How does the conversion of existing IT systems to SAP S/4HANA succeed in practice? The pilot project of Swiss biotechnology company Jungbunzlauer in collaboration with SNP shows how the real-time ERP suite can be implemented successfully.
To prepare the ground for digital business transformation, the decision-makers at Jungbunzlauer Group, a leading global manufacturer of biodegradable natural ingredients such as citric acid, planned to migrate the entire SAP system to S/4HANA. The focus of the migration was placed on the financial area – the latter was to be completely restructured. Further, the logistics modules also needed to be migrated to the new real-time ERP suite. However, in this area, legacy functionalities are still to be used for the time being, but an upgrade is also being planned.
Initial IT situation prior to the S/4HANA migration
Prior to the S/4HANA implementation, the 1,200 headcounts strong company with annual sales revenues of CHF 900 million (approx. 835 million euros) operated the productive system EHP 7 within its ERP landscape. Since the migration to S/4HANA would affect subsidiaries in seven different countries – including Germany, Mexico and the U.S. – Jungbunzlauer intensively dealt with the question of how data could be transferred to the new IT landscape as smoothly as possible. The choice fell on the migration approach of the software and IT consulting company SNP, which is called Bluefield and combines advantages of the classic approaches Greenfield (new implementation) or Brownfield (transformation of existing systems). By using an automated process, existing IT systems are checked, streamlined and future-proofed extremely quickly .
Realizing multiple projects at the same time – enabled by the Bluefield approach
The chosen migration approach enabled Jungbunzlauer to migrate and update data smoothly and to implement necessary projects such as the introduction of the New General Ledger (New GL) in one step.
With the help of its own software solution, SNP created an SAP target system, a so-called Empty Shell. In this "empty shell" which was upgraded to S/4HANA, the existing master and transaction data was transferred accurately and consistently and converted into the new S/4HANA tables.
Thanks to the automated and thus less error-prone migration process, Jungbunzlauer had successfully completed the major project after 16 months and thus laid the foundation for further global migrations.
The pilot project at a glance:
- Project type: S/4HANA migration
- Duration: 16 months
- Technical scope: Chart of accounts harmonization, profit center harmonization, introduction of New GL with switch from accounts to ledger solution incl. activation of document split
- Affected countries: Switzerland, Canada, Austria, France, Germany, USA and Mexico