Phase Zero: Why it’s the Critical First Stage in RISE with SAP and SAP S/4HANA Implementation Projects
Most organisations are aware that the end-of-support date for SAP ECC is fast approaching, yet many do not have a clear path forward. SAP will no longer support SAP ECC EHP 1-5 after 2025, and the same will apply to ECC EHP 6-8 after 2027. As the ECC end-of-support deadlines draw closer, SAP is pushing customers to adopt SAP S/4HANA through a RISE with SAP contract.
Many organisations have entered into discussions with SAP, despite not having a compelling business case to upgrade their systems, or understanding what risks may arise and how to mitigate them. With projects of this scale, complexity and cost, decisions should not be rushed or made out of obligation.
Before embarking on an SAP S/4HANA deployment in either a RISE with SAP Public Cloud, Private Cloud or perpetual licence environment, it is crucial to recognise the value of the planning and preparation phase, a.k.a. “Phase Zero”. This preliminary phase allows organisations to lay a solid foundation and ensure a successful implementation that aligns with their specific needs and goals.
Let’s look at how Phase Zero helps organisations set the stage for successful SAP implementation projects.
Make informed decisions about your SAP S/4HANA deployment options
Phase Zero plays a critical role in understanding an organisation's unique requirements and selecting the SAP S/4HANA solution accordingly. By conducting a thorough analysis of existing requirements, processes, manual effort, pain points, and opportunities, organisations can define their business objectives and align them with the capabilities offered by SAP. This upfront assessment ensures that the solution is tailored to address their specific challenges and objectives, minimising the need for costly customisations or add-ons later.
Lower your SAP S/4HANA implementation cost by keeping customisations to a minimum
One of the significant benefits of Phase Zero in SAP S/4HANA projects is the potential for cost and time savings. By conducting a comprehensive analysis during this phase, organisations can identify any gaps between their current processes and the functionalities provided by the SAP S/4HANA offerings.
Addressing these gaps early on helps avoid unnecessary workarounds, extensive customisations, or additional add-ons being identified during the implementation. This proactive approach not only prevents costs and timeline blow-outs, but also minimises project delays, ensuring a more streamlined and efficient implementation process.
Select your best-fit SAP S/4HANA implementation partners
Phase Zero allows organisations to make informed decisions during the vendor selection process. RISE with SAP Public Cloud, Private Cloud or SAP S/4HANA perpetual contracts and projects involve collaboration with SAP and its partners. During this phase, organisations can evaluate different vendors and partners based on their expertise, experience, and resource availability.
Thorough research and evaluation helps organisations choose the right partner that aligns with their industry requirements and strategic objectives. This engagement ensures that the roles and responsibilities are well documented, to provide a reliable and successful implementation and ongoing support of SAP S/4HANA, minimising risks and maximising the value delivered.
Get buy-in and alignment for the SAP S/4HANA transition
Engaging stakeholders and securing executive sponsorship are vital for the success of any SAP S/4HANA project. Phase Zero provides an opportunity to build a dedicated project team and secure executive support. This cross-functional team can collaborate effectively, align project strategies and goals, and ensure that the implementation meets the organisation's specific objectives.
Executive sponsorship ensures the necessary governance, resources, budget, and organisational commitment are in place, leading to a smoother and more successful implementation.
Design a low-risk SAP S/4HANA implementation project plan
Phase Zero enables organisations to identify and mitigate potential risks associated with the SAP S/4HANA project. Through a comprehensive review of organisational and technology structure, as well as a business needs assessment and gap analysis, companies can proactively address risks and challenges that may arise. By identifying risks and developing risk mitigation strategies, they can reduce the impact of unexpected issues arising during the implementation phase.
Furthermore, Phase Zero facilitates efficient project planning, allowing organisations to define project dependencies, key milestones, resource requirements, and budgetary considerations. This thorough planning ensures that the project progresses on time, on budget, and delivers the desired outcomes.
How will you find your path to SAP S/4HANA?
Thorough planning and preparation at Phase Zero is industry best practice and lays the foundation for a successful SAP project. Some organisations opt to run Phase Zero in-house, while others look for an independent, trusted advisor to complement and extend the knowledge, capability, and capacity of their internal teams.
When selecting a suitable Phase Zero partner, be mindful of systems integrators, solution providers and consulting firms who have a vested interest in selling software and/or implementation services, as this may create biases and lead to outcomes that are not solely in the best interest of the organisation.
With careful planning and the right partnerships at Phase Zero, organisations can harness the full potential of SAP S/4HANA (be that the RISE with SAP Public Cloud, Private Cloud, or a perpetual arrangement) and accelerate their business and digital transformation journey towards becoming an Intelligent Enterprise.
