ÎÚÑ»´«Ã½

The Dutch Ministry of Defence is modernizing its operations with the implementation of SAP S/4HANA. Thanks to a unique collaboration between three partners—ÎÚÑ»´«Ã½, CGI, and Ordina—seven out of eight Lines of Business will have successfully migrated by the end of 2025.

This new ERP system enhances the efficiency and effectiveness of logistical and financial processes, supporting 17,000 users across 60 locations worldwide. As a result, the Ministry of Defence is better prepared for future missions and exercises.

The challenge

For many years, the Ministry of Defence has relied on SAP to support its logistical and financial operations. SAP ensures that the right supplies are procured, warehouses are stocked, and units are supplied. It enables maintenance on weapon systems and ensures timely and efficient transportation of goods to users. Additionally, SAP handles the complete financial accountability of the organization.

However, ERP systems like SAP must also evolve to keep pace with a world driven by digitalization. SAP S/4HANA is a modern ERP solution with a high level of user-friendliness, offering smart and innovative functionalities to enhance usability and information management. It is also ready for further development. This solution supports the Defence Vision 2035 and addresses the Ministry’s current challenges.

Since the Ministry’s operations depend heavily on SAP, a controlled approach was chosen for the transformation. The Ministry must be fully transitioned by the end of 2025, as SAP will discontinue support for the old platform by then. The risk of maintaining an unsupported system was deemed too great for operational continuity.

The solution

In July 2022, the Ministry of Defence decided to convert its on-premises SAP system to SAP S/4HANA. While the system was technically upgraded to S/4 HANA after the conversion, users continued to see familiar interfaces, ensuring minimal immediate impact. This transition approach will remain in place until the end of 2025, after which all users will fully operate on S/4HANA.

The transition period is being used to standardize, optimize, and implement business processes within S/4 HANA. The Ministry has divided the program into eight Lines of Business, each further subdivided into multiple sub-projects.

Recognizing the complexity of the project, the Ministry understood that no single market party could execute the entire transformation alone. Instead, it invited market players to form consortia capable of covering the full scope. It left the organization of these consortia to the suppliers.

ÎÚÑ»´«Ã½, CGI, and Ordina formed a single team that proved to be the most successful. The major advantage of this collaboration is that all three partners have worked closely with the Ministry for many years and are trusted partners. By pooling their expertise, they strengthened their capabilities, always assembling the best possible team by combining talent from all three companies. This approach led to success, with seven out of the eight Lines of Business awarded to this consortium.

The collaboration is deeply integrated at all levels of the organization. The consortium works closely with both program management and various project teams, maintaining direct engagement with the Ministry’s IT department and end users. This ensures a better understanding of requirements and a smoother implementation process.

The benefits

The Ministry of Defence prescribed a project methodology known as Roger Activate based on the standard SAP methodology but tailored to the Ministry’s needs. Within this framework, the consortium is responsible for the entire process, from system architecture to implementation and post-go-live support (end-to-end delivery). The consortium provides all necessary expertise to ensure a seamless transition and takes full responsibility for the program’s success, including all integration challenges.

The impact

Although the Roger program is still ongoing, the results so far have been positive. Sub-projects are being delivered on time and to the full satisfaction of the Ministry of Defence. Users appreciate the new interfaces and optimized processes. The first large depots are now running on S/4HANA and report significant improvements in their operations.

With 17,000 users across 60 locations in five time zones, the S/4HANA implementation impacts everyone. This modernized ERP system enables processes to be carried out more efficiently and effectively. It allows the Ministry of Defence to plan, prepare, and execute missions and exercises more effectively. As State Secretary Christophe van der Maat noted in his feedback on the AcICT report, these improvements are particularly valuable in times of heightened security threats.

SAP S/4HANA also supports the strategic goals of the Ministry of Defence. The system contributes to a more data-driven operational model and improves interoperability with NATO partners. Additionally, by adopting more standardized processes and reducing the need for custom solutions, the platform allows for greater agility in adapting to future changes.

This transformation program could not succeed without strong partners who are fully committed to achieving the Ministry’s objectives and timelines. While there is still work to be done, the project is well on its way to delivering a successful outcome and a promising future.