How Do I Transition from SAP ECC to S/4HANA?
Even though designed by SAP, SAP ECC and S/4HANA offer their own benefits. SAP ECC is designed on Relational DB technologies, whereas SAP S/4HANA is more efficient and faster since it uses HANA, a columnar DB. SAP ECC is designed with multiple modules linked together into a single and customizable system that can be run on a user’s choice database. SAP S/4HANA, on the other hand, is designed with an in-memory database that helps organizations execute transactions and analyze business data in real-time.
SAP ECC is currently the most used ERP solution. However, this is changing rapidly. SAP has decided to discontinue support for SAP ECC by 2027 and replace it with SAP S/4HANA. This strongly necessitates the migration to S/4HANA from ECC. And in this definitive guide, we explore how you can smoothly transition from SAP ECC to S/4HANA.
Why Transition to SAP S/4HANA?
Whether small or big, you need an SAP ERP solution for the growth and sustenance of your business. But the one you are using now will soon become outdated and absolute by 2027. And it can make you lose the competitive edge you currently have. It is one reason why you need to transition to SAP S/4HANA. The other is all the cutting-edge and intelligent features that the SAP S/4HANA offers.
How to Transition from SAP ECC to S/4HANA?
The SAP S/4HANA migration Movement program allows you to transition from SAP ECC to SAP S/4HANA smoothly. The migration has 2 components. License migration to S/4 HANA from ECC that is managed by SAP, while Techatalyst offers cost-effective, fixed-price services that will speed up your SAP S/4HANA deployment process. There, however, are three different approaches to SAP S/4HANA implementation: system conversion, new implementation, and selective data transition. We will explore them all in detail.
Approach 01: System Conversion – The Brownfield Approach
The approach to SAP S/4HANA implementation is system conversion (the Brownfield approach). SAP advises clients that wish to switch to S/4HANA while maintaining the value of the time and work put into customizing SAP ECC to their requirements to choose the Brownfield alternative. Throughout this conversion process, you must transfer and modify all your business operations to the new S/4HANA platform. If you want to avoid significant operational changes, this strategy may be less disruptive and a better option.
A Brownfield project might encounter technological difficulties both during and after conversion. However, SAP has offered conversion tools and instructions to prevent such issues.
Steps to a Successful SAP S/4HANA Migration
Planning and Preparation:
System Requirements: define the best possible solution by conducting an extensive assessment of the existing system.
Conversion Pre-Check: verify if S/4HANA is compatible with any add-ons or business functions used in the current system.
Custom Code Migration: verify your custom code’s compliance with S/4HANA.
System Installation: Begin the migration to SAP S/4HANA, which includes data conversion and database transfer.
Follow-On Activities: All appropriate customized settings must be transferred following the technical conversion.
Data consistency check: You must reconcile your accounting components for data to be integrated appropriately since SAP S/4HANA gathers all relevant components from Controlling (CO) and Financial Accounting (FI) into one data pool, known as the Universal Journal.
Iteration Testing: You must conduct test iterations once all customizations are finished, and all data has been moved to ensure that the system functions properly.
Approach 02: New Implementation – The Greenfield Approach
In a new SAP S/4HANA deployment, you can redefine and streamline business processes and fully utilize S/4HANA’s capabilities. Although this strategy only ensures operational success after some time, there is still time to make any required modifications once the new system is implemented.
However, the drastic changes that will eventually be made to how you use the system may make you feel uneasy. Additionally, the re-implementation process can be laborious and time-consuming, particularly in change management. Therefore, be sure you’re prepared for a challenging and complex re-engineering process before choosing the greenfield route.
Steps to a Successful SAP S/4HANA Migration
Discover: After identifying the value of your business, create a plan and a strategy that will be employed to carry out the project.
Prepare: Start assembling your team and working on the final project plans. Selecting the correct team members is crucial to guarantee the project will operate well.
Explore: SAP S/4HANA offers numerous options for your business. To achieve more effective implementation, start the scope review process with a Fit/Gap analysis rather than the standard blueprint criteria.
Realize: Emphasize the business needs that were outlined in the prior stage. These consist of data migration, integration scenarios, and system configuration settings.
Deploy: In this step, set up the production environment. Execute cutover procedures and transfer business processes to the new system when it is ready.
Approach 03: Selective Data Transition – Landscape Transformation
A Greenfield Approach is frequently the most challenging option for an SAP S/4HANA migration. Although a system conversion is a much simpler job, you will lose the ability to customize your procedures. The Selective Data Transition to SAP S/4HANA has thus been created as a substitute.
Selective data transition consolidates many systems or a selected SAP S/4HANA migration. This strategy allows you to migrate specific business processes to SAP S/4HANA, leaving the rest alone. Some businesses decide to take this path for migrations that are anticipated to have the highest or quickest return on investment, such as adding S/4HANA capabilities to their Central Finance business unit.
Selective data transition promotes selective migration, such as for a particular business process or organizational unit. The successful SAP S/4HANA migration for the approach follows the same steps as Brownfield.
SAP S/4HANA is a cutting-edge ERP that offers endless benefits for the growth of your business. Its in-memory processing capabilities, simpler data models, and a new user experience add to it all. It resolves issues with batch delay, manual operating procedures, and data sprawl in conventional ERP systems. To reap its full benefits, Techatalyst helps you smoothly migrate to SAP S/4HANA from SAP ECC. With SAP S/4HANA implementation, we also make operations more accessible, quicker, and more efficient for your businesses.
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