SAP Upgrade Project

SITUATION

In the dynamic landscape of the national food and beverage industry, a prominent $400M manufacturing and distribution player faced a substantial challenge. Having refrained from upgrading their SAP system for an extended fourteen-year period, the organization found itself at a crossroads. The executive leadership, with a focus on minimizing IT costs, inadvertently created a significant gap in their technological infrastructure. Unaware of the repercussions, the decision had a profound impact on the organization. Various business functions were compelled to operate outside the SAP system, resorting to manual processes and spreadsheets for day-to-day activities. Compounding the challenge, SAP had introduced numerous business processes, features, fixes, and capabilities over the years. Regrettably, the company couldn't harness these advancements due to the outdated system. Moreover, a critical risk loomed large – the SAP platform had run out of support, exposing the organization to potential vulnerabilities in the face of major business issues. It was a situation demanding immediate attention and strategic action to secure the future viability of the company's operations.

CHALLENGE

Upgrading the client's SAP platform brought forth multifaceted challenges, each demanding a strategic resolution. Firstly, the existing enterprise server lacked the essential storage, memory, computing power, and disk space needed to support SAP S/4HANA. The solution necessitated a comprehensive infrastructure upgrade, culminating in the implementation of a new enterprise server with specifications aligned to the demands of SAP S/4HANA. Secondly, the existing DB2 database lacked UTF8 compliance, a critical prerequisite for the upgrade. The solution involved a meticulous upgrade of the database, ensuring adherence to UTF8 standards and compatibility with SAP S/4HANA. A crucial business consideration was the limitation on downtime—no more than 40 hours—due to the extensive network of stores and distribution centers relying on continuous operations. To meet this challenge, a detailed plan of action was formulated, emphasizing precision and efficiency in execution to minimize disruption to business operations and maintain continuous customer support. Addressing the client's apprehensions stemming from a previous SAP upgrade experience, the action plan prioritized meticulous planning and flawless execution. The commitment was clear: to ensure a seamless upgrade process, avoiding the business disruptions that had marred their prior experience and restoring confidence in the IT services firm. In navigating these challenges, the objective was not only to overcome technical hurdles but also to instill confidence in the transformative potential of the SAP upgrade, marking a positive departure from past setbacks.

ACTION

In collaboration with executives and business leaders, Full On Consulting undertook a comprehensive analysis to grasp the current challenges and devise an effective execution strategy. This strategy was structured into three pivotal workstreams. Firstly, the technical environment underwent a substantial upgrade. Full On Consulting collaborated with the hardware vendor, orchestrating the installation of a new enterprise server, updating the database, and enhancing network bandwidth. With this foundational upgrade completed, attention shifted to the core of the operation—upgrading SAP. This phase involved not only transitioning to the new SAP S/4HANA version but also updating custom programs, reports, and third-party modules. To ensure a seamless integration, representatives from various business units were strategically selected, overseeing the validation of every business process. Rigorous testing, including the creation and execution of various reports, was conducted to verify the accuracy and functionality of the upgraded system. Once all business processes were meticulously validated, the focus shifted to implementation. Full On Consulting collaborated closely with executives, business leaders, and key personnel to formulate a comprehensive go-live plan. Given the diverse operational landscape encompassing retail stores, distribution centers, and warehouses, a meticulous approach was imperative. Full On Consulting assembled dedicated go-live teams strategically positioned across the country, ensuring on-site support to prevent any interruption to business operations during the crucial go-live phase. The concerted effort and careful planning culminated in a successful SAP upgrade, positioning our client for enhanced efficiency and innovation in their operations.

RESULT

Full On Consulting achieved a seamless SAP upgrade to SAP S/4HANA over a weekend, demonstrating remarkable coordination among teams nationwide collaborating with local business personnel to ensure smooth operations. The team's meticulous planning and extensive SAP experience were pivotal in the successful implementation. This transition empowered the client with a revamped SAP platform, elevating their business processes and enhancing customer service. The collaboration with Full On Consulting yielded two significant benefits for the client. Firstly, through adept negotiation, Full On Consulting successfully renegotiated the SAP licensing, resulting in a substantial cost-saving of $400,000. Secondly, recognizing the client's absence of a Disaster/Business Continuity Plan (DR/BCP), Full On Consulting not only implemented a robust plan but, fortuitously, a year later, when the client's Data Center suffered a fire incident, the DR/BCP proved instrumental, saving the client a staggering $40,000,000. This transformative work underscores Full On Consulting's commitment to delivering value beyond the immediate project scope. Further details on this impactful initiative can be explored here.

CLIENT SUCCESS

The client expressed overwhelming satisfaction with the exceptional work delivered by Full On Consulting. The SAP S/4HANA upgrade was hailed as the smoothest they had ever experienced, with just a minor issue on an invoice arising from the new SAP version, swiftly addressed without further complications. Beyond the technical success, Full On Consulting played a pivotal role in preserving the client's reputation with their customers. The implementation of the Disaster/Business Continuity Plan (DR/BCP) proved instrumental, ensuring the client could continue servicing its clients seamlessly even in the face of unforeseen challenges. The accolades from the CEO, President, and Board echoed profound gratitude for the work performed, acknowledging the insightful strategies that not only addressed immediate needs but positioned the client strategically for a resilient future.