Are Your Processes Sabotaging Your ERP Implementation?
In most SAP S/4HANA implementations, the problems that surface at go-live were visible in the process layer long before the build started.
Hello, it's Borislav here.
My last newsletter was all about process excellence, and how our internal workflow dictates the quality of our external partnership. Today, let us also explore the flip side: process failures. We had a fantastic interview with one of your senior SAP consultants, who shared his experiences (I hope you will enjoy it).
The truth is, many companies invest heavily in new software, hoping to fix operational problems, only to discover the new system makes the problems worse. Why? Because the real issue isn't the software, but the broken or inefficient processes underlying it.
This is the phenomenon known as "garbage in, garbage out". If your established workflow has existing breakdowns, the new software implementation will simply adopt and automate that inefficient process - but at the speed of light. The result? Missed targets, inefficient software, unhappy customers, and, critically, broken trust. This is not the basis for a strong, long-term partnership.
The Process Problems That Derail SAP S/4HANA Implementations
In my experience, customers are often not even aware that the real problem lies within an established workflow. A process failure literally causes a breakdown in a particular workflow, slowing everything down. Our proven strategy is to pay special attention to, and dedicate significant effort to analysing a customer's business processes early on.
This approach provides a strong foundation for building long-term relationships because we focus on true, sustainable solutions, rather than quick technical fixes.
If your established workflow has existing breakdowns, the new ERP software will adopt and automate that inefficient process - but what is the consequence of doing this?
Our Strategy for Identifying Failures:
We utilize a systematic approach to uncover these hidden breakdowns:
- Deep Process Analysis: We conduct detailed, deep process analysis to map the "as-is" state of your current workflow.
- Holistic Cleansing: We address both data and process failures simultaneously. This is a critical first step to avoid automating flawed systems.
- Constant Collaboration: We encourage clients to collaborate closely with us during this early, but very critical, project phase to gain context and buy-in.
- Root Cause Identification: We communicate potential process issues to the relevant stakeholders, identify the root cause of these issues, and validate our findings with you.
- Transparent Consulting: We are transparent about the findings, explaining the current and future value of process adjustments. We provide advice on possible adjustments, taking into account factors such as standard software capabilities, cost, time and future developments, in order to maximise benefits.
Toolkit for Cleansing The Foundation
To make sure that your investment in new software is worthwhile, we focus on two critical cleansing steps.
1. Data Cleansing (Data Scrubbing)
Point: Point: This is the methodical process of ensuring your dataset is accurate, consistent and usable. Key activities include removing duplicates, standardising formats and correcting inaccuracies.
Trick: Prioritise your data cleansing efforts based on the system's core needs. Focus intensely on the data fields that directly drive your customer experience (e.g., product pricing, availability) and financial reconciliation.
Team Tip: Establish a single source of truth for your master data early in the project. Define clear ownership for data quality - it should not be an IT task, but a cross-departmental responsibility.
From My Experience: Weve seen projects delayed because 80% of the effort went into cleaning up historical data that wasnt even needed for the initial launch. Focus on what is essential for the MVP.
2. Process Cleansing (Process Optimization)
Point: This is the strategic step of optimizing and stabilizing business workflows before the software is deployed. If you automate an old, broken process, your new, powerful software will only make the underlying problems happen faster and on a larger scale.
Trick: Use the Fit-to-Standard approach. Before implementing a customization to suit an old process, analyze if adopting the new software's standard workflow can actually streamline your operations. Often, the software best practices are better than your current process.
Team Tip: Actively seek input from the people who perform the daily tasks (the end-users). They are the experts on existing workarounds and inefficiencies, which are often the first signs of a process failure.
From My Experience: Many process failures stem from conflicting departmental KPIs. For example, Sales optimizing for volume while Logistics optimizes for cost. Process cleansing must resolve these misalignments to ensure a smooth, end-to-end flow.
Ultimately, we strive for process excellence not only in our delivery but in your resulting solutions. By addressing both data and process failures proactively, we secure a strong foundation for your long-term success.
What hidden process failure do you suspect is costing your business the most time right now? Hit reply and let me know.
Cheers to your success,
Borislav Minkov CEO, Novarto
