SAP S/4HANA Configuration, Integration, and Customization
Beginning to think through and plan for the complexities involved in configuration, integration, and customization in a new SAP S/4HANA or upgrade project may seem daunting. But with the right people involved, with a robust approach and an appropriate timetable to this portion of the planning—plus, tapping into the abundant Pathfinder resources that follow this introduction—you’ll be informed and equipped to succeed.
Let’s start with some basic definitions of these terms, as they’re important processes related to SAP S/4HANA adoption.
- Configuration involves selecting complex application rules for objects and elements to align with your business requirements and current/future technology systems.
- Integration involves connecting other systems—SAP and third-party systems—via communications and interfaces through the enterprise to the SAP system.
- Customization involves adapting the standard code base to changes in the standard functionality.
Training and Experience
On the people front, this work involves trained, experienced business and technology personnel from internal teams or external partners. Technology leaders experienced in SAP S/4HANA suggest that generally, processes can be waterfall or agile in methodology, with full end-to-end testing to conclude the changes.
Configuration, integration, and customization conversations, planning, alignment, and documentation are essential early on in an SAP S/4HANA journey because of the many choices and changes that are typically involved. In addition to the project plan, configuration, integration, and customization selections are recorded in an organizational playbook, a living document updated over the course of building a core SAP S/4HANA system. Not only does the playbook serve as an essential resource for a current project, but also, it provides a trusted record when organizations pursue system upgrades and/or new business definitions of requirements.
Where to start?
Dave Elmer, CIO of Volumetric Building Companies, recalled his organization’s SAP S/4HANA experience to recommend that “SAP customers focus on standard configuration first and foremost[,] and use the configuration aspect for each module as a starting point of the design.” Following that, Elmer suggested that the team align the current configuration with planning integrations and customizations to take advantage of the entire enterprise system.
With the challenges that configuration, integration, and customization can present, Elmer pointed out that SAP S/4HANA is a “full suite of powerful and complex software tools for any organization.”
“S/4 can be designed to run a Fortune 100 company. … You can apply those same principals to [a] midmarket company ready to grow and looking for a suite they can grow with over time,” he said.
All About the People
Yet, even as strong, powerful, and complete as SAP S/4HANA is, Elmer said that people make the difference in the journey. “Given the scope S/4 has to offer the enterprise, having the correct technical SAP personnel—whether they are internal or external to the organization—is key to a companywide implantation,” Elmer advised.
Also, on the people-stakeholder front, “align the testing and training together to give a full end-to-end view for all involved to reduce risks in both understanding and testing,” he added.