SAP S/4HANA Migration: A Complete Guide for 2025

It’s official: Anyone using SAP will have to migrate to S/4HANA before 2027, as this is the deadline for the previously used Business Suite 7, including ECC, being retired. Are you ready to take the leap?

Seeing as you’re on the clock, it’s pretty essential that you learn everything there is to know about S/4HANA now in preparation for completing your software migration. 

Aside from this enforced stimulus to migrate, digital transformation is an essential strategy to remain competitive in today’s business landscape. And a move to S/4HANA is a strong example of this necessary agility.

So, let’s get started. This article will act as your complete guide to the SAP S/4HANA migration process, including the basics like what exactly this new enterprise resource planning (ERP) platform is and how you can ensure a smooth transition. It also discusses how to overcome a few obstacles you’re likely to encounter along the way.

What is SAP S/4HANA?

Before we discuss what SAP S/4HANA migration is, it’s worth asking: what is SAP S/4HANA itself?

As briefly mentioned earlier, S/4HANA is an ERP system developed by SAP in 2015. It was designed as a successor to their preceding ERP—SAP ECC. If that all sounds quite wordy, here’s a quick definition breakdown:

• ERP system: A software that unifies different business functions, such as finance, HR, sales, etc., into a single system. It’s like an engine that runs your business processes. Instead of each department having to run its own disconnected tools, an ERP keeps everything connected and consistent
  
  
• SAP ECC: SAP’s precursor to S/4HANA. This was a long-standing ERP solution that stored and retrieved data from disks 

Differences Between SAP S/4HANA and SAP ECC

So, how is S/4HANA different from SAP ECC? Essentially, it’s a more modern, high-speed version designed to fit in with the digital advancements of the past few years and today’s data-driven way of working. 

Rather than running across different databases like SAP ECC, S/4HANA only runs on SAP HANA (an in-memory database). As a result, its data processing is much faster, and it can provide real-time analytics. It also uses a more user-friendly interface (SAP Fiori) and has built-in innovations such as AI and predictive analytics that are crucial to our day-to-day operations. 

SAP S/4HANA Migration

Now that we have a good understanding of what SAP S/4HANA is, let’s return to asking what we mean by SAP S/4HANA migration. As you may now guess, this simply refers to the process of moving from legacy SAP ERP systems to the new S/4HANA platform. 

This move must happen before 2027, when previous ERPs are being retired. 

Benefits of Migrating to SAP S/4HANA

As S/4HANA is a more modern, faster, and user-friendly update to previous ERPs, there are a number of advantages to migrating to this platform. Let’s explore exactly what benefits you’ll experience once you’ve successfully made the move.

Access to Real-Time Data and Analytics

SAP S/4HANA runs on the in-memory of the SAP HANA database, giving you instant access to data across all your business functions. Not only this, but S/4HANA has AI, machine learning, and predictive analytics built in, which also support you in using data more strategically. 

The benefits of these functions? You’ll be able to make faster, better-informed decisions using real-time reporting and accurate forecasting for the future. 

Better User Experience

SAP’s previous ERPs used the SAP GUI interface, but in S/4HANA this has been replaced with the new SAP Fiori—a more modern and intuitive alternative. How does this improve user experience? Firstly, it’s a role-based design, so your employees can easily find the information and tools most relevant to their work. 

It’s also designed for mobile devices and is responsive to various screen sizes, making it more flexible to different ways of working. 

Enhanced Efficiency

Efficiency is all about doing more with less (less time, less effort, and fewer resources). SAP S/4HANA achieves this with a simplified data model, quicker in-memory processing, and a bigger bandwidth. It allows tasks to be completed near instantaneously, and with less manual intervention. 

This means more results, faster and fewer delays, as well as freeing up team members to focus on high-value tasks.

Future-Proofing

SAP ECC ending in 2027 makes migration to S/4HANA necessary for businesses. However, that's not so bad. The new ERP system is more agile and scalable, making it more future-proof. Its ability to process data in real-time and respond quickly to market changes helps it make your business more adaptable. 

Meanwhile, as it's built on the cloud, S/4HANA can be easily scaled without the need for additional infrastructure. Essentially, migrating to the cloud will ensure your ERP system evolves with your business and offers stability and expansion in the changing business landscape.

Scope to Innovate

We’ve established that SAP S/4HANA improves current processes, but another big benefit is that it opens the door to forward-looking technologies. With the introduction of in-built AI and machine learning tools, you can now use your ERP system to automate repetitive tasks and identify new opportunities more easily than ever. 

For example, you can anticipate market shifts before they happen, allowing for a more proactive approach that helps you stay ahead rather than always playing catch-up.  

Challenges of S/4HANA Migration

Clearly, there are many benefits of migrating to SAP S/4HANA, but you may still be cautious about taking the leap. Likely, this is due to concerns about business disruption and potential risks such as data loss. 

As with any project, there are some challenges to ERP migration that you may come across, but only if you’re not strategic about the process. Here are some of the most common sticking points and how they can be tackled:

• Complex data: For SAP S/4HANA to work correctly, it needs reliable information. So, businesses that try to complete a migration with redundant or outdated data lacking consistency will struggle. But if you cleanse and validate your data early, you shouldn’t have a problem.
  
  
• Legacy code and processes: You may already have existing customizations that you’d like to keep during the migration process. The problem? Not all of them might fit seamlessly into S/4HANA. To avoid this, run compatibility checks and adapt the code where needed before migrating.
  
  
• Change management: To prevent discontent, focus on getting buy-in from those who will actually be using the new system daily. This includes clear communication and training throughout the process.
  
  

Three Methods of SAP S/4HANA Migration

With the right method of migration, you can greatly minimize hazards and avoid disturbances to day-to-day operations. Here are three strategies to choose from:

Greenfield Migration

Think of this as the ‘start from scratch’ method of migration. It involves setting up SAP S/4HANA as an entirely new system so is the best option for businesses beginning with a clean slate (i.e. you don’t already have a SAP system in use or use a highly outdated system that would be too complex or costly to convert). 

Pros:

• Fresh start: Since you’re not tied to any legacy systems, you’re not tied to any outdated processes or custom code. Instead, you can easily tailor the ERP to your unique requirements and ensure it’s entirely in line with your current needs and future goals 
  
  
• Best practice adoption: When SAP built S/4HANA, it redesigned many core business processes to be simpler and more standardized. In a greenfield migration, you can use these preconfigured best practices out of the box instead of carrying over older, inefficient ones 
  
  
• Easier upgrades: Because it’s built fresh, a SAP implemented with a greenfield migration is simpler to maintain, customize and connect with new tech, ensuring easier adoption of innovations in the future

Cons:

• High cost and effort: Building a brand new system usually takes more time and resources than simply upgrading what you already have
  
  
• Greater change for employees: Entirely new processes will require more training and support for your employees to get used to
  
  
• Data migration choices: You shouldn’t just copy all your data across from a previous system if you’re starting fresh. You’ll need to actively choose what to bring into the new ERP, and this can be complex
  
  

Brownfield/System Conversion Migration

Rather than a complete rehaul, brownfield (otherwise known as system conversion) migration is more of a renovation. Instead of starting from scratch, you upgrade your existing SAP ECC system into SAP S/4HANA while largely keeping your current processes and historical data.

 If you’re already confidently using an SAP system and want to minimize disruption to familiar workflows, this is probably the method for you.

Pros:

• Preserve existing processes: Being able to maintain current customizations and ways of working reduces the need for employees to relearn processes and therefore makes for a smoother migration
  
  
• Less initial disruption: Seeing as the structure of your system will remain largely the same, you can continue with operations as usual
  
  
• Faster migration: Often, converting an existing system is quicker and less resource-intensive than starting from the beginning 

Cons:

• Legacy baggage: While it may be easier to carry over existing customizations and processes, these can be old and inefficient. This can make future SAP upgrades more complicated and limit some of the benefits that S/4HANA should provide
  
  
• Potential for errors: Migrating an already highly customized system sometimes requires extensive testing, and you may uncover unexpected challenges that require significant effort to solve
  
  
• Risk of underutilization: You may not fully realize the potential benefits and capacity of the new system if you’re not working on developing it from scratch. This is likely to result in not using it to the best of its abilities
  
  

Hybrid Migration

As the name suggests, a hybrid migration is a combination of greenfield and brownfield approaches. It enables you to maintain some of your existing processes and customizations while also partly redesigning the system to modernize it. You could think of this as a ‘best of both worlds’ approach. It’s largely used by businesses that need to conserve critical data or processes but also want to take full advantage of SAP 4/HANA’s modern best practices and opportunities.

Pros:

• Balanced approach: With a hybrid approach, you can combine the pros of both greenfield and brownfield methods. Retain essential legacy components while modernizing other areas, so you get both continuity and innovation
  
  
• Targeted improvements: Focus resources only on the parts of your system that will benefit most from S/4HANA’s new capabilities. This is a more efficient approach to migration
  
  
• Reduced risk: Compared to the greenfield method, a hybrid migration causes less disruption but still achieves some of the benefits of the ‘start from scratch’ approach

Cons:

• Planning complexity: Deciding which processes to keep and which to overhaul takes careful consideration and analysis, which can be time-consuming
  
  
• Integration challenges: When you’re mixing converted and newly implemented elements into a system, there’s more potential for errors. While this shouldn’t put you off, a hybrid approach may require more testing and fine-tuning to get right
  
  
• Potential for uneven practices: The beauty of ERPs is that they connect different business functions. But during a hybrid migration, you may end up with some areas of your company fully adopting new S/4HANA innovations, and others remaining limited by legacy practices
  
  

How to Choose Which Migration Method is Best for Your Business

So, which SAP H/4HANA migration method is best? Honestly, it entirely depends on your business and what you want out of the move. Because of this, it’s important to outline your goals before considering which approach to take. 

For example, is it customization you mainly want from a new SAP system? If so, the greenfield method will allow you to create the most bespoke solution as you won’t be held back by existing infrastructure.

On the other hand, if your priorities are affordability or ease of management, then it’s probably a brownfield migration you’re after. Building from scratch can be costly and requires greater levels of skill and resources, whereas having an existing foundation to build upon is far easier. 

Every company has unique requirements, and what works for others may not necessarily be best for you. The decision is often complex. For this reason, it’s often beneficial to choose a partner like Protera to help guide you through and execute a successful SAP migration process.

Steps to a Successful SAP S/4HANA Migration

Whether you’re undertaking the greenfield, brownfield, or hybrid method, you’ll have to complete your SAP S/4HANA migration before 2027. But where do you even begin? Follow this checklist to keep you on track.

Step One: Assess and Plan

The first thing you should do before starting any physical migration work is to familiarise yourself with SAP H/4HANA: its features, functionalities, workflows, etc. If you don’t fully understand S/4HANA’s capabilities, then you won’t be able to maximize its benefits.

Next, evaluate your current system thoroughly to understand which data, customizations, and processes you’re currently using and whether you want to retain any of these. Additionally, identify and consider your business goals. What benefits are you hoping to achieve from migration, and which risks are you willing to take? 

This will help determine which method of migration you choose to take, which is your next choice in this step. 

Step Two: Prepare for Data Migration

Before making any changes, preparation is absolutely key. You wouldn’t start a sea voyage without making sure your ship is watertight. Similarly, you first have to check the health of your existing system and clean up your data before embarking on your migration journey. 

SAP S/4HANA can only fulfil its potential if it's fed with accurate and reliable data, so it’s a good idea to ensure your data is consistent and without redundancies before moving to the new system. 

If you’re taking a brownfield approach, you’ll need to check that any current custom code, customizations, etc., is compatible with S/4HANA. Keep in mind that they may need to be adjusted to align with its new capabilities. 

Alternatively, if you’re choosing to go the greenfield way, this is the time to map out what you want your new processes and workflows to look like before you get to setting up your brand-new system.

Step Three: Configure Your System

Your data is ready; now it's finally time for some action. This step is akin to building your new house before you move in. What does this look like? Well, it’ll be different depending on which migration method you’ve chosen, with a hybrid approach involving a bit of both:

Greenfield: Now is the moment to construct your system from the ground up. It’s your chance to leave behind outdated processes and create the most efficient system for you by setting up your modules, processes, customizations, and integrations exactly as you want them. 

Brownfield: You likely discovered in step two that some of your existing processes, customizations, and modules need adapting to work in S/4HANA. In this step, you’ll need to make these improvements to ensure everything you already rely on runs smoothly in the new system.

Step Four: Test Everything

Before hitting live on your migration, do some rigorous testing to uncover any issues and remedy them. This should include:

• Functional tests to see if the new system meets your organization’s requirements
  
  
• Integration tests to check whether all parts of the system work correctly together
  
  
• Performance tests to assess how the system will respond to various events and conditions
  
  
• Security tests to safeguard your ERP against breaches 
  
  
• User acceptance tests to see whether the new system meets everyone’s expectations and is intuitive to use
  
  

Step Five: S/4HANA Deployment and Monitoring

It’s crunch time. Now you can go live with SAP S/4HANA and complete the migration. But the process doesn’t stop here. Once your new system is up and running, it’s important to manage the change by monitoring its performance to catch any early issues and keep everything running according to plan.

Equally important to this is implementing thorough staff training. Your team needs to clearly understand all changes made and feel confident using the new features and workflows. This can take many forms, but it’s a good idea to include elements of hands-on training, reference guides, and ongoing support channels to cover multiple styles of learning.

Finally, having a dedicated troubleshooting team is invaluable at this stage. A few hurdles are almost inevitable, but being prepared to resolve them quickly is the key to not letting the overall success of your migration be impacted by these.

Step Six: Optimization

No matter how well-planned your migration is, there will always be improvements to be made. As a result, the final step is to maintain continuous vigilance, closely monitoring performance over time to identify any long-term anomalies and issues that require corrective action.

But even if your S/4HANA system works perfectly, it’ll still need tweaking as your organization evolves. As time passes, your goals and requirements may shift, as may the market climate, resulting in a need to adjust your system to reflect these changes. This could be anything from new regulations to emerging business challenges, but enhancing your system over time is key to maintaining its benefits.

Your SAP S/4HANA Migration Partner

Although the benefits of migrating to S/4HANA should make it a priority in itself, the 2027 deadline places even more urgency on this change. As a result, it’s a good idea to partner with a SAP migration expert like Protera to ensure your move is a success. 

Protera is a SAP Gold partner, bringing 25+ years of experience and many certified competencies that span the entire SAP enterprise application stack. 

Let's plan and execute your SAP S/4HANA migration with confidence. Talk to a Protera expert today.

If you’re looking for a trusted partner to help you plan and execute your cloud journey with confidence, talk to a Protera expert today.