With an ERP tool as powerful as S/4 HANA, you want an EPM solution that’s equally as powerful. Learn how to modernize your EPM processes in an SAP environment.
Right now, you may be looking at migrating out of an older, legacy EPM solution or you're looking for an EPM that pairs well with S/4 HANA – so you can take full advantage of its innovative technology.
Modernizing anything for your business is an exciting opportunity for any business.
Consolidation on SAP S/4 HANA: The overlooked challenge we can’t ignore.
With an ERP tool as powerful as S/4 HANA, you want an EPM solution that’s equally as powerful. You’re looking for a unified system that’s capable of handling both the complexities of your business and can grow with your business.
IT is biased towards SAP tools
As companies are looking for ways to take their digital transformation to the next level within an S/4 HANA environment, the consensus among IT is often to stay with SAP for their EPM solution. This often seems like the natural decision and there’s two major reasons why:
- First, IT departments want a solution that’s compatible with their ERP. This helps avoid halts to operations and ensures your ERP is 100% compatible with the tool that handles the critical activities of the close and consolidation process.
- The second reason is brand loyalty. IT prefers a solution with an SAP logo.
However, the decision that looks good on paper won't necessarily be the best path for you or your business. So, let's dive into this main concern and see why this approach may not work.
Optimizing your SAP environment
While the allure of sticking with SAP is strong, there are a few factors you should consider when selecting a close and consolidation tool. Here are three variables to think about as you optimize your SAP environment:
1) A modular approach to finance tools
Think of an EPM app store. From a functional perspective, each application that SAP provides has only one purpose. For example, SAP Group Reporting is one piece of software, an app, that covers only consolidation. Again, SAP Analytics Cloud is a separate solution, is a business intelligence tool with lightweight budgeting and planning functionality. Each module requires its own implementation. This approach may be exactly what you’re looking for – or you want to look at a more holistic approach to close and consolation tools.
2) Maximizing TTV
Time To Value (TTV) is a key metric of success for your digital transformation.
SAP may recommend an ERP deployment before beginning implementation of cloud modules like Group Reporting. This means you’ll need to wait until S/4 HANA is up and running before you begin your migration to a tool like Group Reporting.
3) A developing solution
What if you’re already up and running on S/4 HANA?
According to SAP, you’re in the right position to take on a tool like Group Reporting. However, SAP’s cloud solutions are new. And new software can take time to develop. As a result, the modules may or may not be a perfect match for your organization's needs.