Operating Excellently: Why a Comprehensive EAM Assessment Is Crucial Before Migrating to SAP S/4HANA

Don’t Just Migrate—Transform

Imagine investing in a powerful new system like SAP S/4HANA, only to find that the same inefficiencies, data issues, and process gaps from your old environment have followed you into the future. This is the reality for many organizations that migrate without first assessing their Enterprise Asset Management (EAM) landscape.

Addressing these issues post-migration can be significantly more expensive and is often delayed by shifting priorities. Therefore, a comprehensive assessment of processes, data, and systems before embarking on the journey to S4 HANA is vital to ensure a successful transformation.

At the heart of this assessment is a deep dive into the building blocks of your asset management function: master data technical objects, work management processes, and supply chain opportunities. Organizations such as Assethive, a collaborative of 5 EAM SME organizations, conduct these EAM assessments to identify gaps in Policy, Process, Standards, Procedures, system configuration, education, and training. The end goal is always the same—to help organizations Operate Excellently by managing risk, controlling costs, and becoming as effective and efficient as possible.

Defining “Operating Excellently”

While “operational excellence” has long been a common pursuit, the term sometimes feels relegated to the past tense—something an organization once strived for and perhaps never quite achieved. “Operating Excellently,” in contrast, reflects an ongoing, positive sense of accomplishment and continuous improvement. It’s not just a static benchmark but a mindset woven through the fabric of everyday decision-making.

To Operate Excellently, organizations must have a clear asset management strategy that outlines how to bridge the gap between the current state of operations and the envisioned future. Yet the word “strategy” can be misunderstood. As the Harvard Business Review explains, a strategy is essentially a set of guiding principles that inform decision-making and resource allocation across the organization. It should offer a clear roadmap by defining the actions to take—and those to avoid—to achieve desired goals.

Strategy Definition and Framework

AssetHive’s approach to strategy development utilizes an “Intellectual Capital Hierarchy Framework,” which helps organizations create a unified language and clear definitions
for terms like vision, strategy, policy, process, standard, and procedure. The framework starts with
five critical questions that guide leadership thinking:

1. What are the broad aspirations for the organization and the concrete goals against which progress can be measured?
2. Where will the organization choose to execute and implement these strategic actions, among the potential departments, facilities, or sites available?
3. How will the organization succeed against competing forces or constraints in those chosen areas?
4. What capabilities are necessary to build and maintain to succeed in the chosen manner?
5. What management systems are essential to operate and support the key capabilities?

Addressing these questions helps ensure clarity of purpose and fosters alignment among different levels of the organization. These are not just executive-level questions; they can be tailored to any organizational layer to drive consistent and unified understanding.

The Power of Alignment

Alignment is only possible when everyone speaks the same language and understands the nuances of key terms. This is where the intellectual capital hierarchy—vision, strategy, policy, process, standard, procedure—comes into play. Standards, in particular, provide clear benchmarks and minimum quality requirements that must be met before measurement and continuous improvement can meaningfully occur. Without commonly understood standards, data is often incomplete, and metrics lose credibility.

Here is the perfect example of data being entered with the best intentions but not accurate enough to measure results or performance accurately:

Why Assess First, Then Migrate

When organizations decide to migrate to S4 HANA without thoroughly evaluating their EAM landscape, pre-existing inconsistencies, incomplete data, and inefficient processes are simply transplanted into the new system. These inconsistencies then lead to subpar outcomes, confusion among users, and costly remediation projects down the line. In contrast, a structured pre-migration assessment uncovers:

Policies, Standards, and Procedures

Ensures that foundational documents, guidelines, minimum requirements, and quality benchmarks are valid, up-to-date, and well-understood across the organization.

Data Quality Issues

Identifies inaccuracies or duplications in master data and technical objects, enabling corrective actions before migration.

Process Inefficiencies

Highlights work management bottlenecks and suboptimal workflows, paving the way for leaner, more efficient operations.

Supply Chain Gaps

Exposes opportunities for streamlining inventory management, procurement, and logistics to reduce waste and improve service levels.

Education and Training Needs

Pinpoints gaps in user proficiency, enabling targeted education programs that ensure staff can fully leverage S4 HANA’s capabilities.

By reviewing current systems, published standards, job aids, and interviews with key personnel, organizations gain clear visibility into where they stand today, where they want to be tomorrow, and the steps needed to bridge that gap. This assessment sets the stage for S4 HANA to be leveraged fully—rather than becoming just another platform that fails to meet its promise.

Conclusion

A comprehensive EAM assessment before migrating to SAP S/4HANA isn’t just a checklist item—it’s a strategic safeguard. It ensures that your investment in new technology delivers real, sustainable value.

By aligning leadership vision, organizational strategy, and operational standards, you create the conditions for a smoother transition and a culture of continuous improvement. Before you migrate, ask yourself: Are we truly ready to Operate Excellently? If not, now is the time to assess, align, and act.