Five points to notes - project

The Gummy bear candy an established brand in the Singapore neighborhood that associates the candy with a quality product. Parents would consider buying for their children if they buy candy. HARIBO is a manufacturer with an international presence, HQ based in Germany with a range of candy products that among them, Gummy Bear is the iconic candy for Haribo.

A small sweets company as a family business, 1920, It started in the kitchen where the first candy was made till celebrated the 100th anniversary 2020 in the confectionery business. Now employed 7000 people in 100 countries who ensure that sufficient supply of product in exceptional quality.

read more @ https://searchsap.techtarget.com/feature/Haribo-cant-bear-SAP-S-4HANA-implementation

In the Year 2018, Haribo struggled with production problems in the gummy bear candy and introduce a new ERP system to address the capacities issue. And the system performed worst than expected. That cost Haribo spent an additional 500 million to fix the problem and getting the production back to normal. There is no information on the failures reported, and it is not common in all enterprise implementation. Project planning and project management are critical in a successful deployment of any size. Processes are inter-dependent clear communication and understand the scope and goal for each step and stage are the building block for a successful implementation.

Get real for the application implementation. There are two steps to consider before any project are planning and research.

The five points to focus on planning and research are as follow:

1. The implication on the operations and the disruption level to the processes.

Supply chain disruptions and lost revenues can cripple many businesses, research over the years has shown that roughly 50% of companies experience material operational disruptions after their digital transformations. This is a cost and risk that most companies do not plan for or adequately mitigate.

2. What is the critical point that leads to the success of the business process management.

The company's processes were broken after go-live suggests that Haribo either did not focus enough time and energy on their business process management or did not know when business process management should occur during their digital transformation. To avoid failure company need to map their future state business processes to ensure alignment with their operational model never discourse.

3. Business Model changes must align with the ERP transformation needs.

Just as business processes need to be clearly defined, an SAP or any other ERP transformation needs to align with the future-state business model. Business expanding their international manufacturing and supply chain operations – something their SAP transformation may have misaligned. Rather than paving the cowpaths of how business has done in the past, Haribo's digital transformation needs to enable the future-state business model.

4. Digital transformations must perform with a complete functional system test on the loading of current data and historical records.

It is difficult to understand how Haribo could have gone live with the software without discovering the supply chain problems in advance. Effective system testing should uncover potentially large-scale disruptions such as these well before go-live. If not, then something is wrong with the testing strategy. Be sure to understand the importance of ERP system testing before your digital transformation.

5. Management must initial ownership to lead and govern the transformation.

The Management needs to have strong executive leadership, engagement, and project governance to ensure the project doesn’t spiral out of control or negatively impact the operations. Ultimately only Haribo can ensure the success of the project – not the software or system integrator.

The conclusion is to learn the failure other have made and avoid a similar mistake that brings a pitfall to an implementation. Leverage best practices, lessons from others, and independent third-party digital transformation consultants to put your company in the best position to succeed.

Note: There are many solutions to a problem, but the best practice of an Enterprise software implementation methodology is the preferred approach that leads to many success stories in the business elite community.

https://clarkstonconsulting.com/insights/getting-the-value-out-of-sap-erp-then-and-now/