As our latest study on SAP S/4HANA transformations in practice shows, most companies struggle to stay on schedule and within budget during the transformation. Not so for the E.G.O. Group: in an ambitious project, the supplier of household appliances successfully migrated its operations, including 23 sales and production companies in 19 countries, to the new ERP system. In this interview, Dr. Karlheinz Hörsting, CEO of the E.G.O. Group, shares the secret behind their project discipline. He also explains why a shift in approach is not a “deal-breaker” and highlights the critical importance of early, professional change management in such a large-scale project.
The E.G.O. Group has already successfully transformed to the new ERP system SAP S/4HANA. What were the main objectives of the transformation?
HÖRSTING With the introduction of SAP S/4HANA in 2024, we pursued two key goals for the E.G.O. Group (E.G.O.) at 23 development, production and sales locations in 19 countries. Firstly, with the new ERP software solution, we created a future-proof, technical system basis that will serve as the foundation for all digital expansions and future technical developments. Secondly, we aimed to implement standardization in SAP processes to the greatest possible extent.
What is your initial assessment, what expectations have been met or not met?
HÖRSTING The initial assessment is very positive. We successfully implemented SAP S/4HANA within the specified timeframe and budget, and were fully operational at the go-live. I have to commend our employees and everyone involved in the project for their outstanding efforts. We are still diligently working on the standardization measures. The risk simply would have been too high to introduce SAP S/4HANA across 20 company codes simultaneously while changing all processes and workflows at the same time.
When introducing S/4, the question of the approach, such as greenfield or brownfield, arises very early on. Which approach did you choose, and how did it influence the project’s success?
HÖRSTING Initially, the Steering Committee approved a comprehensive greenfield approach, i.e. the revision and standardization of all company processes, including global production processes. However, during the subsequent detailed conceptualization, it became clear that the desired scope of change would not have been feasible within a period of less than two years and with the existing resources due to the complexity. Consequently, the project managers adopted a hybrid approach as an alternative. This resulted in some aspects being implemented using the brownfield approach and others using the greenfield approach.
You completed the SAP S/4HANA transformation on time and within budget. What were the most important success factors and what were the biggest challenges in the project?
HÖRSTING There are many success factors in the implementation of a project. I would like to highlight the following: you need a motivated core project team that is always solution-oriented. That was clearly one of our success factors. Depending on the situation, you also need the necessary expertise from within the organization or from outside. Of course, we also called in this expertise when necessary. And the project managers have to make sure that the focus is always on the schedule and achieving the defined goals. That was also the case.
According to the project managers from our organization, Pia Müller and Andreas Hohmann, the greatest challenges were the diversity and complexity of the processes within the E.G.O. Group and the tight schedule of around 28 months. However, the project management and team rose to these challenges and mastered them with flying colors!
What do you see as the most important tasks for management in the course of the SAP S/4HANA implementation?
HÖRSTING In management, it is crucial to keep an eye on the big picture during such an implementation and, of course, to always make project decisions in the interest of the company as a whole. It is also important to remember that such a project involves significant changes to company structures and processes, which impact the way many employees work. Therefore, it is essential to establish an effective change management system and to continuously provide comprehensive and consistent information as well as intensive training on a broad scale.
Last but not least: What advice would you give to other CxOs considering a similar journey?
HÖRSTING One of our most important tasks in company management and on the steering committee was to give our project managers and project team members unwavering trust and support. Additionally, we consistently emphasized the importance of adhering to the schedule within the organization and made it clear how critical the ERP conversion to SAP S/4HANA is for the future success of the E.G.O. Group. This year, the E.G.O. Group can proudly look back on 100 years of company history, and our new S/4 ERP is a key milestone for another successful 100 years!
About Dr. Karlheinz Hörsting
Dr. Karlheinz Hörsting is CEO of the E.G.O. Group and a member of the Management Board of BLANC & FISCHER Familienholding. He previously held the role of COO for many years, initially at the E.G.O. Group and later at BLANC & FISCHER Familienholding.
About the E.G.O. Group
The E.G.O. Group, headquartered in Oberderdingen, Baden-Württemberg, is one of the world's leading suppliers to the global household appliance industry and specializes in applications in the areas of food preparation, induction cooking, laundry care, dishwashing, refrigeration and air conditioning solutions. E.G.O. employs around 5,300 people worldwide in 23 sales and production companies in 19 countries. The E.G.O. Group is a member of the BLANC & FISCHER family holding company.
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