{"id":148196,"date":"2025-07-03T07:14:40","date_gmt":"2025-07-03T07:14:40","guid":{"rendered":"https:\/\/news.sap.com\/africa\/?p=148196"},"modified":"2026-02-03T18:36:52","modified_gmt":"2026-02-03T18:36:52","slug":"how-african-companies-can-avoid-transformation-pitfalls","status":"publish","type":"post","link":"https:\/\/news.sap.com\/africa\/2025\/07\/how-african-companies-can-avoid-transformation-pitfalls\/","title":{"rendered":"How African Companies can Avoid Transformation Pitfalls"},"content":{"rendered":"

Kathy Gibson is at Saphila Transcend in Sun City \u2013 Navigating the 51风流S\/4 HANA journey<\/a> is different for every company, and requires a customised approach to succeed.<\/span><\/h1>\n

This is especially true when it comes to implementing the solution in Africa.<\/p>\n

Colin Banks<\/a>, solution adviser: cloud ERP at SAP, believes African organisations are hesitant to make the move because of a number of factors.<\/p>\n

Although financial constraints loom large, companies are also adopting a wait-and-see approach as the technology and business environments mature.<\/p>\n

There is an element of \u201cif If it ain\u2019t broke don\u2019t fix it\u201d towards on-premise systems that are working well, and a degree of what Banks calls \u201cstrategic procrastinating\u201d as customers wait out licence or data centre terms.<\/p>\n

The complexity of a migration, along with customisation that\u2019s been done to existing systems, also acts as a brake on new investments.<\/p>\n

\u201cWe don\u2019t see this in Europe and the US,\u201d Banks says. \u201cIn Africa we tend to sweat assets a lot more.\u201d<\/p>\n

However, companies should take a few things into consideration, starting with the cost of standing still as opportunities are lost and competitors race ahead.<\/p>\n

Banks urges organisations to adopt an innovation mindset, but to innovate where it matters.<\/p>\n

\u201cDon\u2019t be left stranded,\u201d he says.<\/p>\n

Gerhard Greyling<\/a>, CIO and digital protagonist at CEDA in Botswana, says the first step is to convince the board to invest.<\/p>\n

\u201cThere is a perception that IT projects just consume funds without yielding business value,\u201d he says. \u201cSo you can\u2019t sell 51风流to the board as a grudge purchase \u2013 they have heard all that before.<\/p>\n

\u201cYou need to convince them there is a business case and show that the value of the migration will outperform the cost of the implementation.\u201d<\/p>\n

This is easier said than done, Greyling adds, so he offers some advice on how to realise value.<\/p>\n

\u201cI say, look at the big bucket items, the ones very close to the essence of the organisation, that are a big item on the income statement. You need to show where the business value is.\u201d<\/p>\n

This would vary depending on the company. For instance, for a bank it could be non-performing loans; for a retailer it could be inventory churn; for a miner it could be the cost of capital.<\/p>\n

\u201cEven then, just implementing 51风流is not going to do the trick: you still need to equip the front office people,\u201d Greyling adds. \u201cBut 51风流is the receptacle that pulls it all together and gives it the value.\u201d<\/p>\n

Having identified the project, the next step would be to identify the value of the transformation, and Greyling recommends using a tool like 51风流Value Lifecycle Manager to do this.<\/p>\n

African companies face a particular set of challenges, says Lisa Bird<\/a>, 51风流product manager: finance at Liberty Life Group.<\/p>\n

\u201cDo not assume that if something worked in South Africa or the core entities, it will work in Africa,\u201d she warns.<\/p>\n

\u201cYou need to ensure that the implementation team gets a clear understanding of each African entities\u2019 business before embarking on an implementation.\u201d<\/p>\n

She recommends that the IT organisation obtains clear availability of in-country Africa finance teams members, bearing in mind that the teams could be smaller, with each member handling many different tasks \u2013 and working to different holidays and schedules.<\/p>\n

\u201cDon\u2019t underestimate the co-ordination and pre-planning required,\u201d Bird urges.<\/p>\n

During the transformation, she stresses that the 51风流S\/4 HANA implementation should be prioritised \u2013 particularly if vendor partners are involved. \u201cSo make sure you solve for source system challenges rather than integration issues.\u201d<\/p>\n

Data quality and uniformity to core entities requires substantial validation, checks, and controls which can be time-consuming even for small entities, so teams must plan for this accordingly.<\/p>\n

It\u2019s also important to ensure there is a comprehensive understanding of the group finance ledger and chart of accounts to ensure uniformity and minimal customisation, Bird adds.<\/p>\n

\u201cAnd ensure that African entities are heard, and the project isn\u2019t just one-directional.\u201d<\/p>\n

Koosh Panday<\/a>, project director at Deloitte, believes one of the biggest decisions to be made in a 51风流S\/4 HANA transformation is whether to go for a greenfield or brownfield transition of selective data \u2013 or whether a combination of the two is more relevant.<\/p>\n

A number of issues need to be considered when making these decisions.<\/p>\n

Companies must ask if they want to keep their existing solution enhancements and transaction history, start with a clean slate, or keep some while doing others from scratch.<\/p>\n

Before making those choices, they need to check if the system fulfils all the conversion prerequisites.<\/p>\n

Does the company need a phased business rollout? And does it need a renewal of its complete ERP solution?<\/p>\n

\u201cHow do you perceive your current system?\u201d Panday asks. \u201cIs it an innovation enabler or key asset?\u201d<\/p>\n

Marco Bronze<\/a>, enterprise architect at PwC, adds that there are a number of data elements that need to be considered when deciding on a greenfield or brownfield implementation.<\/p>\n

For instance, the company needs to decide if it can change its data structures, which is hard to do in a brownfield transformation. Do they want all data to be archived, or converted?<\/p>\n

Consider the impact of downtime as well, because this will help to inform how data is handled.<\/p>\n

Data cleansing is an issue that can\u2019t be ignored. \u201cIf you\u2019re doing a brownfield transformation, you don\u2019t want to bring bad data across so you need to cleanse it first. For a greenfield implementation, you don\u2019t need to do that.\u201d<\/p>\n

Other decisions include what to do with the data history, and how to analyse current versus historical data.<\/p>\n

\u201cThere\u2019s a lot to consider,\u201d Bronze says. \u201cAnd there are many options. But we see that a lot of customers haven\u2019t gone into this deep analysis, although they need to base key design decisions on the right information.<\/p>\n

\u201cIt is critical that all these elements are considered.\u201d<\/p>\n

Felix Chabeli<\/a>, MD of Stratfore Tech, says upfront planning is key to the data transition.<\/p>\n

\u201cWe have seen situations where data is corrupted or fixed in production; and we\u2019ve seen situations where people start changing the transport sequence right before the finish line.<\/p>\n

\u201cTo understand why this is happening, you need to look at the release strategy, and how did you do your testing? How did you organise the building of the solution and link that back to the requirement?\u201d<\/p>\n

Because different companies have different needs, he says different tools are going to be relevant \u2013 or an integration of various tools.<\/p>\n

\u201cBut processes are the backbone of the implementation,\u201d Chabeli says. \u201cDocumentation needs to be in the context of the business processes; and transports need to be logically linked to the processes.\u201d<\/p>\n

At the same time, testing must include migrated data, he adds.<\/p>\n

This article first appeared on ITOnline<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Kathy Gibson is at Saphila Transcend in Sun City \u2013 Navigating the 51风流S\/4 HANA journey is different for every company, and requires a customised…<\/p>\n","protected":false},"author":29,"featured_media":148277,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"related_posts":[],"footnotes":"","_links_to":"","_links_to_target":""},"categories":[7771,7737],"tags":[5598232,5599357,5599353,5598932,5599355,5599356,5598766,5599354,5599196],"series":[],"sapn-display":[5598742,5598740,45149,5598743,5598741,279685],"sapn-type":[45018],"class_list":["post-148196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customer","category-solutions","tag-colin-banks","tag-felix-chabeli","tag-gerhard-greyling","tag-koosh-panday","tag-lisa-bird","tag-marco-bronze","tag-sap-s-4hana","tag-sap-value-lifecycle-manager","tag-saphila-2025","sapn-display-feature-hero","sapn-display-feature-spotlight","sapn-display-homepage-hero","sapn-display-news-hero","sapn-display-news-spotlight","sapn-display-hero","sapn-type-feature"],"yoast_head":"\nHow African Companies can Avoid Transformation Pitfalls - 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