknowledge it. Speaking of inspiration, this issue features the voices of many inspirational and respected individuals within the community. From personal stories to impressive case studies, tips on how to get the most out of your projects and insights into the latest SAP technology; they share their expertise and experiences in the hope that, upon reading, you will find something you can personally take away to implement in your own teams, projects, business or life. As it’s our first ever issue we are still learning, so any feedback, ideas or comments are most welcome. In the meantime, enjoy!

ANZSAP MAGA ZINE

EDITORIAL TEAM SHANE MORGAN Founder CHELSIE WHITE Editor DANIELLE CHUNG Client Services Manager FREYA PURNELL Editing Consultant JENNY MOYLE Ambassador & Editorial SME EMILY HUNT Head of Design STEVE COLQUHOUN Senior Journalist IGOR KREYMAN Senior Journalist DR. DEREK PRIOR Guest Writer

CONTRIBUTING WRITERS ALEX PROSKURNYA CHRIS NEWDICK HARI LAKKARAJU IVAN DE OLIVA JACKIE ELIAS JACQUELINE GABB JAMIE LEE JENNY MOYLE LYN CAMPBELL-ANDERSON MATHIEU LAGUË MUSTAFA BENSAN NEAL TARDITI ROBERT BUDIC SATHYA BERIGAI SHANE LLOYD SURENDHAR SOORIYAKUMAR TANIA SHERWOOD

CONTRIBUTING COMPANIES BLOOM CONSULTING DALRAE SOLUTIONS EMPHASYS EPI-USE JARVIS LUMIVO SAP AUSTRALIA SAPTURE SOFTWAREONE

Chelsie White Editor chelsie@anzsapmagazine.com.au

ANZSAP ISSUE 01

TASNETWORKS TURNKEY CONSULTING ANZSAP Magazine is published at Level 17, International Tower 3 300 Barangaroo Ave, Sydney NSW 2000. ISSN Registration 2981-9830 (Digital).

ISSUE 01 CONTENTS

ISSUE 01

COVER STORY

How SAP Technology is Being Leveraged in Conservation Efforts

FEATURES 40

MOST INFLUENTIAL PEOPLE

SAP BUSINESS CASE

SECURITY BY DESIGN

Most Influential People

Meet your most influential people

How to build a robust business case for project success Key considerations for security of your S/4 transformation program

100 DIGITAL TRANSFORMATION SAP’s role in paving the way for digital transformation

110 BTP BENEFITS

A look at the potential of BTP to revolutionise businesses

120 BTP TRANSFORMATIONS

100

Introducing BTP and what it means for SAP, its customers, and partners

ANZSAP ISSUE 01 3

epiuse.com | info@epiuse.com

ISSUE 01 CONTENTS

VOICES 14

MANUFACTURING SOLUTIONS

SUSTAINABILITY FOCUS

SAP TRANSITIONS

RECOVERING PROJECTS

CFO SAP STRATEGY

Manufacturing Solutions

Overcoming pain points of manufacturing solutions

Using SAP to help meet ESG business goals

Embracing the transition from SAP BPC to SAC Strategies to recover large SAP transformation projects

How CFOs can maximise the core SAP modules

CONSULTING V INSISTING

ACTIVE LISTENING

Choosing the right communication styles when deploying financial technology solutions Learn how truly listening will revolutionise your change programs

108 TECHNICAL CONSULTANTS

Why the contribution of technical consultants should be recognised

114 SUPPLY CHAIN TRANSPARENCY An overview of how BTP can help unlock supply chain transparency

128 INCREASING SAP VALUE

Ensure SAP value continues to be maximised when moving to S/4HANA

130 OPERATIONAL IMPORTANCE

Operational importance in ensuring a successful S/4HANA migration journey

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CONTENTS ISSUE 01

TRENDS 20

TALENT

The latest SAP talent and recruitment trends

SAP Talent Trends

106 TALENT MANAGEMENT

Talent management considerations through digital transformation

CASE STUDIES 28

CSR

PROCUREMENT TRANSFORMATION

How SAP technology is being leveraged in conservation efforts Global financial institution enhanced procurement through SAP

144 S/4HANA TRANSFORMATION

Hear about Tas Networks’ successful transformation to S/4HANA

152 SYSTEMS INTEGRATION

Simplifying the sales process through integration for a global FMCG

144

S/4HANA Transformation

ANZSAP ISSUE 01

Procurement Transformation

ANZSAP MAGA ZINE

LET'S COLLABORATE Help us grow the ANZSAP community! We are looking for collaborators or contributors who have stories, insights, knowledge and expertise to share. SHARE YOUR SUCCESS STORIES PROVIDE YOUR INSIGHTS DEMONSTRATE YOUR EXPERTISE CONTRIBUTE TO THE ANZSAP AWARDS SEND US YOUR PRESS RELEASES

COLLABORATE WITH US

CONTENTS ISSUE 01

NEWS 09

GENERAL

JARVIS CONSULTING

Using SAP to be All Black but also Green The new kid on the block

TECHNOLOGY 50 60

BLOCKCHAIN

101 on blockchain powered SAP solutions

ARTICIAL INTELLIGENCE

AI adoption is no longer a choice. Are you ready?

INTERVIEW 78

WOMEN MAKING SAP HAPPEN

Interview with Sweta Kashyap on her career so far

134 RISE WITH SAP

Ways to decide if Rise with SAP is the best option for cloud migration

AI: Adoption is no longer a choice. Are you ready?

ANZSAP ISSUE 01

GENERAL NEWS

NEWS Using SAP to be All Black but also Green

ell, if we were to ask any SAP professional around the World today what their favourite sport is, the most likely answer would be soccer. But rugby? Sorry, only the 9th most popular sport globally. However, ask an Australian and it would be the 6th most popular, but anyone from New Zealand will say “Excuse me, it’s our number one sport”. On 29th October 2023, the Rugby World Cup reached an exciting climax, when South Africa beat New Zealand in the Paris final by the narrowest of margins, a single point! However, if, like me, you are a real rugby fan, you know just how great the New Zealand national team has been for a long time. Known as the All Blacks they have always had a daunting reputation for passion and excellence, both on and off the field of play. When I visited New Zealand in 2019 everyone that I spoke to were just so proud of their All Blacks team. I was so impressed that I had to buy an All Blacks shirt as a souvenir. Before every All Blacks match kicks off they strike fear and respect into their opposition by performing their traditional Maori Haka dance. For such a globally recognised brand, it may surprise you to learn that the New Zealand Rugby (NZR) organisation is in fact a small business, with less than 200 employees. With its strong Maori traditions, NZR strives to minimise its environmental footprint by caring deeply about its land,

sea, and air resources. To operate as a responsible and sustainable organisation NZR focuses on the critical environmental issues of climate change, circular economy and biodiversity. To bolster its sustainability initiatives NZR is exploiting a range of SAP business software products. These include SAP Analytics Cloud and SAP Datasphere, for building dashboards to measure and analyse its carbon emissions – especially for its high-impact air travel. Another way in which NZR is putting SAP products to work embraces another core Maori concept – Pataka. Traditionally this is a small, raised house that is used to place food for the community. Borrowing this principle of a safe and sacred space to centralise people management NZR is deploying its own HR program, called Pataka, which exploits SAP SuccessFactors. Talent Acquisition and Leave Management modules, plus a modern user interface, from SAP SuccessFactors will all play a major role within the Pataka program. So, by exploiting SAP products NZR is 'trying' to be both Black – and Green. Dr Derek Prior spent 19 years as an analyst specialising in SAP at Gartner and AMR Research, advising organisations all around the world on SAP strategy and best practices.

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JARVIS BUSINESS CONSULTING The new kid on the block

Above (left to right): Darren William, Justine Dinnell, Robin Apfel and Kylie Price.

ANZSAP ISSUE 01

JARVIS CONSULTING NEWS

arly 2023 saw the entry of Tier 2 SAP Consultancy, Jarvis Business Consulting, into the Australian market.

The company, which has ambitions to scale up to be the largest Tier 2 SAP Consultancy in Australia within the next few years, might be the new kid on the block but presents some very familiar faces. The four founding members: Robin Apfel, Kylie Price, Justine Dinnell, and Darren Williams have almost 100 years of SAP expertise between them. Danielle Chung from ANZSAP Magazine caught up with Managing Partner-SAP Solutions, Justine Dinnell, formerly Head of the SAP Architecture practice for a large SAP consulting organisation, to find a bit about Jarvis and their growth plans.

Q&A Why did you start Jarvis? We felt there was a void in the Australian market for medium-sized SAP consulting organisations to deliver exceptional customer outcomes, using very experienced consultants, but without the encumbrances (and billing rates) of the larger consulting firms. We were also acutely aware that many SAP consultants in the industry that had 15+ years experience were looking to get back to client-facing roles to use their expertise to make positive impacts for customers. Many had been trundling along in previous roles as their employing consulting firms became larger (or were bought out) and suddenly realised that this was not what made them happy. We plan to become an employer of choice as well as the go-to partner for customers wanting a nimble, agile, flexible partner for their impending journey.

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NEWS JARVIS CONSULTING

What is your target market? We are focused on the mid-size companies where we believe there is currently a lack of support but a huge need for help in navigating through the journey to S/4HANA and beyond. We believe there is a lot of uncertainty for businesses about what the future technology landscape could look like and how they can progress in comfortable bite-size pieces. We therefore have an initial focus on helping customers formulate their Technology Roadmaps as an enabler to realise their business goals. We appreciate that customers want the visualisation of how to get ‘there’ and also some wriggle room in the plan if there are changes in their business over time. Perhaps the most exciting part of the customer journey will be the innovation and automation that is now possible using the tools provided in the SAP Business Technology Platform.

What differentiates you from others? Our culture is the most important aspect of our company. We want to become a target for consultants who want to work somewhere that is known for its passion and fun, and that is delivering innovative solutions to customers who appreciate our quality. A further differentiator is our agility, enabling us to react swiftly to customer requirements and pivot as their needs change over time. We are acutely aware there are no crystal balls in business, so we are there to jump in when a

ANZSAP ISSUE 01

customer has an unexpected or time-critical event and are ready to work through the ambiguity with them along the way. Customers have more financial pressures on them than ever before. A differentiator that will be incredibly attractive to customers is the lower cost structure of Jarvis which directly benefits them through a more attractive pricing regime.

Where do you see yourself in five years’ time? Our vision of Jarvis in five years is that we are the largest Tier 2 SAP consultancy in Australia with over 100 engaged, energised team members who are passionate about being part of a fun organisation that cares about their people. We will be well known in the SAP community along the Australian Eastern states and may have dipped our toe in the Central and Western states and in NZ. We intend to be a long-term trusted and proven partner for organisations as they progress through their technology journey with us. Our plan is to be a SAP go-to partner for BTP services based on the innovative solutions we have developed. Our customer testimonials will outline both the automation that has driven process efficiency, and the applications that were developed to provide an enhanced end user experience.

WE BELIEVE THERE IS A LOT OF UNCERTAINTY FOR BUSINESSES ABOUT WHAT THE FUTURE TECHNOLOGY LANDSCAPE COULD LOOK LIKE AND HOW THEY CAN PROGRESS IN COMFORTABLE BITE-SIZE PIECES.’’

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VOICES MANUFACTURING SOLUTIONS

MANUFACTURING IN SAP ENVIRONMENTS by Prabi Selladurai

n this blog Prabi Selladurai, Co-Founder and Principal Consultant at Lumivo, explores some common pain points of manufacturing solutions within SAP environments and discusses the potential trends and solutions currently available to help overcome them. Manufacturing companies operate in a world of rapidly evolving technology, requiring digital transformation towards smart factories. This is coupled with challenging business environments, where efficiency, agility, cost effectiveness and seamless processes are crucial for success. SAP offers a powerful integrated solution to manufacturing firms facing these challenges, with many of them using it successfully. However, like any complex system, pain points arise, hindering optimal outcomes.

ANZSAP ISSUE 01

Prabi Selladurai

Lack of Real-Time Visibility Manufacturing companies generally deal with a myriad of systems and solutions to help cater to their industry specific needs. Typically, this involves:

• an ERP system at the core of processes • a Manufacturing Execution System (MES), to manage shop floor activities

• historians to capture time series data • laboratory information management systems for quality management

• and reporting applications to collate

and contextualise the data from various systems.

With so many moving parts, one major pain point experienced is the lack of real-time visibility into overall operations. Traditional solutions often suffer from having too many manual aspects or lack of appropriate integration, leading to outdated information and hindering quick decision-making. This lack of real-time visibility can impact production planning, inventory management, and overall efficiency. Rationalising systems and implementing integration enables bridging of the data gap and provides real-time visibility across the manufacturing process. By leveraging MES, manufacturers can monitor production progress, track inventory levels, and proactively respond to any bottlenecks or issues. Integrating MES solutions with SAP ERP using correct design foundations will enable the capturing of data directly from shop floors and instant or near real-time updates. There is also a growing trend of moving manufacturing solutions to the cloud, enabling a connected supply chain. For example, just in time deliveries can become an option for more materials, by having sub-daily information.

Traditional solutions often suffer from having too many manual aspects or lack of appropriate integration, leading to outdated information and hindering quick decision-making.’’

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VOICES MANUFACTURING SOLUTIONS

Complex Integration Challenges Integrating various non-SAP systems, such as supply chain management, production scheduling, and quality management, can be a daunting task within SAP environments. Poorly integrated systems lead to data inconsistencies, manual data entry, and inefficient workflows, resulting in increased costs and errors. To overcome this, it is important to firstly ensure SAP capabilities are fully utilised and applications used are built on industry standard models such as ISA95 or are SAP native, such as SAP Digital Manufacturing Cloud. This simplifies the integration process enabling the use of pre-built connectors, APIs, and tools to connect SAP, leading to a unified data environment. By achieving this, manufacturers can eliminate duplicate data entry, reduce errors, and enhance collaboration across departments.

Limited Mobility Solutions Manufacturing operations are no longer confined to the office rooms within a factory. It is critical to adapt to the demands of a mobile workforce and enable multi-site decisionmaking. Unfortunately, traditional SAP solutions do not offer comprehensive mobile capabilities for manufacturing functions, leading to limited productivity and responsiveness. However, SAP has come a long way in its user experience journey. Leveraging SAP Fiori, a user-friendly and mobile-enabled interface, empowers users with access to critical SAP functionalities on their mobile devices. With Fiori, users can perform tasks such as inventory checks, production monitoring and approvals remotely, ensuring real-time insights and enabling timely actions.

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SAP has come a long way in its user experience journey. Leveraging SAP Fiori, a user-friendly and mobileenabled interface, empowers users with access to critical SAP functionalities on their mobile devices.’’

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VOICES MANUFACTURING SOLUTIONS

It is clear manufacturers leveraging SAP solutions have increasing potential to optimise their operations, enhance efficiency, drive innovation and growth.’’

Inflexible System Solutions Manufacturers often face the challenge of rigid and inflexible processes within their SAP solutions. Yet every manufacturing environment is unique, and organisations require the ability to adapt their processes to changing business needs.

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Legacy SAP systems’ MES solutions often lack the flexibility needed to accommodate these dynamic manufacturing scenarios. This could be due to historical customisation of the application that prevents or becomes a bottleneck for changes, incorrect solution design (e.g., use of incorrect production type – use of repetitive manufacturing in a batch manufacturing environment), a genuine gap in features etc. When businesses reach a logical

point to embrace business transformation, there is an opportunity to address these pain points and leverage technological advancements through adopting the right architecture. Application landscapes utilising next-generation ERP (e.g., SAP S/4HANA) and Edge-capable MES solutions pave a strong foundation for more flexible system solutions and innovations such as automation, through low code and artificial intelligence.

CONCLUSION It is important to recognise that a digital transformation journey towards a smart factory does not have to be completed all at once. It is a prudent approach to pilot solutions at a factory or individual work centre. Most importantly, a smart factory will always gather data, analyse and improve for better ROI. It is clear manufacturers leveraging SAP solutions have increasing potential to optimise their operations, enhance efficiency, drive innovation and growth. However, addressing pain points in overall manufacturing solutions is crucial to unlock this potential.

ANZSAP ISSUE 01 19

TRENDS TALENT

‘‘THE PACE OF CHANGE SHOWS NO SIGNS OF SLOWING DOWN, LED BY THE CONTINUED ECONOMIC IMPACT OF THE PANDEMIC, COUPLED WITH EXPONENTIAL TECHNOLOGICAL ADVANCEMENT.’’ SHANE MORGAN FOUNDER, SAPTURE

Shane Morgan

ANZSAP ISSUE 01

SAP RECRUITMENT TRENDS Brought to you by SAPTURE

s a specialist ANZ SAP recruiter, I often get asked about current recruitment trends and my predictions for the coming months. I like to think, with 25 years, SAP recruitment experience, that I know my stuff and I can certainly give guidance about what has happened and is happening right now. However, I’ve got to admit that, given the pace of change over the last few years which I’ve highlighted in Figure 1, it has become very difficult for anyone to predict what might happen, sometimes even in the very near future. In recruitment we used to think in terms of – ‘candidate or client-driven’ markets. This would be referring to whether, in general, there was a shortage of talent or a shortage of jobs. And it would swing in either direction, relatively slowly, over the space of a few years or so depending on factors in the macro environment.

2019 READY TO RAMP UP

2020

LUCKY TO BE WORKING

Yet, unprecedented times lead to unprecedented circumstances and despite the return to some semblance of ‘normal’, the pace of change shows no signs of slowing down, led by the continued economic impact of the pandemic, coupled with exponential technological advancements. The last SAP Salary & Trends Report, released by Sapture, covers the period 2022/2023, but although some trends like hybrid working and equality diversity and inclusion (ED&I) are here to stay, the phrase ‘quiet quitting’ wasn’t even a thing and some of it already feels wildly out of date. Whilst we look at gathering data for the 2024 report, we have compiled some interim data to give an overview of where we are now, at this point in time at least! Hopefully it will help you with any current hiring or career decisions you need to make.

2021

CRAZY JOB MARKET

2022

GREAT RESIGNATION

2023

COOL DOWN QUIET QUITTING

Figure 1 : Timeline

ANZSAP ISSUE 01 21

TRENDS TALENT

Permanent v Contract Although over the last three years permanent recruitment has been on the rise, as we move into the last quarter of 2023, we are overall seeing it slow down and contractors are more in demand. Over the last couple of months, there has been a drastic shift – we have seen a number of redundancies, it is likely that more are coming and there are definitely an increase of candidates on the market. Also, projects are coming to an end and new projects being delayed, meaning we are now in a bit of a holding pattern, where there is a lot of hesitancy. Benches are starting to build up in consultancies and because of this clients are still undecided between S/4HANA and ECC. This will likely last between now and Christmas at least. Clients are also splitting up work to spread risk. This is affecting permanent job availability. Yet, there is also low contractor availability

for these types of roles, as they’re unwilling to compromise on the exposure they would get from working on a full project. Overall finding great people is still difficult – businesses don’t want to get rid of top performers, they trim the fat. So, we therefore have an unusual recruitment market where, on the one hand there are talent shortages, and on the other, a lack of jobs.

Permanent Annual Salaries Despite permanent recruitment slowing down, annual salaries remain relatively high. We saw them increasing exponentially over the last couple of years, and although they aren’t increasing any more, these high rates are levelling off. However, we’ve yet to see a reduction, especially regarding those candidates that are most in demand. Moreover, whilst the majority of individuals will consider a move, they are not likely to do so if salary is reduced.

Permanent annual salaries $260k

2022-23

$240k

2020-22

$220k

2018-19

$200k 200000 $180k 180000 $160k 160000 $140k 140000 AUD $

$120k 120000

$100k 100000 $80k 80000 $60k 60000 $40k 40000 $20k 20000

0 $0 Low Average permanent salaries not including superannuation.

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Medium

High

‘‘DESPITE PERMANENT RECRUITMENT SLOWING DOWN, PERMANENT SALARIES REMAIN RELATIVELY HIGH.’’

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TRENDS TALENT

Contract Rates In the same way as permanent salaries have levelled off, we are seeing the same with contract rates. In our last salary survey, we highlighted just how high contract rates had risen and whilst we aren’t seeing them increase much more, we are still only really seeing reductions of around 10/15% within some technical skillsets. For other roles they are remaining level. However, contractors, unlike permanent employees, are often more flexible on rates, willing to go lower if they are motivated by the project or to gain the technology exposure.

In-demand Candidates Those people most in demand continue to be: 1.

Those that are able to articulate and communicate to the business and transform SAP requirements

2. Vertical specialists The premium candidates, freelance or permanent, are those high performers that can get things done, that have the ability to converse and communicate at all levels, identify, and solve problems and add value.

Freelance daily rates $3000

Median

AUD $

$2500

High

$2000 $1500 $1000 $500 $0 2018-2019

2020-2021

2022-2023

*daily contractor charge rates (not including on costs, work cover, insurances, recruitment fees)

ANZSAP ISSUE 01

‘‘THE PREMIUM CANDIDATES, FREELANCE OR PERMANENT, ARE THOSE HIGH PERFORMERS THAT CAN GET THINGS DONE.’’ DANIEL LEE SAP RECRUITMENT CONSULTANT, SAPTURE

Nowadays those people don’t touch the tech, but they know business and have the confidence to challenge and disrupt within a company. This ties into AI and the way things are going. There have been many conversations which demonstrate that whilst AI will be doing the legwork, those people that can manage the business change and transformation and the human element that goes with it will be needed more than ever.

Engagement and Attraction Trends There have been a number of recent reports stating that people are less likely to stay in jobs in general now than they were pre-pandemic, that even people that are happy in their current job are open to hearing about new opportunities. Some reports put that figure up as high as 90%. This is something we are seeing here in ANZ within the SAP ecosystem and not just with permanent people, also with contractors. There is also the emerging trend of

the ‘Quiet Quitter’ – a person who is just doing the bare minimum to get through. Some of this is due to burnout from the last few years and a renewed focus on health and wellbeing, but there are many that are either waiting for a new, more exciting opportunity or finding personal fulfilment outside of work. Flexibility therefore continues to be absolutely paramount for people. Many feel that it is an entitlement rather than a benefit and amongst those used to working from home, there is a resistance to going into the office or onsite. However, on the flip side, there are also those that have no desire or ability to work full-time from home and, whilst hybrid working was a relatively new concept to many when we published our last survey, it is now a standard expectation for the majority. Organisations that have developed a mature hybrid culture offering personal flexibility are more likely to attract the best candidates, contract or permanent.

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TRENDS TALENT

KEY THEMES From speaking daily to many in the ANZ SAP Ecosystem, the key themes highlighted in our last report remain at the forefront of attraction & retention considerations.

MENTAL HEALTH

WELLBEING

SUCCESS! EXCITING PROJECTS! FLEXIBLE HOURS TEAM CULTURE

ANZSAP ISSUE 01

EMPLOYER ETHICS

Ethics continue to be a big factor in attraction and retention. People need reassurances that businesses are aligned to their own ethics and values, and that the company actually lives those values, not just talks about them. As one of our previous survey recipients stated, “These days I really just want to be around good and ethically oriented people.” Personal fulfilment and health are paramount, often equal to or more than salaries or rates in terms of career decision-making. Many are looking for a challenge or the opportunity to work on exciting projects or technologies and others are looking for purpose; 90% of people in our last report were willing to earn less for more purpose; and this trend continues. As does the focus on health and wellbeing. Employers of choice continue to be those who are willing to prioritise the mental and physical health of their employees.

“EMPLOYERS OF CHOICE CONTINUE TO BE THOSE WILLING TO PRIORITISE THE MENTAL AND PHYSICAL HEALTH OF EMPLOYEES’’

NATALIE JAAFAR DIRECTOR, SAPTURE

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CASE STUDY CSR

Leveraging SAP Cloud Technology to Help Protect Elephants and Rhinos CASE STUDY In this Q&A we interview Ian Fox, Managing Director of EPI-USE Australia & New Zealand, to find out more about their initiative to help protect elephants and rhinos. EPI-USE is a member of groupelephant.com who run an innovative initiative Elephants, Rhinos & People (ERP). Ian tells us more about the initiative, including how ERP is leveraging SAP Cloud technology in conservation efforts to help protect elephants and rhinos. STORY BY IAN FOX

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Ian Fox

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CASE STUDY CSR

What is Elephants, Rhinos & People (ERP) and how did the initiative come about?

How does ERP choose which projects to support with the funding?

Africa is losing around four elephants per hour and five rhinos per day, a problem largely created by poverty. Our wild elephant population has dropped from millions to less than half a million in the last 100 years. South Africa’s rhinos, which represent some of the last viable wild populations in the world, are down to just a few thousand. The thought that in just a few years we might not see them anymore is deplorable.

Our projects are carefully selected based on their potential for the preservation and protection of threatened elephants and rhinos and for the creation of powerful economic engines that can alleviate poverty among rural people. We leverage community-owned resituated land that can enable the creation of substantial wildlife corridors and conservation areas.

to combat the poaching problem in the short term. The ERP Air Force is a tactical initiative that makes use of SAP technologies as a key part of its strategy. The ERP Air Force leverages technology across a wide spectrum, in support of the conservation effort. A UAV platform, SAP cloud-based software technology and people have already made a meaningful impact. Using the SAP Business Technology Platform (BTP) and the SAP Fiori mobile libraries, the ERP Air Force has been able to build a novel solution in a non-traditional SAP market segment. It has changed the way conservationists protect and monitor endangered wildlife.

ERP was founded to preserve and protect Southern Africa’s wild elephants and rhinos through a strategy that is based on rural poverty alleviation.’’

The elephant and rhino herds in certain sensitive Southern African conservation areas are now being monitored by UAV’s, decisively reducing the response time to threats. By tying together multiple data sources and using AI algorithms, the ERP Air Force’s ‘Find my Elephants’ App can help conservationists act speedily enough to make a difference.

Elephants, Rhinos & People (ERP) was founded to preserve and protect Southern Africa’s wild elephants and rhinos through a strategy that is based on rural poverty alleviation.

As you can imagine, manual processes like sitting and reviewing footage just doesn’t cut it in the fast-paced world of anti-poaching where every second counts. Data from the UAVs gets combined with GPS data from IoT field devices, such as animal collars, and images from thermal cameras, before it is sent through the AI algorithms to determine a positive or negative threat prediction in real-time. If the threat potential is deemed positive, notification is shared across the team and threat location co-ordinates are sent to the UAV. The UAV then flies to the location allowing users to view real-time footage and decide if further action is needed. In areas in which ERP

Armed with an Ashoka-accredited poverty alleviation model and by having a multifaceted team positioned to tackle poverty, ERP can address the welfare of elephants and rhinos in an unusual but effective manner. ERP brings over 20 years of experience in community relations, poverty alleviation and impact investment in infrastructure, to achieve sustainable, non-lethal wildlife conservation.

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How has SAP technology been used to support the ERP initiatives? With the alarming level of threat facing elephants and rhinos, traditional methods of supporting conservation are no longer adequate to protect the critical wild populations of these species. Conservation methods have not changed much in 50 years and putting more people on the ground is simply not enough. The ERP strategy of poverty alleviation will likely only deliver results in the medium term. Therefore, the need arose for a range of tactical measures designed

Air Force has an active presence, poaching has been reduced to zero. You mentioned there is an urgent need to protect elephants and rhinos from extinction, can you share what other tactical interventions you have as a group to accomplish that? We have the 911 Elephant Programme, a specific program within the ERP portfolio that is rapidly becoming a leader in the field of elephant rescue operations in Southern Africa. With this program, we can lead and fund elephant rescue initiatives that may result in relocation. Alternatively, by working with landowners we can help establish a sustainable, non-lethal alternative to controlling elephant numbers in overpopulated areas. This also avoids splitting up elephant family units. How does the “People” component affect the preservation of Elephants and Rhinos? ERP empowers communities that live side by side with wild elephants and rhinos. We believe community members are the only viable longterm solution to the survival of elephants and rhinos. By providing alternative income sources we hope to help uplift the local communities out of poverty. Thus, dealing with the root cause for poaching. Our poverty alleviation methodology covers Planning, Education, Agriculture, Cooperatives and Environment (P.E.A.C.E.). Central to the model is the strategic delivery of a network of cooperatively run P.E.A.C.E. Hubs within a local municipality, district municipality or traditional land area. The network consists of a central Hub which is connected to smaller satellite centres, known as Pods, in the surrounding area.

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We believe community members are the only viable long-term solution to the survival of elephants and rhinos. By providing alternative income sources we hope to help uplift the local communities out of poverty.’’

ANZSAP ISSUE 01

CSR CASE STUDY

P.E.A.C.E Hubs serve to support primary cooperatives, through the provision of centralised financial management services and marketing. P.E.A.C.E Hubs promote Local Economic Development (LED) by also providing access to educational opportunities, improved service delivery and networking opportunities. Each centre has the potential to serve as a central platform for the future development of infrastructure including healthcare and other local economic development initiatives. The model is cost-effective and environmentally friendly.

arrive at school better able to concentrate and their attendance rate improves. Commuting by bicycle also frees up time for studying, which helps students complete their education, preparing them for better jobs and giving them a chance at a brighter future. By distributing bicycles to students, the #BIKES4ERP project bridges the gap between having a dream and being able to achieve it. Under the motto, “Mobilise me and I will change my world”, students are empowered to obtain an education

How did the COVID-19 pandemic impact the local communities? ERP’s strategy is conservation through poverty alleviation, but during the pandemic, there was no time for a ‘strategy’. People in impoverished communities were simply hungry and needed to be fed, so ERP intervened and delivered more than one million meals to communities we work with that live near at-risk elephants and rhinos. Are there any other immediate programs that ERP uses to support local communities? Children in rural African communities often walk long distances to get to and from school each day. In addition to the vast distance, they cross rugged terrain, endure extreme weather conditions, and face possible physical injury daily. The children are also responsible for fetching water, collecting firewood, caring for siblings, and feeding livestock. #BIKES4ERP is a campaign that recognises how bicycles produce immediate benefits in these communities. Riding a bike decreases the overall impact of the commute, which means students

ERP’s strategy is conservation through poverty alleviation, but during the pandemic, there was no time for a strategy’.’ by entering a ‘STUDY TO OWN’ contract, whereby the student owns the bike after using it to attend school for two years. Over 700 bicycles have been distributed to children since the campaign started. Tell me more about EPI-USE and how you came to be involved in this initiative. EPI-USE is a member of groupelephant.com, a global group of boutique service firms and software companies, we employ 3,500 people in 40 countries. Largely employee-owned,

the group is a mini conglomerate comprising circa 20 trading brands, the best known of which is EPIUSE, an independent SAP HR/ Payroll specialist. With over 30 years of experience in the delivery of HCM projects, we’ve created exclusive collateral to support clients through the design, implementation and ongoing support of world-class business solutions covering S/4 Finance, SAP Payroll, SuccessFactors and Workforce Management. EPI-USE is a member of groupelephant.com, which fulfills our strategy to go ‘Beyond Corporate Purpose’ in day-today activities, operating through a hybrid business model which funds and operates non-profits and impact investment businesses. Primary focus areas are the preservation of at-risk Elephants and Rhinos, through the economic upliftment of rural People in areas adjacent to the threatened species, or another definition of ‘ERP’, if you will. Also, as a part of the group, EPI-USE donates 1% of its revenue to cover all of ERP’s operational expenses, as well as volunteering time from our employees. There is a 100% pass-through to the beneficiaries of the projects undertaken by our not-forprofit teams. How do your local consultants in ANZ get involved in the initiative in Southern Africa? Our technology consultants collaborate globally sharing the latest SAP technologies and how they can be used in our conservation efforts. It is an opportunity for them to apply the knowledge gained from client solutions to conservation efforts.

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CASE STUDY CSR

In 2022, consultants from Australia were able to join their global colleagues at the newly established ERP Game Reserve in South Africa, leased from the local Barokologadi Community. This was an absolute dream come true for the consultants, to be able to experience firsthand the work that ERP is doing for the conservation of the reserve and the wonderful flora and fauna within, as well as the various opportunities being provided to the local community. What is your personal motivation for the future of ERP? For me, the elephants and rhinos are symbolic of a new definition of business success, one that makes going to the office each morning easier. As a business leader and father, I am motivated knowing that our SAP implementations have a wider social responsibility impact for future generations, and I can tell that our consultants and clients feel the same. It is exciting to see how ERP is now changing people’s lives in poor, rural areas and saving more wild elephants and rhinos. ERP believes that if elephants and rhinos have safe places to live in the wild, all species of wildlife can thrive there too.

FOR MORE INFO VISIT

erp.ngo

ANZSAP ISSUE 01

As a business leader and father, I am motivated knowing that our SAP implementations have a wider social responsibility impact for future generations.’’

SUSTAINABILTY FOCUS SHIFTS

from Talk to Action In this article, Solutions Architect, Jacqueline Gabb discusses why sustainability strategies have recently shifted up a gear, what sustainability looks like in action and ways SAP can be utilised to help meet ESG business goals.

ANZSAP ISSUE 01

hilst sustainability has been thrown around as a buzz word over a number of years in the corporate world, recently there’s been a significant shift, with businesses actually starting to take action to mitigate their impact on the environment. A focus on sustainability is therefore one of the key business trends today. Many organisations are now producing sustainability strategies and measuring their achievements through annual reports. Actions being taken as a result of this include the development of sustainable products and services, reduction in packaging, careful consideration of carbon emissions, and a focus on improvements within the supply chain.

Why the switch from talk to action for so many? Factors impacting the shift include energy instability and changing regulatory and reporting standards, but one of the largest causes is consumer and investor demand for sustainability. There is increasing evidence that sustainability does actually impact consumer purchasing decisions. A recent joint study published in Feb 2023 from McKinsey and NielsenIQ examined sales growth for products that claim to be environmentally and socially responsible. They analysed actual spending behaviour to determine if there was merit in corporations developing Environmental, Social, and Governance (ESG) initiatives in relation to consumer spending.

SUSTAINABILITY VOICES

The results indicated that products making ESGrelated claims averaged 28% cumulative growth over the past five-year period, versus 20% for products that made no such claims. While this is not a definitive study, it clearly indicates a correlation between ESG initiatives and business growth. In addition to consumer demand, ESG initiatives are also becoming key factors in investment decisions. According to an Edie report:

74%

of the world’s largest investors are focusing more on ESG investing.

What does sustainability in action look like?

THERE IS INCREASING EVIDENCE THAT SUSTAINABILITY ACTUALLY IMPACTS CONSUMER PURCHASING DECISIONS.’’

Whilst Energy companies have had coverage in the media and are heavily advertising their focus on renewable energy and sustainability, changes are occurring across a wide range of industries. An example is Consumer Packaged Goods (CPG) and retail. With consumers now focused on reduction of wasteful packaging businesses have been forced to react - the elimination of single use plastics throughout retail and food chains a clear example of sustainability in action. Another obvious example is when walking through the aisles of a grocery store, packaging that pronounces ‘Fair Trade’, ‘EcoFriendly’ or other environmental sustainability claims is everywhere. Another industry being influenced by consumers is construction. Pressure is being brought to companies to design and build more eco-friendly structures. This focus includes using sustainable, renewable materials in construction as well as installation of solar panels and other smart building elements to reduce energy consumption. Cost is still one of the biggest inhibitors to a greener approach

Jacqueline Gabb

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VOICES SUSTAINABILITY

to construction but waste reduction, increased recycling and changes to overall construction methods can all contribute to making it more affordable.

The next question, asked by many businesses is therefore how to develop a comprehensive ESG strategy and report results in a meaningful way?

What are the practical steps to a successful ESG strategy?

This has been difficult to do, as there’s always been a lack of clarity about which ESG factors significantly impact different industries; however, with recent initiatives such as the crossindustry Sustainable Accounting Standards Board (SASB), we are now moving closer to common ESG reporting standards.

As more regulations are enacted and consumers become increasingly focused on impact on the future, companies need to define an ongoing ESG strategy and to communicate the plan and ongoing actions to consumers and investors. 38

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These standards state that

to develop an ESG strategy, organisations must have an ability to report across 3 key areas:

• Environmental Sustainability • Social Responsibility • Corporate Governance There should be a dedicated team who can understand the complexity of regulatory, reporting, and legal requirements and are able to develop a framework that is aligned to these, globally facilitating transparent reporting. The reporting process is critical to

ENSURING AWARENESS AND TRANSPARENCY OF ESG ACTIVITIES WILL IMPROVE BRAND PERCEPTION AND BECOME INCREASINGLY MORE INFLUENTIAL TO CONSUMER CHOICE.’’

The 3-Zero approach is supported by Holistic Steering and Reporting to enable reporting that demonstrates the impact by mapping operational data for decisionmaking. With ESG reporting you can:

• Record actuals instead of

averages with out-of-the box integration with SAP systems for granular data visibility.

• Report with compliant ESG metrics.

• Act by planning against

actionable insights, forecasts, and targets, as well as tracking initiatives and adjusting business processes.

In conclusion, ensuring awareness and transparency of ESG activities will improve brand perception and become increasingly more influential to consumer choice. This influence can already be seen having a large impact in retail, CPG, and construction industries.

ensure appropriate measures and metrics and to avoid the accusation of “greenwashing” through selective reporting.

• ‘Zero Emissions with Climate

Actions’ aimed at helping customers reduce their emissions across the enterprise by enabling measurement, tracking and reporting on emissions.

How can SAP sustainability solutions help?

• ‘Zero Waste with Circular

SAP offers tools and guidance on building an effective sustainability strategy and the ability to record, report and act on sustainability goals.

• ‘Zero Inequality with Social

SAP has a 3-Zero approach for sustainability impact:

Economy’ by using the circular economy to reduce waste by re-using, recycling and reducing environment impact. Responsibility’ to address social responsibility to ensure compliance and social equality.

While cost is still a primary consideration, social responsibility and the ability to contribute to a better future is becoming more influential. Organisations will need to establish a clear, defined Sustainability Action plan beyond carbon emissions to ensure future growth.

READ MORE mckinsey.com

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FEATURE MOST INFLUENTIAL PEOPLE

TOP

MOST INFLUENTIAL PEOPLE IN ANZ SAP ECOSYSTEM

ANZSAP is honoured to present the top 10 most influential people in the ANZ SAP ecosystem, as nominated by you. Over the last six months ANZSAP, in association with Sapture, has been asking for your nominations to help identify the most influential people working in the ANZ SAP ecosystem. We had many inspiring individuals nominated, those featured in our top 10 have been selected due to the greatest number of votes overall.

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FINALIST

MURALI SHANMUGHAM TITLE: SAP CUSTOMER SUCCESS MANAGER COMPANY: SAP ANZ BIOGRAPHY Murali has 15 years+ experience working with various SAP solutions. An active member of the SAP community, his voters describe how he ‘works tirelessly to promote SAP BTP within ANZ’ and his huge ‘efforts to mentor and solve problems for the SAP community’. He’s passionate about cloud topics and helps his customers to realise and re-imagine their business processes with emerging technologies, solving key business challenges. His willingness to share his expertise with others highlighting his influence in the SAP ANZ ecosystem.

Murali takes a lot of effort to mentor and solve problems in the SAP community with his expert advice to make a greater impact for his partners.’’

FINALIST

SCOTT NELSON TITLE: SENIOR SOLUTION SPECIALIST COMPANY: SAP BIOGRAPHY Scott started his software career at 19, having overcome academic challenges. His passion for tech, innovation, collaboration, and people is evident from his nominations. Scott founded Emerging Talent ANZ (ETANZ) fostering young talent within SAP and his nominators all highlighted his impressive dedication to talent development, selflessness and focus on giving back, stating ‘Scott always steps up to help his community’. It’s clear that Scott has a strong influence, not only within SAP Australia, but also within the wider SAP ANZ ecosystem.

FINALIST

PHIL COOLEY Scott has such an important role in SAP Customer Experience - across the most dynamic component of SAP’s portfolio. In a rapidly changing and highly competitive area of cloud, Scott’s role as Senior Solutions Consultant to mid market and growth markets means he’s helping his customers to find ways they can execute their strategic roadmaps for the next 5 years driving profitable revenue and brand reputation at the same time.’’

TITLE: CHIEF TECHNOLOGY OFFICER / PRINCIPAL SOLUTION ARCHITECT COMPANY: BOURNE DIGITAL BIOGRAPHY Phil’s been involved in numerous high impact SAP projects focused on UX, BTP and mobility. Part of the SAP AppHause Network and very active within the wider SAP community, he’s known for hosting events and meetups, ‘spreading the knowledge’ and a strong commitment to bringing people together. Phil’s nominators describe him as an ‘ANZ SAP champion and blogger’, someone who has obvious influence within the ANZ SAP Ecosystem.

Phil continually pushes to get together the community of developers and technologists in ANZ, hosting meet ups and sharing knowledge. With this work at Bourne he has been involved in numerous high impact SAP projects focused on UX, BTP and mobility for large Australian customers.’’

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FEATURE MOST INFLUENTIAL PEOPLE

FINALIST

M U S TA FA B E N S A N TITLE: FOUNDER & CHIEF ARCHITECT COMPANY: INTENTUM BIOGRAPHY At Intentum, Mustafa aids clients in achieving enterprise goals through SAP BTP and cloud technologies. He’s an esteemed SAP Community member and SAP Champion for his collaboration, contribution and objective thought leadership on topical innovations and best practices for SAP BTP. His nominators describe him as ‘inspiring’, passionate’ and ‘innovative’. They praise his knowledge of SAP technologies, solutions and implementations, and passion for inspiring the next generation. An inspirational thought leader with his influence within the ANZ SAP ecosystem evident.

Mustafa is a thought leader, active community contributor, and passionate in helping others/ organisations understand and unlock potential business value by way of innovating through the SAP BTP. In his personal time, Mustafa is also passionate about inspiring the next generation of technologists who are early in their career.’’

FINALIST

T R AV I S S M I T H TITLE: SAP DOMAIN ARCHITECT COMPANY: SA POWER NETWORKS BIOGRAPHY Travis has extensive experience in leading transformational business outcomes leveraging SAP technologies across his 20-year career including 15 years in the utilities industry. Everyone who nominated him mentioned his passion, expertise, and ability to inspire, also highlighting his significant and impressive achievements within the utilities space. A committee member for the SAP Australia User Group, Travis is described as a ‘thought leader in the SAP space’ and is clearly an active and influential member of the ANZ SAP ecosystem.

Travis has shown exceptional leadership across the SAP domain within SA Power Networks. Travis is a rare individual who can balance technical advancement, change management, business requirements and collaboration across teams. In addition to his role at SA Power Networks, Travis is an active member of the SAP community in SA and Australia, and this leadership further complements his role as one of the most influential in ANZ.’’

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FINALIST

J U D I T H CA B A L L TITLE: PORTFOLIO ARCHITECT COMPANY: NEWCREST MINING BIOGRAPHY Judith has been credited by those that nominated her as having inspired them in their own careers and being a major factor in the success of large transformational projects. She's also praised for her wealth of knowledge, experience, network reach and process in implementing solutions. Nominators highlighted just how well-known and respected Judith is by many people underlining her position of influence within the ANZ SAP ecosystem.

I worked with Judith on two transformational programs at SA Power Networks. She was a major cog in the success of the projects. Across my SAP career, I have never come across someone with the wealth of knowledge, experience, network reach and appetite for the process being the centre of any solutioning. I personally learned a great deal in my own development working with Judith over several years. You don’t bump into too many resources in the SAP community that not only don’t know Judith, but also who don’t have positive things to say.’’

FINALIST

JA S O N N I C H O L L TITLE: EXECUTIVE VICE PRESIDENT COMPANY: LEMONGRASS CONSULTING BIOGRAPHY Jason is described as ‘one of the most thoughtful and innovative leaders on SAP on Cloud’ ‘a true professional’ and ‘customer-obsessed’ by those that nominated him. His 25 years+ SAP experience includes several key leadership roles including General Manager and Sales Director for SAP Australia and General Manager at NTT Data Business Solutions. His nominators praise his pivotal role in enhancing adoption and implementation of SAP on Cloud solutions within ANZ, highlighting his influence within the SAP ecosystem.

Jason is one of the most thoughtful and innovative leaders in SAP on Cloud. He manages the ANZ and greater APAC Lemongrass team with ease and grace. Clients and teams both love working with him.’’

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FEATURE MOST INFLUENTIAL PEOPLE

FINALIST

D O N N A L L E W E L LY N TITLE: ACCOUNT EXECUTIVE COMPANY: SAP BIOGRAPHY Donna’s a lifetime SAP champion and influencer described as a ‘true individual…bringing all the best values into the workforce’ and ‘a beautiful human being’ by those that nominated her. Her tenure at SAP means there are few companies that haven’t had Donna onsite in some capacity to share her extensive SAP knowledge and experience and she is praised for her expertise, kindness, passion, and integrity. 29 years working directly for SAP in Melbourne provides her with vast reach and obvious influence across the ANZ SAP ecosystem.

Donna has been at SAP for nearly 30 years her experience, personality, and expertise are unmatched. Donna is a mover and shaker; she gets stuff done and makes the SAP business in Australia what it is today.’’

FINALIST

ANDREI VISHNEVSKY TITLE: ADVISOR SOLUTION ARCHITECT COMPANY: DXC TECHNOLOGY BIOGRAPHY With a career spanning multiple countries and industries, Andrei has focused on SAP cloud solutions in Australia for 7 years. With his nominators naming him ‘the face of SAP CX in this region’, ‘the most knowledgeable person on SAP in ANZ’ and ‘one of the best technical architects’ Andrei’s expertise in SAP products is evident. He is also praised for his dedication to continuous learning, adaptability, and a willingness to guide others. An active member of the SAP community, he is highly respected as a thought leader and has clear influence within the ANZ SAP ecosystem.

Andrei is not only one of the best technical architects i know within the SAP space, but he is also always on top of new SAP products, hands-on. He also has a great resume when it comes to delivering SAP products that add to the SAP space. Most recently he was also the solution architect which was the runner up in the CX category.’’

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Whilst our finalists had the most votes, we’d also like to recognize everyone else nominated for their significant impact within the SAP ANZ ecosystem? ALEX ANDRENACCI Senior Director Program Management, NCS Group ANN FARRANT Head of Preferred Success, SAP ANTHONY SPENCER Enterprise Solution Architect, Fletcher Building BRADLEY KRAHE Principal Consultant, Global HXM Services Business Partner Manage Payroll, SAP SuccessFactors BRADLEY BURT Partner, PwC CHARLOTTE CURTIS Managing Director, Accenture CHRIS PECK Head of Cloud Success Services ANZ, SAP CHRIS ELLIS Executive Director, Telstra CHRIS RAE Founder and Chief Architect, DalRae Solutions DEEKSHA SONI SAP Security and GRC Consultant, ManpowerGroup ENEKO BILBAO Principal Solution Architect, SAP Modernisation, Amazon Web Services GLYNN WILLIAMS Chief Architect and Managing Director, Emphasys HANNAH HALE Global Marketing Leader, Rizing HASSO PLATTNER Owner of SAP, SAP JANNINE RESTON Director Partner Edge Program, SAP JENNY MOYLE SAP Delivery Executive, Independent JOHN SCHULTZ PARTNER, KPMG JONATHON FOGARTY Industry Advisor, SAP JUDITH O’CALLAGHAN Account Director, Lemongrass

KAREN ZWISSLER CEO, SAP Australian User Group LORRAINE LEE Director of Strategic Initiatives, Global SAP Training and Adoption, SAP MARISSA SHIPLEY CEO and Founder, Cerpass Software MARK BEVERIDGE S/4HANA Finance Consultant, Qld Government MARK ECKERMANN SAP Enable Now Expert, Australian Government MICHAEL CRAWLEY Customer Engagement Success, SAP MIKE VORIAS Regional Sr Director & Lead Office of the CFO Solutions, SAP MIKE DOYLE S/4HANA Consultant and Developer, McGrathNicol MIKE LAANEN SAP on Cloud Architect, Lemongrass NICHOLAS TAYLOR Sr. Specialist Customer Success Partner, Customer Experience, SAP NICHOLAS NICOLOUDIS SAP Global Head of Innovation, PwC PAT MCGUIRE Principal Director, KPMG PAUL GRAHAM Senior Service Delivery Manager, SAP PETE ANDREW Head of Industries, SAP PRATAP BODICHERLA Senior SAP Consultant, SAP RICHARD FRYKBERG CEO, IQX Business Solutions SHANE LLOYD Lead Consultant SAP Analytics Cloud, Zespri SHIRAZ HASEEB SAP Data Management Lead, ALDI Stores Australia WENDY BOWIE Financial Systems Manager, Contact Energy

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FEATURE MOST INFLUENTIAL PEOPLE

MAGAZINE

WINNER JACKIE ELIAS MOST INFLUENTIAL

An inspiring leader: showcasing remarkable knowledge, diligence, commitment, and approachability.’’

ANZSAP ISSUE 01

TOP

JAC K I E E L I A S BIOGRAPHY Jackie, a global professional known for delivering large-scale business and IT transformations, received the greatest number of nominations in our quest to find the most influential in the ANZ SAP ecosystem. Those that nominated her praised her expertise, professionalism, ‘encyclopaedic knowledge’, leadership skills and impressive delivery abilities. Also described as ‘kind and compassionate’, having ‘empathy, courage, kindness and compassion’ and as ‘connecting on such a deep level with all who work for her’ Jackie’s influence within the ANZ SAP ecosystem is clearly evident.

Jackie has a proven track record of building and managing large teams of SAP professionals to deliver greenfield and transformation SAP projects across many industries. She has the ability to operate in both the Management and Functional/ Technical spaces to ensure the best outcomes are achieved for the clients she works with. A truly inspirational leader!.’’

Jackie is an absolute professional and exhibits exceptional leadership, engagement and delivery skills successfully, but importantly with great humour and team success driving her core. A pleasure to work with.’’

When a >AUD$300M project was at risk of being derailed by up to 12 months, the PMO Queen was brought in and sorted it all out. Result = on time (x3 go-lives) and on agreed budget.’’

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VOICES SAP TRANSITIONS

NAVIGATING FORWARD: INSPIRING COMPANIES TO EMBRACE THE TRANSITION FROM SAP BPC TO SAP ANALYTICS CLOUD In this blog post Shane Lloyd, SAP BW, BPC, SAC Architect, shares some of the insights, experiences and realworld lessons learned during his 15-year journey supporting businesses during their transitions from SAP BPC to SAP Analytics Cloud (SAC). Shane Lloyd

n the world of the rapidly evolving SAP ecosystem, transitions pinpoint crucial points in transformation projects. I’ve spent more than 15 years immersed in the SAP BW, S/4HANA, BPC, and SAC worlds, so I’m not just a consultant; I’m a professional explorer navigating the always evolving financial planning and analytics field. Over the course of this journey, my experience has evolved, and I now understand how crucial it is to support businesses as they successfully transition from SAP BPC to SAP Analytics Cloud (SAC). Together, let’s embark on this transforming journey as I share strategic insights, past experiences, and valuable lessons. In my role as an SAP Consultant, I’ve witnessed the profound impact of technology transitions first-hand. One memorable project comes to mind, where I guided a substantial manufacturing enterprise through the transition from SAP BPC to SAC. Our initial steps were like meticulously mapping a trail – assessing and cleansing data to ensure a seamless migration to SAC. Challenges inevitably cropped up, but they highlighted

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the paramount importance of establishing a robust data governance framework. This not only safeguarded the integrity of the migrated data but also set the course for sustained data quality. Another exciting adventure involved steering a retail giant through its migration journey. Here, the focus shifted to navigating the human side of change. With SAP BPC deeply ingrained, users were understandably apprehensive about the transition to SAC. Our solution? Empowerment through education. Through tailored training sessions and personalised guidance, we illuminated the path forward and kindled excitement for the new system. This experience affirmed the pivotal role of effective communication and proactive change management in making the journey smoother. My journey has also led me to the financial sector, where an SAP BPC to SAC transition presented itself. Here, the emphasis shifted toward aligning processes with newfound capabilities. As we reimagined workflows, collaboration across teams emerged as a key compass

It’s never been easier to test SAP value use cases while the BAU landscape or large SAP projects continue in their workstreams.’’

point. By involving stakeholders across departments, we not only streamlined processes but also empowered more informed decision-making. This reinforced the notion that the transition is not just a technical change, but an opportunity to refine and optimise processes. In the midst of these transformative moments, challenges were met head-on. The complexity of data migration underscored the need for meticulous planning, while resistance to change reinforced the significance of fostering a supportive environment for users. Striking the right balance between customisation and adhering to best practices became the compass in uncharted territory.

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TECHNOLOGY BLOCKCHAIN

A New Era in Enterprise Technology

BLOCKCHAIN POWERED SAP SOLUTIONS

What is blockchain? How can it add value to your business? In this article, Surendhar Sooriyakumar, Certified SAP Finance & blockchain Consultant. answers any questions you may have about blockchain and also explains how it can be used alongside SAP to transform the automation, efficiency and security of data processes.

ANZSAP ISSUE 01

Surendhar Sooriyakumar,

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ABOUT BLOCKCHAIN

What is blockchain? Before we look at blockchain, let’s first make it clear what it is not: blockchain is not Bitcoin! Blockchain is a technology that allows the storing of a digital ledger of transactions that is maintained by a network of computers (distributed) rather than a single entity. Every time data is generated using any software that uses this technology, it is written to a block and added to a chain of blocks in a given sequence which cannot be altered, hence the term blockchain (see figure 1). Figure 1

Hash: 8M2Q Previous Hash: 000

Hash: 3Y6E Previous Hash: 8M2Q

Hash: 7B3R Previous Hash: 3Y6E

What’s the big deal about blockchain? Blockchain’s potential lies in its ability to establish an internet where all information is unassailably accurate and trustworthy. In an era marred by misinformation, blockchain offers a beacon of trust and transparency, promising a future where digital content becomes an unwavering source of verified truth. This isn’t just an evolution; it’s a pivotal moment that could propel us into an age of unparalleled authenticity.

What are the foundational values of blockchain? • Transparency & Accessibility

The right to information about a system.

• Agency & Interoperability

The right for participants to own and manage their data.

• Privacy & Security

The right to data protection.

• Accountability & Governance

The right for participants to understand available recourse.

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TECHNOLOGY BLOCKCHAIN

BUSINESS BENEFITS OF BLOCKCHAIN

What are the key business values that blockchain can deliver?

IMMUTABILITY

TRANSPARENCY

EFFICIENCY

TRACEABILITY

SECURITY

Data once stored cannot be modified or altered

Offers transparency so that businesses can track every system detail

Enables businesses to carry out operations efficiently

Offers all-time traceability that prevents fraudulent activities

Utilises high-level cryptography algorithms and methods

What are the benefits of integrating blockchain with SAP? As a powerful ERP software solution that enables organisations to manage their business operations more efficiently, SAP, when used with blockchain, creates a powerful combination. This combination can bring significant value to existing enterprise solutions and become a game changer for SAP enterprises. It can be leveraged to improve various business processes within supply chain management, procurement, and finance, including:

blockchain with SAP, we can look at a hypothetical example. Imagine a company that manufactures and sells luxury watches. Using blockchain with SAP, the company can track the movement of each watch from the point of production to the point of sale. This can provide customers with a transparent and verifiable record of the origin and authenticity of each watch, which can increase customer trust and satisfaction. Additionally, the company can use blockchain with SAP to automate the tracking of each watch, reducing the time and costs associated with manual record-keeping. Now expand this to any product or service your company sells.

• Automating transactions with multiple parties

across the business ecosystem in a completely secure manner

• Fighting hacking with the immutability of ledger • Streamlining financial transactions with high efficiency removing middleman latency

• Increasing security, with a shift to a decentralised network

• To reduce the burden of paperwork and

counterfeit face identities and documentation

• Buying and selling without paying any

commission to third parties, through using smart contracts

To illustrate the potential benefits of using

Blockchain is a technology that allows the storing of a digital ledger of transactions that is maintained by a network of computers (distributed) rather than a single entity.’’ ANZSAP ISSUE 01 53

TECHNOLOGY BLOCKCHAIN

BLOCKCHAIN USE CASES

What are some enterprise blockchain use cases? • Supply Chain Management

Blockchain technology can be used to create a secure and transparent supply chain management system.

• Banking and Finance

Blockchain can be used to facilitate faster, cheaper, and more secure payment and settlement transactions, particularly across borders.

• Healthcare

The technology can be used to store medical records, insurance claims, and other sensitive information in a secure and tamper-proof manner.

• Insurance

Blockchain can also be used to create smart contracts that automatically execute based on predetermined conditions, such as weather events or flight delays.

• Intellectual Property Management

The technology can be used to securely manage and track ownership of intellectual property, such as patents, copyrights, and trademarks.

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Blockchain can also be used to create smart contracts that automatically execute based on predetermined conditions, such as weather events or flight delays.’’

Examples of Blockchain Use Cases CONSUMER

ENERGY

FINANCIAL INSTITUTIONS

HEALTHCARE

Goods providence Sustainable sourcing

P2P market places Energy grids on the consumer level

Verified financing Trade or credit financing

Payments and micro payments Consumption based pricing

Energy provenance Green energy certificates

Tokenisation of physical assets Fractionalised asset trading

Secure data, exchange and management Clinical or patient data exchange

Process automation Loyalty program platforms

Payments and micro payments Instant trade settlements

Payment automation Interbank, cross-border payments

Goods providence Counterfeit in drug supply chain

INDUSTRIAL GOODS

INSURANCE

PUBLIC SECTOR

ID and credential verification Electronic health records

TECHNOLOGY, MEDIA & TELECOMMS

E2E status tracking Real-time cross-border trade

Process automation Cleans processing and settlement

Compliance and auditing. Secure government records

P2P marketplaces Grid computing

Process automation Transfer of copyright or IP

Secure data exchange and management Confidential KYC data exchange

ID and credential verification. Secure voting systems

Payments and micro payments Usage-based payment systems

P2P market places Markets for used cars or machinery

ID credential verification Fraud detection

Process automation Tax collection and reporting

ID and credential verification Subscriber authentication

Linear growth use-cases

Network effect use-cases

Mixed growth use-cases

Text in red = examples

Note: the use cases are listed in order of rank, with the highest ranked use case on the top, and the lowest ranked use case on the bottom. The ranking is a general assessment only; the value of each use case is subject to individual context. E2E= exchange to exchange; IP= intellectual property; KYC = know your consumer; Source: BCG analysis P2P peer to peer Source: BCG analysis Note: the use cases are listed in order of rank, with the highest ranked use case on the top, and the lowest ranked use case on the bottom. The ranking is a general assessment only; the value of each use case is subject to individual context. E2E= exchange to exchange; IP= intellectual property; KYC = know your consumer; P2P peer to peer

• Digital Identity Management

Blockchain can help prevent identity theft and fraud, and also enable new business models based on verified identities.

• Real Estate

Blockchain can be used to streamline and automate the process of buying, selling, and transferring property titles, reducing the risk of fraud and errors.

• Energy

The technology can be used to track energy generation, consumption, and distribution in a transparent and secure manner.

• Data Sharing and Collaboration

Blockchain can enable secure and decentralised data sharing and collaboration among multiple parties, while maintaining privacy and confidentiality.

Blockchain can enable secure and decentralised data sharing and collaboration among multiple parties, while maintaining privacy and confidentiality.’’ ANZSAP ISSUE 01 55

TECHNOLOGY BLOCKCHAIN

IMPLEMENTING BLOCKCHAIN

ledger that is not publicly accessible. It can only be accessed by users with permissions. Enterprises prefer this.

How to determine if blockchain is the right technology for you

• Public Blockchain

To determine if blockchain is the right technology for you there is a clear decision path to be followed. As highlighted in Figure 2 (below) there are several sequential questions that you should ask, each of which will take you down a different decision path, with the final question the deciding factor about which type of blockchain should be adopted: permissioned or public.

Note: There are other types of blockchain as well, however as a primer article, we will not delve into that in here. To check out more ways to determine 'whether you need blockchain'?, refer to:

Public blockchains allow participation by anyone who wishes to use the blockchain and can be used in any use case across any type of business.

• Permissioned Blockchain

/IMSSUREN

linkedin.com

A permissioned blockchain is a distributed

Blockchain decision path Figure 2: Blockchain decision path

Need for a shared common database?

1 YES

There are several sequential questions that you should ask, each of which will take you down a different decision path, with the final question the deciding factor about which type of blockchain should be adopted: permissioned or public.

Multiple parties involved?

2 YES

Parties involved have conflicting incentives and/or are not trusted?

3 YES

Rules governing participants are not uniform?

Blockchain is not required

4 YES

Need an objective, immutable log?

5 YES

Rules of transactions do not change frequently?

6 YES

Are transactions public?

YES Public Blockchain

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Permissioned Blockchain

To implement blockchain in SAP, it’s important to follow a clear and structured approach.’ How do I go about implementing blockchain?

1 Identify the Business Use Case

The first step in building a blockchain solution in SAP is to identify the business problem that needs to be solved with blockchain. Identify the areas of the business that could benefit from its application. This could include supply chain management, procurement, finance, or any other area where there is a need for a secure and transparent system for recording transactions.

Choose the Right Blockchain Platform

The next step is to choose the right blockchain platform. It’s important to evaluate each platform to determine which is the best fit for the company’s needs. There are several blockchain platforms available, including Ethereum, Hyperledger Fabric, and Corda. Each platform has its strengths and weaknesses, so it’s important to evaluate each one to determine which is the best fit for the company’s needs.

3 Define the Scope of the Project

Define the scope of the project. This includes identifying the stakeholders, determining the data that will be stored on the blockchain, and outlining the key features of the solution.

4 Design the Architecture

This includes determining the blockchain architecture that will need to be in place, as well as the data structures and protocols that will be used to ensure the security and integrity of the data.

5 Develop Smart Contracts

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. They can be used to automate various business processes and can be integrated into the blockchain solution.

6 Integrate with SAP Systems

The blockchain solution needs to be integrated with existing SAP systems. This may require custom modules or third-party modules that are compatible with the chosen blockchain platform.

7 Test and Train

Test the solution for security, performance, and scalability, as well as ensuring that it works as expected in real-world scenarios. It’s essential to train employees on the new system and ensure that they understand how to use it effectively.

8 Deploy

The final step is to deploy the project, which includes the installation, configuration, and deployment of the blockchain solution. It is essential to ensure that the project is deployed in a secure and scalable environment.

Summary

In summary when implementing blockchain in SAP, to implement blockchain in SAP, it’s important to follow a clear and structured approach. By following the above steps, SAP professionals can build effective and secure blockchain solutions that meet the specific needs of their organisations.

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TECHNOLOGY BLOCKCHAIN

Conclusion

According to a research report by Deep Analysis, it was forecast that the total market for enterprise blockchain technology sales would grow from US$2.9 billion in 2019 to US$13.2 billion in 2024.*

Blockchain’s ability to revolutionise critical business processes such as supply chain management, financial transactions, and data sharing is evident. However, it is crucial to acknowledge that blockchain technology is still in its early stages, facing various challenges that demand attention.

Figure 3: Figure X Enterprise blockchain market growth, 2019-2024 Enterprise Blockchain market growth, 2019-2024 14

12.1

7.8

5.6

6 4

13.2

10.2

10 US$ Billions

Future of blockchain

2.9

2 0

2019

2020

2021

2022

2023

2024

A report by Fortune Business Insights in May 2023, valued the global blockchain technology market at US$11.14 billion in 2022 and projected it would reach US$469.49 billion in 2030.

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The adoption of blockchain technology necessitates substantial investment in terms of time, resources, and expertise. To successfully integrate blockchain within the SAP ecosystem, a collaborative effort from all stakeholders is paramount. By joining forces, enterprises can unlock the true transformative power of blockchain technology, paving the way for a more secure, transparent, and efficient business environment. As we embark on this journey, it is crucial to remain vigilant, adaptable, and proactive, allowing blockchain to mature and evolve alongside SAP, helping to foster technological innovation and drive sustainable growth.

LEARN MORE ABOUT BLOCKCHAIN There is a growing library of information which can help you understand more about blockchain and the benefits of using it within business. These include:

A few enterprise solutions being explored currently include: · JPMorgan: Bank transfers · Walmart: Product tracking · Volkswagen Financial Services: Digital vehicle logbook · British Airways: Blockchain monitoring system · UPS Blockchain: Logistics system · MediLedger: Medicine · Alibaba: Tracking luxury goods · HSBC: Decentralized vault platform · Tencent: Blockchain for legal billing and taxation · BP, Statoil, and Shell: Oil industry · Facebook: Blockchain for digital payments · Walt Disney: Blockchain to track inventories · Samsung: Blockchain for supply chain management · Apple: Blockchain to timestamp data · Save the children: Non-profit

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TECHNOLOGY AI

HOW TO PREPARE YOUR BUSINEES FOR AI by Dr Kim Oosthuizen

Dr. Kim Oosthuizen, Innovation Principal: Customer Transformation Advisor, SAP ANZ, discusses why, despite the low rates amongst Australian businesses, AI adoption is no longer a choice. She urges organisations to assess their readiness and shares her insights on the steps to take to do so.

Dr. Kim Oosthuizen

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ADOPTING AI IS NOT A CHOICE ANYMORE.’’

n the realm of technological advancements, the launch of Large Language Models (LLMs) and their ability to stimulate human-like conversations, underpinned by AI, has sparked a wave of excitement among business leaders and what it can do for their business. From using machine learning to keep store shelves stocked with groceries and computer vision to detect defects on the manufacturing line to using chatbots to answer queries about online orders, different forms of AI can be used to reduce products and service costs, automate routine manual tasks, and personalise customer interactions. While many leaders are excited about the operational efficiencies enabled by AI, recent news headlines have created a level of panic about what this may mean for people’s jobs. AI isn’t here to take people’s jobs. Instead, AI will be a co-pilot or co-worker that can help people get their work done faster and drive better

business outcomes. At SAP, we recently launched Joule, a naturallanguage, generative AI co-pilot that can contextualise data from multiple systems to surface smarter insights, streamline tasks, and facilitate faster decisionmaking without bottlenecks. While businesses have much to benefit from AI, adoption still needs to be considered low, with around 70% of Australian organisations yet to succeed in digitally transforming and around 60%-80% of Australian organisations failing to reach scale. Adopting AI is not a choice anymore. It is a business imperative, and modernised businesses must incorporate AI into their operations. However, integrating AI into processes requires a holistic organisational view and is a business change management activity. The following steps highlight how businesses can assess their organisational readiness for AI:

Assess internal capability and readiness To implement AI successfully, businesses require employees with the capability to work with AI, implement AI and have a basic understanding of what it is. AI is shifting the nature of work from manual to focus on more specialised tasks. To assess your team’s readiness, consider these questions.

• Do most of our leaders

understand what AI is and how it can benefit our company?

• Are we comfortable with AI

performing specific tasks in our organisation?

• Have we provided AI training for our people?

• Are we already using data to drive our decisions?

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TECHNOLOGY AI

• Do we have in-house

expertise to build, deploy and manage AI?

If you can answer yes to these questions, then your team and business is AI-ready. If not, you need to prioritise upskilling employees in AI fundamentals. Evaluating your talent pool and identifying necessary skills for AI in business is crucial as AI reshapes the way we work.

Review management practices and ways of working To successfully modernise business operations with AI, it’s crucial to strategically integrate it throughout the business, rather than isolating it in specific areas or using it for one-off projects. This ensures AI complements human efforts within the business, reducing the risk of project failure. To assess your way of working readiness, consider the following questions.

• Do we have a clearly defined AI strategy in place?

• Are we open to changing and

adapting our way of working?

• Do we have AI human

change management practices in place?

• Are we communicating the

purpose of using AI and how we manage responsible AI practices?

If uncertain about these questions, prioritise defining AI’s meaning, problem-solving potential, and business opportunities for your business.

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By defining an AI strategy, you can identify the goals you want to achieve and develop a roadmap for AI adoption and upskilling requirements.

Organise data management Optimal AI operation needs data, processing power, and secure accessibility. Maintaining high-quality data is crucial for AI accuracy. Companies should

evaluate their data management for quality, availability, and accessibility. To determine data management readiness, consider the following questions.

• Can we access most of our data centrally?

• Are we storing essential data generated by our company?

• Do we have data privacy and security practices in place to manage sensitive data?

• Do we have procedures in place to label, store, save and protect our data?

Maintaining well-structured, relevant, high-quality data is vital for AI. Organisations combining generative AI and traditional AI can pioneer new strategies in managing unstructured text and structured data, opening exciting innovations and insights from data.

How to select the best use case for AI AI enhances value creation, productivity, and task simplification for organisations. To maximise AI benefits, identify areas where AI can bring the most value, such as customer service, supply chain management, or marketing. To streamline tasks using AI, consider the following questions.

• Are we aware of highly

repetitive manual tasks across our organisation?

• Do we understand what

problems we need to solve with AI?

• Are we willing to change the

UNDERSTANDING YOUR ORGANISATIONAL AI READINESS IS CRUCIAL TO SUCCESSFULLY IMPLEMENTING THE TECHNOLOGY, MITIGATING RISKS, AND SCALING IT ACROSS YOUR BUSINESS.’’

way we work to incorporate AI?

Identify cases where AI can add substantial value to your organisation. If new to AI, consider areas for automation, decision support, customer experience enhancement, or operational efficiency. Understanding your organisational AI readiness is crucial to successfully implementing the technology, mitigating risks, and scaling it across your business.

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FEATURE SAP BUSINESS CASE

ANZSAP ISSUE 01

BUILDING

A STRATEGIC SAP BUSINESS CASE In this feature article, Jenny Moyle, SAP Delivery Executive, underlines the importance of a robust SAP business case to project success. She reveals five key areas to pay attention to, outside of the technical components of a project, to ensure optimal results.

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FEATURE SAP BUSINESS CASE

Jenny Moyle, SAP Delivery Executive

hen embarking on an SAP project, from greenfield through to an upgrade, being clear on the strategic direction helps everyone involved.

The traditional cost/benefit analysis and Systems Integrator (SI) selection is crucial. However, there are other areas to invest in at this early stage to set the foundations for success, and to ensure there is a wider business lens from the beginning.

Developing a business case is the perfect opportunity to articulate the strategic direction and establish the approach for ways of working.

It is a given that an SAP project has a large technology component. The most successful projects I have worked on also make sure

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the governance and project management processes are solid, stakeholder expectations are constantly managed, and that business representation and engagement is at an optimal level. In this article I will outline each area in more depth, looking at key considerations and demonstrating why they are so important to project success.

The five areas to pay attention to early, to ensure clarity and to set expectations are:

Governance fundamentals Business involvement and stakeholder engagement Systems Integrator strategic approach Client-side resourcing

5 Project Management

Office principles

Governance fundamentals Governance can be the make or break of a project. In most cases the frameworks are similar. What differentiates great governance is the way it is implemented. Ensuring governance participants are clear on roles and responsibilities from the outset and revisiting this as the project evolves, gives people clarity on what they are expected to do, and just as importantly, what they cannot do. The stakeholder engagement is equally as important as the process

– people need to understand their role and be empowered to play their part. Key governance considerations

• Have the high-level framework

developed for the business case and have key stakeholders across it at this point.

• Ensure the framework has

enough detail on change control, decision authority, forums, roles, responsibilities, and escalations.

• Clearly define roles and

responsibilities and communicate them to participants as early in the project start as possible.

THE KEY MESSAGE HERE IS – IT IS NOT A SURPRISE, AND IT CAN BE PLANNED IN ADVANCE.’’

• Set up the PMO to manage

the governance framework and to empower stakeholders by spending the time on meaningful communication, including upcoming expectations in line with their role.

Business involvement and stakeholder engagement Many projects underestimate the amount of business involvement required. This includes time from execs, managers, subject matter experts, through to businesspeople running test cases and attending training. In most cases, the time required from businesspeople to contribute to the project over its lifecycle is significant. However, it’s not unexpected. This is standard procedure. They will be required at all levels

– execs to make decisions in the Steering Committee, managers of business areas that are going to drastically change will need to be involved, businesspeople acting as full-time subject matter experts are some examples. The key message here is – it is not a surprise, and it can be planned in advance. It’s crucial that this is managed proactively, including:

• Be clear on business involvement

at the start. The exact hours don’t matter, a high level heatmap can be developed outlining who, what, when. This can be further detailed in project kick-off. The more warning the business can have on resource impact, the more that can be planned and budgeted.

• Business case is the time to

do this high-level work so the business can plan, and the cost can be included accordingly. This is not all for the Systems

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FEATURE SAP BUSINESS CASE

Integrator to provide – the Project Director, Manager and Change Manager have the majority input here.

• Finding the balance of business

input can be tricky. Too little, and there can be rework or unmet business objectives. Too much and governance can be strained, and people’s time wasted (workshops with over 20 people must be an exception). Thinking this through early and setting expectations pays dividends throughout the project.

Systems integrator – a strategic approach The selection of your Systems Integrator (SI) is a critical step. How you go to market, and how you set expectations of this relationship from the start sets the tone for project behaviours to come. Two areas deserving a high priority as part of the selection process are the SI’s ability to be a partner, and the cultural fit of the SI. These two elements are behaviour focused for a reason. Sure, your SI needs to be technically capable, that’s their bread and butter, and will be proven through the selection process. What you want to dig deeper into is how they behave – you will be working together very closely, and your business will have constant touchpoints throughout. The successful implementations I have experienced have both parties invested in building a partnership – this sets the tone for the project culture and business interactions. Shared goals and values help to foster collaboration throughout the

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Figure 1 Project team resources (full-time)

Business resources (part-time)

Project Director

Steering Committee members

Project Manager

Business Process Owners

Solution Architect

Business Data Owners

Subject Matter Experts

Deliverable reviewers

Technical Lead

Data cleansing resources

Change Manager

User Acceptance Testing resources

PMO Lead

Training attendees

Business Analysts

IT Support model resourcing

DEVELOPING A BUSINESS CASE IS THE PERFECT OPPORTUNITY TO ARTICULATE THE STRATEGIC DIRECTION AND ESTABLISH THE APPROACH FOR WAYS OF WORKING.”

• Communication and governance

project, which in turn delivers the best business outcomes.

Project team and business resourcing is often underestimated and not planned appropriately. For some examples of critical resources that can be planned early see ‘Figure 1’.

Partnership principles I have found useful:

• Set the ground rules early • Transparency and honesty at all times

• Shared goals – a one-team approach

• Bring solutions with problems • Collaboration is rewarded

frameworks support the Partnership

• Clear escalation paths that are

used when the team can’t resolve

• Teams structured to foster the right business outcomes

Client-side resourcing All projects encounter resourcing issues. The more successful projects perform resource forecasting from business case. Not only for the Systems Integrator resources, but for the project team and business resources required.

Investing in this planning early gives the ability to secure the best resources, for the business to backfill appropriately, and for budget expectations to be set. When the right team is in place, the project is bound to deliver the right business outcomes.

Project Management Office (PMO) principles Client side and SI PMO investment is a top priority before project kick-off. Getting core PMO processes established before the project starts gives the project team and the business a sense of confidence and clear direction. Developing the Project Management Plan early – which covers the below aspects – and ensuring the PMO is resourced appropriately to deliver, is going to build confidence in the project’s ability to deliver outcomes and manage stakeholders from day 1. The top priority considerations for a PMO that can empower people to deliver are:

• Be clear on the PMO strategy – I fully

endorse a PMO that empowers through clear processes, communication, and support to stakeholders.

• Frameworks to stand up first: − Governance framework − Deliverable management − Risk and issue management − Change management − Reporting • Clear roles and responsibilities aligned

with the governance framework, including associated resource heatmap to help manage resource expectations.

• Automation of PMO processes.

This will depend on many factors including software available and business policies, but it is an investment that will pay off in empowering the team.

• Stakeholder engagement. Start early

ensuring the project team, SI and business are clear on the PMO processes, taking the time to ensure people know what to do, when they are expected to do it, and how the PMO will support them.

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FEATURE SAP BUSINESS CASE

CASE STUDY My client in the electricity industry, was undertaking an SAP transformation and was having problems with project visibility and stakeholder buy in. I was brought into this S/4 program at the end of the design phase – with a brief to uplift the capability of the PMO. I undertook an analysis of:

• Governance • Project management processes • Stakeholder expectations • Engagement levels The analysis identified that specifically, there was a lack of visibility of project status. There was also a general feeling, amongst stakeholders, that the project wasn’t going well, but the reports didn’t reflect this and were somewhat confusing. In addition, key decisions were being made within the project that had large business implications. However, the business leaders felt that they weren’t being kept informed of these, having little notice, understanding or context before sign-off was requested. Understanding this, enabled prioritisation of the following areas to review and uplift as quickly as possible: a) The governance framework, including business stakeholders b) Project reporting

In conclusion, starting an SAP project on the right footing is vital for its success and building a strategic business case will ensure this happens. It’s a given that an SAP project is technical in nature, and that there will be system changes. Investing in broader aspects such as governance, business involvement and project management processes, from the business case phase helps to ensure clarity, set expectations, and improve the chances of a successful outcome.

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The governance framework was reviewed, refined and more detail was added. Meeting attendees were changed, and steps put in place to ensure:

• The relevant business stakeholders were involved appropriately through the journey.

• There was clarity on who was making which decisions, and that forums were tweaked accordingly.

The project reporting was redesigned through consultation with key stakeholders such as the Project Director, Project Manager, Project Sponsor, EPMO, and impacted business executives. Particular consideration was given to how to best articulate the high-level status of the project, the schedule, any risks or issues, decisions required and budget tracking. Prioritising these two elements in the PMO, before making any other changes, generated a huge improvement in meeting stakeholders’ expectations and improving engagement. This led the way in uplifting transparency and enabling informed decision making going forward. Whilst the challenges within this project were able to be overcome, building a strategic business case that incorporates these key considerations ensures clarity from the outset.

STARTING AN SAP PROJECT ON THE RIGHT FOOTING IS VITAL FOR ITS SUCCESS.”

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VOICES RECOVERING PROJECTS

From failure to triumph

HOW TO RECOVER

SAP

PROJECTS

Jackie Elias, Business Transformation Leader, Advisor, Consultant & Co-founder of the Project Consultants, uses her experience of recovering large SAP transformation projects, to give guidance on why projects fail and strategies on how to recover them successfully.

i, I’m Jackie, and I am one of the co-founders of a growing company that is positively disrupting the industry with its direct and robust approach to business. As an entrepreneur with over a decade of SAP experience, I have a deep understanding of the challenges and opportunities involved in recovering SAP business transformation projects. When I was asked to write an article about SAP, it wasn’t hard to land on a final topic. My recent engagements relate to recovering large SAP transformation projects which are notoriously known for being complex and challenging and require significant investment from an organisation. Any firm that underestimates the effort required to deliver this business uplift will have a difficult implementation, and burn money in the process. In this article, I want to share my insights on why SAP projects fail, give an overview on how to recover a failed SAP project and explore some strategies on how to recover projects rapidly and steady the ship over the lifecycle of the project.

ANZSAP ISSUE 01

Jackie Elias

Why do SAP projects fail? So, what are the main reasons for failed SAP projects? My key insights:

LACK OF LEADERSHIP AND BUSINESS OWNERSHIP

• All organisations should lead from the front and partner strongly with an experienced vendor, not delegate leadership and business process decisions to them.

• Focus on business

transformation, not a technology uplift – the Information Technology function should enable the implementation, not lead it.

• Business process owners

should be identified as part of the core team and should be structured cross-functionally to ensure key decisions are made collaboratively. Agree

formal owners of end-to-end flagship processes and agree shared objectives aligning them to business outcomes.

• Change management –

the business should lead and facilitate change impact and training discussions. The change plan is the most critical piece of work and supports the business readiness plan, enabling a smooth deployment.

• Include fully dedicated business

resources, in particular data subject matter experts who are backfilled. Data migration is your critical path – protect it at all costs and ensure resources are available to support the data validation activities.

• Strong sponsorship where robust conversations are invited, not rejected. This relationship is critical for both

To ensure the right boundaries are created for the project, guiding principles should be defined and agreed.’’ ANZSAP ISSUE 01 73

VOICES RECOVERING PROJECTS

the sponsor and the project manager. If necessary, leverage an independent advisor to coach and mentor the sponsor and project manager.

• Ensure commercials are aligned to business outcomes, not only deliverables.

POOR PROJECT PLANNING AND LACK OF FORMAL GUIDING PRINCIPLES

• To ensure the right boundaries

are created for the project, guiding principles should be defined and agreed with the project team and then reviewed and ratified by the Steering Committee.

• The most important part of a

recovery plan is to review the project schedule (assuming it exists) to determine the critical path impact and re-plan collectively. Planning in silos or in isolation will not get the buy-in from the project team; key members should be part of any planning workshops so they can better define the acceptance criteria. This includes all external parties, so they are bought into the revised plan.

LACK OF REGULAR CADENCE / OPERATION RHYTHM

• Regular, transparent

communication is required to monitor progress and impediments. This will create a ‘buzz’, excitement, and positive energy.

• Establish a daily sync whereby

progress and blockers are raised against the plan for resolution. Ensure a person is assigned to each task to make team members accountable for their deliverables.

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Your plan should outline the areas that led to the failures, and the timeline for remediation, including a clear communications plan that will keep your key stakeholders informed and up to date.’’

Recovering a Failed SAP Project The first 20-30 days are the most crucial. Completing an honest and transparent current state assessment of the project will validate what went wrong, what worked, and highlight the focus areas to change. Within this review, stakeholder feedback is imperative and will give you a deep understanding of the gaps. When the review is complete, the next step is to prepare a recovery plan. Your plan should outline the areas that led to the failures, and the timeline for remediation, including a clear communications plan that will keep your key stakeholders informed and up to date. Ensuring all stakeholders have bought into the plan is also key to its success. This includes the entire project team (internal and external), executives, and endusers. The recovery plan should focus on prioritising activities that have the most impact. Bringing these activities forward will de-risk the overall implementation and will enable the team to tackle the difficult items first. To maintain momentum, it is crucial to monitor and control the plan over the duration of the project and celebrate when the team meet critical milestones.

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VOICES RECOVERING PROJECTS

The First 20 Days! 3 Key Focus Areas: I would suggest focusing on three key areas over the first 20 days:

DIAGNOSE THE PROBLEM AREAS, DEFINE THE GUIDING PRINCIPLES AND BUILD THE REVISED PLAN

• Start with a diagnostic to

understand the current state. − How is the team structurally organised? − Is there a project plan? And are people following it? − How does work get allocated and prioritised? − What cadence exists? − How does the project utilise metrics to drive the plan?

• A diagnosis requires multiple

deep dive sessions with a select team, mainly business leads and other key leads across the project.

• Focus on pain points to

determine areas that have been challenging, before completing a re-planning exercise with the project leads.

• Outline key findings in a

proposal, with a clear view of the ways of working, impediments, and the guiding principles. Ensure the key players on the project have bought into the revised plan and socialise with the sponsor and key Steering Committee members before requesting final approval.

• Ensure the business lead and

project sponsor/s present the revised roadmap and objectives.

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MAINTAIN AND DELIVER THE REVISED PLAN!

• Once the project team have built

the plan and key stakeholders have accepted it, organise briefing sessions with leaders and teams. Work with the extended leadership team to understand their priorities and support the delivery of their commitments over the next 90 days. A regular look-ahead, led by the master scheduler, is critical for leads to manage their team’s workload.

• Conduct weekly alignment

sessions with project leadership and their extended team to monitor the progress and track any blockers. Ensure project leadership members own and resolve any blockers by including these in a KANBAN board.

• Adapt and learn – conduct a

pulse check after each milestone or sprint to maintain momentum and progress.

ENABLE THE TEAM, FOCUS ON A HIGH-FUNCTIONING, HIGH-PERFORMING CULTURE

• Take a top-down, bottom-up

approach to revising the plan. When this occurs, there is more organic buy-in that occurs at the team level and as a result, the team will feel engaged to drive the business outcomes.

• Create clarity on roles and

responsibilities, accountability, and measurable progress for all team members.

• Create a culture of continuous learning.

• Create a culture that calls out red items / blockers out loud.

• Incentivise the key players /

influencers that supported the recovery plan. These are your most important people on the project. They will remain focused, be adaptable, and collaborate effectively to bring the benefits to the organisation.

Saving a project can be overwhelming and demanding, but it is also a great opportunity for the team to mature and grow.’’

In Summary To sum up, recovering an SAP business transformation project requires a methodical approach. It also requires an honest assessment of the current state with all remediation items documented and agreed in a realistic recovery plan. Furthermore, strong leadership, clear and concise communication, and cross-functional collaboration across the entire project team is crucial. All stakeholders should be kept informed to maintain support and momentum over the duration of the project. Saving a project can be overwhelming and demanding, but it is also a great opportunity for the team to mature and grow. It requires courage, determination, teamwork, strong collaboration, and a willingness to adapt. When a project recovery is successful, the team feel a strong sense of achievement and purpose. My advice: embrace the adversity, stay motivated, and be proud of your hard work and effort. Celebrate the powerful comeback.

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WOMEN

MAKING SAP HAPPEN INTERVIEW WITH SWETA KASHYAP, SAP TECHNICAL CONSULTANT Women Making SAP happen is a Sapture initiative, highlighting some of the amazing women working in the ANZ SAP ecosystem. In this interview Sapture’s Amy Robertson speaks to Sweta Kashyap, SAP Technical Consultant, about her career and her biggest inspirations.

Amy Robertson

an you tell us a bit about Q Cyourself please.

> I am a skilled SAP Technical

Consultant, with a career of over 15 years working across multiple domains and modules. Having worked in various areas of SAP, I have experience leading, solution designing and working closely with businesses to align their requirements with optimal solutions. Besides work, I love to spend time with my family, going to the beach,

ANZSAP ISSUE 01

planning treks with them, and going to the gym. I have been living in Sydney since 2017 with my two daughters and husband.

hat inspired you to have a QW career in SAP? > SAP’s ever-evolving nature

is the biggest inspiration for me to have a career in this industry as it always challenges me as a technical consultant to thrive, learn and conquer. It enhances credentials, opening many doors

of opportunity worldwide, as well as providing a financially secure and long-lasting career. SAP has incredible reach and influence, and there are opportunities for career growth whether it is in functional or technical areas.

hich SAP modules have QW been most useful in your career and why?

> As an SAP Technical

Consultant, I have worked on multiple different SAP modules. Currently my role is more focused on SAP EWM, SCM, MM, SD

WOMEN MAKING SAP HAPPEN INTERVIEW

‘‘SAP is competitive and is an evolving industry. If you’re willing to put in the effort, you will shine.’’

Sweta Kashyap, SAP Technical Consultant

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INTERVIEW WOMEN MAKING SAP HAPPEN

and FI. The current business I am contracting for is focused on manufacturing, processing and distribution of steel long products, including reinforcing bar, reinforcing mesh, tubular and hollow sections, merchant bar and wire products.

Sweta Kashyap

In the past I have also worked extensively on SAP IS-Retail, SAP CRM, SAP HCM, SAP P2P, SAP Vehicle Management System, SAP EAM, SAP PPM, and SAP FI for other clients.

hat is the best thing QW about working with SAP technology?

> Working with SAP is a great

way to learn about various businesses. Whether it’s an automobile or a chemicals company, defence, government agency, or a consulting and software development company, we get a close-up look at how an organisation operates.

hat inspirational words QW would you offer to other

people looking for a career in SAP?

> Nothing can replace the ability

in any career, including SAP, of being willing to put in the time to be successful. I wanted to be good at my SAP career and the fact that I loved my job made it easy to put in the hours it took to be successful, which continues to this day. SAP is competitive and is an evolving industry. If you’re willing to put in the effort, you will shine. Take all small and big opportunities to learn.

hat can we all do to inspire QW more women into working with SAP?

> I think the most important thing is to encourage more women into

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leadership roles. This is the area ‘‘ I think the most where I can see we are lacking. We can encourage women by important thing supporting and helping them. is to encourage hat female inspiration more women into Q W have you had in your leadership roles. career? This is the area > I have been lucky to work where I can see with many strong women over my SAP career. I have tried we are lacking. to listen and learn from other We can encourage women. One person from whom I draw inspiration from, but have women by never worked with, is Sindhu supporting and Gangadharan (MD, SAP Labs India). I have also always had helping them.’’ equal support from all of the men I have worked with which really helped to shape my career path.

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Get the free SAP Transformation Roadbook now! Are you about to begin a transformation to SAP S/4HANA or are you right in the middle of it? Then this free step by step guide will give you important advice, tips and tricks.

DOWNLOAD FOR FREE NOW: https://hubs.la/Q027wTGw0 The guide contains the experience of more than 1,000 transformations at companies such as BMW, MAN, Daimler and Boss. Natuvion is a globally recognised specialist in data transformation. In addition, Natuvion is one of 4 global members of the SAP S/4HANA Selective Data Transition Engagement Community set up by SAP.

SAP STRATEGY & THE CFO In this article Neal Tarditi, Consulting Manager Digital Finance ANZ at SAP, discusses the evolution of SAP core products, software and functionality to where it is today. He highlights the improved focus on business outcomes and customer value, specifically when considering the requirements of the CFO and shares his advice on how CFOs can maximise the core SAP modules in the quest for a single source of truth.

T Neal Tarditi, Consulting Manager Digital Finance ANZ at SAP

he SAP digital core product has come a long way in terms of functionality and processing power with the evolution from ERP (ECC6) to the S/4HANA Database and Functional Suite.

outcomes in mind (new and improved functionality) and the reduction to ‘Total Cost of Ownership’ (TCO) of the software. SAP’s focus is on maximising value to the customer in the highly competitive software market.

SAP has purchased additional ‘best of breed’ software such as Ariba, Signavio, Concur, SuccessFactors, Fieldglass, Machine Learning and BTP with cloud computing at the forefront to meet customers, strategic business goals.

Yet, the CFO is interested in business outcomes and not the technology, as the core of a business is either selling product or providing services to the customer. However, it is the underlying technology which helps enable this core business alongside the CFO’s monitoring and reporting on the financial health.

SAP has evolved its customer success strategy and products to be cloud-centric with business

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CFO SAP STRATEGY VOICES

In this article I want to concentrate on the ‘Single Source of Truth’ concept which affects all the above and has caused issues in the past and I am sure will be ongoing in the future. SINGLE SOURCE OF TRUTH CONCEPT SAP enabled the concept of ‘Single Source of Truth’ in S/4HANA Finance via the Universal Journal. Technically what this means is that the Finance Tables were consolidated into a few tables, mainly ACDOCA. SAP was able to do this due to the speed and power of the S/4HANA database. Before S/4HANA (e.g. ECC6), the tables were divided by functionality such as Finance and Controlling so that the SAP Finance transactions worked on smaller data sets and provided results in a reasonable time frame. For analytics purposes, the need to extract data and join tables from multiple tables in a separate solution (database), now that the Finance information resides mainly in the one place, has reduced significantly and will reduce further with future releases. Examples of planning and analytic solutions that historically have met this need are SAP BW/BPC and SAP Analytics Cloud (SAC), TM1, Hyperion and Anaplan. The final technical point is that due to the efficiency and speed of S/4HANA, data does not have to be persisted (duplicated) when extracted. The data is extracted temporarily in-memory (buffered) and formatted to the report as required. An example is when actuals are extracted (buffered) from S/4HANA Finance and reported

that is offered in the core S/4HANA Finance functionality.

SAP has evolved its customer success strategy and products to be cloud-centric with business outcomes in mind (new and improved functionality) and the reduction to ‘Total Cost of Ownership’ (TCO) of the software. SAP’s focus is on maximising value to the customer in the highly competitive software market.’’ against plan/budget in SAC. The plan/budget is usually persisted in the plan/budget tool (e.g. SAC, BPC) during the annual budget cycle or ongoing planning cycles. WHAT DOES THIS MEAN FOR THE CFO, BUSINESS OUTCOMES AND THE ‘SINGLE SOURCE OF TRUTH’ CONCEPT? I have heard many times, "Don’t worry we will use software 'X' to adjust and make the changes to complete the Statutory or Management Reporting’.' This is often for standard functionality

I understand why. Software 'X' is fully under the control of the Finance Department; likewise, a team of internal/external Consultants, paid for from the Finance Departmental budget, so therefore also under Finance control, are changing functionality or reporting on the fly, as and when required. This contrasts with the SAP S/4HANA Finance system, controlled by the CIO, that is recovering costs based on functional requests from the Finance Department. The agreed budget first needs to be approved and resources allocated to the Finance Project, when available. This process lacks the agility and control, often taking much longer than software 'X' to accommodate changes. The crucial point is that the initial S/4HANA Finance Project, which will be Greenfield or Brownfield, must accommodate the standard functionality that is not being used in the older SAP versions, so that the data does not have to be adjusted and is captured at source – ‘Single Source of Truth’. Adjust only what the S/4HANA system cannot provide so that the information is captured in the S/4HANA Finance system and complexity and TCO is reduced. Additionally, it is important to recognise that functionality in SAP has moved ahead exponentially, with more flexibility than in the past. Functionality such as SAP Analytics enables almost any User Finance Report to be provided with standard tool sets, in very short lead times, from the S/4HANA Finance data. Reimagine your SAP system and design.

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VOICES CFO SAP STRATEGY

Examples of functionality available in S/4HANA Finance but being completed in software 'X' Reporting: SAP has moved on from Report Painter and Writer. Refer to SAP Analytics, CDS views and BW/4HANA. Reporting in BW has been around for a long time, but the way information is collated and presented has changed. Month end journal adjustments: Consider using Extension Ledgers. Accruals or commitments: Consider using Extension Ledgers or the Accrual Engine. Consolidations: SAP SAC and BPC cover consolidation functionality. The SAP Roadmap is moving to consolidation using

IN CONCLUSION With huge advancements in technology, SAP has much to offer the CFO. However, for the Finance Department to maximise value, it is crucial to get as much information into the core modules of SAP as early as possible. Many organisations go down the route of leaving certain key functions turned off, believing that they can be added in later, yet this is not recommended. Turn on whatever can be turned on to allow the system to derive it, capturing data at source, avoiding adjustments and creating the ‘Single Source of Truth’ so coveted by the modern CFO.

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a non-lead ledger (i.e. in the core) with the new Universal Parallel Accounting functionality where consolidation adjustments are automatically posted. Currency conversion: I have witnessed clients not using the standard functionality because they did not understand it or did not like how the journals were posted. Splitting Statutory or Management Reports further via function or geography: Use NewGL splitting functionality based on profit centre, functional area, or segment. There are additionally other options, such as using Responsible and

Requesting Cost Centre from the master data coupled with actual data in an Analytics CDS view. Additional non-standard fields: Required due to the nature of the Business (e.g. Industry Solutions). Adding to the standard coding block is possible but must have a robust business case. Alternatively consider the new, ‘Active derivation for items without Profitability Segment’ COPA Account Based functionality for the P&L and specific Balance Sheet accounts (i.e. derive a COPA characteristic). The Special Ledger is an additional tool to meet requirements.

COMPLIANCE MADE SIMPLE The DalRae Solutions Compliance Documentation Application can revolutionise the way that your business manages compliance.

Compliance in 1 easy step. Employees can simply take a photo of their compliance documents, such as licenses and work certificates and the app uses Optical Character Recognition to send the information to your SAP SuccessFactors system, thereby eliminating manual data entry. Keep workers and their data safe. Developed on SAP Business Technology Platform, your data is secured and accessible through SAP SuccessFactors with role-based permissions. Your worker’s documents are kept up-to-date and their personal data secure.

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CASE STUDY PROCUREMENT TRANSFORMATION

Procurement transformation

EMPOWERING SAP ADOPTION IN ONE OF AUSTRALIA’S LARGEST BANKS This case study outlines how Bloom Consulting partnered with one of the largest financial institutions in Australia to enhance procurement and maximise investment in SAP Ariba and SAP Business Network. They discuss overcoming challenges, lessons learned and provide key take-aways for any organisations considering their own procurement transformation journey.

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Introduction

Daniel Jackson, Director and Ly Dan, Project Manager, Bloom Consulting

The client is one of the largest financial institutions in Australia, offering a comprehensive range of banking and financial services to individuals, businesses, and institutional clients. The bank serves millions of customers across Australia and New Zealand and has a strong presence in the Asia-Pacific region. As one of the ‘Big Four’ banks in Australia, the bank holds a prominent position in the country’s banking sector. With a rich history, strong market presence, and a commitment to customer satisfaction and sustainability it plays a crucial role in the economic growth and development of Australia and the Asia-Pacific region. The bank sought the expertise of Bloom Consulting in 2019 to enhance their procurement process and maximise their investments in SAP Ariba and SAP Business Network. Through a collaborative effort, both parties went on a Discovery Program to identify and address key pain points, streamline processes, improve user experience, and bolster governance and compliance. This case study delves into the approach, solution, and benefits realised throughout the procurement transformation journey.

Turning Challenges into Opportunities The road to procurement transformation for the bank was paved with complexities, echoing the dynamic landscape of the financial sector. The intricate web of fragmented procedures, initial tepid adoption of SAP Ariba and SAP Business Network, obscured expenditure insights, and wavering compliance with procurement policies posed significant

hurdles. These challenges, though daunting, were seen as opportunities for growth and refinement. Recognising these bottlenecks, the bank embraced them as stepping stones towards achieving a more streamlined and efficient procurement ecosystem.

Navigating the Path to Progress The approach adopted emphasised delivering quick wins at the onset of the engagement, while laying a solid foundation for more intricate deployment activities during the core phase of the transformation. Under the Guided Buying Refresh Program, the end-to-end user experience of the procurement system was meticulously redesigned, taking into account various personas. This revamp yielded remarkable results,

boosting user adoption from less than 20% to an impressive 70%. Furthermore, compliance with procurement policies experienced a substantial improvement, providing executives with better visibility into spend patterns. The Contract Operationalisation Program significantly enhanced the procurement process, resulting in an 80% increase in contract spend compliance and a 50% reduction in the cycle time for contract operationalisation. The bank successfully established a robust foundation for continuous process improvement and innovation. These endeavours have yielded significant efficiencies, reduced risks, and enhanced the overall experience for both internal stakeholders and external suppliers. As we fast forward to 2023, the bank continues to achieve remarkable efficiencies, setting a benchmark for future improvements.

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CASE STUDY PROCUREMENT TRANSFORMATION

Lessons Learned along the Way COMMITMENT TO USER-CENTRIC DESIGN This bank’s success story hinged on its commitment to a user-centric ethos. Through a harmonious redesign of the end-to-end user experience, tailored to cater to diverse personas, the bank experienced a transformational shift. This shift translated to a remarkable increase in user adoption, soaring from a modest 20% to an impressive 70%. The lesson gleaned from this transformation is a testament to the power of understanding user needs, embracing diversity, and crafting solutions that resonate, effectively amplifying operational efficiency. DON’T UNDERESTIMATE THE INCREMENTAL GAINS The journey embarked upon by the bank was marked by a series of resounding victories, each building upon the other. By commencing with smaller, more manageable changes, the bank nurtured a culture of gradual transformation. These quick wins cascaded into more intricate solutions, reinforcing

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Elevating compliance with procurement policies emerged, not only as a gateway to heightened visibility, but also a shield against potential risks.’’ the significance of fostering transformational momentum through tangible achievements. ELEVATING COMPLIANCE AND GOVERNANCE In the dance of transformation, compliance emerged as a guiding star. Elevating compliance with procurement policies emerged not only as a gateway to heightened visibility but also a shield against

potential risks. The spotlight on governance underscored its pivotal role, ensuring the successful narrative of transformation. This emphasis on adherence to established norms resonates as a cornerstone in the bank’s journey. PATHWAY FORWARD WITH DATA Guided by data-driven insights, the bank found its compass towards success. A laser focus on expenditure data and analytical prowess yielded a surge in informed decision-making. This chapter underscores the transformative potential of harnessing data as a guiding light, leading to unprecedented improvements in operational efficiency. COLLABORATIVE SYNERGY The transformative journey of the bank showcased the potency of collaboration. The symbiotic partnership between the bank and Bloom Consulting breathed life into the transformation blueprint. This united front, grounded in shared objectives, paved the way for success. The lesson resonates as a testament to the power of collaboration and goal alignment in navigating intricate challenges.

Key Takeaways for Tomorrow’s Pioneers As this bank’s transformation story continues to unfold, a treasure trove of insights emerges, ready to be embraced by organisations setting out to redefine their trajectories:

EMBARKING ON A HOLISTIC JOURNEY

Address challenges holistically by encompassing processes, policies, and user experiences. A panoramic perspective facilitates holistic solutions that foster tangible enhancements.

HARMONISING USER-CENTRIC VENTURES

Prioritise user needs and craft solutions that resonate with diverse personas. Elevated user adoption becomes a harmonious symphony of success.

FROM SMALL SEEDS

The path of transformation unfolds progressively. Initiating with modest shifts fosters confidence, igniting the transformative spark and guiding the way towards grander milestones.

GUARDIANS OF GOVERNANCE & COMPLIANCE

Governance acts as a lodestar of transformation. Upholding compliance and governance mechanisms ensures visibility and safeguards against potential pitfalls, nurturing a path towards success.

INSIGHTS ILLUMINATED BY DATA

Data-driven decisions kindle transformative brilliance. Utilising analytics as a guiding beacon enables organisations to navigate the labyrinth of change, taking informed steps towards evolution.

FOSTERING COLLABORATION

Transformation thrives on collaboration. Shared objectives and harmonious partnerships stand as pillars of change, laying the groundwork for a resounding success.

A Glimpse into the Future Looking ahead, this bank’s well-positioned to leverage its enhanced procurement capabilities to drive continued success. The lessons learned and the best practices established throughout the procurement transformation journey will serve as a solid framework for future initiatives. By prioritising user experience, visibility, and compliance management, the business has achieved significant advancements in its procurement process. The successes achieved in user adoption, contract spend compliance, and operational efficiency have positioned them as a leader in the industry, poised for continued growth and success in the everchanging business landscape. Leveraging ongoing partnerships, the bank is confident in its ability to adapt to evolving market dynamics and maintain its competitive edge.

Mart-Angelo Selmo, SAP Ariba Consultant, Bloom Consulting

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VOICES CONSULTING V INSISTING

FINANCE SOLUTIONS: CONSULTING VS INSISTING A

s a Solutions Architect, working on various diverse projects, I have observed various forms of communication styles being utilised during the design and deployment phases of financial technology solutions and why this is an important factor to a successful outcome. It is important to select the right communication style in order to ensure high customer satisfaction and solution adoption. Whilst every organisation and their managers will have individual methods of managing activities and communication styles, it’s essential that the internal and external consulting team aligns their communication style to the preference of their stakeholders.

Alex Proskurnya from Fawmore Business Solutions assesses two different communication styles that can be utilised during the design and deployment of financial technology solutions and highlights how adopting the right one is critical to success.

Two extreme advisory methods utilised in these circumstances, with multiple variations between them, are Consulting and Insisting. In this article I discuss the differences between the two and outline when they should be deployed for maximum effectiveness.

The Consulting Approach The consulting team delivering the finance technology solution typically takes a supporting and facilitating advisor position. They start with highlighting organisational, process and solution problems (e.g., slow process turnaround, limited process

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details, high efforts, and costs to execute the process, outdated solutions, etc.). They then always offer solution choices to their stakeholders, providing a detailed assessment of alternative solutions, products, costs and the associated business impacts. Finally, they offer a recommendation based on experience, whilst always remaining open and flexible to accept any choice the stakeholder makes. This approach sends a signal that they are not demanding to have their say in the decisionmaking process. Their internal team objectives are fully focused on the influence of their expertise. The message is “We are happy for you as our customer to make any decision, but would like for you to come to us for advice, support or delivery”. In essence, whilst they do not have any formal power, their asset is their ability to influence as a supporting party. The result of the decisionmaking process is a long-term agreement where both parties accept the position. This concept is very similar to finance business partnering.

Alex Proskurnya

The Insisting Approach The consulting team, in this case, plays a more assertive role in the project. They may or may not consider alternative solutions internally, but do not offer a choice to their stakeholders, thus reducing decision-making ability.

Instead, they present only one best solution to the stakeholders. They then start ‘insisting’ that this approach is the right one to anyone in the organisation that may challenge it. Sometimes they pretend to present alternative solutions, if only appease the noise makers because it is part of the business culture in Australia or similarminded countries. However, there is always a preferred option. If the stakeholder chooses the alternative, they will always advocate for the first choice, utilising sound reasoning and techniques including past expertise, sales and marketing materials of the technology provider, standard functionality of the product or administrative leverage. The consulting team, in this case, has a very limited ‘listening’ focus as the priority is to ‘push forward’. Sometimes, if there is internal resistance it can become a communication power play – with one side forcefully subduing the other side. The consulting team demands to have more power and be part of the decision-making process. This approach is focused on playing a manager’s role rather than advisor, even if formally they are engaged as advisors with no authority. Often the result of this process is a forced agreement – formally the teams have agreed on the solution, but in reality, the other party may not be happy with the outcome. The agreement can then take on a temporary nature. The other party will seek the opportunity to revisit the decision later if they are able to gain enough organisational influence.

The Preferred Approach From what has been detailed,

it may appear that the ‘Insisting Approach’ is ‘the non-preferred’ and the ‘Consulting Approach’ is ‘preferred’. Whilst it is true that our starting preference is to use a consulting approach wherever possible, due to the likelihood of a longer-term agreement, improved adoption rates and better relationships; in reality, there are clear use cases that highlight it may not always be the best approach. In certain circumstances it’s necessary to apply some elements of an ‘Insisting’ approach to get a better overall outcome. For example, large financial ERP implementations may require a high degree of the ‘Insisting’ approach. This is due to the necessity to move at a particular speed due to time constraint commitment, fixed price contracts, high costs of alternatives, significant business and process dependencies. For smaller types of project initiatives such as delivering a set of operational financial reports, it would be preferable to

conduct the financial reporting delivery using the first approach, as this initiative is controlled and may require a more agile collaborative approach.

Conclusion I would advise that the party who is leading consulting engagement should evaluate the scale of the projects, the client’s needs, contractual obligations and adopt the style that best suits the situation. However, it should be noted that this requires a certain level of skills in communication, emotional intelligence and consulting. Sometimes strong knowledge of the product capabilities, process or technologies involved might not be enough. Disclaimer: The view expressed represents the personal opinion of the author and does not reflect the official policy or position of any organisation the author was or is currently engaged with.

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STORY ROBERT BUDIC

SECURITY& PRIVACY

BY DESIGN

In this article Robert Budic, Director of Turnkey Consulting, discusses why leaving security of your systems as an afterthought is no longer an option and suggests key considerations to ensure that the security and privacy of your S/4 SAP transformation project is by design.

Robert Budic

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nderstanding how to integrate security into your SAP digital transformation project can be a daunting challenge for any organisation. These projects are highly complex, involve multiple teams, external ecosystems and have very ambitious, sometimes even unrealistic, delivery timeframes.

Without appropriate security and privacy controls built in from the start of these programs to keep these new systems safe, you will be unable to deliver on security and privacy by design principles and potentially be exposing your organisation to the increased risk of insider/cyber-attack threats and in breach of regulatory requirements.

Becoming a more digital organisation also means you will inevitably become a more open organisation, and therefore a more vulnerable organisation with a much wider cyber-attack surface – making a focus on security more important than ever.

Leaving security of your systems as an afterthought is simply no longer an option.

If you’re already underway with or evaluating your move to any flavour of SAP S/4HANA, then it’s likely your organisation will be investing significant time, money, and resources on what is a critical technical upgrade and a digital transformation program.

Our Observations of the Australian Market Majority of organisations are entering this phase of transformation with a considerable amount of security debt, driven by:

• Long periods of significant

underinvestment in security of SAP systems

SECURITY BY DESIGN FEATURE

• Role design that may no longer

be fit for purpose in supporting the business processes or the risk appetite (given recent data breaches and upcoming legislative changes)

• Access overprovisioning because of poor role design and access risk management practices

• Lack of business ownership of

security and access risks impacting their key information assets

• Security models (even when

executed well) have traditionally focused on functional roles and authorisations only

• Neglecting IT support and

system user application security, hardening and patching of vulnerabilities and absence of secure coding practices in the existing custom code baseline

WHAT MAKES S/4HANA & RISE SO SPECIAL? UNDERSTANDING THE DIFFERENCES BETWEEN SAP ECC AND SAP S/4HANA SAP S/4HANA has been designed with simplicity and user experience in mind – although that is generally intended for the end-users, rather than implementors, systems integrators or administrators. From a security perspective, a significant involvement in an SAP S/4HANA implementation can be expected, as there are some fundamental changes to the way in which these simple processes are delivered to users.

THE KEY ASPECTS THAT SHOULD BE CONSIDERED ARE:

• Organisational and

• With the HANA database being inherently part of the

• Financial and Internal Audit

• HANA database security principles will need to be

communication gap between IT security (cyber) and SAP security functions, leaving this critical ecosystem of applications out of the view of traditional cybersecurity initiatives departments lacking the specialist SAP security expertise to be able to adequately assess the full scope of access and SAP cyber-related risks

Fun Fact! The average cost of SAP security remediation activities following an upgrade, typically runs at five times the cost of addressing it within the upgrade project lifecycle.

solution, security and authorisation of the database itself, as well as the application, is now a major consideration. For example, Fiori applications are able to query the HANA database directly, meaning authorisations need to be applied to the HANA database to restrict what data users can see/interact with via the Fiori interface. established to ensure users are not able to get ‘back door’ access. Obviously, this could cause data and system integrity issues, or worse, result in your company falling foul of data privacy legislation.

• SAP Fiori is designed for an omnichannel experience

across multiple devices, so users will be accessing from many different access points, and this increases the attack surface area for potential external threats. This makes Fiori a vital security consideration.

• As S/4HANA and BTP result in consolidation of multiple legacy components and are used to integrate with an ever-growing list of SAP and non-SAP SaaS platforms (SuccessFactors, Ariba, Workday, Salesforce to name a few), this increases the potential security risks of managing users and access of employees, contractors, third parties and non-human identities effectively.

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WHAT MAKES S/4HANA & RISE SO SPECIAL?

FEATURE SECURITY BY DESIGN

• Standard catalogs and content provided

by SAP with the S/4HANA template roles contain inherent Segregation of Duties (SoDs) and sensitive access compliance risks within them, so they are a useful reference point for starting your security design consideration, they cannot be relied on to provide audit compliant access straight out-of-the-box. In addition, they typically include content that may not be relevant or fit for purpose in meeting clients’ specific processes.

• SAP S/4HANA projects involve heavy

business process reengineering and updates, which likely means many changes to job functions, roles, and permissions for your existing users.

• Although standard transactions still exist,

they will not be the primary method for users to perform their functions, which will require revisiting your access controls frameworks and risk rulesets to get a reliable picture of access risks going forward.

• The chosen model of S/4HANA on-premises vs S/4HANA RISE (Private or Public Cloud) model will have significant impact on future security design considerations. For example, in the RISE model where the core application layer is locked down from modification by the client, any customisations (e.g. ABAP programs) and third party add-ons will need to be re-built in BTP and secured appropriately for that environment.

• While the majority of the legacy transactions ECC codes are still available in S/4HANA, SAP has been rapidly migrating content out of the NetWeaver screens into Fiori. Even though some organisations may decide to delay adopting Fiori as part of initial technical upgrade cycle, most will want to make the most of their investment in S/4HANA by adopting some Fiori from the outset. This will require consideration of both business process changes and the corresponding security changes that will need to be made as a result.

RISE with SAP doesn’t mean that SAP customers can outsource all their security responsibilities.’’

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RISE-Specific Considerations The RISE with SAP model will see SAP take on the responsibility of managing the infrastructure (using Azure, AWS or GCP), and as such will assume responsibility for patching, security hardening and other security activities. However, the client will still have to take care of some areas of security themselves, specifically, any application security activities such as vulnerability management, data segregation, segregation of duties, and Identity and Access Governance. Put simply, RISE with SAP does not mean that SAP customers can outsource all their security responsibilities. At the same time, when deployed on the public cloud, RISE with SAP delivers automated patching, which could be much quicker than the normal pace of a patching schedule that internal teams are accustomed to. When full system upgrades are installed, regression testing will be needed so that the service pack updates don’t disrupt existing business processes. Given that service pack updates will be released three or four times a year, this will become a regular and important task for internal teams.

There are also decisions to be made when it comes to hosting RISE on a public or private cloud. RISE with SAP (Public Cloud Edition) has very limited scope for customisation, restricting the security configurations you can apply in areas of data structure and configuration. Care will also need to be taken around how tenancies, hosting and data offshoring (sovereignty) agreements affect security and compliance, and whether users will need retraining to use the platform securely. On the other hand, RISE with SAP (Private Cloud Edition) enables a much more granular approach to building roles and authorisations, where administrators can drill down to data-level element security.

Identity As The New Security Perimeter Identity Governance and Administration in S/4HANA Identity and access management represents a significant challenge in S/4HANA, just as it does in any cloud application. Compared to ECC, the number of areas where identities need controlling is substantially expanded. At the very least, they will include the HANA

database, the S/4 application, and the Fiori interface, and this may extend to applications like BW, Ariba and SuccessFactors. This complexity in managing authorisations and users in multiple locations makes an Identity Governance and Administration (IGA) solution an attractive option. Identity management can be centralised, and access can be more easily provisioned across all cloud applications within the SAP estate.

This complexity in managing authorisations and users in multiple locations makes an Identity Governance and Administration (IGA) solution an attractive option.’’ ANZSAP ISSUE 01 95

FEATURE SECURITY BY DESIGN

This is vital to ensuring that users can only access applications and data that they should be able to, so that systems and data are kept protected. The importance of this is amplified if you opt for a public cloud deployment of S/4HANA, because of the greater exposure to the internet and lack of a traditional perimeter for protection. Theoretically, anyone could attempt to gain access to your application, and therefore your critical systems and data, leading to serious consequences across compliance, ransomware, data leakage, reputation damage and external fraud. In the absence of a traditional perimeter, identity has assumed the role of security layer, and should therefore be treated as a critically important part of your overall S/4HANA security.

The importance of this is amplified if you opt for a public cloud deployment of S/4HANA, because of the greater exposure to the internet and lack of a traditional perimeter for protection.’’

QUESTIONS TO ASK YOURSELF IN PREPARATION

How can I get visibility of my current state of security in preparation for the move into S/4?

How do I ensure all necessary security activities are built into my upgrade program (not just roles and authorisations)?

How do I integrate these activities with the broader cybersecurity (IT security) objectives?

What action do I need to take now to adequately prepare and address critical access risks and which actions can I defer to the upgrade program?

Conclusion Without appropriate security and privacy controls built in from the start of these programs to keep these new systems safe, you will be unable to deliver on security and privacy by design principles and potentially be exposing your organisation to the increased risk of insider/cyber-attack threats and in breach of regulatory requirements. Leaving security of your systems as an afterthought is simply no longer an option.

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How does my Identity Governance and Administration need to adjust to ensure benefits of automation and continuous governance are achieved?

What are the data privacy considerations for the target SAP estate?

Grow your skills. Future-proof your career. Learn SAP for free, anywhere, anytime.

VOICES ACTIVE LISTENING

THE SUBTLE ART OF ACTIVE LISTENING Lyn Campbell-Anderson discusses the differences between listening and active listening and how truly hearing another person can be an engagement game-changer during times of people change and transformation.

ctive listening: ‘‘The practice of engaging closely with what a speaker is saying and indicating understanding, typically by asking relevant questions, using gestures, and summarising’’ – Oxford Languages 2023. In our fast-paced, hectic world we are daily, hourly, minute-driven consumers of information. Often five to 10 paces ahead of ourselves, our busy minds constantly ruminating over the past or thinking about the future, trying to control the numerous factors outside of our control. Is it any wonder then, when engaging in conversations with other humans, that we may overlook or misunderstand the obvious intel being shared? Engaging with a system is comparatively easy (if your single sign-on works the first time!) and we have become very used to doing so. However, engaging with humans with all our uniqueness and complexities is completely different. These complexities are amplified during periods of change. Although we all have our own bespoke requirements and perspectives, we are programmed to fear the unknown and to crave comfort. When you are therefore faced with a whole group of people, unsure

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Lyn Campbell-Anderson

believes that the key to engagement is very simple – to practise the art of active listening. He reiterated this one piece of advice several times (in case I didn’t hear it!) and urged me to listen with both ears, my eyes, and my mind. Simple, I thought – but is this advice really as simplistic as it sounds?

or angry about changes that are happening within a business, you must find a way to manage that fear. Unmanaged collective fear can quickly spiral, turning into a nightmare scenario with the phrase 'running with a herd of stampeding elephants’ coming to mind. Constantly looking for effective ways to manage this type of situation myself and engage both sponsors and stakeholders in times of change, I interviewed a fabulously focused and detailoriented sponsor. This person was also recognised as a great leader within the business and his industry, and I wanted to understand his secret. My sponsor vehemently

In 1957, American Phycologists Carl Rogers and Richard Farson, released their Active Listening paper, outlining “the practice of preparing to listen, observing what verbal and non-verbal messages are being sent." They believed that truly active listening invoked a powerful feeling of connection and was the key to forming successful human relationships. This trail-blazing human-focused technique has since manifested throughout many iterations by numerous experts and has become a key element within any successful change communication strategy. I now personally see every interaction as an opportunity to practise active listening, however it’s not an easy as it sounds. Think about your last conversation: be honest, did you:

• Focus on drafting your own response(s) in your head?

• Only hear what you wanted to hear?

• Jump to solution mode? • Judge the quality of information being shared or the person sharing it?

These are all things that most of us struggle with, even more so for some types of neurodiversity such as ADHD, however there are many techniques we can practise daily to help us develop the skills needed. I would recommend practising the following:

• Parking your own perceived answers to questions you are asking your sponsors or stakeholder

• Listen with both ears – that is why we have two!

• Remain in neutral mode • Respect the quality of the information being shared

• Respect your sponsor

or stakeholder, providing a safe space to be honest

• Paraphrase what has

been said in different words to confirm your understanding

communication of your change initiatives will become. Perfect the very subtle art of active listening, I promise it will be a game-changer! ACTIVE LISTENING thedecisionlab.com

Listen w ith both ears –

e w y h w s ’ t tha ’ ’ ! o w t e hav

• Use clarifying questions when you don’t understand what is being said

• Practise open curiosity at all times

The more you mindfully practise these techniques, the more you will hear and understand and ultimately the more successful the

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THE FUTURE IS HERE SAP’s Role in Paving the Way for Digital Transformation Words by Igor Kreyman

Mathieu Laguë, Sales Executive - ServiceNow at Fusion5, shares how he empowers businesses to unlock the true potential of SAP, through his translation of its value, in the ever-evolving landscape of the business world.

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anaging a business can be a daunting task, especially when important details are scattered across different departments and spreadsheets. It’s like trying to navigate through a crowded street without a map or a GPS. But what if you had a guide who could show you the way, help you avoid obstacles, and take you straight to your destination? That’s where SAP comes in. SAP serves as a cornerstone in optimising business operations, fostering data-driven decision-making, and driving transformative change to accomplish strategic business objectives. “Being able to say ‘yes’ to any question or need when it comes to Business Processes Management, Transactions Recording, and Reporting is incredibly powerful,” says Mathieu. “SAP has a solution for everything; it’s been done somewhere. This is why I’m so passionate about what I do.”

Conveying the value and impact of SAP software In an industry where buzzwords and jargon are all too common and confusing for people, Mathieu, who leads SAP transformations, believes in practicality above all else. “If you can’t explain it simply, you don’t understand it well enough,” he says. And with that, he sets out on a mission to make the value of SAP software accessible to everyone, regardless of their level of technical know-how. It’s common for leaders to be passionate about technology and emphasise how it can help businesses achieve results. However, they may be overlooking a critical factor in the software’s success: the ability to effectively communicate its value in a relatable way to potential customers. To provide an example, Mathieu recalled a customer with a textbookperfect implementation who announced a “digital transformation to future-proof their business” with a “human-centric” application to improve the customer and employee experience while “managing big data in an agile way” for “Industry 4.0 standards”. But, in reality, employees had no idea what management was talking about. Now to illustrate the value of SAP as a powerful business tool, consider a small café owner who manages inventory and sales data with multiple spreadsheets. The process can be overwhelming for the owner, and essential information can easily be missed with one of their spreadsheets for supplies, another for customer orders, and a third for financials, leading to inefficiencies that may accrue over time.

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Mathieu Laguë, Sales Executive ServiceNow at Fusion5

IF YOU CAN’T EXPLAIN IT SIMPLY, YOU DON’T UNDERSTAND IT WELL ENOUGH.’’

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SAP, at its core, offers a solution that unifies all data within a single platform, allowing for a comprehensive view of the organisation’s performance and facilitating well-informed decisionmaking. As Mathieu further simplifies the value of SAP for those unfamiliar with technology or industry jargon, he gives an example. “I always take the opportunity to explain to my daughter’s friends, because they don’t really know what I do for a living, that we help businesses determine their profitability. It’s about understanding whether they’re making money, identifying areas for improvement, and fixing any leaks. Once businesses have this knowledge, they can take the necessary action to achieve their objectives.” Mathieu cited another mining company as an example of transformation through SAP. “The company had a complex human resources and payroll environment with 500 different ways of paying individuals based on their roles, type of employment, and working environment. Previously, their system was a combination of siloed systems, spreadsheets, and individual knowledge, leading to errors, delayed responses, and a lack of employee self-service capabilities. With SAP, this mining company was able to provide self-serve services to all employees, access the same information as at the head office, and improve the lives of employees

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within the human resources and payroll department.”

The vital importance of change management However, Mathieu stresses that SAP is more than just numbers and data. The human element of change management is the most critical aspect of SAP transformation. “Change management becomes by far the most crucial aspect because it’s the service that focuses on the human element, and humans are the real reason for this change. ''The technical part is the easiest, which has been done thousands of times. The challenge lies in ensuring that every time there is a change, humans understand the value of the change and learn to adapt,” explains Mathieu. Mathieu also emphasises the importance of acknowledging the difficulty of the journey when implementing SAP. “I love that the key for success, in this case, is to call it out right away, that this will not be an easy journey,” he says. He acknowledges that this process disrupts the established ways of working that have existed for many years, even decades. In addition, it challenges the expertise of individuals who have become accustomed to their roles. As an example, Mathieu highlights how a simple customer enquiry within an old system may have involved pulling a binder and manually searching for the information. In contrast, the new system could entirely confuse the same employee confronted with a new digital world. Mathieu continued to share his experience of implementing SAP for a company that had previously

relied on the same processes for a century. He was tasked with transitioning every department into a common platform and user experience, representing a transformational shift for the company.

IN ORDER TO EFFECTIVELY As a result of this change, GUIDE A individuals within each department became aware of each other. BUSINESS Mathieu recalls humorous moments like someone saying, “Diane, is this FROM THE why I’ve been driving you nuts for 17 years?” She responded with a OLD TO THE firm “yes”. NEW, LEADERS This shift in organisational dynamics was crucial for MUST SEE THE successfully adopting SAP, emphasising the importance of change management. JOURNEY Mathieu suggests two ways for THROUGH THE companies to transition to a new process successfully. EYES OF THEIR TEAMS.’’ 1. The first is to create a transformation team representing all company departments. This team should consist of individuals who have applied for these roles and are motivated, empowered, and ready to be agents of change. According to Mathieu, this team would be on the journey for a specified period, ranging from 12 to 24 months.

The second approach involves giving individuals at the field service level and other operational areas a platform to express their ideas and suggestions for improvement. Mathieu explains that he has seen many individuals with innovative ideas who were constantly crushed by negative responses such as “oh,

no, this is not how we do it” or “no, no, the system does not allow for it.” However, by providing a space for individuals to share their ideas and contribute to the transformation process, companies can create a sense of ownership and engagement among employees, facilitating a smooth transition to the new process. “And some individuals end up shining because all the ideas they had for 17 years are now presented, and often the solution is accepted, right?” Mathieu remarks. It is evident that in order to effectively guide a business from the old to the new, leaders must see the journey through the eyes of their teams. This approach allows leaders to inspire their teams towards a shared vision.

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hen managing talent effectively through a digital transformation it’s important to note that the future is uncertain, and challenges can vary depending on industry, organisation, and specific circumstances. However, here are a few possibilities to consider:

Tania Sherwood

Reskilling and Upskilling Challenges HR professionals may face unexpected difficulties in reskilling and upskilling employees to adapt to new digital tools, technologies, and processes. Some employees may struggle to embrace the changes, leading to skill gaps and a need for additional training and support. Having a good change management and embedment process in place can assist with digital adoption and even support retention of your valuable employees.

TALENT& DIGITAL

TRANSFORMATION

In this blog Tania Sherwood, Change Management Lead at Epi-Use, outlines some key considerations for HR professionals in respect of managing talent effectively through a digital transformation. 106

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Cybersecurity Risks and Data Protection With the increased reliance on digital systems and data, there may be unexpected cybersecurity risks. Protecting sensitive employee information, ensuring data privacy, and preventing potential data breaches are critical concerns to consider during the digital transformation journey.

Employee Well-being and Work-life Balance

When new skills have been identified, there may be a demand for new talent with specialised skills.’’

The digital transformation may blur the boundaries between work and personal life, especially with the rise of remote work and flexible schedules. HR professionals may need to find ways to support managers to ensure employee well-being, identify potential burnout, and empower employees to maintain a healthy work-life balance. While this is seen as the ‘soft stuff’, it goes a long way to ensure the productivity, satisfaction and longevity of the workforce.

critical for the workforce. Staying updated on industry trends and collaborating with other departments to understand evolving skill and mindset requirements will be an increasingly critical strategic requirement for the HR profession. Being people-centred will be a big part of bringing this to life.

Evolving Skill Requirements

Talent Acquisition and Retention Challenges

As technology continues to advance, new skills may become

When new skills have been identified, there may be a

Employee Resistance to Change Digital transformation often brings significant changes to workflows and job roles. HR professionals may encounter resistance from employees who are hesitant or reluctant to adopt new technologies or adapt to new processes. Addressing this resistance by sharing the vision, building trust and managing change effectively will be vital to bringing your employees on the journey to a new way of working.

demand for new talent with specialised skills. This could lead to difficulties in attracting and retaining the right individuals capable of driving digital initiatives forward. Competition for tech-savvy professionals will require innovative recruitment strategies and attractive employee value propositions.

Managing Remote and Hybrid Teams The rise of remote work and hybrid work models can introduce unexpected challenges. HR professionals may need to develop strategies for effectively managing remote and distributed teams, fostering collaboration, maintaining team cohesion, and ensuring equal opportunities for all employees, regardless of their work location. To navigate these potential surprises successfully, HR professionals, leaders and managers should prioritise effective communication, change management strategies, ongoing learning and development, and a focus on employee wellbeing and engagement. Embracing agility, adaptability, and a proactive approach to addressing emerging challenges will be essential throughout the digital transformation process. Ensuring people feel valued for their contribution and that they belong, regardless of whether they are remote, hybrid or office-based should not be underestimated.

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THE UNDERRATED CONTRIBUTION OF TECHNICAL CONSULTANTS! A personal account from Jamie Lee, SAP Cutover Lead, on the importance of a technical consultant’s contribution in laying the foundations of successful solutions. A contribution often overlooked and under-acknowledged in favour of the more obvious attributes of a functional role.

or some reason techincal consultants have become the plebeians of the IT society.

Ok, let’s try a different analogy – the functional consultants are like the actors of a hit TV show, and the technical consultants are like the writers. The actors get all the fame, glory (and of course the money!). Everyone knows who they are, and they’re celebrated and respected for their work. This is not to say that it’s not well deserved, however this would not be possible if not for the great foundation set out by the

writers, who provide the platform for the actors to shine on. For example, if I asked you who comes to mind when you think of the TV show The Office, I’m pretty certain that most people will say either Michael Scott or Steve Carell or Ricky Gervais, Dwight, Pam, Jim and so on… Few people would know who the writers are or what they look like, maybe some people might know that Mindy Kaling and B.J. Novak wrote many episodes while also playing supporting roles as Kelly and Ryan, but only because they were also regular actors on the show.

So, I urge you to give some thought to all the ‘invisible’ technical consultants out there, to give them some acknowledgment and respect for the important contribution that only they can provide.” Jamie Lee, SAP Cutover Lead

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While one can argue that the words on a page will fall flat if not delivered correctly, the same can be said for the quality of the script – no matter how well you deliver something, if the words aren’t right, it will not have the same effect. You need both elements to work well together to make the TV show a success. Similarly, I believe the same can be said for functional and technical consultants. As a programmer for many years, I enjoyed not being forced into social situations that I was not comfortable with. After all, who wants to talk to actual users when you can just listen to music and code all day? I was definitely more comfortable conversing with my computer than actual people! Unfortunately, because you’re almost invisible, along with the anonymity also came a lack of recognition. There is also a certain sense that coders are like robots in some ways, because all we must do is follow a set of instructions and write code that fulfills the specifications. However, what makes a great technical consultant isn’t just the ability to write in ‘computer language’ but the ability to problem-solve a business requirement into a sound technical solution that actually works. Of course, this is supported by the functional business knowledge from the functional consultants, but it simply doesn’t work unless the technical resource knows the limitations and features of what is possible within the application. When it comes to how this solution is perceived by the rest of the world however, it’s a different story. I found that quite often coders like me were

overlooked because, in life, intangible things like perception matters and when someone can present their ideas and thoughts cohesively in a positive way, this comes across as their own work. Which it is. Totally. But not completely. I can’t speak for all technical consultants of course, I’m just one of many who’ve, over the course of their entire career, faced these types of sentiments almost daily. It’s subtle because we live in a politically correct world, which is kind of a doubleedged sword because it’s subtlety means it’s not something you can pinpoint exactly or address head on. In the past this happened to me time and time again because, back then, I didn’t possess the social skills to present myself or

market myself and my ideas. That’s ok because I’ve worked on it. Although I accept that I’m not and never will be as eloquent or ‘businessfriendly’ and all that warm and gooey stuff as your average functional consultant, I’m improving. I’m always a work in progress. So, I urge you to give some thought to all the ‘invisible’ technical consultants out there, to give them some acknowledgement and respect for the important contribution that only they can provide. We may shun the limelight and prefer to be working in the background, but everyone needs recognition every once in a while (and yes, also the renumeration that comes with it, I’ll be honest!).

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BTP IS NOT

JUST ABOUT BUILDING APPS!

SAP’s Business Technology Platform (BTP) is not just about building apps. Chris Rae, Daniel de Bomford and Julia Exelby from DalRae Solutions discuss the potential of BTP to revolutionise businesses, how to overcome barriers to adoption and the benefits businesses can gain from BTP implementation.

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who flourish are the ones that work with technology and remain agile. Technology is no longer an optional expense; it is a vital investment.

Between the work anywhere initiatives and the full-scale entry of digital natives into the workforce, we’ve seen that the organisations

At TechEd, SAP Chief Technology Officer Jurgen Mueller said that “BTP is the platform for all future innovation in SAP”. While SAP users are probably familiar with BTP by this point, there is still this misconception that BTP is just for building apps. It’s true that apps are a selling point, but apps are a fraction of the potential of BTP to revolutionise work processes.

he way in which business is conducted has completely shifted in the last decade, from a world where technology was something that happened to many businesses, and everyone was expected to work around it, to a world where technology has become a necessity. The shift was exacerbated by the work from home initiatives.

How can BTP Revolutionise Work Processes? BTP can spur the transformation of inefficient and outdated business processes. BTP gives businesses the opportunity to streamline their operations, automate processes, and improve collaboration. The platform offers a wide variety of services that can help businesses transform their operations, including machine learning, analytics, and integration services. These services can help businesses improve decisionmaking, optimise operations, and create new revenue streams. BTP also leverages mobile technology to facilitate more flexible and efficient working environments. One of the largest shifts that the pandemic brought was businesses becoming more willing to allow employees to work flexibly. An important dimension of flexible work is ensuring processes are streamlined, convenient and able to be actioned

Technical teams are often stretched thin, so putting the ability to develop extensions into the hands of citizen developers can alleviate some of that pressure.’’ in a variety of circumstances and on a variety of devices. With BTP, gone are the days where all processes must be completed on a desktop device. Instead, workflows can be configured to be actionable on a variety of devices in and out of the office. Giving employees the flexibility to work from anywhere on their own devices improves satisfaction and boosts productivity. With the development

of artificial intelligence, these processes set up by BTP can be automated to reduce human labour. Workflows that included labour intensive work such as data entry can be actioned by AI, leaving checking and approvals to humans. Furthermore, BTP gives businesses access to Low Code/No Code build tools. Technical teams are often stretched thin, so putting the ability to develop extensions into the hands of citizen developers can alleviate some of that pressure. The ability to develop apps with low technical skills allows citizen developers to address their own pain points without having to pull resources from technical teams.

Barriers to Adopting BTP Naturally, adopting new technology is challenging and there will always be a sense of uncertainty that comes with moving away from the familiar. There is a particular sense of trepidation amongst those considering the decision to move to

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the cloud. But the beauty of BTP is it can be implemented on ECC. If and when a business decides they are ready to move, all their BTP customisations can come with them. The reluctance can also stem from an organisation’s long-term investment in their current system. Moving can feel counterintuitive for an organisation that has made a significant investment in customising their system. However, ABAP customisations can be brought to BTP with options like ABAP Cloud (Steampunk). ABAP Cloud can take existing ABAP code and combine it with BTP to create new solutions that take advantage of the full suite of features BTP offers, while maintaining a clean core. Cost is often also cited as a barrier to adopting new technologies. Businesses have invested significant money and resources into the infrastructure, hardware, and software for their platform on top of their customisations. However, between BTP and cloud service providers, the investment is scalable to the needs of the business. An SAP white paper released in 2022 found that the average company that moved to BTP broke even on its investment within the first six months.

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Many long-term SAP customers have complex systems full of interdependencies and redundancies introduced over their system’s lifetime. There is an underlying feeling of risk involved in moving to the cloud, the same feeling of risk that comes from moving away from the familiar. However, the reality is the risk of the move is minimal, if existent at all, when compared to the potential benefits.

SAP BTP can be the tool by which organisations can innovate and tackle the challenges of the day, regardless of industry.’’

Benefits to Implementing BTP The approach to change is critically important to the successful implementation and uptake of new technologies. BTP can be a comprehensive solution to revolutionising businesses

Julia Exelby, Marketing Manager

processes and organisations that embrace its transformative potential will stand to gain the most. It’s understandable that some businesses are hesitant, especially as many see SAP as a purchase and not a project. But a systematic review of an organisation’s SAP core could reveal a pain-free path to system modernisation – with minimal resource investment. As you can see from our case study in Figure 1, the potential of BTP to simplify processes, improve efficiencies, utilise automations, reduce risk and ultimately save time and costs, is huge. While the times remain uncertain, what is certain is that the organisations that will thrive will be the ones who can innovate with the times. Those companies that are agile enough and willing enough to embrace digital transformation will reap the rewards. SAP BTP can be the tool by which organisations can innovate and tackle the challenges of the day, regardless of industry. Overhauling old systems and updating long established processes can seem daunting, but change is inevitable. The question for organisations is, will you be reactive and have to work for change? Or will you be proactive and make change work for you?

Daniel de Bomford, Marketing Coordinator

Chris Rae, Founder and Chief Architect

FIGURE 1: WORKING EXAMPLE

How one Company looks to Save $300,000 (Per Annum) by Implementing BTP DalRae Solutions took the opportunity to work with a mining company who was ready to transform their business processes. Their process of onboarding new employees in a high-risk work environment had many frustrating hurdles and touchpoints. Employees needed to hand in multiple documents such as licences and work certificates to prove that they were qualified to work on site. However, the process of getting the documents was opaque and complicated. Documents would have to be passed to someone at an office to be emailed to the training team and manually copied to an SAP SuccessFactors system. This process was complex and often resulted in contractors turning up to site without proper compliance documents, meaning that the burden and cost were on the client to recertify the contractor to ensure safety. This presented an opportunity to use BTP to run a business process, while leveraging cloud technology and machine learning to scan documents and fill online forms. As the organisation was open to embracing new technologies and willing to be agile, DalRae Solutions was able to work with them to comprehensively overhaul their system. By leveraging BTP and SAP Mobile Start, contractors and employees could take photos of their licences using their phones, Optical Character Recognition could pull the relevant data and BTP could send the information to SuccessFactors. Now, there are only two contact points, the employee uploading their documents with their phones and the learning administrator checking and approving the process. They expect to see a return on investment within the first six months, expect to save over $300,000 each

year in reclaimed productivity and around 200 days of learning administrator time. The process is fundamentally the same, however the system handles the tedious manual work and leaves the approvals to the organisation. It simplifies the process for employees too, as they only need to know how to use their own devices to upload the documents. The benefits are not purely monetary. With the prior system, there was always the risk that documents would expire and not be detected. BTP can alert the organisation and set up workflows to be followed up with to ensure that all documents are valid. Furthermore, the risk of human error in filling the compliance form has been eliminated. The new process also addresses security risks. Now, the data is only stored in one place. Previously, it would be on an employee terminal, potentially on an email server and in SuccessFactors. It is a huge security risk to have sensitive personal information stored in so many different places. Access is now restricted through role-based permissions, reducing the risk of unauthorised viewing. Ultimately, for a relatively small investment, the system was implemented alongside their existing SAP SuccessFactors system which allowed them to radically improve their business processes by removing inefficiencies while maintaining the overall structure. The implementation was quick and was completed in around nine months. The technology didn’t just happen to them, they embraced digital transformation and are reaping the benefits.

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UNLOCKING SUPPLY CHAIN TRANSPARENCY USING BTP In this article Hari Lakkaraju, Lead SAP Solution Architect, IBM WA, and Sathya Berigai, BTP Architect, Prospecta Software, discuss how the problem of transparency in the end-to-end supply chain process can be solved through solutions enabled by SAP BTP. They explain how the tools and services available in BTP can be leveraged, not only to build customised applications but also to create revenue generating opportunities and support the DevOps business case.

Hari Lakkaraju

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Sathya Berigai

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he asset-intensive industries in the Mining, Oil and Gas and Automotive sectors are often plagued with lack of visibility or transparency over supply chain, especially when it comes to spare part materials. This is due to the fact the spare parts flow through multiple entities and are massively affected by the VUCA (Volatility, Uncertainty, Complexity and Ambiguity) aspects of global phenomena like pandemics, natural disasters, congestion in shipping, or air logistics. The disparate and distributed systems used to track the flow of parts - often do not provide a good enough picture to the stakeholders who need to govern the supply chains, for example, Procurement. Systems like SAP do not talk to the systems of the logistics or freight forwarders, customs handlers, suppliers, OEM manufacturers or repair service companies. All of these entities have their own ERP or IT systems managing their part of the flow. Whilst some of the SAP connected applications, like Ariba or Business Network, do support visibility to an extent, they fall short of providing a single glass pane view of the entire supply chain and all the spare part flows.

AIRCRAFT MANUFACTURERS

An example of this is the Aircraft industry, as demonstrated by Figure 1 (right). Multiple entities are involved or have a touchpoint with the flow of spare parts, but a single view that encompasses all these entities correctly capturing the status

DISTRIBUTORS

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REGULATORY AUTHORITIES AIRCRAFT OPERATORS

SYSTEM SUPPLIERS MAINTENANCE FACILITIES

PART SUPPLIERS

REPAIR OVERHAUL FACILITIES

Figure 1: Physical entities in the Aerospace MRO industry that operate on different systems and environments.

The overall goal is to simplify the processes and provide a single point of access to the complete supply chain with all the flow of replacement parts.’’ of the material flow and tracking the progress is nonexistent. Utilising SAP BTP to Ensure Seamless Integration In order to address this problem, we would suggest using a custom-built application solution that looks to address integration of the customer ERP system, with the IT systems of the extended supply chain network which would include suppliers, freight forwarders, logistics providers and customs handlers. This would enable capabilities to orchestrate and provide transparency of the entire supply chain, right down to the level of an

individual spare part, by bringing together the different streams of information in real time, also utilising the latest visualisation practices. To achieve this, we would also suggest:

• Utilising SAP Integration Suite on

SAP BTP (Business Technology Platform) as a middleware layer between the systems and the application of the business entities (suppliers, logistics providers, etc.).

• Defining endpoints within the

integration package and ensuring that communication with the business entity takes place via

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those endpoints.

• Deactivating the endpoint to remove the entity from the application.

In order to allow simplification of the customer ERP environments by reducing technical debt and making the upgrades process seamless, SAP is espousing the concept of 'clean core' by migrating some of the extended capabilities, custom code and enhancements to SAP BTP. The features of this platform are constantly evolving, however current capabilities allow SAP customers and partners to develop products and applications on the platform that address specific business problems, alongside capabilities of process automation, integration, mobile app development and deploying of state-of-the-art Fiori dashboards with the latest UX design principles.

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Leveraging SAP BTP to Build Custom-built Applications

do so – either using a mobile device or a web browser.

SAP BTP offers more than 80 different services. These services can be used to bridge the various gaps in supply chain and spare part flows that customers experience, given that not all the standard applications will fulfill stakeholder requirements. The overall goal is to simplify the processes and provide a single point of access to the complete supply chain with all the flow of replacement parts.

Utilising SAP Mobile Service within SAP BTP, you are able to create a mobile application that gathers all necessary information in one location to enable the customers to make an immediate and informed decision. SAP Mobile Services provides offline functionality when connectivity is unstable, or back-end data is not often updated. The SAP Mobile Development Kit (SAP MDK) can be used to construct the application, which may then be made available for iOS and/or Android smartphones. Customers can readily download the app from App Stores, but a partner consultant who developed the solution must configure it via SAP Build Work Zone.

This can be accomplished via BTP services like SAP Integration Suite, Mobile Services, Side-by-Side Extensibility, SAP Build Work Zone, and others as needed. Using SAP BTP Tools to Access Custom-built Applications When accessing a custom-built application, there are two ways to

Another approach for accessing the application is web-based. This could be based on a Fiori application built using SAP Cloud Application

All communication routes are protected by encryption, which also offers higher security by letting users customise login settings.’’ Programming Model (CAP) and SAP Build Workzone. Creating this application using side-byside extensions, a program that runs independently of the main program (SAP S/4HANA Cloud) and communicates with it through SAP standard APIs. In order to provide a single glass pane view of the whole supply chain with all the spare parts flows, the custom application will retrieve the necessary data utilising APIs (OData). Without SAP Integration Suite service, a cloud middleware, the solution will fall short. This service should be utilised to integrate with other applications that access data from other systems, such as freight forwarders, logistics companies, etc. The SAP Build Work Zone (Fiori) launchpad can be used to make the application available as a

package. The application can be accessible as a web-based SaaS solution and can be hosted in the BTP account of the solution provider. All communication routes are protected by encryption, which also offers higher security by letting users customise login settings. Utilising SAP BTP Custombuilt Applications as Revenue Generating Opportunities For organisations that are averse to moving towards a DevOps model and to the investment required in creating customised solutions, the tools within SAP BTP offer additional revenue generating potential. Applications can also be made available online as a subscription service. The app can be SAP-endorsed and work to become an industry partner

solution for SAP, based on user numbers and product quality. This enables a solution created to address a particular problem point to be turned into a saleable and lucrative commodity. When considering how to create transparency across the whole of the supply chain including spare parts flow, it is clear that the introduction of BTP has made it possible for technology entrepreneurs to create customised applications fully capable of solving the issue. The variety of tools and services available can be leveraged to create applications which can handle complicated requirements – across multiple entities and assist business processes, as well as becoming potential additional business revenue streams. This creates a win-win situation for both the clients and the tech service providers.

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BRING ON

SAP

BUSINESS TECHNOLOGY PLATFORM

by Prabi Selladurai

In this feature article Mustafa Bensan, Founder and Chief Architect of Intentum, introduces us to SAP Business Technology Platform (BTP) and what it means for SAP, its customers and partners.

or everything technology related in an SAP context, SAP BTP is THE choice!”, according to Juergen Mueller, Chief Technology Officer of SAP, as spoken during the SAP TechEd 2022 opening keynote. Indeed, SAP Business Technology Platform (BTP) is key to SAP’s vision and strategy for enabling what it calls the intelligent, sustainable enterprise, on the path to moving customers to the cloud. Read on to understand how BTP fits in and why, while it may be THE choice, it doesn’t necessarily have to be THE ONLY choice. And with these introductory words I welcome you to the first article in this series where I’ll unpack what exactly SAP Business Technology Platform is, and what it means for SAP, SAP customers and partners. I’ll set the stage with key topics, considerations, and challenges that you can expect in-depth coverage about in future articles of this series. Figure 1 (on the next page) serves to summarise and relate the key discussion points, including the foundation, the pillars, the platform, and the solutions.

Mustafa Bensan

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FEATURE BTP FEATURE BTP TRANSFORMATIONS

PARTNER SOLUTIONS SAP SOLUTIONS

CLEAN CORE

CUSTOMER SOLUTIONS

SAP Business Technology Platform is SAP’s unified foundation for accelerating innovation in the cloud with the benefit of native integration to SAP applications, consisting of multiple services and applications that can be connected to build a solution to a business problem.

GOVERNANCE

ARTIFICIAL INTELLIGENCE

DATA ANALYTICS PLANNING

INTEGRATION

AUTOMATION

APPLICATION DEVELOPMENT

BUSINESS TECHNOLOGY PLATFORM

Typically, BTP's capabilities are described from a technical perspective with the four (or now five) pillars of BTP, the naming of which seems to change over time like SAP product names. So, to keep the language consistent, in this series I’ll talk about the following capabilities from a strategy and architecture perspective:

APPLICATION DEVELOPMENT

ACCOUNT MODEL SECURITY & COMPLIANCE

USE CASES DESIGN & BUILD

AUTOMATION INTEGRATION DATA, ANALYTICS AND PLANNING

DEPLOYMENT AND DELIVERY

Figure 1

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5 ARTIFICIAL INTELLIGENCE (AI)

IF EXECUTED WELL, THIS STRATEGY WILL CERTAINLY GENERATE SHAREHOLDER VALUE AND APPEASE ACTIVIST INVESTORS.’’

What does SAP Business Technology Platform mean for SAP? It is a bold move by SAP to offer their own platform-as-a-service in the form of BTP, when there is a line of thought that the major hyperscalers, including Amazon Web Services (AWS), Microsoft Azure (Azure) and Google Cloud Platform (GCP) are more mature, robust, and competitive in their feature set and capabilities, especially in the areas of application development and analytics. The only exception, where SAP BTP has a clear advantage, is the out-of-the-box, native integration capability with SAP applications, which significantly simplifies SAP-to-SAP and SAP-toNon-SAP integration across cloud and on-premise environments. However, there are signs of an evolution through SAP’s multi-cloud strategy whereby BTP is becoming more open and flexible through interoperability with hyperscalers to allow the combination of complementary capabilities. This is being enabled with

reference architectures and patterns for Azure, AWS and GCP. Furthermore, SAP is in the process of releasing the new 'Edge Integration Cell' to give customers the choice of running cloud-to-cloud, cloud-to-ground, and ground-to-ground integration scenarios on the hyperscaler of their choice. Following the direction of the SAP multi-cloud strategy, we could well land in a future state where application and extension development is undertaken using hyperscaler platform services, whereas integration is provided by SAP Integration Suite and related capabilities such as the Edge Integration Cell. The challenge SAP faces is balancing shareholder value with customer value. On the one hand, it is clear from quarterly results announcements and analyst calls that SAP is undertaking a transformation to become a cloud company, with a “focused growth strategy”, having SAP S/4HANA and SAP BTP at the core. If executed well, this strategy will

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IT IS CRITICAL TO MAKE THE UPFRONT INVESTMENT IN LAYING A SOLID FOUNDATION FOR SUCCESS.’’ certainly generate shareholder value and appease activist investors. On the other hand, with the messaging of “keeping the core clean” when customising or extending functionality in cases where the standard business processes provided by SAP software are not sufficiently configurable, SAP will need to demonstrate the value that BTP brings to customers. And keeping the core clean doesn’t necessarily mean moving all customisations and extensions to BTP. By following the clean core principles, in-stack development is also possible and compliant. More on this in future articles. Furthermore, the momentum in Artificial Intelligence (AI), particularly in Generative AI is influencing the direction of enterprise software. SAP is venturing into this space by embedding what it calls “SAP Business AI” into its product portfolio to play a central role in its strategy to automate the enterprise and give data purpose.

What does SAP Business Technology Platform mean for SAP Customers? Many customers are gaining access to SAP BTP through SAP’s incentives and packaging with

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commercial offerings such as RISE with SAP and GROW with SAP. This usually takes the form of a certain number of cloud credits under a Cloud Platform Enterprise Agreement (CPEA) to allow customers to get started. The key challenge for customers is HOW to get started. There’s a temptation to quickly find a use case and just build something to gain the attention and support of stakeholders. While this is important, it is also critical to make the upfront

investment in laying a solid foundation for success. This typically involves at least:

• Defining the strategy and architecture

• Defining a governance model • Setting up the BTP account

model or hierarchy according to requirements and best practices

• Preparing a roadmap to

achieving desired goals.

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AS WE DEMYSTIFY THE VAST UNIVERSE OF SAP BUSINESS TECHNOLOGY PLATFORM, IT’S EVIDENT THAT THE TRANSFORMATIVE JOURNEY AHEAD ISN’T JUST ABOUT TECHNOLOGY, BUT STRATEGY, AMBITION, AND CHANGE.’’ To assist with this, an initial proof-of-concept project can be undertaken as a learning exercise and for socialising the capabilities with stakeholders.

• Maturity Assessment • Business Process Optimisation • BTP Proof-of-value

What does SAP Business Technology Platform mean for SAP Partners?

2. Product Offerings With SAP’s emphasis on BTP and SAP Industry Cloud, partners can leverage their industry expertise to develop industry solutions for solving common problems across an industry, by delivering BTP SaaS (Software-as-a-Service) applications.

With the momentum expected to gain for SAP S/4HANA implementations, demand for complementary BTP solutions is also set to rise. This presents three key opportunities for SAP partners: 1. BTP Services By upskilling their teams in BTP, partners can help their customers navigate the BTP journey by offering services such as:

• BTP Onboarding • BTP Strategy, Architecture and Governance

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This will require a change in mindset from current norms in the on-premise world, where typically partners develop bespoke add-on solutions for customers. Understandably, this is an attractive proposition for consulting-oriented partners because it means revenue is generated both from building the solution and ongoing maintenance and enhancements. While it is tempting to continue with the status

quo as it can provide a lucrative income stream from a captive audience, productising partner IP by building SaaS solutions offers the following important benefits:

• Global reach, enabling partners

to expand beyond the markets they only have a physical presence in, as customers from any location can subscribe and access the application over the internet.

• Recurring revenue from a

subscription or consumptionbased pricing model provides predictability and stability, allowing long-term customer relationships and investment in product development.

• Easier deployment and

maintenance because the application is hosted and managed centrally on BTP.

• Rapid updates and feature

Putting It All Together

Credit: Olena Lishchyshyna

releases because central management on BTP allows rolling out new features, bug fixes and patches to all customers without the need for manual updates. It is worth noting that compared to the major hyperscalers, SAP has provided partners with an accelerator for developing SaaS applications. This is in the form of the Cloud Application Programming Model (CAP) that serves as a framework with out-ofthe-box plumbing specific to SaaS applications, allowing partners to focus on embedding their unique business IP into the solution. There is certainly a learning curve associated with this framework, but the outcome is worth the effort. To be successful in their adoption, partners' SaaS solutions need to provide a frictionless, self-service onboarding experience. The ability to implement this from an

operational perspective does have its challenges due to the complexities of the SAP BTP commercialisation model for partners. I advocate for this concern directly with SAP and am optimistic that the feedback is being duly considered. 3. Niche Consulting My observation of the ANZ market is that large systems integrators (SIs) are acquiring established boutique consultancies to augment their BTP capabilities, effectively as an acquihire. This seems to be a seven-year cycle which is now about to repeat itself, presenting an opportunity for the existing boutique consultancies to fill the void or for entrepreneurial members of the SAP ecosystem to take the leap in launching a new start-up. This will be an interesting space to watch.

As we demystify the vast universe of SAP Business Technology Platform, it's evident that the transformative journey ahead isn't just about technology, but strategy, ambition, and change. SAP is carving a unique position in the cloud domain, and with its evolving partnerships and ever-expanding capabilities, it promises a blend of both SAP’s core business process expertise and an embracing of leading cloud platforms. For customers, it's about laying the right foundation and charting a visionary roadmap. Meanwhile, partners stand at a crossroads of immense opportunities, be it through services, innovative SaaS solutions, or niche consultancy ventures. As SAP continues to embed AI and automates the enterprise, the horizon looks promising for those willing to harness its potential. Stay tuned to this series, as we dive deeper, shedding light on the challenges and possibilities of the SAP Business Technology Platform.

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USING SAP BTP TO INCREASE SAP VALUE WHILST MOVING TO S/4HANA Chris Newdick, SAP Architect, urges us not to get so absorbed by the move to S/4HANA that ongoing delivery of SAP business value gets forgotten. He shares his insights into how various low-cost tools and methodologies, particularly SAP BTP, can be utilised in the interim, relatively simply, to achieve compressed transformations and added value. Chris Newdick

he majority of conversations I have with SAP customers, SAP Architects and SAP professionals nowadays fall into three camps: 1.

Still thinking about moving to S/4HANA

2. Actively planning or moving to S/4HANA 3. Have moved to S/4HANA and have some type of ‘phase two’ planned If you fall into camps two and three, well done! If you sit in camp one then the only thing I would say is that there are plenty of tools and methodologies out there that are non-intrusive and low cost to run and help you quickly move to camp two, if that’s where you think you are heading. The one question in common

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though between all three camps which often gets overlooked is “how do I get more value out of SAP and justify the investment in it as I move between camps?” i.e. “While I’m doing my S/4HANA project, how do I still get value out of SAP and the existing landscape?” If you recently attended the SAP Sapphire event (or any other SAP events for that matter), you would have seen the persistent messaging around SAP Business Technology Platform (BTP). The platform has been around for over five years now and has gone through various re-branding exercises but, in the last couple of years, it has really started to develop and make a significant impact by providing tangible value for customers.

three camps. S/4HANA projects can be long (from approval to go live) and complex, especially for larger SAP customers and so we need to find a way to continue to deliver value in the SAP workstream as the S/4HANA project unfolds.

As an SAP Architect, I am constantly looking at and assessing how we can get more value out of SAP by using SAP BTP, while we move through the

While there are various approaches to compress the S/4HANA transformation time, using SAP BTP will compress the time it takes to add SAP value to the business and

The term ‘compressed transformation’ is also being used when it comes to large SAP projects. While the term can have different meanings to different people, at the heart of it, it simply means change cannot come quick enough when it comes to modernising your SAP landscape. New technologies and methods are now available to help you do so and compress the time it takes for the project to deliver value to the business.

It’s never been easier to test SAP value use cases while the BAU landscape or large SAP projects continue in their workstreams.’’

is something we all should be looking at.

2. Improving customer engagement

SAP BTP provides hundreds of use cases across the SAP landscape with composable architecture and decoupled (from the ERP) services at a lower barrier to entry. Most customers are often not even aware they already have SAP BTP in their landscape let alone the various services it can offer to bring new value use cases to the business!

3. Looking at areas of workflow optimisation

It’s therefore never been easier to test SAP value use cases while the BAU landscape or large SAP projects continue in their workstreams. As a starter, I would focus on areas such as: 1.

Improving user experience and adoption for high value processes

4. Industry functionality specific to your business applications and/ 55. Mobile or customer & internal portals

As you embark on your S/4HANA journey or your ‘phase two’ type project, whether you are an SAP Architect or SAP SME, take a moment to assess how you can position SAP BTP into your roadmap and work streams. This will ensure you are delivering faster SAP technology value to your business.

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THE IMPORTANCE OF GOOD OPERATIONS TO S/4HANA MIGRATION SUCCESS

Ivan de Oliva, Director at DIG Services, underlines the importance of a good operations team in ensuring your S/4HANA migration project successfully meets your business goals. Ivan de Oliva

o, you’ve got that SAP S/4HANA migration over the line and your team is itching to get cracking on the project, but are you really ready? Once you have created your S/4HANA masterpiece, how are you going to ensure it continues to be maintained, that it is adopted and used by the organisation, and that it continues to be improved and stays relevant to the business it was implemented to support? Indeed, how will you validate that the S/4HANA migration project delivers those outcomes you set out to achieve?

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This is where a good operations team comes in. A strong team can make the difference between simply achieving a technical update, to providing a modernised platform that resolves long-standing challenges in the enterprise applications in an organisation. Also providing a platform for ongoing value adding improvements to how the business operates. Operations is not simply the run team. It must be holistic in its makeup, covering all aspects of maintaining and improving the Enterprise applications that underpin an organisation’s

business strategy. It must act as the custodial owner of the platform and be intrinsically connected with its business stakeholders. There are three different but related aspects of a holistic operations team. These work together to not only keep the platform running but to maintain the value of the platform to the organisation. Also ensuring continuous improvement by taking advantage of any advances in technology aligned with the business goals of the organisation the Enterprise applications platform is supporting. Let’s discuss these three aspects.

These are the core functions and are sometimes described as ‘keep the lights on’ or ‘the run team’. These references tend to gloss over the strategic nature of a good run team. The difference comes from the ability of the team to prioritise its work to align with the organisation’s priorities. A good way to measure a run team’s effectiveness is to measure its reactive (putting fires out) versus proactive support performance. In order to be able to do this, an organisation should have mature strategy and governance.

More than just an architecture and oversight team, a good strategy and governance operations team will ensure alignment with business goals, define and monitor service levels and deliver continuous improvement through a managed, prioritised and funded program of works. The organisation and technology team relies on strategy and governance to provide the frameworks and roadmaps for them to operate to. A good connection to the business strategy and goals is essential to provide services and solutions that are valued by the organisation being supported. This is where the aspect of process comes in.

This function is the connector with the organisation and requires representation from the technology function as well as the different business functions being supported. Along with the operating processes for the support team, the process aspect also tracks the business processes in use in the organisation and aligns the goals of the team to provide solutions that enhance the effectiveness of ways of working.

Organisation & Technology

Strategy & Governance

Process

A strong team can make the difference between simply achieving a technical update, to providing a modernised platform that resolves long-standing challenges.’’

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So how does all this help you be successful in your journey to S/4HANA? With a mature and holistic operations team in place, you will have a greater chance of delivering an outcome that aligns with an organisation’s expectations and is accepted and adopted. Most importantly, you will create an environment where the Enterprise platform is seen as a business enabler, and form the start of a continuous journey that provides ongoing value as the business and technology evolves. Critically, the best outcomes are achieved when the support organisation is embedded in the modernisation program, acts as the assurance and governance function and ultimately takes ownership of the masterpiece. The devil is in the detail as they say, and in future articles we will discuss how to effectively stand up or transform an existing organisation to achieve operational excellence.

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The best outcomes are achieved when the support organisation is embedded in the modernisation program, acts as the assurance and governance function and ultimately takes ownership of the masterpiece.’’

INTERVIEW RISE WITH SAP

RISE WITH

SAP

and the application of infrastructure automation in the cloud ANZSAP’s Danielle Chung sat down with PierreFrancis Grillet and Sascha Wenninger from service provider SoftwareOne, to talk about RISE, SAP’s ‘business-transformationas-a-service.’ They explain what RISE with SAP is, why businesses in ANZ might consider it and whether RISE is the best option for businesses considering moving to the cloud. They also reveal key considerations and challenges in the decision-making process.

Danielle Chung

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In simple terms, what is RISE with SAP? PF: RISE with SAP was launched in early 2021, to meet market expectations of SAP moving towards cloud-based service delivery. If you think of ServiceNow or Salesforce, then by contrast, SAP’s primary model for licensing has been a perpetual license on-premise model. There has been a push from the market to move to subscription models, so that was one of the ways SAP made the S/4HANA software available – rather than buying the license. Then the customer has the option of selecting the hardware services manager by themselves. So, RISE is basically a subscription that bundles the software licenses, the cloud infrastructure it runs on, and the basic technical managed services required to keep the lights on. Customers can select the public cloud provider and region that’s used and some level of technical managed services, which is all

bundled into one subscription price.   What’s the difference, or connection, between RISE with SAP and S/4HANA? PF: There’s confusion in the market about what RISE actually is. To simplify, I think you need to start by saying that the software is S/4HANA. Then that software can be consumed in different ways. If it’s in a subscription model, then that’s RISE, but you can also buy the license up front like you would any other software, implement it on public cloud and then run S/4HANA on that public cloud. However, it is a perpetual license rather than the subscription. In summary, the software is the same – S/4HANA. You then have the choice of where you run it – on premise, in the public cloud or as a subscription under RISE. If it isn’t running on RISE, a customer will handle the infrastructure requirements and the services required to operate. And while SAP announced in July that some

Pierre-Francis Grillet, from service provider SoftwareOne

P I E R R E - F R A N C I S G R I L L E T (PF) Global Lead, SAP Services Pierre-Francis, or PF for short, leads the global SAP Services line for SoftwareOne, covering all continents. His focus is on helping SAP customers not only move to the cloud and to S/4HANA, but also have a positive transition. During his career he has been a customer of SAP, implementing SAP systems for his employer, for SAP itself, setting up their business consulting arm in Australia, and for other partners in various SAP-related roles. He currently lives in Sydney but is often travelling to work alongside his clients.

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Sascha Wenninger, from service provider SoftwareOne

SAS CHA WENNINGER Global Director, SAP Services Engineering Sascha joined SoftwareOne in 2021 and runs an SAP-focused team building tools for migrating customer systems to the cloud, doing conversions to S/4HANA, and running managed services for customers. His goal is to pragmatically automate as much as possible to ensure consistency, quality, and speed. Prior to joining SoftwareOne, Sascha worked on the customer side of some large greenfield implementations for several Australian companies. He is currently based in Singapore.

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new features would only be available when that software is running in RISE, today and in the foreseeable future, the vast majority of the functionality will be the same. What is the current uptake amongst ANZ businesses? PF: There’s not a lot of data communicated by SAP in terms of the adoption of RISE compared to the adoption of S/4HANA. However, it seems that there is a fair degree of scepticism, certainly in Australia, about the RISE offering. That’s partly because many customers have experienced the preceding SAP HEC (HANA Enterprise Cloud) platform, which is similar in terms of providing bundled infrastructure and technical managed services, although not necessarily including a subscription license. Those customers who have experience with HEC, or who tried HEC and then moved out of it again, often wonder what’s the difference to RISE, or whether they’re likely to have a similar experience to HEC. The other hesitation about RISE is linked to the slow adoption of S/4HANA, which is difficult to make a compelling business case for.

It doesn’t offer huge differences in terms of core functionality compared to ECC; it is more a modernisation of the SAP system in terms of technology. An enabler. Therefore, the big and obvious business savings in inventory, supply chain and manufacturing, aren’t there. Why would ANZ businesses consider migrating to RISE? PF: To be a bit cheeky, I would say one main reason is that SAP is pushing for the migration, there are a lot of incentives, and we know SAP is a very high-performing, disciplined organisation when it comes to sales, so customers are often not really being given a choice. More seriously, if you look at the long term, SAP says RISE represents the first move to using ERP in a SaaS (Software as a Service) fashion. That is clearly the direction, although that’s not to suggest that RISE today is comparable to a true SaaS offering yet. We see customers that understand the direction and are following it because ultimately, that’s the direction they want to go in. Another big reason would be convenience for those customers

that don’t have a lot of SAP skills, and that are more open to depend on SAP. In addition, businesses are increasingly attracted by the OpEx model where you pay-asyou-go based on consumption. Many find this an attractive option. The reality is also that, compared to a perpetual license, SAP can make RISE appear very financially compelling. We help customers to compare the cost of RISE and the cost of the factory license and for some, it’s a no-brainer. If it’s half the cost of the perpetual license, then that’s a good justification. In general, smaller organisations with less need to customise core SAP software, and with no history of having built any customisations, would be more attracted to RISE than those who need to manage complex, integrated technical functions, which is not necessarily easy to do on RISE. Sascha: For organisations with relatively few existing IT service providers and a relatively simple support model for their IT landscapes, RISE might be more attractive. It’s something they can hand over to SAP to ANZSAP ISSUE 01 137

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FOR ORGANISATIONS WITH RELATIVELY FEW EXISTING IT SERVICE PROVIDERS AND A RELATIVELY SIMPLE SUPPORT MODEL FOR THEIR IT LANDSCAPES, RISE MIGHT BE MORE ATTRACTIVE.’’ manage as almost a bit of an island. Conversely, we see some organisations that have 10 different IT outsourcers to orchestrate for different parts of their IT estate, of which SAP is just a part. For those, having to carve out the SAP bits, and making RISE the 11th outsourcer becomes much less appealing. Is RISE the best option for customers to realise the benefits of the cloud? PF: That ultimately depends on their business transformation objectives and on the cloud strategy they’ve set for themselves. Looking at it on face value, RISE is a subscription where you lock in the infrastructure upfront. You therefore miss the cloud flexibility elements, where you can set up a box very easily, and shut it down whenever you want. You don’t really get this level of agility with RISE.

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The underlying software, SAP S/4HANA, is the same. If you think in terms of business transformation, there should be no difference in what is underneath, which is the combination of the infrastructure and the managed services that are offered to support that. Our recommendation is to do proper due diligence, because there is no easy answer whether RISE is better to meet your cloud strategy compared to a native cloud approach. Sascha: For some organisations that have been historically on-premise, in their own data centres, with a lack of exposure and experience of leveraging cloud, RISE could be a convenient way of getting to the cloud and having that complexity taken care of. Yet other organisations have already experienced that journey some years ago and have already

realised the benefits of cloud flexibility. For example, some shut down their QA and testing systems when they’re not actively doing testing to save costs. We have some companies who dynamically scale out at month-end by adding more app servers to their production SAP system for only a few days to cater for peak loads. RISE wouldn’t allow this level of flexibility, as it’s much more fixed; it therefore might feel like a bit of a step backwards for those. For customers that move to RISE, what are the main challenges or considerations? PF: Often customers come to us because the financial offer isn’t very clear and they’re trying to figure out the value and how to compare RISE with native options. Another challenge is once you move to RISE, you are on a subscription model and don’t own

the license anymore. You are kind of locked in, so it’s hard to come back. For those that had the right to use the perpetual license before, they may have concerns about losing it. It’s important for the customer to consider current and future needs before signing up. When you sign up, it’s for a five-year period and it’s difficult to scale down afterwards. There’s also the potential for SAP to push features that the customer may not even use for the next two or three years, or even during the entire contract term. Sascha: I guess like a lot of service offerings, the rigidity of the defined service with RISE is a bit of a doubleedged sword. It can be positive in that it absolves you from having to make decisions and be responsible for the

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implementation. However, it also locks you into a certain number of fixed constructs that you can’t change because that’s part of the service offering. Some organisations are quite happy with the way that SAP has designed their infrastructure for high availability, for backups, resilience, or monitoring. Their internal standards are maybe not so demanding, or they may not have an experienced architecture team in-house with a very defined way that they want their IT systems to be built and run. RISE might be quite suitable for them because they simply adopt SAP’s recommendations and patterns, and don’t have to make many detailed decisions themselves. Other customers, especially those with a very large internal IT estate and lots of non-SAP enterprise systems, do want to apply a common set of standards, security rules, security infrastructure, and resilience constructs for both SAP and non-SAP systems. Sometimes RISE isn’t a nice fit because it’s a very strictly defined service that’s enabling SAP to deliver at scale. That causes discomfort for customers who say, "Well, I want all my enterprise systems to look like this, and now the RISE landscape looks different." Although SAP can offer some additional solutions, you simply must accept that SAP is moving towards more of a SaaS offering, rather than something that’s very bespoke. For some companies that works, and for others it doesn’t.   PF: S/4HANA today, you can’t really compare with SuccessFactors, for example, or Concur. There’s a degree of complexity in how you manage the landscape to ensure you have reliability in your

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SOMETIMES RISE ISN’T A NICE FIT BECAUSE IT’S A VERY STRICTLY DEFINED SERVICE THAT’S ENABLING SAP TO DELIVER AT SCALE.’’ operations, performance, etc. Organisations may have spent years mastering that, ensuring they control that environment. Usually, the people that are tasked with evaluating the RISE offering are those that have worked hard for years to ensure SAP operations are running smoothly. They can be sceptical of letting go and outsourcing to SAP, especially given there is not enough transparency or understanding on SLAs and the SLAs are not very stringent. They look at the SLA and say, "Well, this is not as good as what we commit to our business today. Why would we go there?" Add the fact that it is part of a longer-term move to SaaS, that today S/4HANA doesn’t behave like a SaaS solution, and that it’s more complex to manage, and you have multi-tier environments. You have several operations required to maintain the system, which are more complex than, for example, SuccessFactors.

Sascha: And more businesscritical as well. Take the example of one of our customers in financial services. At a strategic company level, they want to ensure that their infrastructure is so resilient that they can fail over to their disaster recovery region every month. Then run the landscape there for a month, fail it back and run it there for a month. Go back and forth every month. If you’re Google or Facebook, that’s what they would do as well due to the level of business criticality, and our customer has some demanding regulators in many countries to satisfy. So, there are good reasons for doing this. However, they can’t apply this pattern for their SAP systems, because that’s not available to them in RISE. The way that disaster recovery works in RISE simply doesn’t support what they’re doing with the rest of their IT landscape. Other customers may not have that desire and they say, ''Look, SAP gives me an availability SLA,

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and that’s better than what I have today." Again, it depends on where the customer is at. What advice would you give to overcome these challenges? PF: Our first recommendation to customers is to be RISE decisionready. Do the due diligence to understand what it is, to be prepared to have in place a negotiation strategy with SAP. Don’t be caught without having enough time to understand what RISE is. The second recommendation is to make sure they do whatever they can to prepare themselves to be fit for the journey to the cloud and to S/4HANA. That’s true whether they are planning to go to RISE or to native cloud. We understand it’s difficult for organisations to justify the

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resources, people, and financial resources to set up proper preparation projects that would help them when they move to the cloud or to S/4HANA, to have simplified their environment, minimised the risk and minimised the costs of doing so. But we recommend that they prepare themselves. The third recommendation is to have a good understanding of what your optimised target cloud architecture is and how every piece fits. Whether RISE is supporting your cloud strategy or whether you’re better off having everything under one roof. Also, the same applies to the target operating model for your IT services and how you support all your applications. Have a clear understanding of what this target and framework is before you look at

how RISE fits into that. Sascha: For me one of the main things to do is to look at cleaning up your data. We talk to a lot of organisations that have not really invested a lot in archiving data, for example. Regardless of which model they choose, if they pull across 25 years’ worth of historic data, that’s going to be quite expensive. There are some immediate paybacks from tidying up some of the data and working with the business through data retention requirements and starting to archive data off. However, this isn’t something you can do within three months and then be ready for a cloud journey straight away. If you start early, you give yourself some runway. PF: We’re working with some smart tools, including a tool from SNP, that really helps to streamline the data management, reducing

RISE WITH SAP FEATURE

the data that must be moved to S/4HANA, and reducing the migration effort. Because if you can identify old data that you can leave behind in ECC, then you can also eliminate the effort to adjust it to be S/4HANA ready. Sascha: There are several opportunities to use SNP’s analysis tooling to find out what data can be archived off, and where there could be some potential savings. We’re also doing something similar with custom code that a lot of customers would have in their SAP system. The move to S/4HANA is not an upgrade, it’s a migration and we find that there’s a lot of customers that have code that will break as part of that, because the underlying platform is different, or some APIs no longer exist. We therefore also have tooling that can find that code and advise on how to fix it.

SAP provides some automated fixes that we can use as well, but typically that covers only a small percentage. That’s also something that customers can start with right now today, to prepare for an eventual move to S/4HANA.

THE MOVE TO S/4HANA IS NOT AN UPGRADE, IT’S A MIGRATION AND WE FIND THAT THERE’S A LOT OF CUSTOMERS THAT HAVE CODE THAT WILL BREAK AS PART OF THAT... ’’

Every time we look at customer systems, we find at least 5000 code objects that need to be somehow modified by a developer. We recently did one that had 38,000 code changes that needed to be done. That’s a significant amount of effort and if you don’t do it, potentially you get incorrect results from reports and transactions. But many times, this is preparation work you can start today on ECC, and then be much more ready to move to S/4HANA regardless of whether it’s on RISE or not.

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CASE STUDY S/4HANA TRANSFORMATION

How SAP’s S/4HANA

Drove TasNetworks’

BIG TRANSFORMATION STORY BY STEVE COLQUHOUN

Ross Burridge

CASE STUDY In this case study we learn from Ross Burridge, COO of TasNetworks, who, in 2014, was at the beginning of a huge $10 million transformation journey. TasNetworks, then newly formed from the merger of electricity transmission company, Transend and power distribution company Aurora, was looking for a system that would deliver a fully integrated IT system, and eventually chose SAP S/4HANA for the job. A key decision maker and founding CFO at the time, Ross shares insights into the selection process, how the rollout progressed, key benefits, challenges and lessons learned.

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en years ago, the Tasmanian Government took the momentous decision to merge its electricity transmission company Transend with power distribution company Aurora to form TasNetworks. The combined entity came into existence in mid-2014 with a list of logistical, structural and cultural challenges to overcome; but the union of the two complementary utilities also presented significant opportunities to streamline operations and create service and cost improvements. FINDING THE RIGHT SOLUTION Key to achieving TasNetworks’ goals was a robust, adaptable and fully integrated IT system, says Ross Burridge, the then founding CFO for TasNetworks, and a key decision-maker during the tender process. Ross is currently the company’s COO, following a recent six-month stint as acting CEO, and has continued to be fundamentally involved in bedding S/4HANA into the company culture. That criteria immediately ruled out more than 60 legacy systems, tools and Excel-based tasks inherited from Transend and Aurora, many of which had become outdated or were incompatible with each other. It took an open tender and a painstaking selection process over a period of almost a year, for TasNetworks’ management team to finally choose the transformational tool they were looking for – SAP’s S/4HANA enterprise resource planning (ERP) package. The tender process introduced a number of proposals, including several ERPs. There were diverse opinions about the best solution,

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with the final recommendation being tested and verified by independent advisers, KPMG. And with the project cost exceeding $10 million, TasNetworks’ choice also required State Treasury endorsement. “It was quite the complicated process,” Ross says. “In the end, we went with the most experienced integrator (UXC Oxygen), because we were convinced that they would work with us, and we could work with them.”

were. We were preparing in the background,” he says.

Ross was particularly impressed that the UXC team went out of its way to try to reduce costs that would be passed on to TasNetworks. “They took leases on houses and flats and things like that, just to reduce our costs. So, in the end, we were comfortable we had the right team and the right partner at a cultural level.”

The rollout commenced in 2016 and since then, TasNetworks has continued to flourish. It now has an asset base valued at more than $3.5 billion, employing 1000 Tasmanians to deliver reliable power supply to more than 280,000 residential, commercial and industrial customers.

The decision-making process took around 10 months, but Ross maintains it was time well spent. “That actually set us up for a successful outcome because we were simultaneously developing what our high-level specifications

PROGRESSION SINCE ROLLOUT TasNetworks’ rollout was completed in two stages – financial functions first (finance; governance, risk and compliance; HR; procurement; and supply chain management), followed by technical (enterprise asset management; health, safety and environment; mobility enablement).

Its complex and diverse operations include:

• maintaining a transmission network (towers and lines)

• consisting of more than 3500

kilometres of overhead lines and underground cables

ELIMINATING DUPLICATION DELIVERED SAVINGS FOLLOWING THE MERGER, AS DID CONSOLIDATING MANY FUNCTIONS OPERATING WITHIN THE ERP.’’

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• a distribution network (poles and wires) including 22,400 km of lines and cables

• a network of more than 33,000 large and small distribution substations.

SAP S/4HANA is now woven through almost every element of the business. “When we merged those two workforces in 2014, we had things like two general ledgers, two payroll systems, two purchasing systems, everything was in duplicate. I think one of the procurement systems was in triplicate. They were all different, all end-of-life,” Ross says. “We had this burning platform. We’ve got to do something. We did an exercise, which took some time. Do we go for best-of-breed (software packages) – so pick best payroll, best general ledger etc., and then

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link them together? Or do we go to an ERP?” THE BENEFITS A key benefit of choosing an ERP, and SAP S/4HANA in particular, was the opportunity to redesign the entire TasNetworks business with a set of integrated and simplified processes. “We wanted to get everyone on the same page,” Ross says. There were immediate, tangible benefits, such as the resource planning module that delivered an unforeseen windfall. “When we put all our resources in and matched it to our work, we found about 90,000 hours that hadn’t been accounted for, which we could continue to use. That was a nice little surprise,” Ross says. “It also helped us with our data generally. We did a data

cleanse to pick all the data up into SAP, which was a bit of a thankless job. But the data hadn’t been as accurate as we would have liked, so that was also a win.” Eliminating duplication delivered savings following the merger, as did consolidating many functions operating within the ERP. “Having SAP has allowed us to bring all that together, and we’re still using the functionality to improve things,” he says. “It was in those services areas – accounts payable, accounts receivable, and particularly in the technical side – where we didn’t have to keep technical experts in every system anymore.” As the project progressed, TasNetworks employees finally had a single 'source of truth' to guide at-times complex logistical tasks. “Now a line worker can input data

into SAP and that data can be seen, in real time, by someone, say, in network planning. This was a huge leap forward,” Ross says.

A KEY BENEFIT WAS THE OPPORTUNITY TO REDESIGN THE ENTIRE TASNETWORKS BUSINESS WITH A SET OF INTEGRATED AND SIMPLIFIED PROCESSES.’’

Years of diligent work is also paying off when it comes to achieving financial benefits. “A key part of our business case was benefits realisation. So we actually ran the benefits realisation scheme for a few years after (implementation) because our Board and the Tasmanian Government, our owners, were keen for us to embed the expected savings. The Board received regular reports that demonstrated how we were tracking with our benefits, and the answer at that time was that we spent $52 million, while benefits were up to $69 million.” Much of this was realised in headcount savings during the

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implementation phase, as duplicate roles were eliminated while others were able to be streamlined or consolidated as a direct result of the ERP’s more efficient processes. OVERCOMING CHALLENGES To maintain business-wide integration, TasNetworks took the decision to ban customisation of S/4HANA. Instead, the company performs running configuration updates to address issues as they arise. For example, when Ross took over as COO, he saw that much of the financial analysis work was still being performed using time-intensive spreadsheets. “People were just comfortable with what they know, so they kept taking data out of SAP, analysing the spreadsheet and putting it back in again,” he says. “They can now use dashboards, and that’s something we have been evolving and continue to get in shape now. We want to use the full functionality of the system wherever we can.”

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Yet in 2023, as TasNetworks undertakes its first major upgrade of S/4HANA, one of the first items on its priority list is to complete the transition to SAP’s cloud-based system. “We’ve got a business case that was approved to move our people data to the cloud,” Ross says. “We are getting more and more comfortable with the cloud as a solution.”

blueprinting 100% right is probably a pipe dream, but I would probably drive that a bit harder, test that harder, and maybe try to peer-test that a bit as well.” Another issue for TasNetworks has been a third-party purchasing and contract management tool, Ariba. Despite being “an SAPbadged product”, it has failed to fully integrate with the S/4HANA suite. “We had a lot of hassles with that. SAP had to find someone in India who was an expert in Ariba to bring that together. That probably should have been a red flag to us,” Ross says. “We got some of the functionality working. It has improved, but it’s still not delivering everything that we need in that space. That’s probably the only part of our initial implementation where improvement is still required to really do what it needs to do.”

WE’VE EMBEDDED AN SAP SOLUTION THAT IS GOING TO REAP BENEFITS FOR OUR BUSINESS AND OUR CUSTOMERS FOR MANY YEARS TO COME.’’

During the initial rollout in 2016, SAP recommended that TasNetworks fully adopt the newly launched S/4HANA cloud edition. Lacking total confidence in the security of the cloud and existing cyberprotection protocols at the time, TasNetworks instead opted for a mix of cloud and on-premise storage. An example of the latter was its selection of an SAP add-on product, Simple Finance. “At that stage we weren’t ready to put a lot of our things in the cloud, like payroll,” Ross explains. “We did a quick but thorough bit of analysis at the time and dismissed (full cloud storage) because it was a bit experimental for us, and it didn’t

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suit us to be on the bleeding edge.”

LESSONS LEARNED Whilst describing TasNetworks’ S/4HANA rollout as successful, Ross can also see elements of the process he would advise others to do differently. In retrospect, he would have paid more attention to the design and blueprinting stage. “It’s hard to design something when you don’t know exactly what you want,” he says. “So you have to continue to refine that. What you design is what you get, and we didn’t get everything we wanted, because we didn’t spend enough time (on design),” he says. “I’d spend a bit more time and give more attention to detail in the design and blueprinting stage of the implementation. Getting

However, TasNetworks hasn’t completely closed the door on third-party applications. “Even though our strategy says the first port of call should be applications that are SAP compatible, we’re not opposed to it,” he says. “There would have to be work and analysis to make sure anything that wasn’t SAP compatible could be picked up and integrated in some way." NEXT STEPS Alongside its first major upgrade, TasNetworks is also keen to boost automation, and is working on a business case for an SAPcompatible tool that can design the company’s field work, schedule a workflow, and create a bill of materials. “So a customer will come to us with a new 200-lot subdivision

coming up. We go and design that. The cabling, the underground services, we need new pad mount transformers, all that,” Ross says. “In the next stage we’re really looking at getting that more automated. We have got an old system we use for it, but this is to integrate it complete with scheduling and things like that.” This is one example of a system-based ancillary project, while incoming TasNetworks CEO Sean McGoldrick is keen to pursue other efficiencybased initiatives, to continue the business transformation. “We’re looking at products that we can add to our suite that help make us more efficient,” Ross says. “Reporting is a big one. Our reporting now is not quite one-button-touch, but it’s a lot better than what it used to be.” TasNetworks will also use the upgrade as an opportunity to refocus on how staff interact with the ERP package. “Are we using it to the best of its strengths and ability? Probably over time we’ve dropped off a bit on that,” he says. ENSURING TRANSFORMATION SUCCESS After almost 10 years in daily contact with SAP’s S/4HANA package, would Ross recommend it? “If you’re prepared to spend the time preparing for it, it’s a good outcome,” he says. “But if you think you’re just going to get it out of the box, put it in and expect it to work, you’re going to fail. You need to spend the time within your own business understanding it, you need to specify properly, and you need to find the right integrator. You don’t want to shortcut it, but you also don’t want to overspend. Your implementation schedule is just as important as your build schedule, because you’ve got to get it out in the right format. “I think (success) depends on the size of your organisation. We’re small in the scheme of electricity businesses Australia-wide. I used to know all the other CFOs and there’s been some problems with their implementations over the journey. Some have spent tens more time and money than we have. It’s been a long journey, but thanks to the combined efforts of many people across our business and the vision of our leadership team, we’ve embedded an SAP solution that is going to reap benefits for our business and our customers for many years to come.”

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CASE STUDY SYSTEMS INTEGRATION

IMPROVING PROFITS THROUGH SYSTEMS INTEGRATION CASE STUDY

In this case study we learn from Glynn Williams of Emphasys how simplifying the sales process through SAP integration enabled one global FMCG to increase sales order processing volume by over 2000%. 152

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Glynn Williams

n the rapidly evolving world of global trade, businesses must consistently optimise and streamline their processes to maintain a competitive edge. One such critical process is sales order processing, which directly impacts customer satisfaction, order accuracy, and profitability. At the same time, companies increasingly depend on complex system landscapes to support their business processes. As these organisations expand and adapt, the number of systems and interfaces often proliferates, resulting in a convoluted network of interdependencies that can impede efficiency, agility, and innovation. This article highlights the story of how one global Fast Moving Consumer Goods (FMCG) company revolutionised their sales order process and transformed their system landscapes by minimising complexity and promoting seamless integration.

• Increased risk of data

inconsistencies and errors

Additionally, the company faced obstacles due to an outdated and inefficient sales order process. These limitations negatively impacted profits. Recognising the need for a more streamlined system landscape, the company engaged Emphasys to assess its current setup and implement a transformation program that would result in a faster, automated sales order process.

THE STRATEGY Unravelling complexity through system simplification A thorough analysis of the company’s system landscape was undertaken, identifying redundancies, inefficiencies,

THE CHALLENGE Managing a sprawling system landscape and outdated sales order process The company in question, a global enterprise offering a wide range of products to customers worldwide, faced significant challenges in managing its sprawling system landscape, which included 315 disparate systems and 5,917 interfaces. This complexity led to several issues:

• Increased maintenance and support costs

• Reduced operational efficiency • Slower response times to

changing business requirements

• Difficulty in implementing new technologies and innovations

As these organisations expand and adapt, the number of systems and interfaces often proliferates, resulting in a convoluted network of interdependencies that can impede efficiency, agility, and innovation.’’ ANZSAP ISSUE 01 153

and opportunities for consolidation. This analysis involved:

• Mapping the existing systems and interfaces

• Evaluating the criticality,

functionality, and performance of each system and interface

• Identifying areas for improvement and potential risks

• Collaborating with the IT team

to identify bottlenecks in existing processes

Based on the assessment, a comprehensive strategy was developed to streamline the system landscape, focusing on the following key areas:

• System consolidation:

Merging or eliminating redundant or underutilised systems – specifically looking at the transformation program and opportunities for sunsetting of systems.

• Interface optimisation: Reducing the number of interfaces and simplifying their design – Emphasys has a tool that is able to match the data model of interfaces to identify redundancy.

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• Prioritisation: Mapping

previously unattainable.

BUILDING A COLLABORATIVE RELATIONSHIP

By working closely with the company to identify bottlenecks and implement targeted solutions, the sales order process was improved, and the entire operation was also enhanced. Consolidating systems, optimising interfaces, standardising processes, and introducing automation enabled a more efficient, agile, and innovative system landscape.

interfaces and systems to the transformation programs objectives to ensure right-sized scope and attention.

A critical component of the strategy was the focus on developing strong collaborative relationships between Emphasys, SAP, the incumbent system integrator and the business stakeholders. Working closely with the company’s IT team to understand their unique needs, challenges, and goals was paramount. The solution provided, needed to be tailored specifically to the company’s requirements in order to deliver the desired results.

THE IMPLEMENTATION A new system for enhanced sales order processing The new solution implemented utilised ODATA and JSON messages processed in S/4HANA. This approach allowed the company to adopt standard SAP processes and simplify their ‘Order to Cash’ process while achieving sales order processing goals that were

Additionally, Emphasys created a tailored Integration Solution Blueprint to ensure reusable patterns and technologies were adopted, for new interfaces moving forward, this resulted in standardised support processes and a structured integration approach for future innovation.

THE RESULTS Improvements in Sales Order Processing and Profitability Through the implementation, the company successfully reduced its system landscape from 315 significant systems to 69 and its interfaces from 5,917 to 411. This transformation yielded several benefits:

SYSTEMS INTEGRATION CASE STUDY

• Lower maintenance and

By working closely with the company to identify bottlenecks and implement targeted solutions, the sales order process was improved, and the entire operation was also optimised.”

support costs: By reducing the number of systems and interfaces, the company significantly reduced the resources required for maintenance and support.

• Improved operational

efficiency: The streamlined landscape enabled faster data processing, better system integration, and more efficient business processes.

• Enhanced agility and

innovation: With a more manageable and flexible system landscape, the company was better positioned to respond to changing business requirements and adopt new technologies.

• Reduced risk of data

inconsistencies and errors: The simplification of interfaces and consolidation of systems minimised the potential for data discrepancies and errors.

The company also increased sales order processing by over 2000%. Before the partnership, the company’s fastest response time using an optimised IDOC process was 15,000 sales order items processed in 39 minutes. However, with the new solution in place, the company could process an astounding 315,000 items in just 21 minutes and 18 seconds.

This dramatic improvement not only streamlined the sales order process and reduced errors, but also positively impacted the company’s bottom line by increasing sales volumes and reducing costs. Moreover, by reducing errors, ensuring timely order fulfillment, and providing an overall better customer experience, the company was able to strengthen its relationships with clients and enhance its reputation in the industry.

EMPOWERING THE GLOBAL COMPANY’S NETWORK The company’s success story did not just positively impact their internal operations. The improvements in efficiency, accuracy, and profitability also had a ripple effect across the company’s entire network of suppliers, distributors, and partners. The enhanced sales order process allowed the company to forge stronger relationships with their stakeholders, resulting in a more robust and resilient supply chain. This, in turn, has enabled them to more effectively meet the needs of their customers and maintain their position as a global leader in their industry.

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LESSONS LEARNED & BEST PRACTICES

CONCLUSION

This customer success story offers valuable insights and best practices that other organisations can apply when considering a similar transformation. Some key takeaways include:

This case study demonstrates the transformative power of utilising SAP integration and SAP S/4HANA to revolutionise the sales order process and streamlining systems landscapes. The impressive results of this transformation allowed the company to excel on a global scale, improve customer satisfaction, and strengthen their bottom line.

Select the right partner: It is important to work with an expert in SAP integration and S/4HANA knowledge – this is critical to success. Choosing a partner with the right expertise and proven track record can make all the difference in the outcome of such a transformation. Focus on the present and prepare for the future: It is important to solve the integration problems of today, but it is equally important to have a blueprint and strategy for the future. This will ensure integration patterns are consistent, thereby enabling innovation, adoption and reuse and reducing complexity and the desire for new interfaces. Collaborate closely with your partner: A strong working relationship between your organisation and your chosen partner is crucial. Ensure that both parties are committed to understanding each other’s needs and goals, and maintain open lines of communication throughout the process. Prioritise change management: Any significant transformation within an organisation can be disruptive. Recognising the importance of change management and dedicating resources to ensuring a smooth transition can help minimise potential issues and maximise the benefits of the new solution. Focus on customer satisfaction: The ultimate goal of any process improvement should be to enhance the experience for your customers. Keep customer satisfaction at the forefront of your efforts, and measure the impact of your changes to ensure they are delivering the desired results.

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The transformative power of SAP integration and S/4HANA in revolutionising systems

The impressive results of this transformation allowed the company to excel on a global scale, improve customer satisfaction, and strengthen their bottom line.”

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