CLIENT

A well-established company specializing in advanced information and communications technology solutions

GOAL

 After the Croatian government passed the decision about the transition to the euro, the client contacted IBA Group with the request to switch their existing S/4HANA-based ERP system from HRK to EUR in accordance with the legally determined timeframe. The scope of work included key modules, such as Finance (FI), Controlling (CO), Material Management (MM), and Warehouse Management (WM).

CHALLENGES

The client chose the IBA team for the project because IBA Group had vast experience in transferring ERP systems from one currency to another. However, the deadline was tight with no possibility of extension—something that only trusted providers and SAP partners are capable of doing. Another significant challenge of the project was keeping the existing functionality and data.

SOLUTION

Before starting the project, IBA Group conducted a thorough due diligence with regard to the regulatory landscape in order to ensure timely delivery and compliance. After that, IBA Group ran a high-quality pre-sale and examined the customer’s existing IT infrastructure to provide accurate time, cost, and upload estimates, including the participation of the customer’s team so that no operational gap could occur.

RESULTS

Once the projects were implemented, both customers obtained stable ERP systems converted in the euro, preserving all the data, report forms, and productivity, as well as containing additional customizations.

LESSONS LEARNED

The cross-currency migration of ERP systems requires extreme caution in the legal area to avoid financial accounting issues in the future. Whether the SAP version you are running is ECC or SAP S/4HANA, the transition of an ERP system to another currency can be performed quickly and cause no harm to client’s internal business cycles. For the implementation of such a project, one needs to have adequate preparatory measures in place or select a contractor that has a proven record of accomplishment. Another viable recommendation is to combine transition to the euro with conversion to SAP S/4HANA.

Overview

Replace paper workflow, including signing, distribution, and delivery of documents, with electronic workflow. Embed a third party electronic document interchange (EDI) system into the current SAP ERP solution. Configure the SAP component of the EDI system to provide seamless data exchange with the SAP ERP.

Tasks / Challenges

• Reduce document management costs
• Provide remote business document exchange
• Accelerate billing

Solution

• Inside the existing SAP ERP, implement an EDI tool with seamless data exchange for structured/semi-structured documents
• Design & implement a user-friendly (UI) interface for the universal monitor
• Provide remote or web access to relevant applications

Results

• Acceleration of document processing with increased labor productivity and overall work efficiency
• Elimination of the manual document management infrastructure, resulting in reduced operational costs
• Convenient UI & remote access for all stakeholders
• Reduced payment cycle: from days to minutes
• Transparency, visibility, and accessibility for the entire company’s business

Author: Natalia Lysenko

A well-established company specializing in advanced information and communications technology solutions approached IBA Group with a kuna-to-euro migration project. After the Croatian government passed the decision about the transition to the euro, the company contacted IBA Group with the request to switch their existing S/4HANA-based ERP system from HRK to EUR in accordance with the legally determined timeframe. The scope of work included key modules, such as Finance (FI), Controlling (CO), Material Management (MM), and Warehouse Management (WM).

Challenges

The client chose the IBA team for the project because we had vast experience in transferring ERP systems from one currency to another. However, the deadline was tight with no possibility of extension—something that only trusted providers and SAP partners are capable of doing. Another significant challenge of the project was keeping the existing functionality and data.

Solution

Before starting the project, the IBA team conducted a thorough due diligence with regard to the regulatory landscape in order to ensure timely delivery and compliance. After that, we ran a high-quality pre-sale and examined the customer’s existing IT infrastructure to provide accurate time, cost, and upload estimates, including the participation of the customer’s team so that no operational gap could occur.

Results

Once the project was implemented, the customer obtained stable ERP systems converted in the euro, preserving all the data, report forms, and productivity, as well as containing additional customizations.

Lessons Learned and Best Practices

The cross-currency migration of ERP systems requires extreme caution in the legal area to avoid financial accounting issues in the future. Whether the SAP version you are running is ECC or SAP S/4HANA, the transition of an ERP system to another currency can be performed quickly and cause no harm to your internal business cycles. For the implementation of such a project, one needs to have adequate preparatory measures in place or select a contractor that has a proven record of accomplishment. Another viable recommendation is to combine transition to the euro with conversion to SAP S/4HANA.

Author: Andrew Dvirnyk

Recently, we sat down with Inga Prangishvili, Deputy Director of the Information Technology (WBS) branch of the JSC Georgian Railway, to talk about a challenging innovative SAP/S4 HANA implementation project. JSC Georgian Railway is a major transportation company, and the largest employer in its country. Companies like this have unique demands for SAP/S4 HANA, and a host of challenges in the best of circumstances.

In our candid, three-part conversation, Inga walks us through some of those challenges. In this installment, Inga shares how the GR engaged IBA Group after the initial project had stalled in the Deploy phase failing to transition from legacy systems to S/4HANA.

She offers helpful insight on when to involve project managers and project architects in the supplier selection process and how to create a matrix to select the right supplier for a project when the stakes are high.

Transitioning From Legacy Systems to SAP S/4 HANA Problems

“In the summer of 2017, we faced difficulties completing the Deploy phase and transitioning to S/4 HANA and had to choose a supplier to help us restart the project. We had full support and executive sponsorship for this,” Inga explains. As a result, the GR needed to choose a new supplier when they were crunched for time, and quick turnaround was imperative.

After committing time, money, and trust to the initial SAP S/4HANA project, it was a “difficult decision” to take a step back and restart. However, as Inga explains, the GR needed to find experts who could deliver on time and meet the project’s objectives.

So, the company was strategic about the selection process. They developed a specific set of requirements and a clear idea of needs. Then they evaluated meticulously.

“When Georgian Railway faced the necessity to find a new SAP deployment supplier mid-project, there were concerns that the first of the year deadlines would not be met, says Inga, “but thanks to IBA Group, we were able to meet our deadline and get superior quality.”

Selection Process

The GR looked at five SAP S/4HANA implementation providers. Inga notes that it is important to involve the project manager and the project architect at the selection phase. These are the individuals who understand the scope of the project. They need to be able to have a good workflow with the supplier and to feel confident that project goals are met in a timely manner.

Throughout the selection process, Inga says, the GR was looking for “a strong, well established company in the market who [also] had strong subject matter expertise.” They narrowed down the search to five SAP S/4HANA suppliers. Because the company had no time for error, they not only held personal meetings with each of the suppliers; they “went onsite to look for a good team that knows how to work together.”

SAP S/4HANA Supplier Selection Matrix

Inga and her team looked at what projects the prospective suppliers had completed previously. They looked at the results of those projects. And they reviewed how the suppliers were perceived by customers. After meeting with suppliers who had successful large-scale projects and good customer feedback, the company created a matrix and weighted the answers.

In addition to evaluating projects, they used the matrix to look at the people who needed to be involved in the project. The matrix was built on the initial project’s experience. They evaluated partners, project managers, architects, analysts, organizational leaders, and their respective areas and levels of expertise.

We analyzed the data collected in the partner selection matrix,” says Inga, “and it showed that IBA came out first in virtually every selection criterion.”

Choosing the Right SAP S/4HANA Supplier

Inga admits that, even after the rigorous selection process, she and her team still could not be sure if they made the right choice. After the issues they encountered in the original project, Inga and her team “couldn’t be sure IBA Group wouldn’t fail either.”

But after taking a leap of faith, it was time to get started. The company engaged IBA Group in November 2017, to start on the project with a go-live date of January 1, 2018.

What Happens When the Unexpected Arises and You’re Running Out of Time?

In the second part of our conversation, Inga and IBA Group’s Global Delivery Director for SAP Services, Igor Bordak, talk about what happened with the implementation project.

They speak frankly about some of the surprises they encountered. They talk about the flexibility required by a supplier who inherits a project mid-way through the process. And they explain whether it is possible to simplify implementation solutions for a company – and a project – of this magnitude.

Stay tuned for Part 2 of our conversation!

Author: Mark Hillary

I visited IBA Group just a few months ago and one of the most interesting interactions I had during my visit was with Dmitry Konevtsev, the SAP Department Director. In my own experience, attitudes to Enterprise Resource Planning (ERP) systems such as SAP have changed dramatically in the past few years. Systems that were once essential and heavily invested in have proven to be failures for the business. The reputation of ERP has been in decline, but what are real companies doing with ERP today?

I visited IBA Group just a few months ago and one of the most interesting interactions I had during my visit was with Dmitry Konevtsev, the SAP Department Director. In my own experience, attitudes to Enterprise Resource Planning (ERP) systems such as SAP have changed dramatically in the past few years. Systems that were once essential and heavily invested in have proven to be failures for the business. The reputation of ERP has been in decline, but what are real companies doing with ERP today?

I asked Dmitry for his views on how businesses are approaching ERP today. He said: “The implementation of ERP has been a matter of many discussions since the early days. People often feel uncomfortable about any changes to their business and ERP can often overhaul the operation of the entire enterprise. Therefore, employees are opposed to ERP, but the key is to approach it as a business task, not an IT implementation.”

Dmitry explained a recent project that IBA has been involved in implementing. He said: “We initiated the introduction of the newest SAP Profitability and Performance Management 3.0 technology at a major mobile operator. The customer aimed to develop a self-service analytics system that provides a comprehensive insight into the overall company performance. The project is one of the first SAP Performance Management for Financial Services (FS-PER) implementations in the world. The analytical solution is complicated, as it is designed to integrate and harmonize numerous heterogeneous data sources and involves millions of measurement units.”

He added: “The solution integrates numerous heterogeneous data from various sources (legacy systems) and is of high complexity, involving 40 million measurement units that result in billions of allocated data records. Our solution was selected as a winner of the European IT & Software Excellence Awards in the category Big Data, IoT or Analytics Solution of the Year in 2019.”

Dmitry explained how IBA has experience across many different industries, including oil and gas, railways, and telecommunications. ERP is an important tool across all these industries and although the media image of ERP installations has been largely negative in recent years, the reality is that many companies still require ERP to manage complex logistics and supply chains.

The idea of a digital twin is a concept that many industries are growing, especially as Internet of Things (IoT) sensors become more common. The digital twin has been common in the aerospace industry for many years – an engine manufacturer such as Rolls Royce will maintain a digital version of every engine they deliver and it is updated in real-time from the real engine using a stream of data from sensors, capturing a complete digital twin of the real engine.

Tools such as SAP can deliver this concept for other solutions. Dmitry showed me an example of a building management system. Now I am not an expert on managing buildings, but I can imagine the complexity of managing every single power socket, lightbulb, fire extinguisher, window, and door in a large building. It used to require pages of maps and floor layouts in addition to constant inspections. Now the entire building can be coded into a graphical interface so the user can see everything in 3D on screen and sensors all over the building feed data into the SAP model. A fire extinguisher can send an alert if it has been used and is now empty. A power socket causing a circuit to short out can be identified the moment there is a problem. The model I saw looked stunning because the graphics resembled a video game – maintaining a building like this would clearly be far more efficient than the old system of only fixing problems after they happen. With real-time monitoring and sensors, some problems can be predicted before they happen – and then prevented.

Dmitry explained: “Digital twins are a development of the IoT concept. Earlier, IoT was viewed as a technology of passive sensors that receive and send data. Today, it is a concept of smart sensors that analyze data and make decisions locally based on the data they process. In 2018, Gartner suggested that this is a technology stuck in the hype cycle, but we can see real clients asking for projects like this using SAP Leonardo.”

It is clear that ERP has evolved. The integration of IoT is allowing ERP to not only represent process flows, but also to predict and make changes. We are now in an age of intelligent ERP and the failed installations of the past can now stay in the past. Solutions like digital twins using SAP are demonstrating that there is a bright new future for companies ready to explore how ERP can help them to redefine and manage their business processes.

For more information on the SAP team at IBA Group click here

Background

The customer’s SAP ERP ECC system had nine company codes with the following modules: Finance (FI), Controlling (CO), Materials Management (MM), Sales and Distribution (SD), Human Resources (HR), and Project System (PS).

To remain an innovative company and expand its capabilities, the customer decided to transition to a more advanced and modern SAP S/4HANA platform.

Business Challenge

Our task is to migrate the corporate SAP ERP ECC system to the new SAP S/4HANA platform using the Brownfield approach and SAP Activate methodology enhanced with our unique S/4HANA experience. Another task was to make maximum use of the standard capabilities of the new system to improve the efficiency of business processes.

Solution

The project was implemented in two stages:

1. test conversion
2. production system conversion

We completed all the necessary preparation procedures, mitigated project risks, improved system downtime, and prepared the customer’s SAP ERP ECC system for the transition.

Afterwards, a production system conversion was carried out, during which our team completed the following tasks:

• We conducted all required pre-project activities for the conversion: corrected conflicting business functions and add-ons, configured CVI, and converted Customer and Vendor data to Business Partners and more;
• We reviewed and adjusted custom code on the SAP ECC and SAP S/4HANA end to comply with SAP S/4HANA architecture;
• We adjusted the authorization concept;
• We completed the necessary settings to address functional gaps: internal statistical reporting, cash management, and others;
• We provided training for customer employees, and prepared user manuals and operational documentation;
• We converted transactional and master data under the SAP S/4HANA data model;
• We conducted integration testing together with the customer.

The project team consisted of 9 professionals with SAP S/4HANA implementation experience.

Result

Production conversion was completed in the shortest possible time: downtime for business users was minimized to less than 24 hours. The first operating periods (closing the first month, quarter, and year) were successfully closed without system errors and raised tickets from the customer.

The transition to SAP S/4HANA was completed successfully. Now the customer has access to all innovative functions.

Acknowledging our successful cooperation and trust in the quality of our services, the customer entitled us to another project – a system currency transition to the euro.

Background

Every year several countries are making e-Invoice reporting mandatory for companies.
To meet these legal requirements from government IBA Group has developed solution for e-invoicing, which will cover two areas:

• Data collection and preparation on ERP system.
• B2G integration with tax agencies.

Challenges

For our cross-region customers, navigating the complexities of e-Invoicing regulations across different countries is a formidable task. The emergence of e-invoicing as a worldwide trend underscores the need for businesses to adapt swiftly to evolving regulatory landscapes. As soon as a new country mandates e-Invoicing reporting, our customers are compelled to ensure compliance, regardless of their geographic spread.

The challenges faced by our customers:

• Regulatory Compliance Burden. Each country has its own set of e-invoicing regulations, which are subject to frequent updates and changes. Ensuring compliance with these diverse and dynamic mandates demands significant resources and expertise.
• Complexity of Cross-Border Transactions. Conducting business across borders introduces complexities in invoice processing, including currency conversion, tax implications, and legal requirements. Failure to address these complexities accurately can lead to compliance issues and financial penalties.
• Integration with Existing Systems. Many of our customers operate with diverse IT infrastructures across their global operations. Integrating e-Invoicing solutions seamlessly with existing ERP systems and processes poses integration challenges, potentially disrupting business operations.
• Data Security and Privacy Concerns. Transmitting sensitive financial data across borders raises concerns about data security and compliance with privacy regulations such as GDPR. Ensuring the confidentiality and integrity of e-invoices throughout the transmission process is paramount.

Solution

At IBA Group, we have developed and implemented a comprehensive e-Invoicing solution that addresses these challenges head-on, leveraging our expertise and experience to deliver results. Let’s delve into how our solution tackles the complexities at every stage:

1. ERP Integration with SAP’s eDoc Cockpit Functionality.
   The foundation of our solution lies in leveraging SAP’s standard eDoc cockpit functionality within your SAP system. This robust platform provides essential features for invoice submission, status tracking, and monitoring, ensuring that your e-Invoicing processes are seamlessly integrated into your existing workflows.
2. B2G Integration with SAP Standard Solutions.
   For business-to-government (B2G) integration, our solution offers flexibility and scalability through integration with various SAP middleware solutions. Whether you opt for SAP Process Orchestration (SAP PO) or SAP Cloud Integration, both options provide standardized content and customizable developments tailored to your specific requirements.
3. Comprehensive Support and Ongoing Maintenance.
   Our commitment to your success does not end with implementation. We provide comprehensive support and ongoing maintenance to ensure that your e-Invoicing solution remains efficient, compliant, and aligned with your evolving business needs.

Results

IBA Group provided a comprehensive solution tailored to customer’s specific needs, ensuring full compliance with legal requirements but also optimize efficiency and transparency throughout the e-Invoicing lifecycle.

Compliance Assurance

Our solution ensures that you remain fully compliant with the latest e-Invoicing regulations in every jurisdiction where you operate.

Seamless Integration

Our solution is based on standard SAP solution for e-invoicing seamlessly integrates with your systems, leveraging your investment in technology while minimizing disruption to your operations. This approach ensures a smooth transition and maximizes efficiency.

Clear Visibility and Transparency

Gain clear visibility into the status of your e-Invoices and documents at every stage of the process. Our solution provides real-time updates and reporting, giving you insight into document status, approvals, and compliance metrics.

Background

An international telecommunication company serving over 50 million customers successfully implemented the standard functionality for formal document exchange with SAP ERP. However, the company identified the need for a SAP solution that could facilitate the exchange of informal documents with electronic digital signatures. To address the challenge, the company initiated a bidding for this project and selected IBA Group as the winner.

Challenges

The challenges faced by the company were twofold. First, there was no standard SAP solution for interchange of non-formalized documents with a digital signature for the country. Second, the company grappled with a large volume of paper document exchange, both internally and with external partners.

Solution Highlights

IBA Group implemented a comprehensive SAP custom solution, expanding the existing solution for formal EDI (Electronic Document Interchange) to include informal EDI built on the SAP platform. This empowered the customer to create non-formalized electronic documents with digital signatures, generate correspondence requests for accounting documents, and track document statuses in real-time. IBA Group also developed the approval workflow that caters to both formalized and non-formalized documents and comes with robust storage solutions.

Key Results

The company can now transmit non-formalized electronic documents, leading to a significant reduction in paper-based workflows. Additionally, the time required for document exchange with partners notably reduced.

The user experience within the SAP’s EDI system substantially improved through the introduction of a monitoring solution for formal and informal documents and the incorporation of customer-specific workflows.

The users gained the capability to track the approval of electronic documents in this monitoring system.

Background

IBA Group introduced standard SAP ERP functionality to a railway company with over 100 branches. However, this functionality did not incorporate the specific features essential for the railway company’s revenue planning and management, including cargo transportation and passenger services. Therefore, the company required a customized SAP solution.

Challenges

Customer management had to grapple with delayed and unreliable information on the profitability of different cargo types, encompassing both revenue and costs. The absence of ready-made SAP solutions tailored for railway companies posed a significant challenge. An overload of over 150 legacy systems designed for railway-specific functions hampered planning and management of financial and economic activities.

Solution Highlights

Based on SAP products, IBA Group developed a custom solution for revenue accounting. This solution provides real-time visibility into transactions with customers, offering a detailed breakdown of transportation service costs for each customer and shipment. It also effectively tracks revenues from various transportation types across different analytical dimensions.

Key Results

The solution implemented by IBA Group allowed for increased efficiency of revenue management, optimized management of accounts receivable and accounts payable, and improved financial flows. Replacement of legacy systems with the new solution contributed to significant cost reductions in operations related to core activities, particularly in cargo transportation services. Company management benefits from regular and timely reporting of revenue and costs, resulting in enhanced decision-making capabilities.

Background

A gas transportation company with over 2,500 SAP users successfully implemented an SAP ERP on HANA. However, the standard contract management processes did not meet the client’s expectations. After a comprehensive analysis of various contract management options, the client made a strategic decision to enhance the functionality of the SAP ERP with a tailored contract management solution by IBA Group.

Challenges

The existing SAP contract management was error-prone and time-consuming. In addition, the customer had numerous long-term contracts, each with more than 200 specific attributes. Furthermore, a crucial business requirement was to enable business users to view scanned copies of documents directly within the SAP ERP.

Solution Highlights

IBA Group engineered a new transaction designed for centralized contract processing based on SAP RCM. This SAP solution offered a range of beneficial features, including flexible customization of fields depending on the contract type and status, seamless integration with SAP documents that allowed for viewing all SAP objects related to the contract, and integration with OpenText ECM.

Key Results

The new SAP custom solution brought about transformative results. It established a single entry point for contract processing complemented with a user-friendly interface that significantly enhanced user satisfaction. Accountants gained the capability to create payment schedules and centrally control payments within a single transaction. Furthermore, the load on the database server noticeably reduced and users can conduct search based on document content, streamlining the process and increasing the overall efficiency.