Celonis process mining aids Hager’s S/4HANA journey

An S/4HANA migration is a challenging undertaking for any business, but corporations are discovering ways to ease the transition. A person this kind of enterprise is Hager Group, an electrical devices and providers provider in Blieskastel, Germany, that employs 11,500, operates 24 production facilities throughout the world and providers prospects […]

An S/4HANA migration is a challenging undertaking for any business, but corporations are discovering ways to ease the transition.

A person this kind of enterprise is Hager Group, an electrical devices and providers provider in Blieskastel, Germany, that employs 11,500, operates 24 production facilities throughout the world and providers prospects in more than one hundred twenty nations. A family-owned and -run organization, the Hager Group uncovered that it could reduce expenditures and time in migrating its organization and functions, which at this time runs on SAP ECC 6. ERP, to S/4HANA by applying Celonis process mining program.

The Hager Group’s plan is for this important transfer to be accomplished by the close of 2022, with a massive bang rollout of the new method, according to Frank Helbing, Hager’s director of digital and details. A person of the most significant rewards Celonis delivers to the table is its capability to uncover process inefficiencies, which can produce needless delays, and detect process variants, which can be operationally crucial but conveniently neglected when relying on human memory.

Method excellence is the purpose

The S/4HANA migration is element of Job 2030 (P2030), a corporate-vast initiative to fulfill future organization and technological necessities, Helbing explained.

Frank Helbing, Hager Group director of digital and informationFrank Helbing

As element of P2030, the task team interviewed Hager’s leading management to make positive that S/4HANA would support the company’s future running product.

“We made the decision to conduct a conversion of our current ERP method to S/4HANA, and this will be surrounded by a new implementation of functionality-distinct extensions,” he explained. “Together with things like built-in organization setting up and a new financial consolidation method.”

Operating with SAP, Hager carried out an S/4HANA transition study to decide if it was heading to get a brownfield strategy and update its current method, a greenfield strategy and undertake a new set up of its ERP or some mixture of the two for the task. Hager Group executives discovered operational and process excellence as leading objectives for P2030, and SAP instructed that Hager seem at Celonis’ process mining tools, according to Helbing.

Business enterprise process X-ray

Berlin-primarily based Celonis is one particular of only a handful of corporations specializing in process mining. Its program crawls via an organization’s organization procedures and analyzes how the procedures do the job and where by there may perhaps be breaks or flaws.

Alex Rinke, co-CEO, CelonisAlex Rinke

“The thought we arrived up with ten yrs back was to have this X-ray for organization procedures, to be ready to go into any enterprise and exhibit them how their procedures are jogging,” explained Alex Rinke, co-founder and co-CEO of Celonis.

When you seem at these challenges, it indicates you need to have to really fully grasp your method just before you can begin the migration to S/4HANA.
Frank HelbingDirector of digital and details, Hager Group

Following a evidence of principle proved to Hager management that the Celonis “X-ray” had worth in getting ready the enterprise for an S/4HANA migration, the task team applied the process mining program to more entirely examine its procedures and make positive they are optimized for the new method.

“There are a couple of challenges with an S/4HANA migration, for instance, substantial customization, unclean grasp facts and organization procedures that are not harmonized,” Helbing explained. “When you seem at these challenges, it indicates you need to have to really fully grasp your method just before you can begin the migration to S/4HANA.”

Discovering process blocks

Hager 1st applied Celonis process mining on its quote-to-hard cash process, where by the program uncovered inefficiencies that were being creating delays in the process, according to Helbing.

“For occasion, we noticed that we have needless credit checks, which were being blocking the order stream and creating shipping and delivery delays,” he explained. “That was an region where by we could improve the cycle time and also lower guide interactions where by individuals have to get treatment of the blocked files, gross sales orders, and release them, unnecessarily expending time on them.”

When that sort of examination can enable any business improve procedures, Celonis is also encouraging Hager with two distinct phases of its S/4HANA migration task — fit-to-normal examination and examination preparation and execution.

Celonis process mining software's process variant analysis dashboard.
Celonis process mining program helps organizations come across process variants.

S/4HANA migration fit-to-normal examination, element of an implementation task management framework known as SAP Activate, compares an organization’s current procedures with all over 280 S/4HANA finest tactics, Helbing explained. The standard fit-to-normal strategy involves conducting workshops where by consultants check with inquiries about how procedures do the job, a monotonous job that’s inclined to depart gaps.

“It’s a pretty really hard physical exercise simply because you really need to have to have in head all your process variants, and you need to have to clarify to [the consultants] how they do the job, which can take a whole lot of time,” Helbing explained. “The facts-driven insights from Celonis enable you to lower your expenditures and endeavours for undertaking people fit-gap examination workshops, simply because you can significantly a lot quicker check out current procedures and learn the variants primarily based on fact-primarily based insights. You can also do conformance checks, which get your current procedures and review these with SAP’s finest apply procedures.”

Method variants a hazard

Chance avoidance is the crucial to effective examination preparation and execution, Helbing discussed. Realizing the procedures in depth can enable companies fully grasp the a lot less widespread variants of people procedures which are typically not incorporated in testing.

“Then you have a large hazard, simply because later on, a process might not do the job as expected,” Helbing explained. “Celonis can enable you in this article simply because it demonstrates you the most widespread process variants, but also the a lot less widespread ones, so you can get people a lot less widespread ones into thought for your testing.”

The time and effort and hard work that Celonis has saved Hager in getting ready for its S/4HANA migration are major, Helbing explained.

“The effort and hard work is extremely substantial if we were being to consider to focus on with every single gross sales business about how the process stream is, so you’ll by no means get the complete photograph,” he explained. “Due to the fact we’ve applied Celonis, we’ve found instantly how the procedures are in truth. I feel we’ve saved quite a few days and weeks for getting how the procedures do the job in present-day method. Of training course, you have some thought how they should really do the job, but you are by no means one hundred% positive how they do the job in truth.”

Jim O’Donnell handles ERP and other company purposes for SearchSAP and SearchERP.

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