Sustainable Success Stories: Digital Practice Webinar Series - Large-scale ERP Implementation
The Amrop Digital Practice latest quarterly online event explored the theme “Large-scale ERP implementation: Cloud plus internal infrastructure and risk-mitigation”.
We spoke with Pawel Biel, the CIO and VP of the Management Board at Amica Group, a global manufacturer of household appliances (MDA/SDA) headquartered in western-central Poland with 9 subsidiaries across Europe.
The session was facilitated by Job Voorhoeve, leader of Amrop's Global Digital Practice.
With 20+ years of experience in IT transformation projects in multinational, complex environments in various industries, Pawel shared his key learnings on Digital Transformations, specifically in the context of implementing SAP, Salesforce and Microsoft - in on-premises and cloud delivery models. He talked about his experience at Amica Group in defining a clear strategy when it comes to using ERP software, choosing the subscription model and deciding what should go into Cloud and what should be kept on the internal infrastructure, and how to avoid overpaying and vendor lock-in when doing a large-scale ERP implementation.
A dialogue was created around the key learnings he acquired in the process of signing an agreement with SAP for rights, converting to a S/4HANA license, and balancing SAP and other solutions to mitigate the risks and lower the costs. He debunked myths and shared tips and tricks with the attendees that he and his team had arrived at via trial and error while preparing for multi-million€ software implementations in order to remain as independent and cost-efficient as possible.
Pavel explained the shift from traditional on-premise solutions to SAP S/4HANA, highlighting the benefits and challenges of the new system and discussed the market's response to SAP S/4HANA, noting that only a few percent of clients have moved to the new system. He then shared his observations on the cost and complexity of moving to SAP S/4HANA, emphasizing the high costs and the need for careful planning and mentioned the increasing popularity of cloud solutions and the impact of this trend on SAP's revenue streams.
Key takeaways from Pavel’s insights:
Contract Negotiations Matter: Companies should meticulously evaluate long-term Total Cost of Ownership (TCO) and contract terms for cloud-based ERP solutions, paying attention to potential price increases and exit clauses. It’s crucial to involve legal and financial experts to secure favorable terms.
Embrace a Best-of-Breed Approach: Rather than tying your enterprise systems to a single vendor, consider sourcing IT components from multiple specialized providers. This strategy allows for better customization to meet specific business needs.
Seek Independent Consulting Expertise: The role of consulting firms can be instrumental in the preparation phase of SAP implementation. It is essential to choose consultants wisely, ensuring they provide independent advice without conflicting sales interests.
As we continue to navigate the shifting landscape of enterprise solutions, it’s vital to stay informed and strategically balanced in our approach. Embracing these insights can spell success in a competitive digital marketplace.
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For more information, contact the Amrop Digital Practice member in your country!