Migros uses RISE with SAP on Microsoft Azure to harmonize its ERP system landscape

For decades, an IT landscape as varied as the Migros Group itself grew throughout the organization. Over time, the group’s federal structure made up of autonomous business units – including Denner, Migrolino, M-Industrie and the regional cooperatives – gave rise to a fragmented system landscape. On the ERP front alone, more than 40 productive and functionally separate instances of SAP were deployed – each with its own processes, configurations and interfaces. These installations were flanked by numerous auxiliary systems for data integration, development, testing, reporting and archiving. Such a heterogeneous system landscape made it hard work running the ERP environment, hindered collaboration within the group and kept the group from realizing its full digital potential. 

HR was a typical example: “In Payroll Accounting alone, we used nine different systems for wage accounting. That was expensive, inflexible and difficult to maintain,” explains Rainer Baumann, Group COO & CIO at Migros. “This organic system diversity really made life hard for us.” The managers therefore decided to treat ERP migration not just as a technical measure, but as a strategic lever to drive comprehensive transformation. The aim was to harmonize processes, get the IT landscape in shape for the future and enable a modern, data-based way of working across all business units. 

Strategic decision for RISE with SAP on Microsoft Azure 

To lay a sustainable, future-ready foundation for its ERP modernization drive, the Migros Group decided at the end of 2021 to migrate to RISE with SAP on Microsoft Azure. Technical stability and scalability are the cloud platform’s key strengths. At the same time, Microsoft, in the role of strategic partner, facilitates closely coordinated collaboration—a vital consideration for any company planning for the long term. “For us, Microsoft is more than just a hosting provider: It is central to our digital strategy,” notes Philipp Jud de Capitani, Head of IT Capability Unit Central Services at Migros. “Microsoft Azure gives us the flexibility and innovation capabilities we need for the next steps in our development trajectory—in AI and self-service analytics, for example.”

As a long-standing partner to the Migros Group, SAP too has actively accompanied the project alongside Microsoft. It provides the technology in the shape of RISE with SAP, but also closely supports the Migros Group regarding architecture, migration, and transformation.

Deploying RISE with SAP on Microsoft Azure gradually built up a central database with uniform standards. This lays the basis for enterprise-wide end-to-end processes and the sensible use of data for reporting, controlling and service delivery. At the same time, RISE with SAP on Azure is enabling step-by-step migration of the numerous SAP instances—an ideal solution for the Migros Group’s decentralized structure.

From the very beginning, the Migros Group, Microsoft and SAP worked together as partners—sharing a clear target scenario and defined roles. Architecture, roadmap, and management are all closely coordinated. Challenges are addressed head-on. This interplay between equals was and remains a crucial factor in implementing the project at speed, in an atmosphere of trust and with high quality. 

Governance and migration: Creating a structure but staying flexible 

One unique aspect of the Migros Group’s transformation is that it is not a classical IT project: “Responsibility has consciously been placed in the hands of the business side, with IT acting as a sparring partner and creating a framework—the platform, the methodology, and expertise—for successful implementation,” Baumann explains. “This clear role split is critical to both trust and the speed of the project.” Additionally, a lean, multi-tiered governance structure with defined roles and bodies ensures that decisions are well coordinated and taken quickly.

To drive technical implementation, the Migros Group combines a hybrid project strategy with agile methods and a standardized “migration factory” model: Migration teams work in accordance with predefined templates, following clear playbooks and automation processes that accelerate implementation but leave room for issues specific to each unit. Since the project kicked off, more than 86 individual systems have been successfully migrated to the RISE with SAP environment on Microsoft Azure in this way—roughly 85% of the entire volume. The remaining systems are now following in line with a carefully coordinated schedule or are being decommissioned as part of the SAP S/4HANA transformation. The rapid pace of implementation demonstrates that even complex transformation projects can be implemented in a heavily decentralized setting if a systematic and reliable approach is adopted. 

Accompanying change: Fostering acceptance 

Alongside technical implementation and the introduction of clear governance structures, successful transformation also depends on intelligent change management. The project team, together with the agile implementation teams, deliberately chose to closely involve the business units, adopt regular feedback formats and apply focused enablement measures. Right from the outset, one key concern was not to prescribe change but to allow people to experience it and see its effect. “We don’t want to centralize at all costs,” Jud de Capitani explains. “Our aim is to create standardized practices, but in such a way that the individual units retain responsibility, can identify with guidelines, and see for themselves the benefits of the new systems and processes.”

Systematically drawing on feedback from the individual teams regarding processes, tools, and challenges is an integral component of this agile approach. This feedback is analyzed regularly at iterative sessions and program increment (PI) events. It is then channeled into the continuous improvement process. This approach cultivates a structured dialogue that is instrumental in building trust and boosting acceptance of the new processes, systems, and ways of working in everyday practice. The resultant healthy balance between clear prescriptions and entrepreneurial freedoms has proven to be a crucial success factor in implementing the transformation. Those units that have already migrated are now reaping the benefits of greater transparency, faster processes, less dependency on the IT department, and smoother interfaces. 

Charting a course toward sustainable digital development 

For the Migros Group, ERP migration is about far more than merely switching to a new technology: It is the cornerstone of the group’s future innovation and sustainable growth. The new platform establishes centralized data flows and integrated process chains that enable advanced technologies—such as AI and self-service analytics—to be deployed. These tools will play a part in making processes more efficient, improving forecasts, and supporting well-founded decisions across the whole organization. Baumann puts it in a nutshell: “Technology should never be an end in itself. Our goal was always to use it as a tool that makes everyday life easier for our staff and strengthens the companies in the Migros Group in the long term.”

Migration is a challenging project that is rooted in close partnership and collaboration with Microsoft and SAP. The Migros Group never stops building on this foundation: Even when the migration is complete, it is already planning to work with the same partners to drive further innovation and enhance its own position as a trendsetter in sustainable growth and digital transformation in Switzerland.

The project ultimately shows how true partnership can create impact that reaches beyond technology itself. Roger Altorfer, Customer Success Lead at Microsoft, emphasizes: “The Migros Group demonstrates how consistent digitalization and true partnership can drive sustainable innovation. Together with SAP, we have created a platform on Microsoft Azure that sets new standards while leaving room for individual needs. The project exemplifies how Swiss companies are shaping their future with a clear vision and trust in technology.”

Federation of Migros Cooperatives 

The Migros Group is the oldest retailer and one of the foremost corporate groups in Switzerland. Organized along cooperative lines, it brings several divisions together under one roof—from conventional Retail through Industry and Logistics operations to Financial Services, Education, Health, and Leisure. A workforce of nearly 100,000 people, a broad regional base, and a strong focus on sustainability, digitalization, and social commitment have for decades made the Migros Group instrumental in shaping the economic and social life of the entire country.