Whether you are in any industry or business model, it is a considerable investment to migrate to new systems. It takes a long time and distracts. Without considering the preparation, construction, and execution stages, those concerned may be stressful.
Many companies are naive about switching from SAP ECC ERP to SAP S/4HANA. Full SAP transformation for most IT departments will be the most massive undertaking of the decade, impacting all business segments in the group. This is why SAP recently extended ERP 6 and Business Suite 7 maintenance and support to 2027, allowing its clients to create a migratory business case, relocate operations and re-engineer SAP S/4HANA processes for another two years.
Although the concerns are apparent, it is essential to note that for virtually every SAP client, S/4HANA is a much more effective, scalable, and feature-rich ERP. The reasons for this update are apparent as you evaluate the costs and benefits. SAPInsider ‘s latest S/4HANA Migration Milestone Survey reveals that, as of the 1st quarter of 2020 (up from 8 percent a year ago), 17% of SAP clients have previously been living with S/4HANA and 85.5% of those without migration was either in the process or are at least trying to develop the business case for it.
If you are about to update, the migration plan is one of the key considerations to remember. Here we will analyze the opportunities and drawbacks of three main migration strategies to find out which one is appropriate for you.
Why SAP S/4HANA
Given the discomfort of moving, S/4HANA has a variety of significant benefits, including features that help SAP users improve and expand more businesses.
SAP HANA gives a significantly more straightforward user interface that can be customized and accessed by everyone on the team. With an enhanced interface, system use is improved, and activities are more rapid.
S/4HANA also provides better speed and efficiency, making it easy to access data in real-time if you need it — even in the integrated interaction systems. This is possible through simple processes and integrated reporting. A quicker interface helps you to evaluate and respond faster.
S/4HANA also provides numerous applications and dashboards to be combined in a single unified location, saving both energy and time. Department-wide capacity building can make a company more flexible and competitive.
By using some of our latest apps which are only accessible to S/4HANA customers, you can further grow business. Some of your expenditures are also reduced by stopping investing in SAP ECC elements no longer available with S/4HANA. The first thing you will do is consider those benefits and plan early for transfer.
3 Migration Strategies
When you switch to S/4HANA, you chose the best migration approach to win.
1. Conversion of System
Approximately half SAP customers are selecting a system conversion strategy to convert existing SAP ECC ERP to SAPS/4HANA. They are also known as “rise and change”.
System migration is suitable for businesses that intend to make minor improvements to a current program. Most of the upgrades would be technological without a significant redesign. One of the advantages of program transition is that businesses will reform changes at their rate.
2. New Implementation
This technique is to be followed whether you switch from a non-SAP to SAP S/4HANA program or simply decide to start anew.
This is a work-intensive method. Data must be cleaned and loaded from the previous system into S/4 HANA. Management and processes also must be re-engineered. Even the learning curve, which managers find as appropriate for the new program, is present as you switch from a non-SAP system.
However, from scratch, the problems and issues of the old program can be reversed. You should update the processes in order to work with S/4HANA ‘s capability to optimize operations.
3. Landscape Transformation
With this approach, you can selectively transform your system components into S/4HANA, or build your non-SAP and SAP systems as one global network. Many companies that transition landscape prefer to either relocate or have the best return on their products, which benefit most from S/4HANA.
The strategy is intended for companies wishing to switch to S/4HANA slowly. It facilitates them to do just that slowly when focusing on key business activities. It tends to work also when systems are consolidated. You could even work smarter and more effectively by putting additional processes together in S/4HANA.
Quickly start transferring to SAP S/4HANA
You might want to begin now if you’ve not taken your time seriously and considered your ECC-S/4HANA transition. Evaluating your strategic plan in advance will help you move smoothly. Set expectations right from the outset, so performance and ROI can be calculated. You also have to decide if your system is on location or the cloud. SAP has a range of services, including material content and migration tools, to help you in this process.
It’s a perfect time to rethink the whole network design when you get ready to switch to S/4HANA. In some instances, businesses have a range of front end solutions that are critical for staff and consumers. In both ECC and S/4HANA, TecQubes’s two-directional real-time integration platform allows integrations with such tools to be constructed while executing ECC and managed to turn it into technical movement when you begin the execution of S/4HANA. This helps you if you begin planning right now, to spread construction work over the years and also to avoid repetition of integration work on projects that today you want to launch but also in the future of S/4HANA.
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