Challenge

Ascensus faced several operational and technical challenges with its legacy ERP systems. Some of these challenges included:

Data Silos: Financial, HR, and customer data were stored across multiple platforms, leading to data silos that made it difficult to access a single source of truth.

Limited Reporting Capabilities: The previous ERP system had limited real-time analytics, impeding timely decision-making, especially in areas requiring quick turnaround, such as financial services.

Complexity in Regulatory Compliance: Financial services companies must meet strict compliance and reporting standards. The outdated system required significant manual effort to meet these standards, increasing the risk of non-compliance and inefficiency.

Scalability Constraints: The legacy ERP system struggled to scale with the rapid growth Ascensus experienced, especially with the rise in asset management demands.

Solution: Migrating to SAP S/4HANA

Ascensus chose SAP S/4HANA as their ERP solution, opting for an "all-in" approach, encompassing data migration, reengineering of workflows, and employee training. SAP S/4HANA provided several benefits that were particularly valuable to Ascensus:

Real-Time Analytics: The in-memory processing power of SAP S/4HANA allowed Ascensus to process data in real time, enabling better insights into financial performance.

Unified Data Platform: SAP S/4HANA helped Ascensus break down data silos by integrating data from various departments into one source.

Advanced Financial Management Tools: With tools specifically designed for financial operations, SAP S/4HANA enhanced Ascensus ability to manage accounts payable, accounts receivable, and general ledger functions with greater precision.

Regulatory Compliance: SAP S/4HANA comes with built-in features to assist with regulatory compliance and reporting, reducing the manual effort previously required.

Scalability and Flexibility: The cloud-based nature of SAP S/4HANA offered the scalability Ascensus needed to manage its growing data demands without extensive infrastructure upgrades.

Data Migration Process

Data migration was one of the most complex parts of the transition due to the sensitive financial data and regulatory requirements Ascensus must adhere to Key aspects of the data migration included.

Data Cleansing and Preparation: Ascensus undertook a thorough data cleansing exercise to ensure that only accurate, relevant, and clean data would be migrated. This involved removing outdated records, deduplicating entries, and validating financial data to minimize errors.

Data Mapping: Ascensus mapped the data fields from the legacy system to SAP S/4HANA to ensure consistency. This involved working with SAP consultants to create a detailed mapping plan that aligned with SAP S/4HANA’s schema.

Use of SAP Data Migration Cockpit: SAP’s Data Migration Cockpit, a tool designed to facilitate data migration to SAP S/4HANA, was a crucial component. It allowed Ascensus to import large volumes of data through templates and validate data accuracy within the target system.

ETL (Extract, Transform, Load) Approach: Ascensus used an ETL approach, extracting data from legacy sources, transforming it to meet SAP S/4HANA’s structure, and loading it into the new system. This process included extensive validation checks at each stage to ensure that data integrity was maintained.

Testing and Validation: Ascensus carried out multiple rounds of data testing to verify the accuracy and integrity of the migrated data. This included pilot migrations, followed by testing on non-production environments, and finally user acceptance testing with end-users.

Use Cases for SAP S/4HANA Data Migration

The following use cases demonstrate how SAP S/4HANA added value in various areas of Ascensus’s business:

Improved Financial Reporting: SAP S/4HANA’s real-time data processing enabled Ascensus to streamline its financial reporting, producing faster, more accurate monthly and quarterly reports. The migration reduced reporting times by 40%, which allowed for faster insights and decision-making.

Enhanced Customer Data Management: SAP S/4HANA provided Ascensus with a unified view of customer data, allowing customer service representatives to quickly access information. This improved response times and reduced the number of inquiries requiring escalation.

Automated Compliance Reporting: SAP S/4HANA’s compliance tools simplified regulatory reporting. Ascensus could automate data preparation and report generation for compliance audits, reducing the time spent on manual report preparation by 30%.

Integrated Human Resources Management: SAP S/4HANA’s HR module enabled Ascensus to streamline HR processes, such as payroll, benefits administration, and employee data management, providing real-time insights into workforce metrics.

Scalable Asset Management: With SAP S/4HANA, Ascensus improved its asset management capabilities, particularly by integrating financial and operational data. This facilitated better asset utilization, improved maintenance planning, and reduced asset-related costs by approximately 15%.

Results

The SAP S/4HANA migration project delivered several transformative results for Ascensus:

Increased Efficiency: Ascensus saw a 35% reduction in operational bottlenecks due to improved data access and real-time analytics.

Faster Decision-Making: The enhanced analytics capabilities led to faster, data-driven decisions, which were particularly important in a competitive financial services environment.

Enhanced Compliance and Risk Management: Automated compliance tools reduced the risk of regulatory issues and streamlined the compliance process.

Cost Savings: By reducing the reliance on legacy systems and associated maintenance costs, Ascensus saved approximately 20% in IT overhead.

Scalability for Future Growth: The cloud-based SAP S/4HANA platform ensured that Ascensus could scale its operations in line with business growth without needing to worry about infrastructure constraints.

Key Success Factors

Several factors contributed to the success of the SAP S/4HANA migration at Ascensus:

Strong Change Management: Ascensus engaged stakeholders early on, providing comprehensive training and support, which minimized disruptions and increased user adoption.

Collaboration with SAP: Ascensus partnered closely with SAP consultants, leveraging their expertise to address complex challenges, especially in data migration and compliance.

Phased Migration Approach: By adopting a phased approach, Ascensus minimized risks and allowed for iterative testing and feedback, ensuring data accuracy and system functionality.

Focus on Data Quality: By prioritizing data cleansing and validation, Ascensus ensured the migrated data was accurate and reliable, which was crucial for regulatory reporting and customer interactions.