Understanding the need and challenges associated with ERP migration to S/4HANA and the four-step framework to a successful migration effort.
Launched in 2015, S/4HANA is built on SAP HANA, an operational database and an in-memory computing platform from SAP. With many organizations planning to migrate to S/4HANA, an important question is how best one manage change to ensure that the migration project is a success. This eBook addresses these questions especially in the context of order-to-cash operations.
Before we jump into the migration process, here are some of the most compelling reasons why many organizations are planning to upgrade to S/4HANA:
Apart from these innate advantages with S/4HANA, the ERP migration process could be your opportunity to standardize overall business processes, and introduce changes in the system to improve efficiency and compliance.
Even before you embark on the ERP migration process, here are the top challenges that you would have to consider:
The migration to S/4HANA could be carried out as one of the following three transition scenarios:
SAP has released various project implementation methodologies over time. The latest one of them, which has also been discussed extensively as a part of a successful migration to S/4HANA, is SAP Activate.
The SAP Activate methodology states that any ERP migration projects has four main steps, which are as follows: Prepare, Explore, Realize, Deploy (PERD).
While taking inspiration from SAP Activate, here is the migration methodology followed by our customers to successfully migrate O2C systems to S/4HANA:
The latest module of SAP S/4HANA offers a lot of features for different stages of your Order-to-Cash. Let us drill down to each one of them and see all the functionalities that you would be able to enjoy natively in S/4HANA.
Build vs Buy
There are two approaches that organizations could take for incorporating custom functionality 1) leverage internal IT teams to built in-house and 2) configure cloud solutions that integrate into S/4HANA. Here are two reasons why organizations are gravitating towards SaaS cloud solutions.
Each of the below module enhancements could be one sprint in order to ensure successful migration.
I.Top Enhancements in the Credit Module
II.Top Enhancements in EIPP (Electronic Invoice Payment and Presentment)
I.Top Enhancements in Cash Application Module
II.Top Enhancements in Dispute Management Module
III.Top Enhancements in the Collections Management Module
Once any organization goes through these sprints, it would be >90% ready to run the business operations on S/4HANA. The only hurdle to cross would be the change management bit where the project managers need to monitor user adoption and create training and onboarding plans to ensure a smooth transition into the new system.
S/4HANA migration is your opportunity to streamline O2C operations while building capabilities through cloud based enhancements that would be future proof and prevent multi-year IT projects every time the organization decides to migrate to a new version or even change the ERP to something else. The below figure illustrates this loosely coupled system that simplifies IT landscape while also providing all the features to run the O2C function efficiently.
HighRadius is a Fintech enterprise Software-as-a-Service (SaaS) company. The HighRadiusTM Integrated Receivables platform reduces cycle times in the order-to-cash process through automation of receivables and payments across credit, electronic billing and payment processing, cash application, deductions and collections.
Powered by the RivanaTM Artificial Intelligence Engine and FreedaTM Virtual Assistant for order-to-cash teams, HighRadius enables organizations to leverage machine learning to predict future outcomes and automate routine labor-intensive tasks. The radiusOneTM B2B payment network allows suppliers to digitally connect with buyers, closing the loop from supplier receivable processes to buyer payable processes.
HighRadius solutions have a proven track record of optimizing cash flow, reducing days sales
outstanding (DSO) and bad debt, and increasing operational efficiency so that companies may
achieve strong ROI in just a few months. To learn more, please visit www.highradius.com
Integrated Receivables optimizes accounts receivable operations by combining all receivable and payment modules into a unified business process. The Integrated Receivables platform provides solutions for credit, collections, deductions, cash application, electronic billing, and payment processing – covering the entire gamut from credit-to-cash.
The HighRadiusTM Integrated Receivables platform stands out by enabling every credit and A/R operation to execute real-time from a unified platform with an end goal of lower DSO, reduced bad-debt, and faster dispute resolution while improving efficiency and accuracy for cash application, billing, and payment processing.
HighRadiusTM Integrated Receivables leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes. The Integrated Receivables platform also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier Accounts Receivable process to the buyer Accounts Payable process.
HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.