Successful SAP S/4HANA transformation at Salzgitter AG
Following several years of intensive project work, a major milestone in Salzgitter AG’s SAP S/4HANA transformation programme was reached in early November 2023. Through successful collaboration between the Group’s internal IT service provider, Salzgitter Digital Solutions GmbH, and consenso Consulting GmbH as its strategic implementation partner, Salzgitter Flachstahl GmbH, Peiner Träger GmbH, Ilsenburger Grobblech GmbH and Mannesmann Grossrohr GmbH were successfully migrated to the SAP S/4HANA-based merchandise management system within a 100-hour cutover window.
Four steel companies, one central SAP S/4HANA system landscape
As part of a selective transformation, Salzgitter AG consolidated several ERP systems. The successful migration was completed within a 100-hour cutover window.
Selective transformation and consolidation of ERP systems
A hybrid approach based on selective transformation was adopted and implemented to migrate the steel companies from SAP R/3 to SAP S/4HANA. This enabled the consolidation of several ERP systems into a new, central SAP S/4HANA system for the Steel business unit. At the same time, numerous connected systems communicating with the SAP system via interfaces were integrated into the new system landscape using modern interface technologies.
Process harmonisation and master data integration with SAP MDG
From a process perspective, each company retains its own individual system workflows within its existing business process model, which varies considerably between the companies. However, processes were harmonised wherever significant added value could be achieved. For example, processes in finance and procurement were harmonised to optimise workflows and leverage synergies across the Group. In addition, master data was mapped and centralised using the new SAP Business Partner object and integrated into the new Steel system via SAP Master Data Governance (MDG).
Selective data migration and cleansing of existing data
With the support of partner cbs Corporate Business Solutions Unternehmensberatung GmbH, an effective data migration process was defined and implemented. The selective migration to a new SAP S/4HANA system made it possible to cleanse outdated or inactive data and organisational units or elements, or exclude them from the migration altogether. At the same time, the scope of the data to be migrated was carefully defined, and the relevant data was transferred into the new data structures.
Modern IT architecture as a foundation for further innovation
In addition, the new SAP S/4HANA software offers enhanced features within a modern, streamlined IT architecture. This provides the foundation for implementing further technological innovations as the project progresses, helping to optimise existing processes.
We would like to thank everyone involved in the project, particularly Salzgitter Digital Solutions GmbH, for the excellent collaboration and strong partnership that made this project a success. We look forward to tackling further exciting challenges together!
About Salzgitter AG
Salzgitter AG is one of Germany’s leading steel and technology groups. As a pioneer in the circular economy, the Salzgitter Group focuses on the sustainable innovation and transformation of its products and processes across its Steel Production, Steel Processing, Trading and Technology business units.
With its “Salzgitter AG 2030” strategy and the guiding principle “Pioneering for Circular Solutions”, Salzgitter AG is setting new standards in the industry. These ambitions are being realised through major initiatives and programmes such as SALCOS® – Salzgitter Low CO2 Steelmaking. Through partnerships and networks, the Group actively drives the transition towards a circular economy.
With around 25,000 employees worldwide across 160 domestic and international subsidiaries and affiliated companies, the Salzgitter Group is pursuing its global ambitions for growth, profitability and industry leadership. In the 2023 financial year, the Group generated approximately €11 billion in external sales, with a crude steel production capacity of 7 million tonnes.
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Published on 10 June 2024 | Photos: Salzgitter AG, Salzgitter