Issue

A decision is required as to whether to transition Treasury operations from Quantum to SAP S/4HANA, and whether a change in scope should be requested in order to bring Treasury operations into the ERP Project.

Recommendation

Background & Context

Quantum

Quantum is an application owned by FIS, as is a common application in the market to manage Treasury operations.

The Quantum system was implemented for Treasury operations in 2023 ????, and the existing 5 year license expires in 2028????.  

• The Treasury organisation are unsatisfied with the Quantum system functionality and the support from FIS is also unsatisfactory.
• Dissatisfaction with FIS, the supplier of Quantum, due to operational challenges and support issues.
  The current treasury processes are heavily reliant on manual interventions and face significant challenges due to system limitations and supplier issues.
   

S/4HANA

The Treasury Operation modules in S/4HANA are;

1. TRM: Treasury Risk Management
2. CM:  Financial Cash Management

A scope review was performed to determine whether S/4HANA has the functionality to manage Syensqo Treasury activities. The outcome of the review highlighted that SAP has a high fit level, along with the opportunities to make improvements. 

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License Costs

Quantum

SAP ECC (existing Licenses utilised by Treasury)

S/4HANA

• TRM License Cost:  300k upfront, plus 73k annual maintenance fee.
• CM License Cost: 

Implementation Costs

Quantum: Cost to improvement and close gaps

S/4HANA Implementation Cost
Example:   3.5 FTEs over 36 months.

Assumptions

Additional review and assessment will be conducted for the implementation timing after the decision of the KDD is concluded.  However, it is assumed that if Treasury operations are to transition to S\4HANA, it will likely occur beyond the group 1 go-live.  

Constraints

Impacts

If Treasury operations are to transition to S\4HANA, the intercompany loans will transition fully to TRM.  There is an integration impact on IHB, and the associated loans with the affiliates. 

Business Rules

Not applicable at this point of the decision making process

Options considered

Option A: Continue Treasury Operations activities in Quantum as-is

Option B: Continue Treasury Operations activities in Quantum, but set-up a project to improve the functionality

Option C: Transition from Quantum to S\4HANA as part of the ERP Rebuild project 

Option D: 

Evaluation

	Option A	Option B	Option C	Option D
Criterion 1	Pro Con	Pro Pro	Pro Con	Pro Con
Criterion 2	Pro Con	Con	Pro Pro	Con Con
Criterion 3	Pro	Con	Con	Pro

See also

Change log

Workflow history