Succesful Migration to SAP S/4HANA. Case Study- Adalvo & ITP

12.01.2024 ITP Office

Table of contents

Adalvo and ITP are excited to share first successful steps of their strategic collaboration, marking the beginning of a promising journey in digital transformation which creates the foundation for a scalable cloud-based IT core, essential for driving a data-centric management model, revolutionizing Adalvo’s pharmaceutical operations. This forward-looking vision goes beyond ERP implementation, offering efficiency, agility, and growth opportunities.

Scope and Goal for the migration

The primary goal of this project was to increase business efficiency and agility, more informed decision making through real-time analytics, enhanced user experience and improved operational efficiency.

Scope of the project includes:

  • The seamless migration of existing SAP ECC system to SAP S/4HANA, which includes SAP Advanced Track and Trace for Pharmaceuticals (SAP ATTP), Financial Accounting (FI), Controlling (CO), Material Management (MM), Sales and Distribution (SD) streams with 23 SAP modules.
  • Setup a reliable cloud infrastructure based on Microsoft Azure with helps to ensure business flexibility, scalability and prepares Adalvo to quickly adjust to new technologies and grow in the future.

Timeline. The migration to SAP S/4HANA was executed seamlessly during 7.5 months to deliver results promptly and with precision.

Project team. Project had a joint team of 6 key specialists from Adalvo and 32 ITP high-class specialists working closely together to ensure the end-to-end complex ERP migration to S/4 HANA.

 

Project Implementation Approach

The adopted approach revolves around leveraging the new standard functionalities of SAP S/4HANA to replace existing customizations and fulfill business needs wherever possible. Emphasis will be placed on conducting a gap analysis to identify areas where additional customization and adaptation are required.

In the project’s initial phase, ITP and Adalvo decided to adopt a Blue-field approach. This approach involved setting up a completely new SAP system and migrating only the actual data, preserving all historical data on the old system for archival purposes.

The approach has enabled Adalvo to re-evaluate data and customizations that have been in place for years simplifying further system development and support. It also allows businesses to reconfigure their systems in accordance with the new business principles demonstrated by S/4HANA. These advantages helps to  implement new business techniques or exploit new technologies, such as machine learning. It also helps in archiving older data to reduce the amount of storage space used and thus save money on hardware or hosting.

To ensure the project’s successful implementation, ITP followed best practices from SAP and Microsoft, aligning the project with industry standards and proven methodologies. The system was optimized to accommodate the planned volume of users and transactions, with the flexibility to increase capacity without requiring architectural changes.

For an organized and efficient execution, the project utilized the SAP ACTIVATE toolkit as the primary management methodology with helps to ensure efficient execution of the project.

The project was divided into 6 distinct phases:

  1. Discover – Preliminary project assessment of solution options.
  2. Prepare – Initial planning and preparation for the project. In this phase, the project is started, plans are finalized, project teams are assigned, and work is under way to start the project optimally.
  3. Explore – Perform a fit/gap analysis to validate the solution functionality included in the project scope and to confirm the business requirements can be satisfied. Identified gaps and configuration values are added to the backlog for use in the next phase.
  4. Realize – Use a series of iterations to incrementally build and test an integrated business and system environment that is based on the business scenarios and process requirements identified in the previous phase. During this phase, data is loaded, adoption activities occur, and operations are planned.
  5. Deploy – Setup production system, confirm customer organization readiness, and switch business operations to the new system.
  6. Run / Hypercare – Run the new system and apply SAP operation standards to optimize system operation.

This phased approach facilitated comprehensive testing, documentations, and seamless integration, ensuring a smooth transition and the new system’s ability to meet Adalvo’s evolving needs while maintaining high standards of quality and efficiency.

ITP introduced a change management methodology based on ADKAR, emphasizing the importance of addressing individual concerns and facilitating a smooth transition for the organization.

This collaborative effort between Adalvo and ITP also highlighted the effective project management and commitment to industry best practices, ensuring that the migration was not only successful but also aligned with the unique needs and challenges of the pharmaceutical sector.

 

Main benefits delivered

SAP S/4HANA implementation covers a wide range of functional areas delivering:

  • Improved Productivity: Automation of manual processes leads to increased efficiency and productivity.
  • Reduced IT Costs: Simplified data model and streamlined architecture reduce IT complexity.
  • Improved Financial Management: Advanced financial management features, including accounting, cash management, and financial planning, enhance fiscal responsibility.
  • Scalability: SAP S/4HANA is designed to grow and evolve with Adalvo’s business needs. Usage of Azure cloud platform makes this task even easier.

About Adalvo

 Adalvo is a global pharmaceutical company dedicated to improving patients’ lives. Headquartered in Malta with offices in over 15 countries,  have a dynamic leadership team and a network of more than 110 partners across 100 countries.

Adalvo’s goal is to help partners boost revenues and expand into new markets. We’re also committed to our employees and local communities. As a leading global pharmaceutical company, Adalvo is the sole B2B platform offering a wide range of high-value options:

  • A diverse generic small-molecule portfolio with over 90 products in areas like Oncology, Women’s Health, Cardiovascular, and Central Nervous System.
  • A value-added product portfolio with over 15 offerings, focusing on Central Nervous System products.
  • A peptide portfolio with more than eight products, targeting Rare Diseases and Diabetes.

 

About ITP

 ITP is a digital transformation Partner with strong expertise in SAP implementation, migration to S/4HANA, SAP support and a wide range of IT services which help to ensure implementation of complex projects for our clients.

With over 30 years of experience, ITP has firmly established itself as a leading company in delivering comprehensive digital transformation solutions. This ensures that Adalvo, and companies like them, benefit from not only a seamless migration but also ongoing support and solutions that align with their evolving needs in the pharmaceutical landscape.

Our key strength lies on strong technical team, usage of best practices and innovative technologies, validated and recognized by key vendors.

ITP’s team is equipped with a wealth of experience in handling complex IT projects for leading companies, which include:

  • Creating SAP global templates with further rollout for group companies
  • Migration to S/4HANA,
  • Setup and migration of infrastructure to Azure.

ITP continuously develops solutions tailored to meet the unique needs of companies like Adalvo, with competitive prices and wide variety of technologies ensuring they stay on the cutting edge of the industry, and providing exclusive solutions to meet their unique needs.

 

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