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Michael Braine
Chief Technology Officer, Public Storage

Public Storage: The migration from Oracle to SAP S/4HANA RISE

🎥 Feb 01, 2025 📺 SELECCIÓN Consulting ⏱ 67m
Join Michael Braine, CTO of Public Storage, as he shares exclusive insights into their transition from Oracle to SAP S/4HANA.Good afternoon everyone and welcome thank you for registering for this live event with Public Storage uh CTO Michael brain ...
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Transcript (50 segments)
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Emily1:34
Good afternoon everyone and welcome. Thank you for registering for this live event with Public Storage, CTO Michael Braine. Today we're going to be discussing their transformation from Oracle JDE to SAP S4 Hana Rise. My name is Emily and I'm going to be your host today. I am joined by Ellen Robinson who is our VP of sales at SAP, Chris Rain who's the VP of sales at Selexion Consulting, and of course Michael Braine, our CTO of Public Storage. Michael, if you wouldn't mind, I'd like to go ahead and pass the stage to you to give yourself a brief introduction and thank you for being here.
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Michael Braine2:13
Thank you, Emily, happy to be here. My name is Michael Braine as Emily said, I'm the CTO for Public Storage. I've been at Public Storage about five years. Prior to Public Storage I was the CIO for Tapestry, which would be Coach, Kate Spade, Stuart Weitzman, and prior to that I was the retail CIO for Luxottica.
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Emily2:38
Excellent, thank you for that introduction. As we start, I'd really love to hear specific business cases that led Public Storage to engage in looking for a new ERP solution.
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Michael Braine2:51
Sure. Public Storage was coming from a JDE environment and this was an environment that had certainly served the company well at that time. It was over 19 years old and ultimately it was probably 21, 22 years old by the time we retired it. But it was beginning to not meet the needs of the business, and it was not an upgradeable product, it didn't have an upgrade path, it was going to require a reimplementation one way or another, and it was coming end of life. So it was primarily a risk-based decision, but one that a lot of thought was put into what exactly we were trying to get out of this new investment that we were going to make. One of them was around limited scalability – we wanted a platform that was going to enable us to continue to grow, and we have grown by over 30% over the last four years and we anticipate continuing to grow. We were also looking to move into international markets and we were acquiring different lines of business outside of our core historical real estate-based businesses which our old environments were not able to adequately address. We had a long financial close that was taking us about 17 complex days to execute that close with limited transparency along the journey. Obviously being a legacy environment, it had outdated technology, and as the number of transactions and growth of our business increased, the time it took to execute things was becoming untenable. As we grew, we were adding headcount and additional spreadsheets to keep up with the business. We had limited analytical capability, difficulty meeting people's expectations in a timely manner, lots of manual efforts, substantial both to execute these transactions and to do reconciliations between systems and troubleshooting when things went wrong. It was a high-code environment, SQL-based environment – our accountants had to be fluent in SQL to be able to execute their normal tasks. It created even some hiring barriers and some concerns around how you have succession for these long-term employees. Controls – while we were a public company and clearly we take our SOX and other requirements very seriously, we had a significant amount of detective and manual controls in order to secure that environment. And then basically this was an aging on-premise hardware – we had to be concerned about equipment failures, how we were going to secure that from a cyber perspective around data connectivity. So we had a pretty strong base and understanding of what we needed to address with this investment.
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Emily5:37
That definitely sounds like a long list of things that needed to be solved for. Ellen, what's your experience for customers who are looking to do migrations or are looking into new platforms? Is this common with legacy systems or what are your thoughts?
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Ellen Robinson5:58
Yeah, it really is. We have a lot of companies that have invested heavily in their legacy IT platforms. A lot of those investments date back to Y2K decisions that are now 20 plus years old. There's a lot of momentum in the market for folks to modernize and take advantage of the modern capabilities that we have. I see that even increasing with generative AI, and SAP like many other software vendors are starting to really emphasize embedded AI in their solutions to drive even more productivity. A lot of these innovations do require a foundational modern platform like S4 Hana built on top of an in-memory database and having a common data model so that we can leverage the capabilities of AI to further improve automation and drive efficiencies for our customers. So this is a trend that if folks weren't already on it, like Public Storage was a few years ago, to move off an end of life system, I certainly see organizations looking to take advantage of the productivity that comes with AI as another impetus for modernization. So this is very common right now. We're working with a lot of customers who are doing similar evaluations that Michael you were leading two years ago. So you're a little bit ahead of the charge – you got your upgrade done in time for AI. But I think that the real-time insights, the data quality that we have in a modern platform is going to serve the business very well. I know you're already starting to see some of that impact and feedback from your business stakeholders about the positive change this has made for the business.
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Michael Braine8:00
Yeah, absolutely. I think sometimes we get trapped into defining these ERP implementations as back office, non-value added investments. But in reality, any organization that's looking to do a true digital transformation is going to rely on a rock solid data foundation as you described. From that perspective, that's how we at Public Storage looked at this investment. We had real reasons to want to do this from a risk perspective, but it also enabled all future investments built upon it.
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Ellen Robinson8:38
Yeah, and that investment you made 20 plus years ago in JD Edwards served you well. I think this decision was viewed as another long-term 20 plus year investment to support the next phase of your business and growth.
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Michael Braine8:51
Absolutely.
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Emily9:01
Michael, I know that we've spoken about the feedback from your business stakeholders. I think our audience would be really interested in hearing some of that. We can talk about more what the selection process was and what your evaluation process was like and how the implementation went, but I think starting with the end in mind and the business outcomes you're able to achieve – maybe you could share with our audience a few of those key milestones and accomplishments that you've seen already from being live on S4.
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Michael Braine9:36
Yeah, I think just like you said, to start with the end upfront. Any kind of investment of this kind is potentially disruptive to an organization. It takes a certain amount of resources and management attention to be successful. It certainly takes an investment of financial capital and human capital to deliver. Many of these programs have a bad rep of not delivering on time or not meeting those expectations or causing a business disruption. In many ways, both the choices that we made in this program and how we chose to implement it really aided us in delivering a program that met our senior expectations from a board and an executive management perspective – delivering the program within the budget that was expected and in a remarkable 12 months without any delays, without any business disruption. We're able to meet that minimum milestone. I would say 'flawless' is probably not the right word, but well within everyone's expectation for a transformation of this kind. We went live in April of 2024 and so over the last 10 months we've continued to optimize on that system and be able to take advantage of some of the efficiencies that we had desired, and really become comfortable with quite a few closes under our belt with the ability of this new environment.
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Emily11:14
Yeah, and I really appreciate you sharing these successes here. I think it's very encouraging for companies who are considering a similar transformation to know that you did this on time, on budget, in 12 months – it wasn't a big three-year long project. I think a lot of that goes to the thanks of your system integrator Selexion Consulting, and Chris, I don't know if you've got a few words to say here introductory, but also in the business outcomes that you've seen at Public Storage and other customers as well from their S4 transformations.
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Chris Rain11:48
Yeah, it's a common theme. Michael mentioned reconciliation between systems, controls, all the detective work. When you have these fragmented systems with data integrity issues, these are significant points for a lot of people. Moving to a modern integrated solution like S4 Hana addresses these challenges and provides a single source of truth, improves data accuracy. Back to what you were saying with the future with AI, trustworthy data is going to be even more critical than ever, so that accuracy is going to be critical. And then talking about streamlining operations, making it easier for businesses to adapt as the market changes, as we've all seen. I can't believe it's been 20 years since Y2K, but I've seen a lot of changes since then, for sure.
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Michael Braine12:44
Sure. I could get into how we kind of made this decision and how we went forward. That'd be great. So step one, just to acknowledge for our audience, I've pretty much been making my living in one way or another involved in the implementation of SAP over the last almost 30 years. But coming to Public Storage, this was not a 'we're going to implement SAP at Public Storage' – we were an Oracle shop, had an existing environment. One of the things that I might pass along is this is not a technology decision. I mean, at the end of the day, technology has an influence here, but ultimately to be successful and to be able to deliver the transformation really requires not only acceptance from the business but ownership from the business and ownership decision-making and alignment of the choices that are made. While we had absolute strong support from the executive leadership, this program was championed by our controller, and our controller built a strong coalition across all the different finance functions and supply chain functions and operating functions to ensure that people understood what we were doing and why we were doing this. There was an acknowledgement that this was going to be a disruption, it was going to involve change, but it was all laddering up to these corporate objectives. With that in mind, we evaluated quite a number of potential solutions – not just Oracle and SAP, but we evaluated Microsoft, we evaluated Workday – and we ran everything up against a relatively simple number of criteria that we were looking at. We did look at it as you said, this is another 20-year investment – we don't intend to be replacing this environment anytime soon. So we had a number of strategic objectives that we were looking at across these vendors. One was technology innovation. In that area, we were quite pleased – not myself, but my business partners were impressed with a couple of things that Rise brought to the table. One is the Hana environment, and my business understood the power of in-memory compute and its ability to provide high volume transactional information and real-time data. And two, specific functionality that was enabled by Hana but very distinct from the other providers would be the universal journal and the ability for the universal journal to provide unlimited drill-down capability and interaction across capabilities. So while Oracle had a number of things that we could call technologically innovative in the way their product is put together, these were things that were considered to be very strong and things that would serve us well over the next 20 years. Product continuity – if you're going to be married to a vendor for a long period of time, what does the roadmap of that vendor look like and what is the history? We did all kinds of reference calls with SAP customers and Oracle customers and other items. There's one thing that my business felt that SAP had an edge over Oracle on, and that is the strength of the roadmap and the strength that products don't get left behind. At that particular time where Oracle was in their full cloud journey, they had customers that were not able to make that jump and they had customers that had just done implementations that had to do re-implementations, and the cloud product wasn't the same level of capability and functionality that was in the on-premises solution. Whereas when we assessed the capabilities not only that we needed but the capabilities that we thought we would need, we had much higher confidence that what we needed was available in the SAP Rise solution. Existing relationships – we had a long existing relationship with Oracle, we had lots of other products that are Oracle. But from a partnership perspective with Selexion, we were also already using Google, and one of the things that was interesting to us – unlike Oracle, you have an opportunity to choose cloud partner with SAP, and we were already using services from Selexion and had successfully moved out of our data centers, and everything but the JDE environment was sitting with Google. So that was very interesting from a strategic perspective for us. We had a number of tactical items that were important: deployment options – we kind of talked about that a little bit – we had the option of how we chose a cloud provider with SAP that wasn't available with Oracle. We also had a private cloud available – it wasn't SaaS only, it wasn't public cloud only. We had the opportunity to evaluate the difference between the public cloud and the private cloud and really gain confidence that we're going to be able to choose a solution that met our needs and wasn't going to cause us difficulties or regrets during the implementation. There's something to be said for upgrades without effort or upgrades without compromise. However, with an ERP environment that's hooked into and linked into the rest of the enterprise and all your other vendors and all your other homegrown technologies, having some flexibility in when you take upgrades and how those upgrades are implemented was another consideration for us. Footprint alignment – the SAP BOM and the ability to not only have exactly what we needed for this first wave, first transformation, but also have the adjacent modules and capabilities was a strong value player in favor of SAP. If we look at the operations and how we're actually going to use this item, back to the SAP BOM – SAP understands and recognizes right up front that we were going to be integrating into other environments and that we would have a few cases where we were going to want to develop capability that was unique and proprietary to Public Storage, and the BTP platform is right there included in the BOM. All that kind of extra work on the Oracle side requires the integration cloud to be purchased separately – not quite as straightforward as the SAP piece. Adoption was one that we valued. Clearly there's some familiarity from our user group with the Oracle environment, though we leveraged that up against the SAP best practices. My business felt that having some structured processes would be an impetus to drive the change that we were looking for to streamline our operation. We really steered into – we're looking to change, we're looking to transform. If we replicate everything the way that we do it today, we're going to end up with a 17-day close. So how are we going to start with an aggressive goal in mind – we want to get that close down to five days – how are we going to leverage what many other thousands of other SAP customers use in order to drive that in an efficient and effective manner? And then reporting – we were really looking forward to leveraging a solid, strong chart of accounts like SAP provides versus the infinite flexibility that we had experienced before with Oracle. Combined with the universal journal, the ability to have improved subledger accounting and advanced analytics. So those were just a flavor of the kind of detail and how we laid out why our business became very, very confident that SAP would be the right choice for the organization.
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Emily21:29
This is great, Michael, thank you so much. I think just for our audience's benefit to recap a few comments there – very successful project you've had with this S4 transformation in Rise: on time, 12-month project plan, fully live, no major hiccups, you know normal project hiccups along the way, no issues. But I attribute a lot of that success to a couple things: first, leadership and experience – you've been an incredible asset for Public Storage to lead this with the many previous projects you've done that are similar. I think for customers who are considering a transformation like this, it's very helpful to have someone on the team who has been there and done it before and knows how a project goes, because you need that leadership and experience to pull off a project like this and have it successful. So that's a key ingredient. But then also how you adopted the clean core strategy in S4 – you leveraged the best that Rise has to offer in terms of deploying best practices, sticking to best practices, clean core, and really limiting the amount of customization to those extensions that are truly your secret sauce and business critical, and doing so in the BTP layer. Hyperscaler flexibility – there were a lot of reasons for you to choose Google based on some of the other data projects that you guys were doing, so having that choice as well. You did everything right in our Rise playbook, and the end result was a successful project. I wanted to highlight some of those for our audience who are considering starting similar projects, to take some of these lessons learned from Public Storage. I think with that, I think Chris you wanted to ask Michael specifically some questions for our audience about what are the key lessons learned, besides just the high-level cookbook for success that we've just discussed.
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Chris Rain23:39
Yeah, sure. Thanks, Ellen. So yeah, Michael, I know looking you've got a very vast background – not your first rodeo. Kind of if you don't mind, take us through what you've seen over the years, how you've earned your stripes, congratulations on keeping your hair. But just kind of take us through that journey and some of the lessons learned and things you've seen in the past.
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Michael Braine24:03
Yeah, I mean, so you know I mentioned that in one way or another I have more or less been in the implementation of SAP products most of my career. Coincidentally, this Public Storage implementation was the 20th implementation that I either participated in or led. I've led eight implementations as a CIO, I've led probably six or seven as a consultant, and then participated in the delta there as either a project team member or an end user from a business perspective. I think maybe at the end I'll wrap up with maybe a top 10 or so overall lessons learned, but I think at this point in our discussion I would highlight a couple of things. One is the roots of success – or maybe the roots of failure if we look at it from a negative way – is overlooking true sponsorship. These are difficult projects, difficult programs, and they require an organization that's committed to it. So step one: this is not for the light of heart, this is not for the faint. You don't just do it because you should do it. The whole organization needs to really understand why we're doing it. We're not doing it for one feature or another, we're not doing it for one department or another – we're doing it for the holistic enterprise, and there will be trade-offs between the functions and the partners, and the whole organization needs to get behind that. There needs to be very strong – not just lip service, but committed – executive leadership to it. I think the second one is maybe related: both clear strategy that makes the implementation an imperative of the business. If you look at it that way, these three, four, and five-year programs are a disaster. If it's truly an imperative, you will do what needs to be done, you will resource it correctly, and you will make the hard choices to do it in as quick a time as you can responsibly do it. Because to drag it out means it's not a priority for the company and it means there will be other things that will slip in the way and distract management attention. I think the second part of that maybe goes hand in hand, and that's absolute senior management support. In order for it to be treated as one of the two or three priorities the company has, it is going to require that sort of senior support, and understanding and education with board and other executive team members. I think we got that right at the start – we absolutely had the right level of support and the right understanding and expectation from our senior leadership.
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Chris Rain26:51
And Michael, I really appreciate that. One thing that you mentioned though – I'd really like to kind of dive in before we move on is about best practices and utilizing SAP's best practices. What was kind of the takeaway from the end users' perspective of adopting to the software as opposed to adopting the software to the business? What was their feedback and what was the learning curve there? What was the tolerance for that? Could you dive in a little bit about that?
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Michael Braine27:20
I think that's maybe another principle of success. The first one is we are not doing these kinds of investments for the end user. We want the end user to be able to do their job, we need the end user to do their job, but hopefully you're making this kind of investment and commitment for some strategic value, of which that end user is going to get dragged along. That's the first piece. The second piece is best practices is how these have been defined for probably 25 or 30 years. But I like to change that wording when I'm talking to my business community. I'm not going to debate whether a practice is best or not, so let's just put that aside. And second, there's not one SAP best practice – there is generally three, four, seven, twenty SAP best practices. If we look at invoice processing, there's over 22 SAP best practices for invoice processing. So I would tend to say it this way: pick one, pick two, pick four, but don't make one up. The reason I say it that way is substitute 'SAP best practices' for 'I know it will work.' At the end of the day, if we're calling it an SAP best practice, it's being utilized by other providers, it works, and it will not prevent you from having an unintended consequence in another part of the value chain. So yes, there's a lot of education around this, but a lot of it is around getting that end user or that end user's manager – which is usually more important – to understand that this is not about preserving the way we did things, this is about choosing a new way to do things that's going to benefit the organization overall. The more we stick to these best practices or these guaranteed ways that these work, they will be successful – the project's risk profile goes down, the ability to train goes up, the ability to recruit new people who worked somewhere else who understand the process because it's going to be the same way they did it somewhere else all go up. A lot of this is around reiterating that message and not being afraid to say this is not... I mean, I care about end user satisfaction, we check on people's understanding and the ability to do their job, but it's not a goal of this kind of investment to have an accounts payable clerk say 'yeah, this is the best thing I ever had.' We need that accounts payable to understand and to be able to do their job. If they grumble a little bit along the way, that's kind of okay.
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Chris Rain29:58
Right. And as we all know, change is hard, and change is sometimes fought, I suppose. But I do know, Ellen, SAP does their very best job to make sure those end users are satisfied and that they are trained up. Could you elaborate a little bit more on what SAP does to guarantee that those end users are supported and that they understand how to use the software, so it takes a lot of that pressure again off of that upward leadership and they understand that the investment is being utilized as it should?
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Ellen Robinson30:29
Yeah, it's obviously very important to SAP to have the solutions adopted. I think one of the benefits that we see when organizations like Public Storage do adopt the SAP best practices is that they greatly reduce the amount of time and effort it takes to train the end users on how to use the system. We produce and deliver a lot of training content right out of the box, and that can be leveraged, and it's embedded and it's intuitive to use. What we've seen historically in like legacy ERP implementations, where people maybe start with a blueprint, they map out their own processes that are based a lot of times on the way they did things in paper many years ago or someone's personal preference, then you've got to build new training material, you've got to update it continuously, the system becomes much more cumbersome and hard to use. I think that if you want to have a quick time to value and deliver a project like this in 12 months, there is that additional benefit of adopting best practices because it greatly reduces the need for end user training and enablement on custom, non-standard edge cases. Michael, would you be able to comment on that? I know you've done 20 projects.
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Michael Braine31:53
Yeah, I think I would echo two things that you said, Ellen. One is even years ago, I think the proportion of a project's budget and time that had to be spent on creating training materials was significant – maybe in the neighborhood of six percent of a project's budget being spent on that activity. My experience – it's not that in the last decade SAP training hasn't been strong, but my experience with Rise and the breadth and the quality of the training and the reusability of training that's out of the box was a really dramatic project accelerator for us. We were able to leverage some very minimal SAP consulting to execute our training plan, very minimal internal resources, and able to absolutely leverage the majority of our content coming from our standard functionality, which also allows it to stay updated. So it's embedded in the application, and as new people come on board, the training is embedded in the application in the workflow where they're going to use it, and it's updated and it's current. A lot of pluses on the training option side there.
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Ellen Robinson33:13
For sure. This is the area where SAP is investing heavily, even beyond what we have now. We acquired a company called WalkMe last year, and their contributions to our training and adoption capabilities in the product are starting to be seen as well. They are a company that historically been focused entirely on end-user adoption, and as we start to embed that more into our solutions, this is an area where SAP is investing more to make this even easier and faster for customers to adopt the capabilities in Rise and other products as well in the SAP portfolio. So it's critically important in this world of quick innovation and change that we are able to enable our users to quickly adopt the capabilities. That's absolutely important.
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Emily34:05
And Michael, you've mentioned a few times you know you've been involved in 20 plus ERP projects. Chris, I know that you come from the services background as well, so you've also seen your fair share of implementations and projects. Michael's kind of given his perspective, but from a services provider, what would you suggest in terms of an ERP implementation – setting up, making sure that your teams are successful and in that meticulous planning piece of it? And then also I wanted to go back a little bit between the relationship of SAP and Selexion because Michael, I do believe that something called MaxAttention was utilized. So Chris, if you could...
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Michael Braine34:44
I'll just talk about how we ended up with SAP and select own partner on this project. So like the software, we had a selection process, we had a lot of internal discussion and alignment on how we're going to execute this project. We looked at a number of different categories: firm experience, right? And here we're not looking for how long has a company been in existence or how big they are, but we're looking for what do they do for a living, what is it that they do, and how can they credibly demonstrate that they have level of expertise specifically in the SAP space. The second thing I'll talk about is seniority of resources. And here is one thing that I think both SAP and Selexion has in common, and that is they don't use a leveraged model. Okay? And what I mean by that is you're not getting a principal who shows up who has maybe 10 years experience and a number of junior resources that are essentially maybe learning on your project. You're getting, you know, everyone on that team has 10 plus years of experience, maybe 15 years of experience, multiple full cycle implementations under their belt, appropriate industry knowledge to be credible to your business partners. And so when we were evaluating, we were looking at firm, but we were also looking at what is the team that's going to come forward and what is the level of credibility and experience that those teams are going to have. We're looking for the onshore offshore mix, and that doesn't mean that we're looking for one to be better than the other, but we're looking for that we understand exactly how this vendor intends to deliver this project, and is that mix of onshore and offshore something that is going to produce both the right cost synergy for us but also provide, you know, the level of business interaction to deliver. Fractional billing, put that on the table, right? Some people will come to the table and promise you a portion of a resource's time for a period, and that certainly looks like it might drive the cost down, but we were not interested in fractional billing. We were looking for dedicated resources to our project at the appropriate times to deliver the solution. And we were looking at price. We wanted to ensure that we got value for our dollar. We understood that we were looking for senior resources, but we wanted to get those senior resources at the best price point that we could. At the end of the day, if you just break it down for these budgets, this is a function of what is the cost of your resources for how long you run your project. And any change in your project dates or any change in your scope is going to come out in a cost equation. So certainly ensuring right up front that you had the best value for the dollar spent is very critical in that piece. For all of those reasons, we knew that we wanted to have both SAP and we ultimately did choose Selexion because they fit that criteria across the board. We've been very happy with that, and we ensured that we put together a team that predominantly a Selexion team but that was augmented by SAP in the appropriate places to ensure our project. Yeah, so I'll go into that a little bit. You know, when you get into a program like this from Selexion, really it all starts with people in alignment, right? So you have to have great people and you have to be aligned, right? So when we're working with SAP and Public Storage on this, we collaborated to ensure that what we were planning and we use the MaxAttention Services, Design Success from SAP. We want to make sure that those things are aligned, the approaches are aligned, as well as, you know, we're all driving for the outcome, right? And then beyond just being aligned, it has to be complementary, right? So you don't want to be efficient, you don't want a lot of overlap in there. So we were very, working with SAP Services, we were very intentional on the design services, the integration services, the quality checks, go-live checks, and user training. And the SAP Services team came to us with the best and brightest that they always have. And that really created a team environment and a team where everybody was working together toward the outcome that Public Storage demanded and needed and deserved. So I would say that's critical. And then open collaboration, executive alignment. Our executive team was committed to this. Our leadership was on site frequently, making sure everything is good, making sure everything is going well and where it needs to be. And that's how you deliver a project like this in 12 months. There's going to be yellows in a project and there's going to be reds and greens. And if you have experienced people, you find those yellows, you address it, and you turn them to green before they get to red. And the key is no surprises, right? So through that intentional alignment and making sure we had the best of all three parties involved, we had an outcome like we expected and Public Storage deserved.
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Emily40:21
That's excellent. And then speaking about executive alignment, I mean Michael, you have had a huge compliment I think from your board. You had shared with us earlier this week that they had made a comment that you know they can collaborate a little bit. I don't want to share your exciting news.
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Michael Braine40:40
No, I, we mentioned that a little bit earlier. Absolutely, I have a very experienced board with significant experience in public companies, and they were very vocally appreciative and complimentary to the project for delivering. They had a real appreciation for what it means to successfully implement in a 12-month time period within the budget expectations. So it was a nice accolade. I'm glad the team was able to hear that, and my business partner was able to be there in front of the board and hear that. And it's nice to be recognized and have people appreciate the significance of an accomplishment.
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Emily41:26
Absolutely. You know, real-time analytics is something that is key in keeping our operations running. I think especially when it comes to supply chain, and Michael, I do apologize, my, as technology will have it, my internet cut out there a minute, so I may have missed this, but if you hadn't touched on the supply chain and how this has positively impacted that and how you've been able to use real-time analytics and integrated analytics to benefit that.
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Michael Braine45:16
Yeah, and our business is a little less supply chain focused, but we do have 3,000 plus properties that are passing inventory and goods movements daily to our organization. We have to replenish products at those locations, and with the robust interface that we were able to build and the ability to process those goods movements and improve our forecasting ability to replenish products for those locations, that's been a big win for our organization.
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Emily45:55
That's excellent. And then you mentioned earlier as well that you've gone from 28 to 12 days and you're aiming for five. How has that impacted just overall your financial reporting and capabilities there?
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Michael Braine46:09
I think the organization went from shock of 'we'll never be able to do 18 days' to some pleasure at realizing that we are able to cut a third of that time off already. And we have an ambitious goal this year to be able to drive that down closer to the five days, which is our ultimate target. And I wouldn't call that a stretch goal. I believe the teams have clear line of sight on how they're going to do that. And a lot of that is around process change, right? The technology enables it, the system enables it, but that is taking a good hard look at the steps in the close and what can be eliminated, what can be simplified, what can be automated. So we're looking forward to some continued progress in that space.
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Emily47:02
That's really great to hear. I know you'd also mention that you'd give maybe some high level bullet points there. I'd really be about lessons learned, but I'd really be curious to understand what are the three key takeaways as you've done multiple ERP implementations from this one specifically that you would recommend for people who are looking either at migrating from another solution or doing their upgrade from ECC.
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Michael Braine47:28
Yeah, we spoke earlier about making sure we had clarity of purpose for why we're doing this and what the executive sponsorship might look like. I would say another one is when you're putting together your teams, do we have the right leaders from the business, from IT on the project? And almost by definition, the right leaders are people you can't afford to give up from their day job, right? So it's that conflict and that tension that if this is important, we need to make sacrifices elsewhere to get the right people on the program without compromise. Related to that is full-time employees. It's not always possible to have completely full-time employees, but a program like this needs resources that don't have conflicting capabilities. At Public Storage, we were able to get a few full-time employees, the majority I would say 80% employees, and a few people who had to do it on part time, and I wish we were able to get more of those people to be fully dedicated because it's a force multiplier. So making those hard choices to dedicate people, backfill business roles for the duration of the project, all will add to the success of the program. I think you have to go in that this is a re-engineering effort. This is going to involve change that you're trying to optimize for the company, you're not trying to optimize for a function. We hit on that managing scope in the program. This is not the time to belly up to the all-you-can-eat buffet. This is the time to ensure that we are very clear about what we want to eat and where we're willing to make tradeoffs in this first implementation. There can always be a second round. And I would argue I'm always looking for one or two things that are going to produce real value for the organization, and then the rest of the things I want to make sure that we are doing the reengineering that we move forward because other items will have their own business case and it'll be more clear why you're doing them after the first go-live. So if you have a fast follow to deliver something that you know is going to produce a lot of efficiency, there's nothing wrong with saving that for the second wave. It makes your project more viable, more predictable that it's going to deliver on results, and you're kind of digesting the change over a period of time. Talking about change, very often you will discover you want to change some business processes in the company. Well, you can try to change as many of them as possible prior to the implementation. Things that are not system dependent, making those changes, measuring that they actually occurred and stuck prior to the go-live reduces the risk on the go-live, reduces the amount of change that's going to occur on the go-live date. Data, you had a question around data conversion. There's no magic answer to data conversion. Every organization needs to look at the state of their current data, but there will be a couple items. You either have gaps in data that need to be created, need to be filled in advance, you have a transformation of data that needs to occur, and the organization needs to go line by line through these and make the determination: are we doing this in the legacy system and it's going to convert over, are we going to do this at the point of conversion, or are we going to do it post conversion? The one thing I would just say about conversions is do it early and often so it's not a one-time activity. In our program, we were converting data and practicing our data conversions six months prior to go-live. I believe we did at least five, maybe six conversions. Because through the rehearsal and the practice of those, you're both ensuring that those difficult decisions are being made hopefully in advance and that you're documenting that practice and people get comfortable with it and you're able to execute. But minimizing, we talked about not doing modifications. There's no core mods, not in any program I've been involved in in a decade and a half at least, right? So there is no reason to accept that you're going to do any kind of core mod. If you go to enhancements that you're going to build, yes, there'll be viable reasons why you want to enhance something, but it should be a very high bar. Certainly at Public Storage, any enhancement had to be better and approved by myself and our business sponsors, and our executive team wanted to be detail aware of why we were enhancing a process and what was the real justification for doing so. Want to minimize reports. You will find reports can kill you. Most organizations have thousands of reports, so going through those, deciding which ones no one's reading, which ones provide particular value, how you create new report families that include all the data people need but actually aren't separate reports, to reduce the work and reduce the impact of change coming out the other end. We talked about training. I think that was another one. You don't want to underestimate training. You need a user community that's comfortable and ready to go.
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Emily53:10
Circling back to the reporting piece of it, I've got kind of a two-fold question here. But for the first part of it, how has that affected your audit costs? You know, when you're looking at reports and your dashboards and so forth, has that had an impact on auditing? Have you been able to reduce that?
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Michael Braine55:48
Yeah, I'm not going to speak to whether our audit costs have gone down or not, but I would say the confidence that our audits are going to be successful is absolutely been a massive improvement. We have been able to automate a drastic and significant number of what were manual controls. We've been able to build confidence with our auditors, and that has just been a step change for the organization in terms of confidence in the integrity of the environment and in the ability to demonstrate that the appropriate controls are over our environment. One of the two items, we could do a plug for GRC, which is the world-class controls environment that SAP provides. I think it's difficult to argue that that's not truly a world-class tool set to manage in that environment. And then in our case, migrating to a role-based environment. In our JDE environment over time, we probably had 300 individuals each with their collection of access to the system that all had to be validated and monitored and audited. But moving to a real role-based system gives us not only benefits and control from a control perspective, but streamlines and allows us to automate onboarding new employees or when employees change jobs and roles, being able to ensure they have the appropriate access to do their job and not any access that they shouldn't be entitled to.
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Emily57:23
Absolutely, that is very important and that's huge. I just know from past experience, especially from a learning management piece of it too, and assigning out courses, role security can play a huge impact on your productivity too. The second part of that question, you had talked about backfilling and having full-time employees. When you were selecting a partner, did any consideration go into bringing in extra resources from that partner when you were looking at the resources that they had to come in and maybe help support or even backfill those roles in a temporary capacity?
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Michael Braine57:40
That's a good question. I think to be direct, if I break that into two chunks. There are partners out there, there are consultancies out there that will claim that they can throw bodies at your project to make up for the lack of your internal resources. That's a big fat lie. That does not work. That doesn't really do anything for the organization other than increase the cost structure and increase different challenges. So from a getting the current work done, we did onboard some resources, but we onboarded resources through temp agencies and an appropriate cost structure to be able to backfill business people that needed to be on the project. And then from a consulting perspective, I think that's back to the argument of ensuring you have senior resources that have both the industry domain knowledge and the product experience and the project experience that they can become leaders for your internal team, who 99% of the time this will be the first and hopefully the only time that they ever do a software implementation of this size, and they're able to have partners that they can trust, that they can lean on, who can educate them and lead them down the path for what is a challenging 12-month experience with constantly learning new things and constantly having faith in partners to be able to execute that.
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Emily59:32
That's really great feedback. And actually that's a great segue. We do have a couple of questions from our audience here. One being, how well do you feel that your project team collaborated with Selexion Consulting as well as SAP to ensure the success of the project?
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Michael Braine59:50
Yeah, I mean I would just maybe break it into two chunks. There is collaboration from an implementation approach and collaboration from a schedule and from a workload and from a planning perspective. And I think Chris mentioned that earlier. I think we were exceptional at ensuring that everyone had a table, that we leveraged all the experience has in doing these implementations, and our vendor and we were able to put together an appropriate plan that was right for Public Storage, that was aggressive enough to not waste money but not so aggressive that it was foolish. So I think we definitely were able to leverage our partners in that context. And then in the actual implementation itself, whether it's the individual SAP consultants or the individual Selexion consultants, that is the bread and butter of getting these projects done right. At the end of the day, it's not a name. You don't have success because you have a marquee banner behind your consultant. You have it because of the individuals who show up and work with other human beings every day to get a job done. And that's part of what you're trying to vet out: who's the right fit for your organization, who's going to deliver resources that are going to have that kind of skin in the game and that kind of empathy for your project team to be able to work with them and lead them through. Is there conflict? Of course there's got to be conflict. If there wasn't conflict around 'is this going to work, is this the right solution,' and you have to have governance processes and escalation paths to be able to ensure the right decisions are being made and reinforce why we're making those decisions. We were very...
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Emily1:00:05
That's really good feedback. And I think collaboration again is key, and teams can play a big impact on that. You had touched briefly about data migration and making sure that it's validated and so forth. Another question we have was, how hard was it for you to transform your data from Oracle JDE into SAP, or even just in general a non-SAP system, and did you use any migration tools or ETL tools during that process?
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Michael Braine1:00:05
That's a good question. I think that you have to acknowledge that every company and every organization will have its unique challenges. In our case, we did have some problem areas that would probably be unique to us. But I often find it's less about moving from a legacy environment to a current environment. The tools exist. We did not purchase any additional tools. We used all of the tool sets that were provided through BTP and SAP to be able to execute this. But your primary gaps are going to be you want data that doesn't exist today. It's not that SAP wants that data, it's you want it. You want this data because you want to make changes to your business process for improvement. Now you need to create it or now you need to derive it. So I would think of it less about the technical conversion from one system to the other and more from the business perspective of what is the enrichment of data that's going to be required to achieve the outcome we want. We talked earlier about thinking about your ERP implementation as a foundation, a part of your digital transformation. So some thought should go into your data. What is the improvement in data you want? And there's difficulty in that, but it's a byproduct of what you're doing, it's not because you're doing.
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Emily1:01:27
That's really good feedback, thank you. And last question that we have here is, what's next for Public Storage? I know when the four of us were chatting here, it's such a household name. I have a locker, Chris and Ellen have both utilized Public Storage in the past. So from a transformation standpoint or acquisition or technology standpoint, if you can, what's next? What's coming down the pipe for you?
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Michael Braine1:01:49
Yeah, I mean we're talking about digital transformation, and certainly that's what we're most excited about at Public Storage. We are industry lead in, I would say we are the leader in digital adoption, everything from how a rental occurs online to how that acknowledges to contact list, opening closing doors, all those types of things. So all of that is safely riding on this SAP Foundation. Specific to our SAP environment, we are moving forward as we said with some minor tweaks over the next year to achieve a better and quicker close. We're also looking at how do we leverage SAP's roadmap and start really taking advantage of the AI capability embedded in the SAP products.
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Ellen Robinson1:02:41
I know also Michael you recently purchased some of our Cloud application services which are complimentary to the RISE offering, and I think that that's a great roadmap for you guys as well to further release your burden of doing non-value add administration and focusing on the business process improvements.
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Emily1:03:04
Absolutely, yeah, that's really exciting to hear. Before we move to our closing remarks, Ellen, Chris, is there any other questions or points that you'd like to chat with Michael about?
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Chris Rain1:03:18
There's a lot of wisdom in these words that we've heard today. So I think Michael's covered just about everything I've ever read or experienced about doing these transformations. And more than anything, I just want to thank you Michael for spending the time with us. Thank you for your partnership. And man, I tell you, I hope this reaches an audience that I know it will and will help people in a similar situation that you were in. I guess over the last 20 years you packed a lot into years, man. Thank you, Chris, appreciate it.
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Ellen Robinson1:03:52
And Michael, I just want to tell you thank you so much for your partnership. I remember when we first met at the very beginning of your software evaluation and some of our early conversations. The RISE offering was still new then, and I know you were skeptical of it being new and you having a long history with SAP, and you know wondering if this was truly the right path for SAP. And it took a little bit of a leap of faith. But nothing makes me happier now to see your success on the RISE platform and see these incredible business outcomes that you've been able to deliver for Public Storage, the accolades you've received from the board, and just your willingness to move forward with SAP and our strategy and help demonstrate when you do follow all the best practices, the reference architecture, the clean core strategy, the incredible outcomes that you can deliver for business. And just nothing makes me happier than seeing your success here today. And thank you so much for partnering with us on this transformation. It's been great working with you and your incredible team. You've got a great team behind you.
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Michael Braine1:04:58
Yeah, thank you. I wouldn't call it a leap of faith. I think that we did a lot of due diligence, and I thank SAP for really participating and working to be able to show us that RISE was the right solution for us. I have a saying with my teams that often we get confused with something that's hard and whether or not it's possible. Hard we can all sign up and say what do we have to do here to make this work. If we're debating whether or not it's possible, that can be a challenge. And I would just say RISE is totally possible. We're a five billion dollar business, we have several hundred legal entities, we have over 3,000 properties. So it's possible. I'll throw that on the table. And it's just a matter of how do you orchestrate your plans and marshal your resources to be able to get it done as your organization.
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Emily1:06:08
On behalf of this team, both a huge thank you to you Ellen and Chris for representing SAP and Selexion. Michael, could not send enough thank yous your way for taking the time out of your day to meet with us and to talk about your experience. For those of you who are watching at home, there will be a QR code if you'd like to learn more about SAP, S/4HANA RISE, and starting on that journey, or if you'd have any questions for us here at Selexion Consulting. And with that, go ahead and end today's session. But again, thank you everyone for joining and we really appreciate it. We'll talk to you soon.
C
Chris Rain1:06:48
Thank you so much. Now thank you Emily, thank you. Yes, great job Emily, great job Michael. Thank you.