ERGO: A harbinger of
S/4 HANA transformation

Goal

Fast and complete migration of collateral management from Loans Management to Collateral Management.

Products used

• S/4 HANA
• Loans Management
• Collateral Management

Setting the scene

The starting point

SAP S/4 HANA transformations are truly major projects. And even if it doesn’t look like it at first glance, time is pressing: SAP only guarantees standard support for the predecessor solutions, such as SAP ECC, until the end of 2027.

The transformation is therefore inevitable, so the first preparatory measures should be tackled now at the latest. For example: the replacement of collateral management within Loan Management and the transfer of the data stock to Collateral Management. The migration of data is therefore an essential step towards S/4.

SAP Fioneer’s Collateral Management is a comprehensive solution for the management and monitoring of collateral used by financial service providers to secure loans – for example, real estate, goodwill or securities.

The problem

The clock is ticking

As one of the largest insurance groups in Germany and Europe, ERGO was also confronted with the impending migration: over 180,000 data elements had to be moved – without affecting ongoing processes, of course.

The solution

Close collaboration and well-considered steps

SAP Fioneer and ERGO worked together and in close coordination for a total of 16 months on the migration, which faced a number of challenges despite good preparation.

The complex legacy data in the areas of real estate, insurance and mortgages had to be automatically cleansed and consolidated. It also became apparent that a number of functional enhancements were necessary, such as adding additional master data fields for mortgages in Collateral Management.

The adjustments, which were provided either by BDT development (Business Data Toolset, the central control system for maintaining master data) or as customised SAP Fioneer development, were already used during the migration and are now also mapped in the standard functionality of Collateral Management. The same applies to processes that ensure that data provision from Collateral Management to the insurance reporting system (FS-SR) is error-free.

Thanks to the close collaboration between SAP Fioneer and the ERGO IT department, all challenges were successfully overcome: requirements were identified in fit-gap workshops, solution designs were developed and the system configuration for Collateral Management was carried out, while delivery objects were continuously harmonised in order to ultimately complete the migration efficiently.

The outcome

A solid basis for the next steps

By switching mortgage collateral management to Collateral Management, ERGO now has access to a much more comprehensive and standardised data basis and will be able to manage both simple and complex collateral constellations in the rental housing, large-scale financing and standard business areas more effectively in future. The data for the respective entities can be managed by Collateral Management in SAP and third-party systems and retrieved for analysis and reporting purposes, for example to comply with reporting standards such as the Basel II regulations.

“We worked hand in hand and became a close-knit team over the course of the project, which was a key success factor,” comments Annemieke Runge, the main project manager at ITERGO”. “With the successful migration of collateral management to Collateral Management, ERGO is now ideally equipped for the upcoming S/4 transformation.”