How to choose the right SAP Partner

If you decide to continue with SAP, statistics reveal that over 90% of SAP implementations are facilitated by system integrators. With many organisations undertaking ERP transformations only once every 15 years or more, it is essential to select a partner with the experience and methodology that can significantly impact the project's success. The right partner possesses the expertise, proven frameworks, and deep industry knowledge necessary to navigate the complexities of migration effectively. Above all, it fits and serves your organisation vision and culture. 

Methodology for selecting an SAP Partner

Selecting an SAP partner for S/4HANA migration involves a structured, methodical approach that is aligned with your organisational goals and facilitates a successful implementation. 

Below is an elaborate step-by-step methodology that can help you select the right partner for your organisation’s wishes and needs.

How to proceed:

• Facilitate workshops with key stakeholders from different business units, including IT, finance, and operations.
• Document the requirements systematically, categorising them into functional, non-functional, and technical specifications.
• Use tools like surveys or interviews to capture insights from end-users who will interact with the system.

Outcome: Compile a requirements document that reflects the diverse perspectives of stakeholders, ensuring alignment on project objectives.

Actionable steps:

• Leverage industry reports and research analysts (e.g., Gartner, IDC) to gain insights into the effectiveness of various SAP partners.
• Participate in industry conferences or webinars that offer insights on recent trends in ERP solutions and partner capabilities.
• Access online platforms and forums for reviews and discussions about potential partners, gathering feedback from their previous clients.

Outcome: Create a longlist of potential partners based on the market's best practices and insights.

How to execute:

• Launch an RFP and set up clear evaluation criteria that encompass technical expertise, industry experience, partnership engagement history, and cultural fit.
• Use scoring methodologies to compare potential partners against each criterion, considering both qualitative and quantitative data.
• Engage internal stakeholders in evaluating and discussing shortlisted partners to ensure diverse perspectives are considered.

Outcome: Generate a focused list of partners that meet the established benchmarks for capability and alignment.

Recommendations:

• Schedule structured presentations, inviting team members from various departments to participate.
• Prepare a list of targeted questions related to your specific project requirements to gauge each vendor’s understanding and response.
• Request case studies or examples of past successful migrations to better understand each partner's methodology and outcomes.

Outcome: Gain a comprehensive overview of each vendor's approach, strengths, and weaknesses, enabling informed decision-making.

Procedure:

• Identify several clients from each potential partner that have undertaken similar projects.
• Prepare a list of questions focused on various aspects, such as project timelines, budget management, communication, and post-implementation support.
• Engage in discussions with references to gather insights about their experience and satisfaction level with the vendor.

Outcome: Build confidence in the selected partners based on corroborated experiences, reducing the risk of partnership failure.

Steps to assess:

• Gather detailed cost estimations from potential partners, including licensing fees, setup costs, integration expenses, and ongoing maintenance and training.
• Encourage vendors to provide transparent pricing structures to facilitate comparison.
• Analyse long-term costs associated with system updates, potential scalability needs, and additional modules that may be required.

Outcome: Develop a TCO analysis for each partner that encapsulates all financial considerations, helping your organisation to make an informed decision.

Recommended approach:

• Collaborate with your finance team to conduct a thorough analysis of projected gains through efficiency improvements, increased productivity, and cost savings aligned with your strategic goals.
• Create scenarios that outline different expected outcomes based on various partner capabilities, ensuring a conservative yet realistic view.
• Incorporate qualitative benefits such as enhanced user experience and improved reporting capabilities into your analysis.

Outcome: A calculated ROI presentation serves as a powerful tool for decision-making, fostering stakeholder buy-in through demonstrable benefits.

Negotiation strategies:

• Involve a legal team early in the negotiation phase to help structure contracts that detail obligations, deliverables, and performance metrics.
• Define key performance indicators (KPIs) and service level agreements (SLAs) that will guide partner accountability throughout the project.
• Establish clear escalation procedures for issues that arise, ensuring that both parties are aligned on resolution timelines.

Outcome: A well-negotiated contract minimises risks and clearly sets expectations for both your organisation and your migration partner.

Roadmap development:

• Collaborate with partners to outline project governance, encompassing timeline, milestones, roles, and escalation paths for addressing risks.
• Use project management tools to visualise and track the implementation process.
• Ensure regular check-ins are scheduled to maintain momentum and address any mid-course adjustments proactively.

Outcome: A concrete implementation roadmap instills confidence among stakeholders, ensuring all parties are prepared and aligned throughout the migration.

Conclusion

Choosing the right SAP partner for your S/4HANA migration is a critical decision that has lasting implications for your organisation. Adopting a structured methodology ensures that the selection process is thorough and aligns with your strategic objectives, ultimately enhancing the likelihood of a successful migration.

This comprehensive approach not only evaluates potential partners against key criteria but also actively engages internal stakeholders, emphasises financial considerations, and establishes a clear roadmap for implementation. By investing time and diligence in partner selection, you can effectively navigate the complexities of SAP S/4HANA migration, transforming a challenging transition into a strategic opportunity for growth and innovation.

Partnering with BDO can significantly accelerate this process. With our extensive market knowledge and expertise in vendor selection, your organisation avoids common pitfalls during the selection process. 

BDO’s pragmatic approach ensures that we tailor our methodology to meet the unique needs of your organisation, fostering a more efficient and effective migration. By leveraging our experience, your organisation can navigate the path to S/4HANA with confidence, realising the full potential of your digital initiatives.