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Pioneering work in the energy sector: How illwerke vkw successfully completed the migration to S/4HANA

Some projects are put off for a long time – until the moment comes when a decision is unavoidable. For many companies, the end of support for ECC R/3 in 2027 is precisely such a moment. The alternatives? Extended support at an additional cost until 2030, or bespoke support contracts. However, neither of these options makes sense in the long term. So what should be done? illwerke vkw, too, wanted to carry out a system upgrade. The aim: to create the contractual and technological framework for a future-proof system landscape. A migration to a modern S/4HANA platform was unavoidable. Rather than waiting until the last minute, those in charge at illwerke vkw opted for a future-proof solution at an early stage. Together with scc, they took on a pioneering role within their industry.

Because waiting was not an option for illwerke vkw

So whilst many companies were still uncertain, illwerke vkw, together with scc, decided to take the plunge. And not just at some point in the future, but as one of the first energy suppliers in Austria to do so. However, such a pioneering role brings its own challenges. So what did illwerke vkw and scc need to bear in mind?

Technical complexity: The existing system had been customised and needed to be migrated seamlessly to the new platform. In-house developments and interfaces posed a particular challenge.

Organisational coordination: Other strategic projects were running in parallel with the migration. This required careful resource and time planning.

Collaboration with multiple partners: In addition to scc as the implementation partner, SAP was also involved as the software provider. Furthermore, GISA GmbH was brought in as an additional partner to address specific issues.

IS-U industry solution: The migration encompassed not only the core system but also SAP’s IS-U solution, which was developed specifically for energy suppliers. This made the project particularly demanding. As one of the first companies to take this step, illwerke vkw was unable to draw on existing experience.

Three phases to transformation

“Just update and carry on” – it would be nice if it were that simple. But an SAP migration is not the same as a software update. Rather, it is a fundamental system change that has a profound impact on business processes. That is why illwerke vkw and scc adopted an iterative and methodical approach, dividing the migration into three phases or runs.

Run 1: Technical Analysis

The project began in November 2022 with a comprehensive analysis and orientation phase. All those involved wanted – and needed – to know, down to the smallest detail, what challenges the switch to S/4HANA would present for illwerke vkw. Some key questions during this phase included:
Which systems and processes are affected?
Which bespoke programmes and applications need to be migrated and may therefore require adaptation?
What does the general migration roadmap look like to ensure that day-to-day operations are not jeopardised?

Run 2: Test phase

This was followed by a very intensive and, above all, lengthy test phase, during which the new system was put through its paces. The aim was not only to test all the integrated systems, but also to involve the entire organisation – including subsidiaries. In several iterative cycles, the team planned, implemented, tested and reviewed what was working well and where complications still existed. And, of course, every effort was made to reconcile all this with the industry-specific and routine business tasks. After all, the transition to the new S/4HANA platform also had to take into account customer invoicing and the annual financial statements.

Run 3: Dress Rehearsal and Go-Live

The decisive moment: the go-live took place in early December 2024. Before that, however, all the activities – which had previously been planned and tested over weeks and months and were later to be carried out over the course of a financial year – had to be run through within just a few days. Following this successful dress rehearsal, the system was finally able to go live. To this end, a manual – a script, if you will – was drawn up, setting out precisely who was to carry out which tasks at what point during the migration. All tasks and steps had to mesh perfectly to ensure a smooth go-live and subsequent real-time operation.

Stefan Wilfinger

Head of SAP at illwerke vkw

The result of this comprehensive and detailed approach: a smooth transition without any major complications. A key factor in the project’s success was the close collaboration between the teams. Regular retrospectives enabled insights to be implemented immediately and the process to be continuously optimised. As a result, many critical aspects were addressed at an early stage.

Robert Ranftler

Project Manager, scc

The collaboration was of the highest standard – both professionally and personally. This project has demonstrated how important trust, respect and clear communication are for success.

The result of this comprehensive and detailed approach: a smooth transition without any major complications. A key factor in the project’s success was the close collaboration between the teams. Regular retrospectives enabled insights to be implemented immediately and the process to be continuously optimised. As a result, many critical aspects were addressed at an early stage.

Results of a fantastic collaboration

The migration to S/4HANA was successfully completed in early December 2024, followed by a brief hypercare phase to provide post-migration support. But what, then, are the key successes and outcomes of the project?

Technical and process optimisation: The new platform enables more efficient workflows and improved performance.

Stable system migration: Despite the high level of complexity, there were no critical outages or serious disruptions.

Pioneering work in the market: illwerke vkw is one of the first energy suppliers in Austria to have completed the switch to S/4HANA using the IS-U solution. This has made the company a pioneer in the industry and a point of reference for other market participants.

High level of commitment and strong collaboration: The collaborative partnership between the project teams at illwerke vkw and scc was regarded as outstanding by all those involved.

Are you ready for the future too?

With the successful migration, illwerke vkw is now ideally equipped for the digital future. The company benefits from a modern, future-proof system. And the transformation journey is not yet over: new digitalisation and automation projects are already in the pipeline.

Are you also facing the transition to S/4HANA? Then now is the right time to take the first steps. scc will support you through the process – so that you aren’t left standing in front of a ticking clock in 2027.

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