SAP S/4HANA is an ERP business suite based on the SAP HANA in-memory database, which enables enterprises to conduct real-time transactions and analyze company data. What is the best way to migrate to SAP S/4HANA?
S/4HANA was introduced to considerable excitement in February 2015, and SAP currently considers it one of its flagship products, with clients migrating to it as the next-generation replacement to the SAP Business Suite ERP platform. S/4HANA is designed to be easier to use and administer than its predecessors, while also assisting in the solving of more complicated issues and handling substantially bigger volumes of data. It’s offered in on-premises, cloud, and hybrid deployment modes, with SAP promoting the cloud option heavily.
What is the best way to migrate to SAP S/4HANA?
S/4HANA modules
SAP Finance (previously Simple Finance) is a fundamental component of S/4HANA, and it seeks to simplify financial operations and allow real-time financial data analysis. SAP Finance assists businesses in integrating financial and non-financial data into a single source of truth, as defined by SAP. SAP Finance is being used by certain Business Suite users as a first step toward S/4HANA.
In succeeding editions, (What is the best way to migrate to SAP S/4HANA?) SAP has introduced more modules and capabilities, such as:
- S/4HANA 1511 — released November 2015 — which introduced a logistics module called Materials Management and Operations (MMO).
- S/4HANA 1610 — released in October 2016 — which included modules for supply chain management, including Advanced Available-to-Promise (aATP); Inventory Management (IM); Material Requirements Planning (MRP); Extended Warehouse Management (EWM); and Environment, Health and Safety (EHS).
What are the challenges of migration to S/4HANA?
Because SAP’s existing ERP systems will be phased out in the near future, many SAP Architects are already planning for the transition. However, because the migration to a new ERP system represents a fundamental system change rather than a conventional IT project, the execution is fraught with difficulties. A study done by LeanIX and PwC in 2018 highlighted the main migration roadblocks for businesses.
The major obstacles found out to be existing complicated IT environments, dirty master data, and company-specific ABAP code that isn’t compatible with S/4HANA. Further problems lead to inconsistencies in business processes, which must be addressed prior to transfer.
In addition, change management lacks the skills required to build the best approach. Individual stakeholders, who must be included in the coordination process, might slow down the migration process in some situations.
Prepare your master data for an SAP S/4HANA implementation
What is the best way to migrate to SAP S/4HANA?
Before migrating to SAP S/4HANA, SAP System Experts must make a few key decisions that will have a significant impact on the overall migration plan. Transitioning to SAP S/4HANA Cloud System, for example, necessitates a different strategy than switching to SAP S/4HANA On-Premise System.
Another critical decision is whether the existing SAP ECC system, complete with data and settings, should be migrated. In certain circumstances, it may be more cost-effective to install a brand-new ERP system that will cause fewer issues in the future. In any event, a migration necessitates thorough planning and a strategy that is visible and understandable to all business units and stakeholders.
According to the findings of the study, enterprise architecture (EA) techniques are a crucial tool for a successful transfer. EA tools are used by more than half of the firms examined to analyze the existing condition and develop the desired architecture. EA tools also give a clear roadmap that breaks the transfer to SAP S/4HANA into distinct phases as part of the business capabilities idea.
Enterprise architecture solutions like LeanIX interface seamlessly with SAP Solution Manager and provide the transparency that a complex ERP ecosystem requires. According to the respondents, this is the most difficult aspect of migrating.
Following are the best way to migrate to SAP S/4HANA :
Greenfield approach (What is the best way to migrate to SAP S/4HANA?)
When a corporation chooses the greenfield strategy, it discards its current ERP system. This has the benefit of allowing for the implementation of a new, unified system that only comprises the procedures and data that are truly required. Innovations can be more readily incorporated and a high degree of usefulness can be attained if a corporation totally redefines its enterprise architecture.
Only 14 percent of all research respondents picked this technique since it requires more work. However, because the systems are totally changed when transitioning to the SAP S/4HANA cloud edition, the greenfield approach is inevitable.
Brownfield approach (What is the best way to migrate to SAP S/4HANA?)
A system conversion occurs using the brownfield strategy. This implies that current business processes are inherited and, if required, optimized. The brownfield option is the most frequent migration path since most organizations do not want to entirely forsake their proprietary ERP system. According to the survey, 44% of respondents prefer this technique, while 42% prefer a hybrid greenfield/brownfield approach.
EA tools are used to split the conversion into clear phases to facilitate a seamless transition. The tools also make sure that outdated procedures are rethought in order to avoid redundancy and complexity. The advantage of this strategy over the greenfield technique is that the system conversion project time is minimized.
Landscape Transformation (What is the best way to migrate to SAP S/4HANA?)
Landscape transformation is not, strictly speaking, a stand-alone migration strategy. It’s just a way for huge firms with complicated system landscapes to plan for migration. In reality, this implies that before to the shift, databases are deep cleaned and merged to lower the footprint.
This method can also be used to merge multiple ERP systems from various suppliers. This type of simplification is also achievable during the transition itself. It depends on the overall landscape and also the target system if this makes sense. In many circumstances, an enterprise architect employs all three techniques in order to arrive at the optimum solution.
SAP S/4HANA is without a doubt the intelligent real-time ERP solution of the future. It allows businesses to either improve or start from fresh with their procedures. They can attain a high level of automation and transparency by utilizing cutting-edge technology such as machine learning and simulation. Flexibility and role-specific work are enabled through a simple and mobile-friendly user interface that adjusts to the user.
Due to the in-memory database, SAP S/4HANA provides faster access to all data and analysis than prior ERP systems. Users can make well-informed judgments in a short period of time as a result of this. Because the transition to SAP S/4HANA presents a lot of obstacles, it must be properly planned. Which migration techniques make sense depending on the company’s current and goal architecture. By bridging the gap between strategy and implementation, EA tools aid in a seamless transfer.
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