Major SAP ERP Migration from a Legacy ERP System
Migrating from a legacy ERP system to a modern SAP ERP solution is a complex and transformative process for any organization. This case study explores a significant $10 million SAP ERP migration project, that our team was a part of. We detail the strategies and methodologies behind a seamless transition.
The organization in question was a large multinational manufacturing company. It used a legacy ERP system that had become outdated and was no longer meeting the company’s growing needs.
Read on to learn more about a transition that causes no business disruptions.
1 Project Manager, 4 Functional Leads, Deployment Lead,
1 Change Manager, 2 Application Developers
The client needed to replace their outdated legacy ERP system. The legacy system could no longer meet the company’s growing demands.
Migrate the legacy ERP system to SAP ERP for two manufacturing plants, a 3PL distribution center, Finance, Order Management, and Procurement functions.
Challenges
The project was challenging due to the limited availability of business users. Our project manager had to keep IT tasks on track while managing business risks. Our team took on the extra responsibility of driving data collection and transformation across these areas:
- Data integrity. We needed to solely ensure all data from the legacy system was accurately migrated and fully functional in the new system.
- User adoption. The client expected a smooth transition for employees and effective training for new system use.
- Cost management. The project was set within the $10 million budget and timeline constraints.
Thus, our team was responsible for oversight, decision-making, and alignment with business objectives.
Solution
DIGIT performed a successful migration to a new SAP ERP system. It involved a series of eight well-defined and executed project phases.
1. Project Management Setup
First, we established a robust program management framework to oversee the migration project. We developed a comprehensive project plan with milestones, budget, and risk management strategies.
We also facilitated regular status meetings and maintained open communication channels to make sure all stakeholders were informed and aligned.
2. Organizational Structure Development
We assessed and developed an optimized organizational structure to support the new SAP ERP system. All roles and responsibilities were clearly defined for efficient operation and management of the new system. Our functional team designed and tested a new organizational structure across Procurement, Sales, Manufacturing, Quality, and Supply Chain.
3. Design Documentation
Our team developed detailed design documentation with the architecture, processes, and configurations of the new SAP ERP system. All documentation adhered to industry best practice. All documents were uploaded and approved by the internal team in a QMS application.
4. ABAP Development
Next, we performed necessary ABAP development to customize and enhance the SAP ERP system to meet the client’s unique business needs.
Integrations were set with Hyperion, Esker, Vertex, GTS, Coupa, and 3PLs applications.
5. System Validation Testing
Our team conducted thorough system validation testing of the new SAP ERP system. We made sure it functioned correctly. We implemented end-to-end testing, including unit tests, integration tests, and supported user acceptance tests. All processes and results were documented.
6. SAP Template and Training Material Development
To support onboarding, we developed SAP templates to standardize processes and ensure consistency across the organization. We also created comprehensive training materials and conducted training sessions to educate over 400 end-users on the new system’s functionalities and processes.
7. Deployment and Cutover
The deployment was planned and executed. Cutover activities were enabled to transition from the legacy ERP system to SAP ERP. We strongly focused on minimizing downtime and disruption to business operations during the cutover process.
All data was accurately migrated and validated in the new system.
8. Hypercare Support and Defect Fixing
We provided hypercare support immediately following the go-live to address any issues that arose. Our team monitored the system closely and resolved any defects or performance issues promptly.
Thus, we ensured the system operated smoothly and met all performance expectations.
Results
The project was delivered on time and within budget. The implementation of the new SAP ERP system has transformed the operational capabilities of the company. It now benefits its manufacturing plants, distribution centers, and various business functions.
Enhanced Efficiency and Integration
The SAP ERP application improved operations and now serves as a unified
platform for various business processes. For instance, the integration of the
production scheduling with the inventory management system reduces lead times.
It results in a more agile manufacturing process. Today, the company better
responds to market demands and optimizes resource allocation.
Standardized SAP Templates and Effective Training Programs
Standardized SAP templates ensure consistency and user competence. These templates facilitate uniform data entry and reporting practices. The company reports higher accuracy and reliability of information.
For example, standardized templates in the financial reporting module reduce errors in monthly reports. Additionally, comprehensive training programs were conducted for over 400 users. It significantly improved their proficiency with the new system. The training included:
- Hands-on workshops
- Online resources
These accelerate the learning curve and keep users well-equipped. The entire company can take advantage of the full capabilities of the SAP ERP system and leverage the templates in any future SAP projects.
Seamless Transition and Future Growth
The transition to the new SAP ERP system was executed smoothly, with minimal disruption to daily operations. The migration of legacy data was completed with 98% accuracy. It contributed to a quick switch to the new system.
The company’s leadership reports high levels of user satisfaction and confidence. They believe the new system can support future expansion. The scalable nature of the SAP ERP system provides a solid foundation for integrating new business units and processes.
Improved Decision-Making and Reporting
The SAP ERP system enhances the company’s decision-making. It provides real-time insights across all business areas and comprehensive reporting features. The advanced analytics within the ERP system helps track key indicators faster. This increases operational efficiency.
