In the previous post on SAP S/4HANA migration, the common challenges faced in IT transformation endeavours are highlighted, often stemming from a lack of comprehensive process understanding. Addressing these challenges head-on, QPR Software and Tietoevry are thrilled to unveil SAP S/4HANA Vectorial!
SAP S/4HANA Vectorial stands as a groundbreaking process mining solution, meticulously crafted to empower SAP and business analysts throughout S/4HANA transformation projects. This innovative tool streamlines the analysis of existing processes (as-is) and offers invaluable insights to gauge the extent of necessary adjustments during migration.
With SAP S/4HANA Vectorial, QPR and Tietoevry synergise cutting-edge technology with the wealth of SAP transformation expertise from seasoned professionals. The result? A game-changing solution that provides organisations with unparalleled support on their S/4HANA transformation journey.
How SAP S/4HANA Vectorial works
SAP S/4HANA Vectorial revolutionises process analysis by leveraging your transactional data to visually represent your process executions. It compares these executions against SAP’s best practice models for S/4HANA, instantly indicating the degree of adherence to these standards.
Yet, SAP S/4HANA Vectorial isn’t solely fixated on mirroring SAP’s best practices. It uniquely emphasises enhancing business performance alongside the S/4HANA transformation. Consequently, business performance metrics play a pivotal role in evaluating the alignment with SAP’s best practices.
Moreover, SAP S/4HANA Vectorial isn’t restricted to specific processes; it can analyse any process outlined in SAP’s documentation. To illustrate its capabilities, this blog post focuses on examples from the Procurement of Direct Materials (J45) process.
How you benefit from SAP S/4HANA Vectorial
1. Comparing process execution against SAP best practices
Before diving into your S/4HANA migration project, it’s wise to assess how your current processes align with S/4HANA best practices. This comparison provides insights into the adjustments needed when transitioning from your current ERP system to S/4HANA.
Understanding these discrepancies aids in crafting a well-informed transformation plan with realistic timelines, minimising the chances of unforeseen challenges during the project.
SAP S/4HANA Vectorial simplifies this process by mapping S/4HANA best practice processes into actionable models. This enables an automatic comparison between your actual process execution and these models, facilitating a clear understanding of the required changes.
By examining how closely your processes adhere to SAP’s best practices, you gain valuable insights crucial for your S/4HANA transformation journey.
This analysis swiftly addresses key questions:
- Which process variations align with best practice models?
- Are there performance disparities among different variations?
- What factors contribute to deviations from SAP best practices?
- Do process executions differ across the organisation?
- Are there any unexpected occurrences within the process?
SAP S/4HANA Vectorial delivers answers to these queries through various analyses, including:
- Instant overview of compliant process variations based on SAP best practices
- Identification of reasons for deviations from best practices
- Analysis of performance gaps within processes
- Comparison of process variations to pinpoint unexpected behaviors.
2. Utilise the Design Distance Score -concept for instant process insights
QPR and Tietoevry introduce a groundbreaking concept known as the Design Distance Score, born from their combined expertise. This innovative approach elevates the comparison between real process execution and best practice models.
The Design Distance Score employs an algorithm to assess the alignment of flow to and from specific process steps with SAP best practices, assigning scores accordingly. This enables analysts to swiftly identify why certain process variations deviate from the SAP best practice model.
By eliminating the need for time-consuming workshops and interviews to pinpoint problematic process steps, the Design Distance Score saves significant time. Instead, project teams can efficiently delve into problem areas and channel their brainstorming efforts towards resolving prevailing issues.
To illustrate the Design Distance Score in action, consider a real-life instance of the procurement of direct materials process, which receives a score of 67 out of 100. In this example, process steps are color-coded to indicate their alignment with SAP best practices.
In the process, steps highlighted in green signify a flawless adherence to best practices. Take, for example, the “Create Purchase Order” step, which receives a perfect score of 100. This score is achieved because both the up flow from “Create Purchase Requisitions” and the down flow to “Post Goods Receipt” align perfectly with SAP’s best practices.
Similarly, this evaluation applies to all activities within each process variation. In the provided screenshot, alongside the green steps, we observe instances where certain steps only partially conform to best practices (such as “Post Goods Receipt” highlighted in yellow) and others that completely deviate from best practices (like “Post Supplier Invoice” and “Create Supplier Invoice,” both highlighted in red).
The Design Distance Score serves as a key performance indicator (KPI) for tracking progress throughout your transformation project and for monitoring performance post go-live to ensure adherence to the designed process.
Moreover, it offers invaluable insights for planning your S/4HANA transformation. By gauging how closely your current processes align with S/4HANA best practices, you can determine the feasibility of setting targets to align with these practices.
3. Design your future business processes to maximise performance instead of blindly following best practices
S/4HANA transformation isn’t just about meeting SAP’s requirements; it’s a chance to leverage the modern ERP platform for enhanced business opportunities and operational efficiency.
Enter SAP S/4HANA Vectorial, designed to shift the focus from merely adhering to SAP’s best practices to analysing operational performance. This solution challenges the notion that SAP’s best practices are the only path forward.
Yes, you heard it right! While the solution evaluates process alignment with SAP’s best practices, it also questions the necessity of strict adherence. In fact, for optimal performance, it may even recommend deviations from these practices!
SAP S/4HANA Vectorial helps you to maximize business performance by:
- Reviewing process variations with top-performance
- Assessing alignment with SAP’s best practices
- Identifying variations meeting your organisation’s KPI targets
- Striking the balance between performance and best practices
Leveraging SAP S/4HANA Vectorial throughout your planning, design, execution, and monitoring phases ensures a successful transformation project that stays within budget, meets deadlines, and enhances business performance.