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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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To truly unlock these innovations, you can use SAP BTP (Business Technology Platform) alongside S/4HANA. Learn more about how combining SAP BTP and S/4HANA can help you customize your ERP even further. |
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:
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:
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:
Cons:
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:
Cons:
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:
Cons:
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.
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.
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.
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.
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.
Before hitting live on your migration, do some rigorous testing to uncover any issues and remedy them. This should include:
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.
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.
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.