Process & Cost Optimization, Lean, SAP 4 HANA Readiness

“Get it right first time”

Avoiding waste through consistent application of lean methods and at the same time increasing quality, customer and employee satisfaction is not magic! Though, there are some activities to be considered to ensure a proper execution. E.g., with the introduction of S4H technologies and the universal ledger, the entire business logic, hence accountabilities such as process ownership and processes are affected.

Our typical approach looks like this:
1. delimitation of the application area, identification of the process owners
2. self-assessment of the process owners
3. reflection of the identified process based on best practice
4. validation workshop: validation of the optimization potential, prioritization in the process heatmap, implementation and backlog generation
5. Process recording of the prioritized processes, systems and data structures and consistent (partly automated) recording / documentation
6. Development of the need for adaptation to LEAN processes
7. Feasibility check
8. Cost-benefit analysis, business case with aggregated financial and qualitative effects.

In many cases, the upcoming S4H (SAP) change confronts SAP customers with very big challenges (not only in IT): since the business logic changes fundamentally, e.g. in the area of FICO, it is necessary to transfer the existing processes into suitable target processes

Reference Case

Company size > € 1 billion p.a. sales

Business Process Outsourcing / Shared Services Center / Carve Outs /-Ins

Establishment of regional shared service centers with business process outsourcing options. To do this:
1.Separation of administrative functions from operating units and bundling of administrative activities (finance, controlling, human resources, IT) of local plants in shared service centers in order to bundle know-how, increase quality and raise efficiencies.
2.development of a target structure and a strategy to achieve this target structure.
3.Recording and critical reflection of possible process standardization.
4.Tendering of services for business process outsourcing providers.
BPO process: RfQ process, short listing, BPO fact finding, contract negotiations, development of service level agreements.
5.business case development in different scenarios (BPO, in-house).
6. execution of change management measures for implementation

39% IRR (base case)

How does it work?

In a direct (remote and free of charge) INITIATION SESSION (1h) we will discuss your objectives, scope, and context.

Typically, the scope ranges from “just” the consolidation or dismantling of individual existing units, the integration of newly acquired ones, the setup of an internal shared service center (greenfield or brownfield) or end-to-end orchestration of a full-blown outsourcing program.

Depending on your needs and your own capabilities, we will provide you a support concept that fit neatly into your approach. It may comprise just specific change management interventions or up to full delivery of an outsourcing program including

  1. Baselining
  2. Scoping
  3. Definition of communication plan
  4. Definition of the Target Operating Model
  5. Request for Proposal (RfP) process
  6. Vendor interaction
  7. Shortlisting vendors,
  8. Fact finding
  9. Contract negotiation (in particular: service level agreement (SLA))
  10. Day one readiness preparation
  11. … all accompanied by careful communication and change management interventions, so that your key stakeholders seconding the change and to avoid brain-drain.

For higher efficiency, we suggest an agile working mode with biweekly client-participating reviews on predefined deliverables and flexible agile contract. This enables quick feedback and adjustments as necessary.

In other words, the typical approach is

  • Scaled to your real needs
  • Delivering tangible results continuously
  • Low risk, as the agile contract ensures required skill capacity and allows for adjustments as required.

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