SAP S/4 HANA migration might sound like a huge project, but if well planned, it does not necessarily have to be. In this blog article, you will be outlined how to migrate to SAP’s next-generation ERP system in an outlined and efficient way. Learning how to plan your system landscape or how to enhance your data and procedures will be discussed as the key factors at each stage. If it is your first time to encounter S/4HANA, or even if you have already laid down a migration strategy, this book will guide you through the roadmap.
A Step-by-step Process for SAP S/4HANA Migration
Changing to SAP S/4HANA remains a business priority for many companies and evidence, with 77% of SAP users expecting to adopt it by 2027. Here, the core phases and activities of every migration are described in detail with clear steps.
Preparation Phase:
The preparation step is evidently fundamental to the realization of a successful SAP S/4HANA migration. This phase’s key activities are as follows:
Data Analysis and Classification
- Data should also be dissected based on the hot, warm, and cold categories to improve information migration.
- Decide on the terabyte capacity of data to be migrated from the system of record, the SAP ECC, to the SAP S/4HANA.
Data Cleansing
Improve data quality, precision, and reliability using techniques like:
- Duplicate removal
- Data Standardization
- Data Validation and Enrichment
- Error correction
- Readiness Check
Use the SAP Readiness Check tool to:
- Analyze the present system.
- Identify the simplification components.
- Detecting custom code issues.
- Assess the amount of data and observe business procedures.
The Migration Approach
Depending on your present SAP deployment, there are three basic migration strategies:
Greenfield Approach (New Implementation)
- Re-implement the whole ERP infrastructure based on SAP S/4HANA.
- It is recommended for organizations that still have old, complex, and unstandardized SAP systems and platforms.
Brownfield Approach (Full Migration)
- Ensure that you continuously have distinct apps, routine processes, and data formats.
- Transform and transport processes to the S/4HANA system.
- It is most suitable for organizations that are fully committed to the implementation of the SAP application package.
Hybrid Approach (Migrate and Then Convert)
- It encompasses converting the native SAP ECC system to the cloud and then converting to the ERP S/4HANA. This enables organizations to leverage the cloud infrastructure while following a more systematic approach and migrations to the new S/4HANA platform rather than disrupting the organization’s ecosystem.
Post Migration Process
After successfully migrating to SAP S/4HANA, enterprises should prioritize the post-migration activities. After the migration, organizations should ensure, manage, tune, and transfer to the internal IT or an external vendor, such as an ERP consultant.
Brownfield Migration: Key Steps
For organizations that choose the brownfield method, the important steps are:
Technical Preparation
- Unicode Compatibility, ISS, DNSSEC, Dual Stack Split, and updates of the Database.
- Carry out a limited planning phase in an attempt to establish the necessary skeleton for the project.
Technical Conversion
- Software Update Manager (SUM) needs to be installed in the system.
- The master and transactional data have to be migrated into the new data model.
Perform Go/No-Go Validation on the Developed System
Complete other operation activities like tuning up the coding and customization of the device.
- Post-migration Activities
- Address concerns and events.
- Manage change requests.
- Make improvements in the system and pass on the help to the internal country IT division or outsourced provider.
Greenfield Migration: Key Steps
For enterprises choosing the greenfield approach, the key steps are:
Discovery and Research
- It is necessary to identify the existing gaps in the SAP deployment.
- Know how S/4HANA can support those gaps and create ROI
- Engage the whole company to align existing practices with features of S/4HANA
Implementation and Migration Team
- The project’s chief strategist should be appointed to a cross-functional team with top management support, a project coordinator should be assigned, and other technical staff needed for the project’s implementation should be hired.
Dig into S/4HANA and Its Contemporary Approaches
- Outline the ways that the new features of S/4HANA can enhance the process arrangements.
- Test Run, Identify, and Record the Current SAP Business Processes
- Simplify, automate, and reconstruct existing business processes.
Build Custom Configuration
- Take advantage of S/4HANA to develop Fiori applications, CBOs, and ABAP codes.
Hybrid Approach (Migrate and Then Convert): Key Steps
Here are the main necessary steps:
- External System Analysis: Opinion of the current SAP ECC system and the possible issues therein.
- Cloud Migration: Improve SAP ECC system applications by transitioning the SAP ECC system to the cloud.
- Technical Conversion: To migrate from the cloud-based implementation of the Entire Current Costing (ECC) system to the SAP S/4HANA.
- Data migration: Master and transactional data of SAP ECC must be exported from the cloud-based SAP ECC system to SAP S/4 HANA.
- System Validation: Exercise the system and finalize the go/no-go decision.
- Post-Migration Activities:
- Report to the client and resolve complaints or problems.
- Implement change requests.
- Fine-tune the system.
- Offer change management.
Conclusion
SAP S/4HANA transition is a systematic process that requires suitable tools and methods to manage. The following provides an understanding of how organizations undergoing the implementation of SAP S/4HANA can ensure a successful change. 80% of the companies reported enhanced business value after the transition.