Why Convert to S/4HANA?
End of ECC Support
SAP will end mainstream support for ECC by 2027. This means no more updates, patches, or bug fixes, making it crucial to migrate to stay current and secure. Without regular updates and support, businesses using ECC will face increased security risks and potential operational disruptions.
Digital Transformation
S/4HANA supports modern digital business processes with advanced technologies like AI, machine learning, and IoT. These capabilities enable businesses to automate routine tasks, gain deeper insights from their data, and innovate more rapidly. By adopting S/4HANA, companies can stay ahead in the digital transformation journey.
Performance
The in-memory database of SAP HANA offers significantly faster data processing and real-time analytics. This enhanced performance allows businesses to make quicker, data-driven decisions, improve operational efficiency, and enhance customer experiences. The ability to process large volumes of data in real-time is a game-changer in today’s fast-paced business environment.
Competitive Edge
Migrating to S/4HANA ensures your business remains competitive by leveraging the latest innovations and capabilities. Staying on the cutting edge of technology provides organizations with the tools needed to outperform competitors, adapt to market changes swiftly, and meet evolving customer demands. Embracing S/4HANA is not just a technical upgrade; it’s a strategic move towards sustained growth and competitiveness.
What is the Conversion?
The conversion from SAP ECC to S/4HANA involves transitioning from the traditional ECC system to the next-generation S/4HANA system, which is built on the SAP HANA in-memory database. This process includes migrating data, adapting custom code, and configuring new functionalities.
Some Advantages of Converting to S/4HANA
Unlocking the Full Potential of Modern Business Operations
- Improved Performance:
- Real-Time Analytics: The in-memory database architecture of SAP HANA enables real-time data processing and analytics
- Faster Transactions: Enhanced processing speeds lead to quicker transaction times and improved overall system performance.
- Real-Time Analytics: The in-memory database architecture of SAP HANA enables real-time data processing and analytics
- Simplified Data Model:
- Reduced Complexity: S/4HANA’s simplified data model eliminates redundant tables, reducing data footprint and maintenance.
- Integrated Analytics: Combines transactional and analytical data, providing a unified view of business operations.
- Reduced Complexity: S/4HANA’s simplified data model eliminates redundant tables, reducing data footprint and maintenance.
- Enhanced User Experience:
- SAP Fiori: Offers a modern, intuitive, and customizable user interface, improving user productivity and satisfaction
- Mobile Access: Enables access to business processes from any device, enhancing flexibility and responsiveness.
- SAP Fiori: Offers a modern, intuitive, and customizable user interface, improving user productivity and satisfaction
- Advanced Capabilities:
- Embedded Analytics: Integrates advanced analytics and machine learning capabilities directly into business processes
- Future-Proofing: Ensures compatibility with future SAP innovations and updates, supported until at least 2040
- Embedded Analytics: Integrates advanced analytics and machine learning capabilities directly into business processes
1. Options to move to SAP S/4HANA
If you want to migrate to SAP S/4HANA on Premise you do have the following three options
- System Conversion (“Brownfield-Approach”)
- New Implementation (“Greenfield-Approach”)
- Selective Data Transition to SAP S/4HANA
Comparison of time and Complexity Features
| Feature | System Conversion (Brownfield) |
New Implementation (Greenfield) |
Selective Data Transition |
| Implementation Time | Shorter | Longer | Moderate |
| Business Process Optimization | Limited | Extensive | Customizable |
| Data Migration | Full | None | Selective |
| Disruption to Operations | Minimal | High | Moderate |
| Customization Retention | Yes | No | Selective |
| Suitable for Established Processes | Yes | No | Yes |
- System Conversion (“Brownfield-Approach”)
In the Brownfield Approach, you convert your existing system to an SAP S/4HANA system using the Software Update Manager for an in-place conversion. If your current system is not yet on SAP HANA, you can combine this approach with a database migration to SAP HANA. Below is the highlighted process for the Brownfield approach
- New Implementation (“Greenfield-Approach”)
The Greenfield approach in SAP implementation involves starting from scratch with a new system, rather than upgrading or converting an existing one. This method allows for a fresh start, enabling the design and implementation of new processes without the constraints of legacy systems. Below is the highlighted process for the Greenfield approach
- Selective Data Transition to SAP S/4HANA
The Selective Data Transition approach to SAP S/4HANA is a hybrid method that combines elements of both the Greenfield and Brownfield approaches. It allows organizations to selectively migrate data and processes from their existing SAP ERP systems to SAP S/4HANA. This approach is particularly useful for companies that want to retain certain historical data and customizations while redesigning other parts of their system. The Selective Data Transition to SAP S/4HANA comprises two sub-scenarios:
- Shell Creation and Conversion
- Mix and Match
High-Level Conversion Process lifecycle for Selective Data Transition (SDT) along with Shell System Conversion
1. Shell System Understanding
An SAP Shell system is a streamlined version of an SAP system that contains only the essential metadata, customizations, and repository data, excluding most application data and unnecessary clients. This approach is often used in scenarios where a full system copy is not required, such as for testing, development, or selective data transitions
Steps for Creating the Shell System
- The Shell Creation process creates a new empty system based on a source system.
- All client-independent objects (repository and client-independent customizing) will be identical to the source system. The new system will have the same support package level and add-ons.
- All transaction and master data are stripped from the shell system as part of the SDT migration.
- Only client 000 will exist in the new system.
- The typical source system is the production system or a copy of it.
- A shell system can be created using a remote client copy.
2. Shell Conversion:
SAP system will be converted to SAP S/4HANA using a standard system conversion with the Software Update Manager (SUM) or SUM with Database Migration Option (DMO).
3. S4HANA Goldan backup
As there is no application data (master data and transactional data) within this system, you can apply any necessary changes to the configuration of your new empty SAP S/4HANA system. For example:
- You can adapt your financial model or controlling settings to meet future requirements.
- Adopt the Fiori post-activation steps.
- Implement add-ons as part of the post-conversion process.
- Complete all post-conversion steps.
- Apply all necessary post-functional and technical steps after the conversion process is completed over the shell system.
Note: Since we are saving this system as a golden copy, please ensure that all common post-conversion steps are completed before the golden backup. This will help reduce effort in future system implementations.
4. Target system build
The preserved golden backup taken in step (3) will be used to create the new target system for SAP S/4HANA
5. Data Migration
The next step will be data migration (step 5). For all areas where you didn’t apply fundamental changes, it will be possible to migrate historical data and transactional and modify them on the fly to fit the new SAP S/4HANA structures. Data for these areas will be migrated at the table level, and the necessary on-the-fly changes for SAP S/4HANA will be executed using special afterburner programs. These programs are like those used during a standard system conversion to SAP S/4HANA
SAP has partners that provide features for slicing data based on various factors and tools for migrating data with data slices. Data slicing is entirely dependent on business needs and the data migration approach, utilizing the available tools for migration and slicing
- SDT (Some data Slice criteria): Time-Slice Scenario, Selective Company Code Transfer, Slice on FI and Other related selections, ETC.
- SDT Tools for migration/partner companies: SAP DMLT, SNP, CBS, Natuvion, ETC.
- Mix and Match
The basic idea of the mix and match scenario is to start with a greenfield approach while retaining your old solution for specific areas where your current SAP ERP solution meets your future demands.
To retain parts of your current solution, you will first identify and stabilize these areas. (Remember: even in Agile projects, one of the biggest reasons for budget overruns or project failures is unclear or continuously expanding scope).
After identifying the solution areas, you want to bring over to your new SAP S/4HANA system, you need to decide how to perform this migration
There are two possibilities:
- You manually add the configuration to the new SAP S/4HANA solution.
- You migrate/transport the solution using some tooling
Option 1: Manual Configuration
You will need experienced consultants to manually configure the solution in the target system.
Option 2: Migration/Transport Using Tooling
- Process a): If there are no or minor changes between SAP ERP and SAP S/4HANA, you can transport the customizing directly from SAP ERP to SAP S/4HANA and manually rework the customizing in the target system.
- Process b): If there are significant changes between SAP ERP and SAP S/4HANA, you can perform a Shell Creation of your SAP ERP system and convert this to SAP S/4HANA. This provides a basis from which you can transport the solution to your new SAP S/4HANA system. In this case, you will also manually rework and fit the transported elements within your SAP S/4HANA system.
Use case for (Mix and Match Approach) Option 2: Migration/Transport Using Tooling “Process b”
Landscape conversion Approach (MIX and Match) (ECC to S4HANA Conversion with SDT)
Use case highlights as below
- Best example of the Mix and Match approach.
- Selective data migration conversion approach.
- We created the Shell system and converted it to the S/4HANA system.
- Performed the post-conversion steps and then took the golden backup to prepare the subsequent systems.
- For the selective data migration, we used the DMLT Tool from SAP.
- As per the Mix and Match approach, current ECC changes and processes were aligned with manual retrofit changes moved to the S/4HANA system.
- According to the project plan, along with testing phases like SIT, UAT, and Dress Rehearsal, we converted the ECC to the S/4HANA system using the Selective Data Migration approach.
DMLT Tool information:
The SAP Data Management and Landscape Transformation (DMLT) tool is designed to help organizations manage and transform their data landscapes efficiently. Here are some key aspects of the SAP DMLT tool:
- Data Migration: DMLT facilitates the smooth transition to SAP S/4HANA by offering selective data transition, new implementation, and system conversion options
- System Landscape Optimization: The tool supports mergers, acquisitions, divestitures, and complex organizational restructurings by transforming SAP data and system landscapes
- Data Unification and Harmonization: DMLT helps in analyzing and cleaning incorrect data from customers, partners, and products. It unifies and standardizes financial and controlling processes, improving data quality and governance
- System Consolidation: By reviewing and consolidating system landscapes, DMLT reduces the cost of operating distributed systems and facilitates better data management and reporting
- Holistic Approach: DMLT offers a comprehensive approach to data-related needs, including data quality, data integration, and information lifecycle management
This ensures a successful migration using proven technologies and methodologies. Overall, SAP DMLT is a powerful tool that helps organizations optimize their data management processes and transition smoothly to advanced IT landscapes
Control system Role in the DMLT tool:
A control system is a system that is already on the S/4HANA target version and is used for the controlled logic program, which provides the selective data migration decision from the source to the target system
Technical Challenges with DMLT Tool during conversion process:
- During the shell creation, SAP generally does not include third-party components and Y and Z custom tables. Therefore, we must provide the list of third-party add-ons to SAP to include in the shell creation.
- Technical tables are loaded only once during the shell creation. After the shell creation, deltas should be managed by other tools or manually.
- Examples of technical data: RFC, LSMW, WE21, WE20, printers, certificates, jobs, job variants, user master data. All delta data should be managed outside the DMLT process.
- Examples of technical data: RFC, LSMW, WE21, WE20, printers, certificates, jobs, job variants, user master data. All delta data should be managed outside the DMLT process.
- All Y and Z tables and t-codes must be checked in the shell system along with all entries.
- We must align with SAP on how the Y and Z table data will be managed during the DMLT process (e.g., including tables in the DMLT process or through a retrofit process).
- SAP must provide the DMLT tool transport, which we need to align. However, during the tool setup, we may encounter some errors in the SAP system.
- In this approach, you might have to redefine all interface connections along with AL11 and scripts, if any
