Businesses are increasingly adopting SAP S/4HANA as the foundation for their intelligent enterprise. With its innovative capabilities and streamlined functionalities, the S/4 environment offers organizations unprecedented opportunities to drive growth, enhance operational efficiency, and embrace innovation. Let’s explore the new system, its functionalities and the overall S/4HANA migration process.
What is SAP S/4HANA?
SAP S/4HANA stands for SAP Business Suite 4 SAP HANA. The “S” in S/4HANA represents “Simple,” indicating the simplified data model and user experience it offers compared to its predecessor, SAP ECC. The “4” in S/4HANA signifies the fourth-generation business suite developed by SAP. Lastly, “HANA” refers to the in-memory computing platform developed by SAP, which serves as the underlying technology for S/4HANA, enabling real-time data processing and analytics capabilities.
The advanced ERP software suite serves as a successor to the traditional SAP ERP Central Component (SAP ECC), offering enhanced functionalities and capabilities through its in-memory computing platform.
Ultimately, the adoption of SAP S/4HANA can help organizations gain a competitive edge in today’s rapidly changing business landscape. But that is not the only reason why the new system’s adoption is seeing an increase in adoption of 18% each year. SAP users utilizing Business Suite 7’s ECC have the deadline of December 31, 2027, to transition to S/4 HANA. After that, SAP will solely offer maintenance services for older systems with an additional 2% premium, in addition to the existing 22% support fees. SAP also has a plan to stop supporting SAP ECC after 2030, making the change and implementing SAP S/4HANA prior to the deadline crucial for organizations to future-proof their businesses.
The S/4HANA Migration Process
The migration process is the actual transition of an organization’s existing ERP system to the SAP S/4HANA platform. The migration involves converting the underlying database, adapting customizations, re-implementing functionalities, transferring data to the new system, and all the steps in to ensure quality and consistently in the database.
The migration to SAP S/4HANA presents organizations with an opportunity to transform their business processes. However, it is a complex undertaking that requires careful planning, expertise, and collaboration between business and IT teams. Engaging with experienced SAP consultants and implementation partners, can greatly facilitate the cloud migration process, ensuring a successful transition to SAP S/4HANA and unlocking the full potential of the organization’s IT investments.
When considering switching to SAP S/4HANA, companies can adopt different migration approaches based on their specific requirements and circumstances. Here are some common types of ERP migration approaches:
- Greenfield Implementation: In this approach, the company starts with a fresh installation of SAP S/4HANA. It involves implementing SAP S/4HANA from scratch without bringing over any historical data or configurations.
- System Conversion: Also known as brownfield conversion, this approach involves converting an existing SAP ERP system to SAP S/4HANA. This approach allows organizations to retain their existing business processes and reduce the impact on users.
- Landscape Transformation: This approach is suitable when an organization wants to restructure its existing system landscape during the migration to cloud. It involves consolidating multiple SAP systems, splitting a large system into smaller ones, or merging different instances into a single SAP S/4HANA system.
- Hybrid Approach: Some organizations may choose a combination of greenfield and brownfield approaches, depending on their business needs. This allows companies to balance the benefits of a fresh implementation and the continuity provided by the existing system.
The S/4HANA migration represents a pivotal moment for organizations seeking to modernize their IT landscape. With various approaches available, businesses can tailor their migration strategy to suit their specific needs and constraints. It’s important for companies to evaluate their unique requirements, when selecting a migration approach. These can include:
- Data volume & quality
- Current data governance framework
- System and database complexity
- Business processes
- Project timelines
- Data & content management
Embracing S/4HANA not only ensures long-term sustainability but also unlocks the potential for innovation and growth in the digital era. By taking the necessary steps to migrate to S/4HANA, organizations can position themselves for success, harnessing the power of advanced technologies to thrive in today’s competitive business landscape.
Based on findings from a recent SAPinsider survey, approximately 25% of organizations facing the prospect of migrating to SAP S/4HANA encounter challenges in formulating effective plans for system adoption and ERP data migration. Recognizing this need, Auritas has developed The Ultimate SAP S/4HANA Pre-Migration Guide, a comprehensive resource designed to assist organizations in navigating this process successfully. Download it here!
