SAP introduced S/4 in 2015, SAP’s current ERP system as well as the core of the Intelligent Enterprise. S/4HANA it is not a successor release of the SAP Business Suite ERP system, SAP S/4HANA is a new product line.
SAP ECC 6.0 will be fully supported until 2027 — but your legacy ERP system is already outdated when it comes to leveraging the intelligent technologies needed to be competitive today.
A SAP S/4HANA System
is based on SAP’s Innovative in-memory database SAP HANA
has a new application Architecture and a new, simplified application data model
comes with a new UI technology, SAP Fiori.
You can choose between two deployment models: on-premise and cloud
if you intend to replace your existing SAP Business Suite system / system landscape by SAP S/4HANA, you have to be aware that this is not just a release update.
SAP re imagined all the processes in SAP’s ERP with simplification at the digital core with an in-memory database, machine learning, and web-based & user-friendly GUI (Fiori), Artificial intelligence (AI), blockchain, predictive analytics, and the Internet of Things (IoT).
Do we move to SAP HANA database first? For companies running SAP ERP 6.x systems on any database, migrating to Business Suite on SAP HANA followed by a system conversion to S/4HANA would imply a near-double effort leading to higher costs. Moving to Business Suite on SAP HANA first and then a system conversion to S/4HANA nearly doubles the effort From a technical point of view, the transition from SAP ERP 6.x on any database to Business Suite on HANA includes an enhancement package upgrade, SAP NetWeaver upgrade, and database migration. The hardware investment, effort of potential functional redesign, testing, and change management are comparable to those of an SAP S/4HANA project. Given the impact on the timelines and budget, you’ll need to build a very good case about the risks you would mitigate by migrating to Business Suite on HANA followed by a system conversion to SAP S/4HANA.
So what are your Transition Options
The way you plan and execute the SAP S/4HANA program will substantially influence your ability to adopt next-generation business processes and use the new capabilities. The picture below summarises the three main transition scenarios, which SAP offers:
System Conversion You would choose this option if your main goal is to bring your current business processes to the new platform, and/or you want to keep your custom code. Also if you want to mitigate the risk and investment of a big bang conversion project by reducing the scope of the transition project to a technical conversion project, and then plan to adopt new innovations at your pace in a phased approach. This option is available for on-premise versions 1511 onward and transition of existing — ECC, Business Suite on HANA, Simple Finance to S/4. Often this option is referred as a “Brownfield Implementation”
System conversion typically is a technical conversion of an existing SAP Business Suite ERP system to SAP S/4HANA. This process upgrades an existing SAP (ECC, Business Suite) system into an S/4HANA . The process
includes a database migration from a classical AnyDB to SAP HANA database, in case your SAP ERP system was running on a classical AnyDB.
migrates the ERP data model into the S/4HANA data model with all the invented data model simplifications and data volume reductions
replaces the old SAP ERP application Code with SAP S/4HANA Application Code
can replace classic SAP GUI UI’s to Fiori UI
Please note: It does not force you to migrate your classical SAP GUI UIs to Fiori Apps! You can do this at a later stage. The following picture illustrates the technical system conversion process from the planning over preparation, execution and post processing steps:
New Implementation
This describes a , new installation of a SAP S/4HANA system (either on-premise or in the cloud), also known as “greenfield” approach. Why would you choose this option? This option is perfect if re-engineering and process simplification based on latest innovations are your primary focus. This is a well suited approach for organisations planning to migrate
from a non-SAP / 3rd-party legacy system,
but also an good option for a SAP System, which may be of an older release and/or is highly customised
or if the source SAP system does not meet the system requirements for a technical system conversion
Benefits for the organisation are:
Re engineering and process simplification based on pre-configured business processes
Predefined migration objects & best practices available which does not require intensive migration
Rapid adoption of new innovations in a standardised manner
The project duration depends on the number of required data migration objects (Material, Business Partner, etc.) and the volume and complexity per data migration object. You can use SAP S/4HANA Migration cockpit or SAP Data services to migrate the data. Landscape Transformation This is a selective data migration to the new S/4HANA platform. The focus is not on migrating an entire e system, but rather on pick & choose of entities which you want to carve out and move on to the SAP S/4HANA platform. This approach is also suited for organisations with large scale user base in different regions and multiple source systems as they might choose to consolidate multiple systems into a single S/4HANA instance which supports a larger transformation initiative. Following are some of the possible sub-scenarios:
consolidation of a current SAP Business Suite landscape (multiple systems, or selectively clients of multiple systems) into one global SAP S/4HANA system, or
selective data migration based on legal entities, such a clients or company codes
implementation of S/4HANA Central Finance including real-time reposting of financial transactions into Central Finance instance. The SAP S/4HANA for central finance foundation solution is a perfect fit for companies in which a central financial department is a key component of the current or future business
Why would you choose this option? Customers who want to consolidate their landscape or to selectively transform data into a SAP S/4HANA system. Key Benefits:
Value-based migration: selective data transformation allows a phased approach focusing the first SAP S/4HANA migration phase on parts of the business with highest return on investment
Agility: stay on current business processes but move gradually to SAP S/4HANA innovations (Move to SAP S/4HANA at your own pace!)
Reduction in total cost of ownership: system and landscape consolidation with harmonised/ simplified processes and unified master data lead to lower cost of operations
As this is a data migration option it requires, a target system to which, the data can be migrated. This target system can be realised by a new system install like a greenfield approach (new implementation scenario with/without a initial data load), or in case of a system consolidation effort, the target system can be created by executing a system conversion on a suitable SAP ERP system.
Having the target system in place, the Landscape Transformation option migrates data into that SAP S/4HANA system regardless whether the source system is SAP or non-SAP Key questions influencing the choice of the transition scenario to SAP S/4HANA Can you move to SAP S/4HANA in a one-step procedure?
Single-step conversion is possible for SAP ERP 6.x (any enhancement package) single-stack, Unicode systems. Systems that don’t fulfil these criteria have likely experienced little maintenance in the past years. If the system can’t be converted in a single step, a new implementation is likely a better choice. The combined cost of an upgrade to SAP ERP 6.0 or a Unicode upgrade followed by a conversion to SAP S/4HANA would be prohibitively high. Moreover, combining two upgrades in a single downtime will most probably exceed the maximum system outage your business can afford.
Do your current business processes support long-term strategy of the company? Strategic redesign of processes suggests a new implementation Can you adopt the Best Practices to modernise Core Business Process? Or are you planning to take over existing custom applications?
A move to standardisation suggests new implementation. if you see your custom enhancements and modifications as a major asset supporting your company’s unique way of operating and intend to preserve them, a conversion is a more attractive option for you
Is Landscape consolidation a key value driver for S/4 adoption? Consider a new implementation and consolidate the required configuration and data into that new system. Suited for companies with a track record of mergers and acquisitions
Do you require previous transactional data available in S/4? Challenge the statement “Yes, we do need all data in the new system” The requirement to retain all transactional data is a strong case for system conversion. The first response is often, “Yes, we do need all data in the new system.” However, you should challenge this standpoint and design a data strategy that takes into account the available technological alternatives.
Technical / IT funded project or Business funded project It is extremely difficult to start a business transformation program out of an IT project IT funded or sponsored projects are typically system conversions to lay the foundation for any business improvements
Number of interfaces to other systems In new implementations, interfaces have to be (re)developed and tested, especially interfaces to third-party solutions. With a system conversion, adjusting existing interfaces typically takes less effort. Thus, a high number of interfaces in the current system makes a stronger case for conversion. The number of interfaces often a good indicator of complexity. Higher number of interfaces suggests a case for conversion.
Cloud vs on-premise: SAP S/4HANA and SAP S/4HANA Cloud share the share same code line, designed for in-memory and have the same simplified data model. If you want to move to a fully standardised processes within SAP S/4HANA scope of business suite, you can do this by ideally choosing the new implementation approach where you can benefit from the available best practice content and guided configuration support. This is possible on both deployment models on premise and cloud. However if the available functional scope of the S/4HANA Cloud product is sufficient, you can benefit from:
eliminating system administration efforts,
eliminating any maintenance of custom code and modifications during every maintenance event, and
from faster delivery of new innovations (new release available very 3 months) without impact on your running processes.
Key Aspects for S/4HANA Cloud Evaluation
Other useful links and information
SAP Fiori apps reference library Transformation Navigator Roadmap Viewer SAP Roadmap SAP S/4HANA Readiness Check
Maintenance Planner (MP) The Maintenance Planner checks the system with regards to business functions, industry solutions, and add-on. The Maintenance Planner is a pre-requisite for the system conversion to SAP S/4HANA. For more information regarding Maintenance Planner .
Software Update Manager (SUM) Software Update Manager (SUM) is the technical tool for system conversion to SAP S/4HANA. This needs to run before Maintenance Planner (MP) and should be used the latest version of SUM. For more information regarding Software Update Manager, for the conversion of SAP Systems to SAP S/4HANA.
Database Migration Option (DMO) Database Migration Option (DMO) is a one-step migration approach for conversion to the SAP HANA database. Database Migration Option (DMO) is a part of the Software Update Manager (SUM). For SAP S/4HANA Conversion, DMO combines installation of SAP S/4HANA, on-premise and database migration to SAP HANA in one tool.
Migration Cockpit link
SAP Data Services with Rapid Data Migration content details