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To make the implementation of S/4HANA Cloud, Public Edition, more structured and manageable, SAP provides the Activate framework. This framework supports SAP customers not only in implementing S/4HANA in the public cloud and deploying other solutions like SuccessFactors, but it can also be used to migrate from non-SAP systems, on-premise, or private cloud systems to the public cloud. For more information on the advantages and disadvantages of SAP S/4HANA in the public cloud compared to the private cloud model, see my article SAP S/4HANA Cloud: Public Edition vs. Private Edition.
What Does the Activate Methodology Include?
The Activate methodology comprises various components, such as tools and best practices, that are used throughout each project phase to ensure a smooth and efficient project progression.
A key success factor here is the use of proven best practices, which reduce common errors and increase the likelihood of a successful implementation. The methodology’s efficiency stems from the clear, structured guidance provided by SAP Activate.
In this article, we’ll first introduce you to the three components and then the six phases of SAP Activate. We’ll explain the tasks involved in each phase and which SAP solutions can help you overcome challenges throughout the project.
The SAP Activate Components
SAP Best Practices
SAP provides proven, ready-to-run processes that have been shown to be efficient across various industries. This enhances operational efficiency while reducing costs associated with customizations. Particularly noteworthy is the comprehensive documentation of these processes.
Tools
Even with S/4HANA Cloud, Public Edition, which is based on the Fit-to-Standard approach, small configurations and extensions are possible. Tools are available for our consultants to make minimal adjustments to the system to meet specific requirements. The Business Technology Platform also plays a significant role in this regard.
Methodology
The SAP Activate Methodology is a simple, modular, and agile approach and the successor to the ASAP and SAP Launch methodologies. It standardly supports agile project management and is built on pre-configured business processes and SAP Best Practices documentation. Agile methodologies in software implementation are now indispensable due to constantly changing requirements and needs.
The SAP Activate Phases for Implementing SAP S/4HANA Cloud, Public Edition
Discover Phase
As the name suggests, the Discover Phase focuses on exploring the possibilities of S/4HANA in the public cloud. This phase examines which processes and functionalities are available and which of them your company needs.
Given the large number of processes, manually listing all relevant processes for your company could be tedious or even impossible. For this reason, SAP provides the Digital Discovery Assessment (DDA). The Digital Discovery Assessment is a mandatory component of SAP Activate, used to define your future functional scope. This digital, integrated tool allows you to determine, at a high level, which business processes are relevant for your operations based on scope items. Each scope item encompasses a variety of business processes that will be available in the system. After selecting the scope relevant to you, you will receive an offer with a cost estimate for your S/4HANA implementation.
Here’s an example:
Prepare Phase
Once the necessary scope items have been selected, the priority in the Prepare Phase is to provide all systems required for the project and grant access to these systems for the project managers.
S/4HANA System Landscape in the Public Cloud:
Firstly, SAP Cloud Identity should be mentioned. This includes two different services: the Identity Authentication Service (IAS) and the Identity Provisioning Service (IPS). These ensure secure access to SAP cloud applications, making this a central component and typically the first system provided at the beginning of the Prepare Phase. IAS is used at the start of the implementation to create user accounts and assign permissions, while IPS is simultaneously used to execute jobs that trigger the creation of user accounts and the assignment of permissions in the new systems.
SAP Cloud ALM runs on the Business Technology Platform (BTP) and offers applications that support project management, system operations, and service request management.
SAP Central Business Configuration, also running on the Business Technology Platform (BTP), is used to activate scope items across various local versions (countries/regions) within S/4HANA Cloud systems. Additionally, it is where the organizational structure is defined, unlike in the Private Cloud, where organizational definition is carried out directly in the system via customization (SPRO). CBC is therefore a central tool for configuration in Public Cloud implementations.
The SAP Business Technology Platform (BTP) is a platform that provides services for developing applications, integrations, extensions, and a wide range of other functionalities.
Once the systems outside of S/4HANA are ready for use, a starter system is provided. This pre-configured system contains all active SAP Best Practice business processes as well as relevant master data. It serves as the foundation for the Fit-to-Standard workshops.
The development system is the central location for configuring and customizing business processes. Here, the identified requirements from the workshops are implemented by activating and modifying the appropriate Best Practices. The development system serves as a platform for individual customization before these changes are transported to subsequent environments.
After completing the configurations, the changes are transferred to the test system, which serves as a quality assurance environment. In this phase, the customizations and business processes are thoroughly tested to ensure they work correctly and as intended. This testing process is crucial for identifying and resolving potential issues before go-live.
Once testing is successfully completed, the validated changes are transported to the production system. This system is the heart of daily business operations. All business-critical transactions and processes run here, so a smooth transition from previous environments is essential.
Explore Phase (Fit-to-Standard)
Since S/4HANA Cloud, Public Edition relies on standard processes, it’s essential to thoroughly analyze your existing workflows. The Explore Phase focuses on Fit-to-Standard workshops. In these workshops, SAP standard business processes are demonstrated, current processes are analyzed, and any deviations (gaps) are documented to adapt the standard processes to the company’s specific requirements in a later phase.
If you’ve chosen to use the Public Cloud, you should be prepared to work primarily with predefined standard processes. This also means moving away from extensive customizations and configurations. The Fit-to-Standard workshops serve to introduce the scope items selected in the Discover Phase. Should we identify that certain processes deviate from standard requirements, we document these deviations and collaborate with you to decide whether to adapt these functionalities to your company’s specific needs or if the standard process can be used in the future.
SAP recommends avoiding the complete redesign of business processes, as any change to a standard process entails higher maintenance costs for the company due to future release upgrades. This should only be done if absolutely necessary (e.g., a process critical to competitiveness). Minor modifications, however, can be made to adapt standard processes to your requirements.
Realize Phase
In the Realize Phase, the deviations and requirements documented in the Explore Phase are implemented. Necessary extensions are also defined and implemented in this phase. Data migration for relevant objects can begin, and system testing is conducted to ensure the functionality and quality of the system.
Deploy Phase
In the Deploy Phase, our team ensures that your company is ready to carry out the transition activities. Once the solution is operational, we offer post-go-live support (Hyper-Care) for a specific period. The project is then formally closed, and the solution moves into a separate RUN Phase.
Run Phase
S/4HANA Cloud, Public Edition is now live in your company, marking the beginning of a continuous learning process. This includes validating newly released features and evaluating business-relevant innovations compared to the current solution. We also recommend keeping an eye on the innovations included in new releases. Recently, SAP has focused heavily on applications powered by AI, enabling companies to act faster, make better decisions, and automate business processes.
Conclusion
In summary, SAP Activate enables consistent project execution by providing a common framework. The methodology is suitable for all project sizes, from small, rapid cloud implementations to comprehensive deployments. It also accelerates project execution through the use of SAP Best Practices, Fit-to-Standard analyses, agile project management, and cloud technology.
Additionally, using standard business processes offers significant advantages, as they are based on best practices from various industries, allowing for a fast and efficient implementation. In contrast, maintaining customized systems with specific modifications requires more effort, particularly with updates and new releases. While implementing highly customized systems often takes 18 to 24 months, solutions with standard processes eliminate time spent on adjustments, development, testing, and additional training. Thus, a lightly customized standard S/4HANA in the Public Cloud can ideally be ready within 6 to 12 months.
Are you ready for the journey into the Public Cloud with the Activate Methodology? With PIKON, you have a strong and reliable SAP partner by your side. Our team, with years of experience, will guide you from establishing a cloud mindset to a successful implementation.
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