A comprehensive guide to transition from SAP ERP to SAP S/4HANA

Introduction

Organizations looking to update their SAP enterprise resource planning (ERP) systems, switching to SAP S/4HANA, the company's next-generation ERP suite, is a wise strategic choice. This blog offers guidance on how to move from SAP ERP/ECC to SAP S/4HANA. Covering migration approaches, the best Strategies/Success factors to transition to SAP S/4 HANA, Pre-Requisites, business values and benefits, insights into data migration, code remediation, testing Strategies, Challenges, and conclusion.

Why should we go from SAP ERP/ECC to SAP S/4HANA?

The free support for SAP ECC 6.0 will expire at the end of 2027. The extended assistance will finally expire at the end of 2030, three years later, and there will be an additional payment. Also, your digital transformation path would be limited if you didn't migrate to S/4HANA, which would put you at a competitive disadvantage.

Transitioning/Migrating to SAP S/4HANA offers numerous benefits/Advantages:

• Enhanced Performance, user Interface and New Features: Faster processing speeds with the in-memory HANA database. The FIORI-based interface enhances usability and productivity. Key New Features like ACDOCA (Universal Journal), MATDOC (Inv Mgt), GTS, EWM, FSCM, RAR and Others
• Real-Time Analytics and Advanced Capabilities: Improved decision-making with real-time immediate data insights.
• Simplified Architecture/Data Models: Reduced complexity and improved efficiency with a simplified data model by minimizing data redundancy.
• Future proofing: Ensuring your ERP system stays current with future technological advancements

How Many SAP S/4 HANA Migration Approaches in the current Market (2024)?

Transition approaches to SAP S/4HANA ?

Which Transition Approach to Choose that suit to your Business Strategy?

High Level Comparison on SAP S/4 HANA Approaches (Simplified – Source SAP)

The best migration approach is defined by system limitations, process optimization objectives, budget, and time constraints, as well as focusing on customization retention. In my opinion, adopting brownfield technique is recommended for organizations with significant SAP expenditures to facilitate a seamless transition. Bluefield's selective data transition (Shell Approach) in my opinion, allows enterprises to preserve and improve their current systems.

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Success Factors for SAP S/4HANA Migration and the full value from your SAP S/4 HANA Investment?

1. Analysis of customized code, assessment of data quality, and readiness check
2. Prioritization Preparation: Invest time First and Start slower for faster progress
3. A clear project plan with assigned tasks, due dates, and milestones
4. Early stakeholder participation/involvement and regular communication – Build Critical alignment between Business and IT and avoid Re-work
5. Approval: Move forward only after relevant Stakeholders Approve the Integrated plan – Key to success to Migration and get their buy-in and Save valuable time
6. Engage your best staff to take care of the SAP?S/4HANA Migration?adoption
7. Specify/Define your?SAP?S/4HANA KPIs, Migration Aim/Goals (How much less time you're spending on invoicing compared to the target)
8. Examining and mapping current business processes to S/4HANA, to Ensure Comprehensive Plan
9. Tools and technology for automation that hasten the migration process
10. SAP S/4HANA Migration Cockpit, which provides predefined migration items
11. Automate your testing: Robotic Process Automation technologies such as UiPath to ensure accuracy and consistency
12. Proper Test automation reduces testing cost and time like Frameworks for SAP Solution Manager that reduce the need for manual testing
13. Don’t test too much:? Testing of Key business process (Month-end, Qtr-End, Year-End closing). Out of Thousands test, 30 are crucial and others don’t require daily attention
14. Adopting Abraham Lincoln's advice: "Give six hours to chop down a tree, spend the first four sharpening the axe."?

Prerequisites for Migration – Planning and Assessment

• System Requirements and Readiness Check: Ensure hardware and software compatibility (Latest upgrades, ready for the Migration) with SAP S/4HANA.
• Data Archival Prior Migration: Data Analysis (Hot, Warm and Cold Data)
• Business Readiness and Fit-Gap Analysis: Align organizational goals (Key Process/areas) with the migration strategy along with risks
• Data Preparation: Cleanse and standardize data for smooth migration.
• Custom Code Review: Identify and assess customizations for compatibility.
• SAP Support: Ensure active SAP support and maintenance agreements.

Preparation of Source System

• System Assessment: Conduct a detailed assessment of the current SAP landscape.
• Data Cleansing: Cleanse and harmonize data to ensure accuracy during migration.
• Infrastructure Upgrade: Upgrade hardware and software to meet SAP S/4HANA requirements.

Data Migration

• Data Migration Strategy: Develop a detailed plan for migrating data.

The SAP S/4 HANA Migration Cockpit is a new tool designed for migrating data towards SAP S/4HANA, specifically for SAP S/4HANA Cloud ES (essentials edition). It is the only tool available for this migration.?

To ensure efficient data migration, use tools like SAP Data Services (SAPDS/BODS) and Migration Cockpit, as well as SAP Data Services and accelerated database migration. LSMW (Localized SQL Migration Tool) is also a useful tool for specific data-objects. Data validation is crucial to ensure consistency post-migration.

?Database Migration Option (DMO) of Software Update Manager (SUM) – Analyze and take experts guidance SAP Landscape Transformation Replication Server (SAP SLT) – Small companies, Its transformation capabilities are limited.

https://www.sap.com/documents/2017/07/26113ac0-c47c-0010-82c7-eda71af511fa.html https://help.sap.com/viewer/29193bf0ebdd4583930b2176cb993268/1709%20000/en-US

The available migration objects can be found using the following link: https://help.sap.com/viewer/29193bf0ebdd4583930b2176cb993268/1909.000/en-US https://launchpad.support.sap.com/#/notes/2287723

Data Validation: Validate data accuracy post-migration to ensure consistency.

Custom Code Management

• Custom Code Analysis: Identify and analyze custom code in the current system.
• Code Adaptation: Adapt custom code to ensure compatibility with SAP S/4HANA.
• Testing: Test adapted code to ensure it functions correctly in the new environment.

Testing Strategies and Validations

• Unit Testing: Validate individual components.
• Integration Testing: Ensure different modules and integrations work together.
• Regression Testing: Verify new changes do not impact existing functionalities.
• User Acceptance Testing (UAT): Engage end-users to validate the system.

Challenges

• Data Migration Issues: Ensuring data consistency and accuracy
• Customization Compatibility: Adapting customizations for SAP S/4HANA
• Integration Complexity: Managing integrations with other systems
• Change Management: Ensuring user adaptation to new processes, Customization, and compatibility issues
• Testing Thoroughness: Identifying and resolving potential issue
• Lack of Expertise: Build in house, which may hinder the Migration process and Cause delays

Conclusion

Migrating to SAP S/4HANA is a strategic move that can boost ERP capabilities. Organizations that implement S/4HANA can reap tremendous benefits, but it is critical to recognize and minimize usual challenges?to?ensure a smooth migration. A well-planned approach that involves planning, execution, and testing could?avoid interruptions while also unlocking advantages such as increased performance, cost savings, and operational capabilities. Organizations may achieve their goals, make significant improvements to their operations, and boost their chances of future growth.

Disclaimer: These are my opinions and beliefs based on my experiences. For further information, please contact the SAP Product Team and SAP Partners.