From SAP ECC to SAP S/4HANA entails a big leap for companies whose main interest is in overhauling their ERP software. Since SAP ECC is gradually moving towards the sunset phase, different organizations are shifting their focus to SAP S/4HANA; a next-generation full-service ERP suite with great functionalities, real-time analytics, and a comparatively lean data model. Yet, the migration process is a comprehensive one, and sensitive to changes in planning and implementation. This article is a practical guide for any organization which intends to undertake an SAP ECC to S/4 HANA transition addressing the critical factors, overall process, and lessons learned in one go.
Understanding the Need to Migrate
The first step, therefore, is to understand the need to migrate. Under these preconditions, it is essential to get an understanding of the reasons for implementing SAP S/4HANA and why there is a need to migrate from SAP ECC.
- Enhanced Performance: SAP S/4 HANA is developed on top of SAP HANA in-memory data platform focusing on real-time data processing as well as quick and accurate analytical insights hence creating competitiveness for organizations.
- Simplified Data Model: An important and obvious difference between SAP S/4HANA and its predecessor is the fact that the data model of S/4HANA does not contain any redundant data. It also has various modules which are simplified, enabling easy management and making it easier to maintain.
- Advanced User Experience: SAP Fiori, which is the user interface for SAP S/4HANA, empowers users by providing a simpler and more personalized interface to work with the system, thereby increasing efficiency and satisfaction of users.
- Future-Proofing: Amidst the approaching end-of-support for SAP ECC systems, organizations that implement SAP S/4HANA will guarantee that their ERP systems will continue to get support and have access to innovations within that solution.
Suggested reading: Key Benefits and Challenges of Migrating from SAP ECC to S/4HANA.
Assessing the Current Landscape
The first step towards migration in the current SAP ECC environment is to evaluate the current structure. This involves learning what is currently in place, the modifications that have been made, and the interfaces. Key activities in this phase include:
- System Inventory: Document all existing SAP ECC modules, C4COD, interfaces, and third-party systems supported. This inventory will guide planning based on the findings obtained from the assessment.
- Custom Code Analysis: Identify custom code that needs modification for compatibility with SAP S/4HANA. Tools like the SAP Custom Code Migration app can identify obsolete or incompatible code.
- Data Quality Assessment: Assess the quality of data within the current SAP ECC system, identifying irrelevant or incorrect data that needs scrubbing before migration.
- Performance Analysis: Analyze the current SAP ECC system's performance to identify congestion areas and resolutions, fine-tuning the system after migration.
Suggested reading: How to do data quality assessments.
Defining the Migration Strategy
After the current environment has been analyzed, the next move is to specify the migration strategy. Organizations can choose from several migration approaches, each with its advantages and challenges:
- New Implementation (Greenfield): This approach traditionally requires the creation of a new instance of the SAP S/4HANA system. It is suitable for organizations seeking to redesign their business processes and achieve optimum functionality with SAP S/4HANA. However, it is time-consuming as all data and changes must be transferred manually.
- System Conversion (Brownfield): In this approach, the existing SAP ECC system is migrated to SAP S/4HANA. This is ideal for organizations with significant customizations they wish to retain. However, it may require extensive testing and code adjustments.
- Selective Data Transition: This approach offers flexibility by allowing the organization to transfer certain data or processes to SAP S/4HANA while leaving the rest in the original system. However, implementing this hybrid solution requires careful planning.
Read more about selective data transition.
Planning the Migration Project
To make the process successful, migration requires good planning and project management. Key activities during the planning phase include:
- Project Team Formation: Establish a multidisciplinary project team that includes personnel from various departments (e.g., IT, finance, operations) along with SAP experts and external consultants experienced in SAP S/4HANA migration processes.
- Timeline and Budgeting: Create a detailed plan with phases, subphases, deliverables, and timelines. Allocate a fixed budget to cover costs like software licensing, hardware acquisition, consulting, and training.
- Risk Management: Define possible risks and obstacles, and develop a risk management plan with contingency measures.
- Communication Plan: Create a communication matrix to keep stakeholders informed throughout the migration process. Regular updates and workshops can ensure alignment and manage expectations.
Suggested reading: Comprehensive transition guide for SAP.
Preparing for Migration
Once the migration strategy and project plan are devised, the organization can proceed with the migration process. Critical activities in this phase include:
- System Cleanup: Retire unnecessary data, disable unneeded modules, and streamline custom code to simplify the migration process.
- Data Migration Strategy: Develop a plan for sourcing, converting, and loading data into SAP S/4HANA using tools like SAP Data Services or SAP Migration Cockpit.
- Infrastructure Readiness: Ensure the IT environment is ready, whether by acquiring new hardware, establishing servers, or adopting cloud systems.
- Training and Change Management: Train end-users and IT staff on the new system. Develop a change management strategy to address potential resistance.
Suggested reading: Simplify digital operations.
Executing the Migration
The migration phase involves the actual relocation and transformation from SAP ECC to SAP S/4HANA. Steps include:
- System Conversion: For brownfield implementations, this includes system kernel updates, database conversion, and program and data transformations.
- Data Migration: Extract, convert, and transfer data to SAP S/4HANA while ensuring high data validity throughout the process.
- Testing: Conduct unit, integration, user acceptance, and performance testing to ensure the migrated system functions optimally.
- Go-Live Preparation: Finalize planning, inform stakeholders, and back up the existing system to prevent data loss during the transition.
Post-Migration Activities
After go-live, focus on stabilizing the system and supporting end-users. Key activities include:
- System Stabilization: Monitor for issues, resolve performance problems, and fine-tune the system.
- User Support: Provide training, helpdesk support, and resources to help users adapt to SAP S/4HANA.
- Continuous Improvement: Analyze system performance and explore new ways to enhance processes and leverage SAP S/4HANA's capabilities.
- Audit and Compliance: Ensure compliance with regulatory standards and conduct periodic checks to maintain accuracy and functionality.
Suggested reading: How to conduct an audit in SAP.
Conclusion
Migrating from SAP ECC to SAP S/4HANA is not a simple or easy process, but with proper planning and execution, organizations can achieve a more efficient system and unlock new possibilities for innovation. SAP S/4HANA acts as a catalyst in the digital journey, paving the way for significant value addition in the years to come.