When a long-established beverage group with multiple breweries set out to modernize its operating model, the ambition was clear: create a central sales company and centralized administrative functions  while simultaneously preparing the technological future of the organization. The initial transformation plan combined two major changes at once: a group-wide organizational restructuring  and a Greenfield transformation to SAP S/4HANA . Both initiatives were strategically sound—but together they created a level of complexity that risked slowing the organization down at a moment when the market already expected the new structure to be operational. The solution was a decisive architectural move: split the transformation into two waves. Wave 1  focused on the immediate market requirement: implementing the new Target Operating Model (TOM) . Sales and administrative functions were carved out of the individual breweries and consolidated into new central entities. The implementation was executed on the existing ECC platform to minimize technological risk and ensure a reliable go-live timeline. Wave 2 , now underway, delivers the technological modernization: a Selective Data Transition to SAP S/4HANA , building on the stabilized operating model established in Wave 1. To regain momentum and deliver on the fixed timeline, the program introduced several pragmatic execution mechanisms. A Process Factory  approach was used to identify the mandatory process requirements and map them against existing solution components. This allowed previously designed solution elements to be reused efficiently for the ECC implementation. To prevent strategic discussions from becoming long-running political debates, a structured decision forum—internally referred to as the “Klärwerk” —brought unresolved topics directly to decision-capable management, ensuring binding outcomes. Testing started early and ran in parallel with design and build activities. Based on clearly defined process requirements, test cases were generated quickly and executed through three iterative cycles within a “Test Arena”  setup. Between the first and second cycle, a final prioritization of processes and functionalities ensured that the program remained aligned with the overriding determinant: time to operational readiness . Cutover preparation followed a deliberately minimalist philosophy . The market was proactively “loaded” with orders before year-end to reduce operational pressure in January, while manual workarounds were prepared where necessary to bridge the transition. Operational readiness was further supported by an early Cutover Control Center , which coordinated the advance creation of orders and purchase documents in the new structure and orchestrated migration, carve-out activities, and a carefully managed operational ramp-up. After go-live, deliveries to national and international markets were gradually increased to control operational risk while issues were resolved systematically during the Hypercare phase . At the same time, the program established a structured Demand Management process  to replace temporary manual workarounds with sustainable system solutions. Improvements are now being implemented step by step through clearly prioritized change requests and optimization initiatives. Finally, the project transitioned seamlessly into operations through a newly established Key User organization . Many of these key users had already participated in the project workstreams and now ensure high-quality incident documentation, continuous improvement requests, and close collaboration between business and IT. What began as a highly ambitious transformation has evolved into a stable operating platform and a clear modernization path . With the new operating model already in place and the S/4HANA transition underway, the organization is now positioned to scale its business, integrate future acquisitions, and support continued international growth. By Michael Philipzen

What the last twelve months in a high-pressure transformation really taught us. Large transformation programs rarely fail because of a lack of ambition. They struggle because complexity, ambiguity, and unresolved assumptions accumulate faster than decisions. The turnaround described here did not come from a new target architecture, but from introducing very concrete operating formats at exactly the points where the project had previously stalled. 1. The “Process Factory” turned discussions into decisions The “Process Factory” was introduced as a structured, industrialized setup to work through end-to-end processes in a fixed cadence, with clear entry criteria and concrete outputs. It was not a workshop series, but a production line for decisions: Processes that survived left with a clear design; those that didn’t were explicitly rejected. Lesson: A turnaround needs formats that force closure. Open discussions do not scale in complex programs. 2. The “Klärwerk” stopped ambiguity from silently spreading The “Klärwerk” acted as a dedicated clarification space for unresolved topics: contradictory requirements, unclear ownership, implicit assumptions. Topics entered “dirty” and were not allowed to leave unresolved. Every outcome was binary: clarified, decided, or consciously postponed with consequences. Lesson: Ambiguity is not dangerous because it exists – it is dangerous because it remains unaddressed. 3. The “Test Arena” reframed testing as a steering instrument The “Test Arena” established early, visible testing as a core element of design validation rather than a downstream quality gate. What failed here was treated as a design issue, not a test defect. This created immediate feedback loops between process design, system behavior, and organizational readiness. Lesson: Early testing disciplines decisions. Late testing merely documents failure. 4. The “Cutover Control Center” changed how the project thought about go-live The “Cutover Control Center” was not set up as a last-minute go-live war room, but as a long-running coordination and transparency model. Dependencies, prerequisites, and operational risks were made explicit months in advance and tracked continuously. Lesson: Cutover does not fail on the weekend. It fails in the months where assumptions remain unspoken. 5. Parallel worlds required orchestration, not forced harmonization Old and new system worlds deliberately coexisted. The turnaround did not aim for premature harmonization, but for clear rules on interaction, responsibility, and boundaries. Not everything had to be clean – everything had to be controllable. Lesson: In turnarounds, manage ambiguity consciously instead of pretending it does not exist. 6. Governance shifted from control to navigation Governance bodies were streamlined and repurposed: fewer status updates, clearer decision scopes, explicit trade-offs. The focus moved from reporting progress to enabling direction. Lesson: Governance either increases decision velocity – or it becomes organizational drag. 7. Expectation clarity outweighed technical excellence Many conflicts dissolved not through better solutions, but through explicit alignment on expectations: What is in scope? What is not? What is “good enough” for now? Lesson: Turnarounds rarely fail due to lack of expertise. They fail due to unspoken expectations. Let's keep on moving, folks!

We have already explained why agile project management is a superior alternative to traditional methods in the article " Why agile project management might be an option ". But what does it actually mean to work in an agile way? What values underpin agile project management and how can they influence the success of projects? To answer these questions, our content editors spoke to our Michael Flum, an experienced senior advisor who has been practising agile project management and agile methods for many years. Michael shared his practical experience and explained why an agile mindset is the foundation of successful teams. Hi Michael, what are the most significant differences between classic and agile project management?  Traditional project management is based on a linear and plan-driven approach in which the project is divided into phases that are worked through one after the other. Agile project management, on the other hand, is based on an iterative and value-driven approach in which the project is broken down into small and manageable parts that are implemented and tested in short cycles. This enables rapid adaptation to changing requirements, greater transparency and better collaboration within the team and with customers. Let me give you an example: In a classic project for the development of a new web application, we had a detailed catalog of requirements, a fixed schedule and a fixed budget. We worked hard to meet all the requirements, but shortly before the launch we realized that the app was not compatible with older browsers. We had to rewrite everything, which led to delays and cost overruns. With an agile approach, we would have developed the app in small steps and tested it regularly to identify and fix such issues early on. And why do many companies still shy away from implementing agile methods? Because most companies are afraid of failure. There are actually many reasons why the implementation of agile methods does not succeed. In my opinion, the most common reason is that the values and principles of agile project management are not really understood or practiced in companies. Many managers think that it is enough to introduce a few agile methods such as Scrum or Kanban without considering the underlying philosophy. This often leads to resistance, conflict and frustration within the team and among stakeholders. Agile project management requires a fundamental change in the way we think and work, which cannot happen overnight. It takes some time, a lot of commitment and an active willingness to learn in order to establish and maintain an agile mindset.  This brings us to a key question: What are the central values in agile project management and why are they so important? The core values of agile project management originally come from Scrum, probably the best-known of all agile methods, developed back in the early 1990s. These are a series of characteristics that all project participants should bring with them or develop over the course of the project: Courage, openness, respect, focus and commitment. These values are so important because they reflect the basic attitude and culture of agile project management. They ensure that it is not just about methods and techniques, but above all about people and their collaboration. Without the willingness of each individual to talk openly and honestly about mistakes, for example, and to derive learning opportunities for everyone from them, or to focus fully on the work assignments they have taken on and the jointly formulated goals and thus make their contribution to the overall success, in the end it remains just a superficial "agility theater": everyone then plays their role according to the script at best, without exploiting their actual potential. Ok, that's understood. But what's the best way to promote an agile mindset in the company? It starts with the formation and continuous strengthening of a shared understanding of the values and principles in an agile context. Training and coaching can help with this, but the decisive factor is daily life and experience. This requires the freedom and confidence to try out and shape the agile methods yourself. Finally, it is important to regularly reflect on the successes and challenges of everyday agile project work in order to promote and celebrate continuous improvement. One recommendation from my end: Introduce daily stand-up meetings in which each team member briefly reports on what they did yesterday, what they want to do today and what obstacles they are facing. These meetings promote communication, transparency and collaboration within the team. They also help to identify and solve problems at an early stage. You will be surprised how the team spirit and performance will change for the better. Can you give us a comprehensible example of how agile project management can increase project success? Sure! In a project to further develop a mobile app for field service management in a service company, we opted for an agile approach. We repeatedly added a manageable number of new functions to the app, delivered an update and received early feedback from real users. This feedback helped us to iteratively improve the app and tailor it precisely to the needs of the users. In an initial version, for example, we had a function for recording travel time to a place of work. However, the feedback from users was that they didn't want to use this because it was too cumbersome, too "fiddly". We decided to rebuild the recording using a stopwatch function. The feedback from users was consistently positive this time because the time was automatically calculated with just two buttons. We had therefore gained a valuable insight that we would only have had at the very end of the development period in a traditional project. Based on this principle, we added a number of smart functions to the app within six months, which were enthusiastically received by users and massively increased motivation to use the app overall. To be honest, we could actually end the interview with this position notion, but we are sure that there are also some typical pitfalls when introducing agile methods? If so, how to mitigate them? However. Let me give you two examples that I come across again and again: The lack of a clear vision and a common understanding of the project goal and scope. This can lead to confusion, conflict and inefficient working. It is therefore important to formulate and communicate a clear and unambiguous vision at the start of the project that involves and inspires all stakeholders. Sticking to old habits and structures that stand in the way of agile project management. This can lead to resistance, fears and blockages. To avoid this, you should promote an open and learning attitude that sees change as an opportunity rather than a threat. Existing processes and tools should also be critically scrutinized and adapted in order to bring them into line with agile values and principles. OK, let's try to summarize this... Today, agile project management is an indispensable method for planning, managing and implementing complex IT projects. This approach puts people, customers and value at the center and thus enables flexible adaptation to changing requirements, high transparency and improved collaboration within the team and with stakeholders. However, a fundamental change in the way we think and work is required to realize the full potential. Companies that are prepared to go down this path will benefit from increased adaptability and improved competitiveness. Investing in a change of mindset is therefore a strategic decision that will ensure the long-term success of the entire company. Correct. Thanks for the interview, Michael!   My pleasure. -- Michael Flum

Scope creep is one of the most insidious challenges in project management, often leading to project failure. According to the Project Management Institute's (PMI) 2020 Pulse of the Profession report, nearly 52% of projects experience scope creep, which significantly increases the risk of project failure. The Standish Group's CHAOS Report reveals that only 31% of projects are completed on time and on budget, and scope creep is a primary contributing factor. Additionally, PMI's research indicates that projects with significant scope creep are 45% more likely to fail or be challenged compared to projects that manage scope effectively (see also blog entry Why agile project management might be an option ) . These statistics highlight the critical need for robust scope management tools, with the project charter being a foundational element. The Importance of a Project Charter A project charter is a critical document that serves as the backbone of any successful project. It formally authorizes the project, outlining its objectives, scope, stakeholders, and overall plan. The charter is essential for several reasons: Clear Definition of Scope : It provides a clear and concise definition of the project's scope, preventing misunderstandings and mitigating the risk of scope creep. Alignment of Stakeholders : It aligns all stakeholders, ensuring that everyone involved understands the project's goals, benefits, and deliverables. Authority and Accountability : The charter formally authorizes the project manager to allocate resources and make decisions, establishing authority and accountability. Baseline for Performance : It sets a baseline for project performance, including timelines, budgets, and milestones, against which progress can be measured. By establishing these fundamental elements, the project charter fosters a shared commitment and mutual understanding, essential for project success. Consequently, creating a comprehensive project charter involves several critical aspects: Project Purpose and Justification : Clearly state the problem the project aims to solve or the opportunity it seeks to capitalize on. This section should articulate the project's business case and its alignment with organizational objectives. Project Objectives and Success Criteria : Define specific, measurable, achievable, relevant, and time-bound (SMART) objectives. Include criteria for success to provide a clear benchmark for evaluating project performance. Scope and Deliverables : Detail the project scope, including boundaries, constraints, and major deliverables. This clarity helps prevent scope creep by delineating what is and is not included in the project. Stakeholder Identification : Identify key stakeholders, their roles, and their interests. Understanding stakeholder expectations and influence is crucial for project alignment and communication. Project Governance : Outline the governance structure, including the roles and responsibilities of the project team, steering committee, and other involved parties. Define the decision-making hierarchy and processes. Timeline and Milestones : Provide a high-level timeline with key milestones and deliverables. This section helps set expectations for project duration and major phases. Resource and Budget Estimates : Include preliminary estimates of the resources (human, financial, and material) required for the project. This ensures that the project is feasible and adequately supported. Risk Management : Identify potential risks and outline mitigation strategies. Proactive risk management is essential for anticipating and addressing challenges. Pragmatic Approach to simply create and fill a Project Charter Let's take the prominent example of an SAP S/4HANA transformation, hosting a collaborative workshop with key stakeholders ensures comprehensive input and engagement. Here's how to effectively conduct this workshop: Preparation: Identify and invite key stakeholders : project sponsor, project manager, IT team, finance department, supply chain managers, and key business users from various departments. Prepare an agenda focused on the transformation objectives , scope, and benefits of SAP S/4HANA, and gather any necessary background materials, such as current system performance reports and future state expectations. Workshop Setup: Choose a conducive environment, whether a physical meeting room equipped with whiteboards and sticky notes or a virtual meeting using collaboration tools like Miro or Microsoft Teams. Assign a facilitator experienced with SAP S/4HANA transformations to guide the discussion and ensure that all participants have the opportunity to contribute. Brainstorming Sessions: Project Purpose and Justification:  Discuss the need for the SAP S/4HANA transformation. Focus on specific benefits like real-time data processing, improved user experience, streamlined business processes, and enhanced integration capabilities. Project Objectives and Success Criteria:  Divide participants into groups to define SMART objectives specific to SAP S/4HANA, such as reducing financial close time by 50%, improving inventory turnover by 20%, and achieving seamless integration with existing SAP modules and third-party applications. Scope and Deliverables:  Use sticky notes or digital cards to gather input on the project's scope, emphasizing key deliverables like migrating existing data to the new platform, configuring SAP modules (e.g., Finance, Supply Chain, Human Resources), and implementing Fiori apps for improved user experience. Stakeholder Identification:  Create a stakeholder map by identifying all relevant parties, their roles, and their specific interests and concerns regarding the SAP S/4HANA transformation. Review and Consolidation: Review the gathered information and consolidate it into a draft project charter, ensuring all key aspects of the SAP S/4HANA transformation are covered. Assign action items to participants for any missing information or further details required, such as data migration strategies or specific module configurations. Feedback and Finalization: Circulate the draft charter for feedback from all workshop participants, ensuring all perspectives are considered. Incorporate feedback and finalize the project charter, ensuring it reflects a shared understanding and commitment to the SAP S/4HANA transformation objectives. Using Templates and Frameworks makes life easier Utilizing templates and frameworks specific to SAP S/4HANA can streamline the creation of the project charter, making the process efficient and ensuring all critical aspects are addressed. Here’s a structured approach: Choose a Suitable Template: Select a project charter template tailored for SAP S/4HANA transformations from project management tools like Microsoft Project, Smartsheet, or SAP’s own project management resources. Populate the Template with Initial Information: Project Purpose and Justification:  Articulate the need for SAP S/4HANA, emphasizing benefits like improved real-time analytics, enhanced user interfaces with SAP Fiori, and streamlined business processes. Project Objectives and Success Criteria:  Define SMART objectives such as achieving a 30% reduction in operational costs, improving system performance by 40%, and ensuring compliance with new regulatory requirements. Scope and Deliverables: Use the template to define the project scope, highlighting major deliverables like data migration plans, SAP module configurations (e.g., Finance, Controlling, Material Management), development of custom Fiori apps, and user training programs. Stakeholder Identification: List all stakeholders, their roles, and responsibilities, including SAP consultants, IT staff, key business users, and external vendors, ensuring a comprehensive understanding of each stakeholder's role and influence. Project Governance: Outline the governance structure, defining roles and responsibilities within the project team, steering committee, and executive sponsors. Ensure clear decision-making pathways for critical aspects of the SAP S/4HANA transformation. Timeline and Milestones: Input a high-level timeline with key milestones such as project kickoff, system blueprinting, data migration, integration testing, user acceptance testing, and go-live date. In context with SAP Projects the usage of SAP Activate Templates is a perfect point to start with. Resource and Budget Estimates: Provide preliminary estimates of the resources required, including budget allocations for SAP licenses, consulting fees, hardware upgrades, training sessions, and post-implementation support. Risk Management: Identify potential risks specific to SAP S/4HANA transformations, such as data migration challenges, integration issues, user resistance, and system downtime. Outline mitigation strategies for each risk, such as conducting thorough data validation, setting up contingency plans, and providing comprehensive user training. By leveraging collaborative workshops and structured templates tailored to SAP S/4HANA, the process of creating a project charter can be both efficient and effective, ensuring a solid foundation for the transformation project. -- Michael Philipzen

In the complex landscape of project management, one consistent determinant of success or failure is stakeholder engagement. Stakeholders, defined as any group or individual who can affect or be affected by the achievement of the organization's objectives, hold significant sway over the direction of any project. Yet, many projects falter because they overlook the critical step of effectively engaging stakeholders, opting instead to merely identify and list them. The reasons for project failure often lie in the disconnect between the project team and its stakeholders. When stakeholders are not actively engaged, their needs and expectations remain unmet, leading to dissatisfaction and potential opposition. This can result in delays, increased costs, and in the worst cases, complete project derailment. A project’s success hinges not just on technical execution but on the ability to build and maintain robust relationships with all relevant parties. Hey bloke, you are not done yet.... Identifying stakeholders is a fundamental step in project management. It involves recognizing all parties who have a vested interest in the project’s outcome. However, this step alone is insufficient. Simply listing stakeholders fails to capture the dynamic interplay of their interests, power, and influence. Active stakeholder engagement goes beyond identification. It involves assessing stakeholders to understand their power positions, interests, and expectations. This deeper analysis enables project managers to prioritize stakeholders based on their influence and interest. Engagement means developing strategies to communicate with and involve stakeholders throughout the project lifecycle. This active approach ensures that stakeholders are not only aware of the project but are also invested in its success. Engagement fosters collaboration, builds trust, and aligns the project objectives with stakeholders' needs. It involves regular communication, feedback loops, and the integration of stakeholder input into project planning and execution. This continuous interaction helps to preempt issues, manage conflicts, and harness the support of stakeholders, ultimately contributing to project success. Why the Salience Model Might Be the Key The Salience Model, proposed by Mitchell, Agle, and Wood, provides a robust framework for stakeholder assessment and engagement. This model classifies stakeholders based on three attributes: power, legitimacy, and urgency. Understanding these attributes helps project managers to identify which stakeholders require the most attention and resources. Power: The ability of the stakeholder to influence the project. This could be through financial means, political sway, or other forms of leverage. Legitimacy: The degree to which a stakeholder’s involvement is seen as appropriate or proper in the project. Urgency: The extent to which stakeholder claims call for immediate attention. By plotting stakeholders on a quadrant model based on these attributes, project managers can determine their salience. Those who possess all three attributes are deemed definitive stakeholders and warrant the highest level of engagement. This method allows for a nuanced understanding of stakeholders and ensures that limited resources are allocated effectively. Exemplary stakeholder evaluation quadrants For example, a stakeholder with high power but low legitimacy and urgency might not need immediate attention but should be monitored closely. Conversely, a stakeholder with high legitimacy and urgency but low power still requires engagement due to the potential impact on project perception and acceptance. Talk to the people to make the project's success happen! To ensure stakeholder engagement is effective, several pragmatic measures and initiatives can be implemented: Stakeholder Mapping and Analysis: Utilize tools like the Salience Model to identify and prioritize stakeholders. This analysis should be a continuous process, revisited regularly as the project evolves. Developing a Stakeholder Engagement Plan: Create a detailed plan outlining how and when to engage each stakeholder. This should include communication methods, frequency of interactions, and specific messages tailored to stakeholder interests and power positions. Establishing Clear Communication Channels: Open, transparent, and consistent communication is crucial. Utilize various platforms such as meetings, newsletters, and digital communication tools to keep stakeholders informed and involved. Building Relationships: Engage stakeholders early and often. Building trust through regular interactions, understanding their needs, and demonstrating responsiveness can secure stakeholder buy-in and support. Feedback Mechanisms: Implement mechanisms for stakeholders to provide feedback. This can be through surveys, suggestion boxes, or direct meetings. Act on this feedback to show stakeholders that their input is valued and considered. Conflict Management: Develop strategies to manage and resolve conflicts promptly. Understanding stakeholder concerns and addressing them before they escalate is vital. Training and Support: Equip the project team with the necessary skills for effective stakeholder engagement. This might include training in communication, negotiation, and conflict resolution. Monitoring and Evaluation: Continuously monitor stakeholder engagement efforts and evaluate their effectiveness. Adjust strategies as needed to ensure ongoing alignment with stakeholder needs and project goals. In conclusion, successful projects are those that move beyond mere stakeholder identification to active, ongoing engagement. The Salience Model provides a valuable framework for prioritizing stakeholders, ensuring that the limited resources are allocated where they will have the most significant impact. By implementing strategic measures to engage stakeholders early and continuously, project managers can build the trust, collaboration, and support necessary for project success. --- Michael Philipzen

In our blog post Goals set, Strategy lost: Decoding Company Confusion we addressed an approach to overcome major shortcomings in traditional Program Management by ensuring strategic alignment with organizational goals, prioritizing tangible business value delivery, implementing robust metrics for success measurement, and fostering effective communication and coordination among stakeholders, thereby enhancing the likelihood of organizational transformation success and widespread strategy comprehension. In today's blog post, we take a look at the strategic planning process that precedes it and explain why agile methods should now be part of a company's basic strategy toolkit. The end of the traditional strategic planning process In today's fast-paced and ever-evolving business landscape, the traditional approach to strategy often falls short of meeting the demands of the modern world. For decades, organizations have relied on frameworks like Management by Objectives (MBO), Balanced Scorecard, or Hoshin Kanri to set goals and drive performance. While these systems served their purpose in the past, they are increasingly proving to be inadequate in today's digital age. All of these frameworks support the traditional strategic planning process which is dominated by the characteristics of: Internality: In this model, the strategy is only for a chosen few and the process is C-level driven. The Management Board alone or together with a small team of insiders come together to define and outline the future strategy. Hierarchy: Understanding the future is critical for making the right decisions. Despite that understanding, traditional strategy is backward-looking, often building on historic financial data and market performance to extrapolate future trends. Duration: While the world is moving fast, a strategy process used to take time, often anywhere from 4 to 6 months. Historical Basis: Traditional strategy is backward-looking, often building on historic financial data and market performance to extrapolate future trends. Low Frequency: The “complete” strategy process is only run every 3(-5) years as a standardized process and with minor updates every year. However, the operating environment and market conditions can change fundamentally, so that a mayor revision would be mandatory. One of the main shortcomings of traditional strategy processes lies in their rigidity and lack of adaptability. These systems are often hierarchical, with top-down goal-setting that cascades through the organization. While this approach may have worked in more stable environments, it struggles to keep up with the rapid pace of change and uncertainty that characterizes today's business landscape. Moreover, traditional strategy processes often suffer from a lack of alignment and engagement. Employees are given goals to achieve, but these goals are often disconnected from the larger purpose or vision of the organization. This disconnect leads to disengagement, as employees fail to see how their work contributes to the bigger picture. Another issue with traditional strategy processes is their focus on short-term objectives at the expense of long-term vision. Organizations become fixated on quarterly targets and financial metrics, losing sight of the broader strategic goals that will drive sustainable success in the future. The Case for Change: Bring strategy to life! It's clear that the strategy process urgently needs a revamp to address these shortcomings and better equip organizations for success in the digital age. One promising approach is to embrace a more agile and dynamic framework that prioritizes adaptability, alignment, and engagement. The resolution comes with the use of Moals, or Midterm Goals, which serve as a vital bridge between an organization's strategic vision and its operational objectives in the context of Objectives and Key Results (OKR) methodology. Unlike traditional strategic planning, Moals offer a dynamic framework that emphasizes adaptability, alignment, and continuous improvement, enabling organizations to navigate the complexities of today's rapidly evolving business landscape. By defining clear and actionable goals for the midterm future, Moals empower teams to make strategic decisions that drive meaningful progress towards achieving the organization's long-term vision. The Moal Picture (Source: die.agilen, Organisationsberatung, München) This innovative approach represents a paradigm shift in the way organizations think about strategy. Instead of rigid, top-down goal-setting, the Moal Picture paints a holistic vision of where the organization wants to be in the future. Consequently, when implementing the use of Moals in your strategy process, the most important points to consider are: Alignment with Vision: Moals should directly align with the organization's overarching vision and purpose to ensure that they contribute meaningfully to the long-term strategic objectives. Holistic Perspective: Moals should be viewed as a holistic set of objectives, representing different facets of the desired future state of the organization. They should not be treated in isolation but rather as interconnected components of a larger strategic framework. Long-Term Focus: Moals typically have a timeframe of one year and should depict the desired state the organization aims to achieve within that period, serving as a guide for strategic decision-making and resource allocation. Strategic Impact: Each Moal should have a significant strategic impact, driving progress towards the organization's vision and enabling the achievement of key outcomes that contribute to overall success. Continuous Iteration: Moals should be dynamic and subject to review and iteration based on changing market conditions, emerging opportunities, and evolving organizational priorities. Regularly reassessing and refining Moals ensures their relevance and effectiveness over time. By focusing on Moals, organizations can foster alignment and engagement across the entire organization. Moals serve as the glue between the strategic vision and the concrete objectives, ensuring that everyone is working towards a common goal. This approach promotes collaboration, innovation, and a shared sense of purpose, driving organizational performance to new heights. Moreover, the use of Moals encourages organizations to think long-term and embrace uncertainty as an opportunity rather than a threat. Instead of fixating on short-term targets, organizations can focus on building a sustainable future that is resilient to change and disruption. Embracing Agility: Transforming the Strategy Process with Moals In conclusion, the strategy process urgently needs to evolve to meet the demands of the modern business landscape. By embracing a more agile and dynamic approach centered around Moals and the Moal Picture, organizations can unlock new levels of performance, innovation, and success in the digital age. It's time to paint a bold and vivid vision of the future and embark on a journey towards a more agile and adaptable strategy process. -- Michael Sinß

Typical Pitfalls of Project Management Traditional project management methodologies often encounter several pitfalls that impede project success. Some common pitfalls include: Rigid Planning: Traditional project management relies heavily on detailed upfront planning, which can become obsolete when faced with unexpected changes or uncertainties. Lack of Flexibility: Traditional approaches follow a linear process, making it challenging to adapt to changing requirements or stakeholder feedback. Poor Communication: Inadequate communication between team members, stakeholders, and project managers can lead to misunderstandings, delays, and conflicts. Scope Creep: Scope creep occurs when project requirements continuously expand beyond the initial scope, leading to budget overruns and project delays. Consequently, most projects can only be as successful as the original planning has planned the success and the path to it. This may be at least one reason why a significant proportion of projects are not successfully completed. How Agile Project Management offers solutions In order to maintain the ability to adapt within defined corridors during the project Agile Project Management (APM) offers a solution to these pitfalls by emphasizing flexibility, collaboration, and adaptability. Some key features of Agile Project Management include: Iterative Approach: Agile projects are broken down into smaller iterations or sprints, allowing for frequent feedback and adaptation to changing requirements. Embracing Change: Agile embraces change by welcoming evolving requirements and incorporating feedback from stakeholders throughout the project lifecycle. Collaborative Environment: Agile encourages collaboration among cross-functional teams, stakeholders, and project managers, fostering better communication and shared understanding. Continuous Improvement: Agile promotes a culture of continuous improvement through retrospectives, where teams reflect on their processes and identify areas for enhancement. There is a constant tension between planning security and the need for adaptability in projects. The combination of planning cornerstones and elements of APM can fulfil both requirements. Agile Projects and Value-Based Program Management Agile Project Management can synergize with value-based Program Management to enhance project outcomes. Some synergies include: Alignment with Business Objectives: Value-based Program Management ensures that projects align with strategic business objectives, while Agile Project Management enables quick adaptation to changing priorities. Focus on Value Delivery: Value-based Program Management prioritizes the delivery of value to stakeholders, while Agile Project Management facilitates early and continuous delivery of valuable features. Risk Management: Value-based Program Management identifies and mitigates risks at the program level, while Agile Project Management addresses risks through iterative planning and frequent feedback loops. Impulse To Go By embracing flexibility, collaboration, and adaptability, Agile Project Management enables teams to deliver value in a dynamic and uncertain environment. Transfer the added value of typical tools from agile management such as User story mapping Backlog management Kanban boards Burndown charts Retrospective meetings to make your projects successful within the framework of value-based program management for the further development of your company. *Standish Group, CHAOS Report, 2023 **PMI’s Pulse of Profession Report, 2018 --- Michael Philipzen

Before you read on, please consider the following assumptions made for strategic companies: They are guided by purpose. Their managers are credible strategists. Their success managers have capabilities to materialize the company’s strategy. Assuming these points, it is a promising approach to utilize program management techniques to effectively translate the company’s strategic vision into actionable plans by multiple projects. How can cohesive alignment and efficient attainment of the company’s strategic goals be ensured? The widespread response: Multi Project Management Multi Project Management (MPM) is the strategic orchestration of resources, prioritization of projects, and proactive risk management to efficiently deliver multiple initiatives in alignment considering the interdependencies. Needless to say, MPM as a method has its justification if "coordination only" is requested, but there are some shortcomings when MPM has been used for transformational initiatives, such as: Fragmented Communication and Coordination Limited Strategic Alignment Resource Overallocation and Burnout Complexity Management Challenges Inadequate Risk Management Lack of Flexibility and Adaptability Insufficient Change Management Integration Measurement and Evaluation Challenges Addressing these shortcomings requires a comprehensive approach that integrates MPM with strategic leadership, effective communication, and robust risk mitigation strategies tailored to the unique complexities of transformation initiatives within organizations. Value-based Program Management (VBPM) fills the gap Value-based program management focuses on delivering tangible business value and desired outcomes by strategically aligning projects and initiatives with overarching organizational goals. This approach emphasizes measuring success based on the achieved outcomes rather than just completing individual project tasks. Here's a brief overview on how the most significant MPM shortcomings are to tackled by VBPM elements: Lack of Strategic Alignment: VBPM ensures that projects and initiatives are directly aligned with the organization's strategic objectives. Limited Focus on Business Value: By emphasizing the delivery of tangible business value and measurable outcomes, VBPM overcomes the tendency of traditional MPM to prioritize tasks and activities only. Inadequate Measurement of Success: VBPM incorporates robust metrics and Key Performance Indicators (KPIs) to measure the success of projects and initiatives based on their contribution to achieving desired business outcomes. Fragmented Communication and Coordination: VBPM fosters better communication and coordination among cross-functional teams and stakeholders to ensure alignment with overall business objectives. By utilizing the different elements of the value-based approach in program management your organization’s transformation is more likely to succeed as well as your strategy is moreover widely understood throughout your organization. Impulse To Go Here are some important tools and methods to help you get a pragmatic start into Value-based Program Management: Value Stream Mapping to visualize the steps involved in delivering a product or service to the customer. Outcome Mapping to clarify intended project outcomes and the strategies for achieving them. Measurement Techniques such as Cost of Delay (CoD), Weighted Shortest Job First (WSJF), or Moscow Prioritization can help prioritize program initiatives based on their potential value delivery and alignment with strategic objectives. Benefits Realization Management (BRM) to ensure that programs and projects deliver measurable benefits to the organization. By incorporating these techniques into your approach to VBPM, you can establish a pragmatic framework for prioritizing initiatives, delivering tangible value, and ensuring alignment with strategic objectives. *    MIT Sloan Review, No one knows your strategy, 2018 **  IPMA, The future of project management: Global Outlook, 2019 --- Michael Philipzen

Regarding customer satisfaction in digital transformation programs, project management maturity influences project management success, but not necessarily project investment success. So, when applying project management practices alone to transformative change results may be frustrating. Program Management is all about delivering measurable benefits – both financial and non-financial. It builds and integrates organizational capabilities into everyday operations, ensuring desired outcomes are achieved and benefits realized. It also addresses any potential disbenefits, managing them alongside positive outcomes. With its cross-functional and time-sensitive approach, Program Management drives the phased realization of measurable benefits. How do we ensure that the intended benefits of our organizational initiatives are identified, planned for, and ultimately realized? Value stories by making success measurable The service area of Benefit Realization Management (BRM) strategically ensures organizations identify, plan, and achieve intended benefits from their projects or initiatives through systematic definition, measurement, and tracking of expected benefits. The following steps should be considered within the transformation setup in an end2end business value approach: Benefit Identification: Define the specific gains expected from a project in line with strategic goals. Benefit Planning: Develop a plan to achieve identified benefits, including setting metrics, targets, timelines, and resource allocation. Benefit Realization: Execute the plan, monitoring progress, addressing issues, and ensuring intended benefits are achieved. Benefit Review and Evaluation: Assess actual outcomes against targets post-implementation, identifying areas for improvement and lessons learned. Know where your business customers want to get better Business value of IT hinges on stakeholder perception, not IT metrics. Effective communication yields 60% higher funding. CIOs must translate technical performance into business outcomes aligned with stakeholders' top objectives. Value mapping is generally carried out based on the following three value-added areas, each of which should already include the respective sustainability goals: Business Growth: Strong emphasis on top-line elements like revenue growth, sales success, market share development and customer retention. Operational Excellence: Primarily contains bottom-line elements like cost efficiency, gross margin, process optimization and technology integration. Regulatory Compliance: Predominantly focuses on aspects of risk/compliance management and reporting as well as business continuity. In certain business domains, a fourth objective may receive emphasis, such as Environmental, Social, and Governance (ESG) initiatives, Diversity, Equity, and Inclusion (DEI) efforts, or Customer Service enhancements. Managers should assess the distinctiveness of this potential fourth priority and determine whether digital activities can directly impact its outcomes. Therefore, incorporating Benefit Realization Management (BRM) into value-based program management entails expanding the initiation phase by clearly outlining both qualitative and quantitative benefits. This ensures effective project management and, consequently, the success of the entire transformation program. Impulse To Go To ascertain the benefits to be attained and assessed, a thorough case-by-case evaluation is imperative. Nonetheless, when embarking on the initial stages, it is essential to bear in mind the significance of considering the three metric categories to effectively complete the benefit assessment process. Strategic metrics like Financial (e.g. ROI), Time (e.g. time-to-market), Team (e.g. talents retention rate) and Coverage metrics (e.g. market share). Product/Service metrics like Cost/Benefit ratio, Customer Acquisistion Costs or Customer Churn Rate. Process metrics like Productivity Rate, Operational Efficiency, classic SLAs or Errors/Events per month/quarter/year. Embracing the business value of Digital Transformation involves continuously monitoring the benefits through an agile feedback loop spanning from strategy to operations and back again. This is what makes the transformation journey sustainably successful. *  Gartner Group, CIO Agenda, 2023 --- Michael Philipzen

In our everyday lives and when we talk about closing the gap between planning and putting plans into action, there's a lot to learn from something as simple as a broken heater at home. Picture this: your heater suddenly stops working on a freezing winter day, leaving you shivering under layers of blankets. That's like when there's a gap between coming up with a great plan and actually making it happen in projects. It's like having a fantastic recipe for cookies but not having an oven to bake them in! Just like we need a working heater to stay warm, we need a smooth process to turn our ideas into reality. What's the deal with the heater? Imagine the radiator is like a magical machine that makes your room cozy and warm. Here's how it works: You set the thermostat to the temperature you like, let's say 22 degrees Celsius. This is your plan - you want the radiator to make your room warm. The radiator starts heating up when the temperature in the room goes below 22 degrees Celsius. It's doing its job by making the room warm. The thermostat keeps an eye on the temperature in the room. If it's still too chilly and below 22 degrees Celsius, the thermostat tells the radiator to keep heating. If it's already warm enough and above 22 degrees Celsius, the thermostat tells the radiator to take a break. If the room is still too cold, you might turn up the thermostat to make the radiator work harder and heat the room more. And when that process breaks down, well, things can get pretty chilly! So, the minimum requirement you should have when implementing a heating system in your house: you need an option of manual intervention when it's getting too cold (which is quite a challenge in case of underfloor heatings, by the way :-)). Now, what has it do with management? Each of us can probably confirm at least two of the following four statements for our company We lack of poor communication on the company's strategy and the according alignment. We do not have a process to perform a strategic prioritization of projects. We suffer from a poor execution even of key projects within our organization. Overall, we say that there's a methodology for managing strategic projects in place, but to be honest: we do not manage strategically at all! Just as a heating system relies on a continuous cycle to maintain a comfortable temperature, the strategy implementation depends on the PDCA (Plan-Do-Check-Act) cycle to ensure the company's strategy success. However, what happens when the cycle breaks down? Considering that a company's main goals are usually about growing and being effective, as well as being profitable and efficient, if these goals aren't achieved in the long run, things can start feeling pretty chilly as well. What is a possible solution about? The solution proposes a continuous flow from strategy to operations and back, focusing on "value-based transformations." It begins by setting strategic objectives and defining the necessary business capabilities concerned, which are then mapped to end-to-end processes. Next, transformational initiatives are identified and coordinated to ensure their benefits are measured within programs. These initiatives are executed through projects that are managed based on their interdependencies within the end-to-end process. Finally, the outcomes of these projects are integrated into existing business capabilities to achieve sustainable change in the organisation. The essence of this value-based transformation model underscores the critical importance of seamlessly linking strategy formulation with business capability management and deriving benefits through transformation initiatives. This comprehensive approach, managed effectively through value-based program management during project execution, is essential for the successful implementation of organizational strategies. Ok, sounds simple? Let's give it a try! 1. Strategic Management: Defining the Direction The starting point of value-based transformations lies in strategic management, where organizations set their vision and chart the course for success. This begins with defining strategic objectives, which serve as the guiding star for all subsequent activities. For example, a leading mechanical engineering company aims to revolutionize its product offerings and enhance market competitiveness through innovative solutions. 2. Enterprise Value Management: The foundation for prioritization With strategic objectives in place, organizations embark on value management to lay the foundation for success in terms of Objectives and Key Results (OKR). This involves designing robust business cases on a cost-benefit analysis to support key initiatives that align with strategic objectives. In our use case, the company identifies the adoption of advanced manufacturing technologies as a pivotal initiative to drive innovation and competitiveness in the market by having calculated an externally proven business case. As their major objective they codified: Introduce innovative product solutions to revolutionize the market and enhance the company's competitiveness. Some of the derived key results might be: Key Result 1: Develop and launch at least three new groundbreaking product designs within the next 12 months. Key Result 2: Achieve a customer satisfaction rating of 90% or higher for the new products within six months of launch. Key Result 3: Increase market share by 15% within 18 months of launching the innovative product solutions. 3. Strategic Portfolio Management: Maximizing Impact As initiatives are identified and prioritized, business capability management and strategic portfolio management comes into play to maximize their impact. This involves conducting rigorous impact analyses of strategic objectives to business capability and underlying end2end processes to assess the potential benefits and risks associated with each initiative. Based on their business capabilities transformation requirements for our mechanical engineering company, the following benefits could turn out to be desirable to serve the Key Result No. 3 above: Benefit 1: Improved product features could include increased customer satisfaction, loyalty, and willingness to purchase, leading to a larger market share. Benefit 2: A strong brand reputation can lead to increased trust among customers, improved brand perception, and a competitive edge in the market, ultimately resulting in higher market share. Benefit 3: Streamlining the design-to-delivery process to ensure efficient production and timely delivery of innovative products can lead to reduced lead times, which again results in faster product launches. 4. Program Design: Crafting Cohesive Programs With initiatives identified and prioritized, they are grouped into cohesive programs based on various criteria such as strategic alignment and resource availability. In our use case, initiatives related to product innovation and process optimization are clustered together to form a cohesive program aimed at driving organizational growth and competitiveness. 5. Program Execution and Transition to Operations: Bringing Plans to Life With programs in place, organizations focus on executing interdependent projects efficiently to deliver on time and within budget the desired business capabilities requested. This involves leveraging benefit realization management methodologies and tools to ensure successful outcome delivery. Furthermore, a smooth transition to operations is essential to ensure that the intended outcomes are sustainably embedded in the organisation before the next strategic iteration begins. 6. Continuous Measurement of Value, Benefits and KPIs: The thermostat of heating cycle Throughout the value-based transformation journey and beyond, it is crucial to monitor the entire measurement cascade from value to benefits. This cascade is fueled by operational Key Performance Indicators (KPIs). Monitoring ensures that the desired value of the strategic management process is delivered as intended. In our use case it could mean the following: The strategic management process resulted among others resulted in a desired Key Result No. 3 (Increase market share by 15% within 18 months of launching the innovative product solutions), which again was positively impacted by the three business capabilitiy benefits mentioned in step 3 above. Considered in a cascade of different consolidation level e.g. Benefit No. 3 will be fed by operational KPIs like Cycle Time: The time taken to complete one cycle of a production process, from the initiation to the completion of a product. A shorter cycle time indicates higher efficiency in production processes. Overall Equipment Effectiveness (OEE): OEE measures the performance, availability, and quality of equipment used in the production process. It provides insights into how effectively equipment is utilized and identifies areas for improvement. Production Yield: The percentage of defect-free products produced compared to the total number of products manufactured. A higher production yield indicates efficient production processes and effective quality control measures. In this example, the Key Performance Indicators (KPIs) mentioned contribute to achieving Benefit No. 3, which in turn contributes to Key Results No. 3. This illustrates a working PDCA (Plan-Do-Check-Act) cycle. To effectively monitor the development of business capabilities undergoing transformation, it is crucial to establish and maintain this cycle across all transformation initiatives. This ensures that the desired outcomes of strategic initiatives are accurately achieved and measured. Puh, that was dry stuff....anyway... Similar to ensuring our homes stay warm, maintaining a robust transformation cycle ensures that our organization develops smoothly and at an optimal pace, ensuring sustainable growth. That's not too bad, isn't it? --- Michael Philipzen

According to a report by market researcher Gartner, the replacement of SAP ECC is sluggishly progressing. Despite the impending end of maintenance support for the software suite by 2027, extendable at a cost until 2030, the pace of migrations to SAP S/4HANA falls short of SAP's objectives. Quoting from the report, The Register highlights the scarcity of "migrations to SAP S/4HANA taking place at the pace required to achieve SAP's goal." Recent data from Q2 2023 reveals a stark reality: only a mere fifth of users have transitioned to the latest version of the ERP platform. Shockingly, 33% of ECC users still lack an S/4HANA license. If the decision-makers had recognised the competitive advantages to be achieved through the intelligent use of S/4HANA, this situation would not have occurred. Instead, it would simply be a battle for the remaining consulting capacity on the market. As it is, however, the discussion is characterised by the compulsion to switch to S/4HANA without, though, considering the business benefits, but rather often only the risks. A three-part breakdown and added value consideration.... Key Considerations So, no doubt, just from an SAP software perspective there is more than one compelling event to take a serious decision towards your company's future in SAP business. License Conversion Timing: Determine when to convert existing SAP licenses to on-premises S/4HANA licenses, considering that crediting rates of existing licenses deteriorate over time (currently at 70%). RISEwithSAP Option: Evaluate the option of moving to RISEwithSAP, understanding that this impacts both ERP licenses (converted to RISE subscriptions) and SAP Operations (migrated to hyperscalers and managed by SAP). Migration Approach: Consider the approach to migrating from SAP ECC to SAP S/4HANA, recognizing that a "brownfield" approach may result in significant rework and frustration. Selective data migration approaches in particular are a very attractive alternative. Nevertheless, as a decision-maker, you should not dwell on these points (what to do, but not what to avoid) for long. Rather, a quick turn to the "WHY" of the transformation and thus a value-added analysis would be helpful in order to turn the expensive SAP S/4HANA transformation project into a countable competitive advantage for your company. General Recommendations When undertaking a project of significant magnitude with numerous key stakeholders involved, it is imperative for your organization to pursue any feasible improvements in both technical and functional aspects. In saying so, you also have to weigh up what the company can expect during the SAP S/4HANA transformation in terms of obligations to cooperate. Two design principles have made their mark in this context: Ambition Balance: Find the right balance between ambition and risk, ensuring that the transformation aligns with both technical capabilities and strategic goals. Transformation Scope: Understand the mandatory tasks involved in the SAP S/4HANA transformation, gradually progressing to address higher-level objectives. Over the past few years, it has become apparent in the design of transformations that business representatives want to introduce a great deal of innovation, while stability is the main focus for a company's IT. This supposed contradiction needs to be resolved. After all, both sides have a legitimate interest, but also an obligation to make your company more successful with their work. It is helpful to differentiate between the different decision layers when it comes to S/4HANA transformation program. According to the RENEWALIST Layer Model six layers have to be considered either mandatorily or optionally. Consider refraining from turning an S/4HANA transformation into a broader business transformation, especially for companies with a CMMI maturity level below 4, as this could pose a significant risk of failure. Instead, prioritize addressing mandatory tasks before progressing to higher-level objectives. This approach involves climbing the transformation ladder methodically, starting with fundamental tasks and progressing gradually to more complex challenges. SAP Infrastructure (mandatory) - Core Questions: Remaining in the old operating model (in-house operation or provider cloud) or switch to RISEwithSAP? What are the scalability requirements of the SAP infrastructure to support the program, future growth and evolving business needs as well as to minimize downtimes? SAP Data (mandatory) - Core Questions: Which migration strategy shall be applied when considering the degree of innovation the organisation can cope with (brownfield, greenfield, selective data migration)? What criteria should be used to leave data behind (time slice; organisational changes like carve outs or mergers of organisational units et. al.) or even harmonise data and how to proceed with ECC decommissioning and data/document archiving to cover regulatory requirements? SAP Integration (mandatory) - Core Questions: How can a dependency map be created to get a better understanding on the mandatory changes in 3rd party systems and end2end testing preparation? What integration tools and technologies will be utilized to facilitate real-time data exchange, minimize latency, and maintain data integrity across the SAP landscape? SAP application (mandatory) - Core Questions: How to consider the work packages of implementing NewGL, Business Partner etc., 3rd party AddOns and work through the simplification items to be implemented? How to get a better understanding on what S/4HANA contains as innovations, which could be a) additionally used b) replace 3rd party or custom code features? Business Capability / Process Layer (optional) - Core Questions: Will there be any bottom-up changes, which impact our processes, so that business representatives have to considered in preparing and running the transformation (capacities to meet the obligations to collaborate to be planned)? To what extent do we trust ourselves to consider new requirements from the process for the purpose of optimisation or even partial reintroduction in the transformation? Business Model / Strategy Layer (optional) - Core Questions: How does the proposed program touch the overall business model and strategy of the company? Are there any parts of the existing or the future business model, which has strategically has to be considered during the initial transformation by cascading the requirement from strategy to business capabilities to processes and application? In Part 2 of the Choreography an S/4HANA program will be designed and the actual benefits discussed. To be continued.... *SAP must migrate users off ECC quicker before support ends • The Register --- Michael Philipzen

In the first part of the post series, we addressed fundamental inquiries crucial to a successful SAP S/4HANA implementation, covering pivotal questions around the different SAP S/4HANA impact layers, such as SAP infrastructure, data migration, integration, and application. Furthermore, we examined the implementation of new functionalities, simplification items, and the assessment of innovations within S/4HANA, aiming to optimize processes and potentially replace or integrate third-party solutions. With reference to the S/4HANA Impact Analysis Model, let's proceed with exploring the potential benefits of transitioning from ECC to S/4HANA, emphasizing that this journey is not merely about complying with mandatory technological changes due to the expiration of ECC maintenance. The generic added-value changes From an infrastructure perspective S/4HANA's in-memory computing boosts data processing speed and analytics for real-time insights, vital for agile decisions, leading to improved efficiency and productivity, fostering business growth. S/4HANA's architecture supports scalability, aiding organizations to adapt to evolving needs and future growth without major infrastructure changes. S/4HANA's cloud options offer flexibility and scalability, aligning infrastructure costs with usage, optimizing resource allocation and expenditure. Despite higher initial infrastructure investment, benefits in performance, scalability, and flexibility can outweigh costs over time, yielding a strong return on investment for S/4HANA adopters. From a data layer perspective Real-time data analysis can enable proactive decision-making by identifying trends, anomalies, or opportunities as they occur. This agility can be particularly valuable in dynamic environments where quick responses to changing market conditions or operational challenges are necessary. The developed capabilities by using real-time data enhance process efficiency by identifying bottlenecks or inefficiencies in real-time, allowing for immediate remediation actions. Having access to real-time data analysis capabilities can support initiatives such as predictive maintenance, fraud detection, or supply chain optimization, which can drive significant cost savings and operational improvements. From a frontend perspective While SAP Fiori can be used in both SAP ECC and SAP S/4HANA, there are specific added values and benefits that SAP S/4HANA offers in the context of Fiori usage compared to ECC: Deep Integration with S/4HANA Functionality: Fiori apps in SAP S/4HANA seamlessly integrate with the platform's functionality, providing users with immediate access to real-time data, analytics, and insights. This integration empowers informed decision-making within business processes. Enhanced Performance and Scalability: SAP S/4HANA's in-memory computing architecture ensures superior performance and scalability compared to ECC. Users experience faster response times and improved system performance, even with large data volumes and complex transactions. Advanced Analytical Capabilities: SAP S/4HANA embeds powerful analytics, including predictive analytics and machine learning, directly into Fiori apps. Users can gain deeper insights, anticipate trends, and make proactive decisions, driving better business outcomes. Support for Fiori Elements: SAP S/4HANA introduces Fiori Elements, streamlining app development with pre-defined templates and annotations. This accelerates time-to-market for new applications, reducing development effort and cost. Mobile-First Approach: SAP S/4HANA prioritizes mobile accessibility, ensuring Fiori apps are responsive across devices. With access to critical functions and data anytime, anywhere, users enjoy enhanced flexibility and productivity. From an integration perspective Transitioning from an existing middleware solution to SAP Business Technology Platform (BTP) Integration Suite can offer several advantages as well: Seamless Integration: SAP BTP Integration Suite seamlessly integrates with SAP's ecosystem, enabling smoother data exchange, streamlined processes, and enhanced interoperability. Pre-built Connectors: SAP BTP Integration Suite offers pre-built connectors, accelerating integration projects, reducing development effort, and saving time and resources. Hybrid and Multi-cloud Capabilities: SAP BTP Integration Suite orchestrates integrations across diverse cloud and on-premises environments, ensuring flexibility, scalability, and resilience. Unified Platform: SAP BTP Integration Suite provides a unified platform for managing integration activities, simplifying the landscape, reducing complexity, and improving visibility and control. Built-in Monitoring: SAP BTP Integration Suite offers built-in monitoring and analytics for real-time visibility into integration flows, enabling proactive optimization of processes. Event-driven Integration: SAP BTP Integration Suite supports event-driven architectures, facilitating faster and more responsive business processes, and better adaption to changing business conditions. Discover whatever added value for yourself, then urgently concretize it within a rough-cut business case and weigh it against complexity (risk). This approach has proven its worth on the way to the actual development of the transformation strategy in order to prevent excessive risks being taken in the transformation on the one hand and opportunities being carelessly missed on the other. To anyone regarding SAP transformation solely as a technical hurdle: This perspective has received backing from SAP itself for numerous years, as evidenced by its development of the Vision-to-Value framework. The objective is to utilize the analysis results in crafting a preliminary roadmap for the company. This roadmap will delineate the individual realization phases and, in the case of a tender, distinctly outline the phases within the scope of services. Generate benefits by utilizing the generic added-value changes When it comes to the necessary discussion during the decision-making process as to what added value the S/4HANA transformation will bring, generic added value is no longer sufficient. Instead, it is now important to apply the generic added value from a business perspective in the respective processes on a case-specific basis. In the given example, an engineering company had unique demands and challenges when exploring the transition to becoming data-driven organizations. In the final decision paper the following added-value scenarios were outlined: Optimizing Product Development: Our company faces complex product development processes involving extensive research, design, and testing phases. Being data-driven will help optimize these processes by leveraging insights from historical data to improve our product design, identify potential issues early, and streamline development timelines. Predictive Maintenance: Our company deals with maintaining large and expensive assets such as machinery, equipment, or infrastructure. Adopting data-driven approaches, such as predictive maintenance, will help anticipate possible equipment failures, schedule maintenance proactively, and minimize downtime, ultimately reducing costs and improving operational efficiency. Quality Control and Assurance: Ensuring product quality is paramount for our company. Data-driven approaches enable us to implement robust quality control measures by analyzing data from manufacturing processes, identifying patterns or defects, and implementing corrective actions in real-time to maintain high-quality standards. Supply Chain Optimization: Our company has complex supply chains involving multiple suppliers, partners, and stakeholders. By leveraging data analytics, we can optimize their supply chain operations by forecasting demand, improving inventory management, reducing lead times, and mitigating risks, thereby enhancing overall efficiency and reducing costs. Performance Monitoring and Optimization: Monitoring the performance of our projects, processes, and assets is critical for identifying areas of improvement and optimizing resource allocation. Data-driven analytics enable us to track key performance indicators (KPIs), analyze performance trends, and identify opportunities for optimization across various aspects of our operations. Innovation and R&D: Our company thrives on innovation and continuous improvement. Data-driven decision-making can fuel innovation by providing insights into market trends, customer preferences, and emerging technologies, guiding our research and development efforts, and supporting the identification of new business opportunities. In order to present these scenarios credibly in a business case, the individual scenarios must be specified and made measurable. We will address this task in the next post. To be continued.... Michael Philipzen