Multinational S/4HANA Hybrid Conversions
Magna International operates hundreds of plants and development centers worldwide – many of
them running on legacy SAP ECC systems. Harmonizing these heterogeneous structures while simultaneously
transitioning to SAP S/4HANA was one of the company’s greatest challenges.
According to Horváth Consulting (2025), around 60 percent of companies fail to complete their
S/4HANA conversion within the planned time and budget. All the more remarkable is that Magna,
together with msg Plaut, successfully executed several multinational hybrid conversions: existing
systems were modernized, outdated structures cleaned up, and central processes harmonized across
divisions – on time, within budget, and with the highest quality.
Initial Situation and Challenges
Magna’s evolved ECC landscape was characterized over the years by fragmented processes, inconsistent financial structures, and heterogeneous master data. The need for action was particularly urgent in finance: transparency and comparability could only be achieved through a harmonized chart of accounts, consistent VAT logic, and standardized reporting structures.
The automotive industry also posed specific requirements: Just-in-Time and Just-in-Sequence production, self-billing, returnable packaging management, and end-to-end traceability had to be seamlessly integrated with third-party systems, MES, mobile applications, and EDI interfaces.
Additionally, the project’s scale was immense: multiple countries, plants, and corporate units were to be converted to S/4HANA simultaneously in a Big Bang approach. Such a step demands absolute precision – in project management, data quality, and technical execution.
Approach and Implementation
To align stability and innovation, Magna and msg Plaut developed a transformation strategy based on a hybrid Bluefield implementation with Selective Data Transition. This approach combined the benefits of proven ECC structures with modernization and unification of the system landscape.
At the heart of the program was comprehensive cleansing and harmonization of master data. Only current, relevant data was migrated to ensure clarity and system performance. Legacy data was deliberately excluded. In parallel, existing system settings were selectively adjusted, code modifications made, and processes redesigned where needed – resulting in a transformation that delivered both technical and functional quality improvements.
msg Plaut assumed end-to-end responsibility: from fit-gap analyses, data migration, and testing to cutover management, training, and hypercare. Supported by strict governance, reusable rollout playbooks, and close-knit quality controls, a methodology emerged that balanced multinationality, complexity, and speed.
„With msg Plaut, we successfully executed complex SAP S/4HANA conversion projects across multiple countries, ledgers, and Magna plants. msg Plaut mastered the demanding integrations, financial harmonization, and cutover management – ensuring our operations scale with speed and consistency."
Anja Grau, Director Technologies & Security, Magna Seating Europe
Results and Added Value
The program resulted in a standardized, scalable, and high-performance ERP core based on SAP S/4HANA. Today, Magna plants benefit from consolidated transparency, harmonized financial structures, and reliable real-time data. Processes now interlock seamlessly from order to production to controlling, data quality has significantly improved, and operational efficiency has noticeably increased.
Most importantly: while the Horváth study shows that most companies fail to complete their conversion projects within the planned time and budget, msg Plaut and Magna delivered on schedule, within budget, and at the highest quality. This not only achieved internal goals but also created a clear market differentiator.
References – Magna Hybrid Conversions
- Magna Seating Europe: Hybrid-S/4HANA-Conversion, Big-Bang-Go-Live an 15 Standorten in CZ, PL, ES, DE, TR, RS (2023–2024, 13 Monate)
- Magna Exteriors Bohemia: Hybrid-S/4HANA-Conversion, Big-Bang-Go-Live an 3 Standorten in CZ und DE (2023–2025, 16 Monate). Zusätzlich hat Magna Exteriors Bohemia den Rollout von SAP Extended Warehouse Management (EWM) als Folgeprojekt gestartet, um die Logistikprozesse weiter zu optimieren. Dieses Programm ist derzeit im Gange.
- Magna Exteriors Europe: Hybrid-S/4HANA-Conversion, Big-Bang-Go-Live an 17 Standorten in DE, TR, PL, RO, UK, FR (2024–2025, 13 Monate).
Conclusion
Global industrial companies don’t need radical reinvention – they need orchestrated transformation: the balance between stability and renewal. This is exactly where msg Plaut excels. With decades of experience in international large-scale projects, deep industry expertise in automotive, and a proven hybrid Bluefield approach, msg Plaut ensures even the most complex conversions succeed.
SAP S/4HANA thus becomes not just a new ERP system, but the resilient operating system of the enterprise – stable, future-proof, and ready for innovation.