Selective Data Transition vs. Full Migration: Choosing the Right Approach for SAP S/4HANA

Are you planning a migration from SAP ECC to SAP S/4HANA? You have probably encountered two words that keep popping up: Selective Data Transition and Full Migration. While both strive to bring your company to the S/4HANA platform, the route they provide is very different.

Choosing the best SAP data transfer approach is more than a technical decision; it is business-critical. Whether you are facilitating processes, dealing with emerging regulations, or planning for future scalability, the path you choose can greatly influence your timeframe, expenses, and company continuity.

This article will discuss the major distinctions between Selective Data Transition and Full Migration, why either strategy makes sense, and how Australian businesses may adapt these SAP landscape changes to their specific needs. From preparation to best practices and real-world issues, here is your comprehensive guide to making an educated choice about your SAP S/4HANA migration approach.

Understanding Selective Data Transition

Selective Data Transition is a method of shifting from SAP ECC to SAP S/4HANA that reaps several benefits of a System Conversion or a New Implementation while avoiding any of the drawbacks. You can opt to selectively reuse portions of your old ERP solution while rebuilding others based on your company’s needs. SDT further permits you to go live with S/4HANA in a method that makes sense for your business, such as a single go-live, starting with several organisational units, or rolling out the solution by country.

During a Selective Data Transition, you may pick and migrate any ABAP repositories, master data, and operational information you want to the new S/4 instance while leaving obsolete data behind. However, just because you migrate particular data over does not guarantee it is fit for purpose or appropriate for the S/4HANA system; thus, cleaning, harmonising, and rebuilding any master data you move over is still necessary.

Because no two businesses are the same, SDT provides flexibility. If your favourite approach is in proximity with the brownfield end of the spectrum, a Shell Conversion in which you keep the majority of your current SAP ECC interface/customisations and data in SAP S/4HANA makes sense; if you are closer to the greenfield end of the spectrum, a Mix & Match approach that copies some legacy processes over while reworking others is the way to go.

Understanding S/4HANA Selective Full Migration

A full migration strategy involves completely converting an old SAP system to SAP S/4HANA. This approach, often called “lift-and-shift,” entails moving the entire system to the new environment. However, unlike a simple lift-and-shift, migrating to S/4HANA typically requires significant reconfiguration and optimisation to leverage the new system’s capabilities fully.

This scenario includes utilising SAP Software Update Manager (SUM) with the Database Migration Option (DMO). SUM with DMO is beneficial for organisations that do not currently use SAP HANA as their database, as it combines the software update with the database migration process. This tool helps streamline the transition by simultaneously handling the upgrade and migration.

Enterprises can customise their applications using SAP Cloud and SAP partner development tools. The SAP Business Technology Platform (BTP) offers a range of services for developing, integrating, and extending SAP applications, allowing businesses to tailor their solutions to meet specific needs and enhance functionality.

Selective Data Transition vs. Full Migration: Choosing the Right Approach for SAP S/4HANA

SAP ECC has been a stable ERP system for several decades, but SAP S/4HANA marks a considerable step ahead. One of the main elements facilitating this shift is SAP Landscape Transformation, a collection of products and services that assist companies in making a partial or total transfer, enabling customised migration routes that satisfy particular corporate objectives.

  Here’s an overview of the main differences:

Which requirements must be met before converting from SAP ECC to SAP S/4HANA? 

There is no doubt that moving to S/4HANA is a major task, especially for those companies that have continued using SAP ECC for years, if not decades. Therefore, investing substantial time and effort in preparation is advised before making this shift. Here are four important S/4HANA migration preparatory tasks that can help your organisation leap:

Step 1: Understand the S/4HANA Features

Understanding the terrain ahead is usually a good idea before taking the plunge. Taking the time to learn about S/4HANA features is the first step towards a successful transfer. This includes understanding all the modules, their work, and the numerous processes S/4HANA provides.

 Deployment Options:

 Gaining a deeper grasp of S/4HANA allows SAP ECC customers to make judgements on the following versions and deployment options:

SAP S/4HANA Cloud – Public Edition

As the name implies, the public edition of SAP S/4HANA Cloud is hosted in a public cloud. This setup is suitable for enterprises seeking size and flexibility. SAP handles and cares for the application and cloud infrastructure, but security may be an issue when apps are hosted in the public cloud.

 SAP S/4HANA Cloud – Private Edition

The S/4HANA Cloud private version is run on a private cloud. As a result, clients get more control over the infrastructure. SAP manages and maintains the cloud, improving clients’ security and customisation choices.

 SAP S/4HANA On-premises Managed by SAP (HEC)

Customers who want more control over their apps should always choose on-premises installations. However, they have a tremendous operational burden. This is why SAP provides S/4HANA as a promise-based application, with SAP handling the infrastructure.

SAP S/4HANA On-premises

Finally, SAP S/4HANA is available for on-premises deployment, providing clients with complete control over their application and the opportunity to customise it based on their business requirements. With this option, the client is responsible for controlling the entire system.

Step 2: Data Analysis and Classification

Data migration is a vital phase from SAP ECC to S/4HANA. Before moving data, it is an excellent strategy to categorise it depending on how frequently it is accessed. This allows you to choose the kind and quantity of data to move from your ECC database to S/4HANA. Here’s a basic method to categorise data:

Why categorise data?

Classifying data may appear to be a complex undertaking, yet it provides several long-term benefits. To begin, there is a clear cost advantage since preserving cold data lowers the cost of data storage. Reducing the quantity of data to be moved also alleviates the resource demand. Finally, it improves system performance by making critical data easily accessible.

Step 3: Data cleansing

After categorising data, the next step is to “clean” it. This activity aims to revise and improve the integrity of data so that the transferred data is correct and dependable. The methods and technologies available from SAP to help with data cleaning are listed below.

Processes Used in Data Cleaning

Data cleaning includes five procedures, which are as follows:

How Data Cleansing Works?

Data cleaning consists of three steps:

•     Data profiling
•     Automated cleansing and
•     Manual review.

Let us examine each of these processes.

SAP Tools For Data Cleansing

SAP offers two tools for data cleansing:

SAP Data Services

Enables full data integration and purification of both structured and unstructured data.

SAP Information Steward

Allows users to comprehend, analyse, and measure the effect of data on business operations.

Step 4: Run a Readiness Check

SAP Readiness Check is a self-service application that allows users to evaluate the preparedness of their existing SAP ECC or older SAP S/4HANA version in preparation for an upgrade to SAP S/4HANA. It emphasises the necessary preparations and potential pre-projects that must be completed before beginning the migration process:

Purpose of SAP Readiness Check

A readiness evaluation gives SAP ECC clients initial insight so they can comprehend the project’s ramifications and create a thorough plan for upgrading to S/4HANA. Here’s a list of stuff that can help you prepare for migration:

1. Perform a SoD (Separation of Duties) Check:

Before we begin any migration efforts, execute SoD checks to remove as many risks as possible, conduct a UAR and Certification to ensure roles are acceptable, and verify the business process roles that are in place.

2. System Analysis:

When transferring ECC t-codes to S/4HANA t-codes, the next step is establishing which roles require adjustment and examining the migration’s impact on licensing.

3. Simplification Item Identification:

Identify simplification items relevant to the S/4HANA version and evaluate their impact on existing procedures.

4. Custom Code Analysis:

Analyse custom code to find issues and make suggestions for S/4HANA compatibility.

5. Data Volume Management:

Examine data volumes to optimise storage and improve performance during transfer.

6. Business Process Analysis:

Analyse current business processes to ensure they are consistent with S/4HANA best practices.

Steps for SAP Readiness Check

The SAP readiness check involves the following steps:

1. Initiation:

Launch the readiness check with SAP tools or cloud-based services.

2. Data Collection:

Collect system information, including settings, custom code, and use metrics.

3. Analysis:

To develop a complete report, thoroughly evaluate the obtained data.

4. Dashboard and recommendations:

Present data on an easy dashboard and practical advice for a successful changeover.

SAP ECC to SAP S4HANA Migration Strategies

Choosing the appropriate migration plan is essential in your SAP ECC to SAP S/4HANA conversion journey. Each migration strategy has unique benefits and considerations. There are three alternatives for SAP ECC to S4/HANA migration:

1. Greenfield Migration

A greenfield migration entails constructing a whole new S/4HANA system while moving just the appropriate data from your old ECC system. Consider building a new house rather than refurbishing an existing one. This strategy enables you to reengineer existing processes, implement best practices, and begin with a clean, optimised system. It suits businesses seeking a dramatic shift and the opportunity to simplify their processes.

2. Brownfield Migration

This is a system transformation. A brownfield migration is a technical upgrade from your current ECC system to S/4HANA. This strategy is typically speedier and less disruptive than a greenfield migration, although converting custom code and procedures to S/4HANA may necessitate more effort. It is appropriate for organisations wanting a faster transition with less disturbance to existing procedures.

3. Hybrid Migration

This is a selective approach. A hybrid migration contains aspects of both greenfield and brownfield techniques. It entails deploying a new S/4HANA system while selectively transferring particular components or processes from your current ECC system. This enables you to prioritise essential functionality and implement a phased SAP Data migration strategy. It is an excellent choice for organisations with complex landscapes or those seeking a balance of transition and continuity.

SAP ECC to S/4HANA Conversion Steps

Below is the curated list of SAP ECC to S/4HANA Conversion Steps:

1. Pre-Conversion Considerations

SAP ECC to SAP S/4HANA conversion necessitates an in-depth analysis of the core technology already in operation in the SAP ECC system to enable a clean migration with minor rework. It all starts with assessing Unicode compliance, data migration capabilities, customer code evaluation, and opportunities to optimise business operations.

2. Evaluating the current SAP ECC landscape

To adequately examine the status of your ECC landscape, ensure that your system is Unicode compatible, which means it can handle several languages and character sets. You must also guarantee that your database is ready for the SAP ECC to SAP S/4HANA conversion, which operates on its in-memory database.

Many businesses find it necessary to write bespoke code to match their programming with their business operations. This code must also be reviewed to determine whether any changes are required for compatibility. The hardware and network settings utilised in the SAP ECC to SAP S/4HANA conversion may require updates or patching.

3. Fit-Gap Analysis

After assessing the present landscape, conducting a fit-gap study between your ECC and S/4HANA setups is critical. A fit-gap study looks for inconsistencies or gaps between your present and desired systems and areas where they match.

The fit-gap analysis can help you choose which conversion technique, such as greenfield, brownfield, or selective data move, is ideal for your needs. You can also choose to employ standard S/4HANA procedures or re-engineer existing ones.

Things to consider include the business scope spanning the business areas and processes that will be included in the analysis, identifying technical factors such as custom code and integrations, and establishing explicit investigation objectives and transactions for analysis results. Not doing a fit-gap study might result in unanticipated problems, budget overruns, and implementation failures.

4. Software Upgrade Manager (SUM)

SAP Software Upgrade Manager is a multi-purpose tool supplied by SAP to assist with some of the housekeeping duties required to ensure that the conversion from SAP ECC runs well. Many SAP customers have significant difficulty in dealing with a backlog of fixes. These can be support or improvement patches that will upgrade your ECC system to the necessary level for a successful conversion. SUM will help you upgrade an ECC system to a better version.

When the ECC system is complete, SUM may be used to transfer data from a typical legacy database to SAP HANA, a new in-memory database. During an upgrade, SUM searches for things that may be simplified and functionality that need to be adjusted during the conversion.

SUM is an essential tool for the technical components necessary for a brownfield SAP ECC to SAP S/4HANA conversion. It simplifies software upgrades, database transfers, and any necessary modifications between the two systems.

 5. Conversion Process

 After you have established your migration strategy and cleared everything, planning how you will install your new S/4HANA system is important. There are two basic deployment options available, each with its pros and considerations:

6. Technical Conversion Phase

The first technique involves a gradual rollout. This method entails a progressive implementation of S/4HANA, beginning with specific modules or business units. Consider it a staged migration of different elements of your organisation to the new system. This enables a more planned transition, reducing disturbance to your business. It also allows for learning and modifications along the way, ensuring that each phase builds on the success of the preceding one. Large organisations with complicated landscapes or those wishing to reduce risk frequently prefer phased deployments.

The second strategy is full-scale deployment. This entails using a “big bang” strategy to move your entire organisation to S/4HANA at once. It is a shorter transition, allowing you to reap the new system’s benefits throughout your whole organisation at once. However, rigorous planning and organisation are required to achieve a successful transition. Smaller organisations or those with less complicated systems frequently prefer full-scale installations for a speedier changeover.

Custom Code Adaptation and Data Migration Strategies

SAP ECC to SAP S/4HANA migration will need adjusting any custom code presently in your ECC mechanism to guarantee that it is compatible with S/4HANA’s simplified data model and expanded capabilities. You should be aware that specific custom codes cannot be migrated, and you should develop a prioritised mitigation strategy for those cases.

SAP data migration may be difficult, and it relies on several factors, including the amount of data available and its reliability and uniformity. How important is your data to your organisation, and what are your time and financial limits for data migration?

Once these queries are addressed, you may choose between an S4HANA selective data migration, which migrates only the data you need, a historical data migration, which migrates all previous data, and a phased data migration, which begins with the most crucial data and moves data in batches as needed.

1. Post-Conversion Activities

1. Testing Phases
   
   Functional, Performance, Security, and User Acceptance

Gathering user input is also necessary to determine how effectively your new system meets company needs and user expectations. Actively solicit input through surveys, interviews, and user groups. This gives valuable information on customer happiness, identifies pain points, and shows development opportunities. User input enables you to customise your S/4HANA system to satisfy user demands, enhance acceptance, and maximise investment.

By integrating performance monitoring and user input, you may comprehensively understand your S/4HANA installation. This enables you to make data-driven choices, optimise system performance, and guarantee that your S/4HANA system lives up to its promises of innovation, efficiency, and company success.

2. Cutover Plan and Go-Live Preparations

The cutover and go-live plans are the most critical phases in your SAP ECC to SAP S/4HANA migration process. You will require a complete task sequencing that defines the tasks, responsibilities, and dependencies during the cutover time. If severe difficulties arise during the transition, you will also want a rollback plan to restore to the previous system if necessary to avoid business impact.

Communication and a strategy to give enhanced care to customers soon after go-live will decrease dissatisfaction and increase user buy-in to the new system. Issue monitoring and resolution reporting provide users with confidence that they are being heard.

3. Monitoring and Continuous Improvement

Monitoring system performance is critical to ensuring that your S/4HANA system performs optimally. This includes monitoring crucial parameters, including system uptime, response times, and resource utilisation. Monitoring such indicators can help detect possible bottlenecks, fix performance issues proactively, and provide a smooth and efficient user experience. Performance monitoring assists you in ensuring system stability, avoiding interruptions, and optimising your S/4HANA investment.

4. Continuous Monitoring and System Enhancement

SAP provides many monitoring tools to help with post-go-live performance monitoring, including SAP Solution Manager, which monitors KPIs such as response times, CPU utilisation, memory use, and database performance.

Going beyond performance security monitoring, SAP Security Audit Log detects unusual activity, such as unauthorised access attempts. Implementing Pathlock Cloud will assist in monitoring user access control and reducing Separation of Duties conflicts.

SAP delivers critical updates, security patches, and support package stacks that should be deployed regularly. (Weekly or monthly)

The positive aspect is that if you use S/4HANA Cloud, SAP will automatically apply upgrades quarterly or biannually.

5. Strategic iteration and using advanced S/4HANA capabilities.

To maximise the benefits of your S/4HANA conversion, you should examine events, issues, and changes regularly to identify opportunities for improvement in your monitoring, maintenance, and enhancement procedures.

Automate regular processes like system monitoring, backups, and updates to increase productivity and decrease the chance of human mistakes.

Stay current on the newest SAP technologies, best practices, and industry trends to ensure that your S/4HANA system is safe, efficient, and aligned with your business goals.

Use SAP support services, forums, and user groups to remain informed and receive assistance as needed.

SAP Migration Best Practices

To guarantee a successful transition to SAP S/4HANA, consider the following recommended practices:

1. Create a clear business case

Describe the business objectives and projected advantages of the migration. This increases commitment from key stakeholders and offers a solid framework for decision-making throughout the project. This covers the project scope, which may incorporate extra cost-effective digital solutions like AP automation.

2. Engage experienced partners

Work with qualified SAP partners that understand the RISE approach. Their knowledge may help to speed the relocation process, cut implementation costs, and guarantee that best practices are followed.

3. Utilise financial incentives

Use SAP’s financial incentives, including migration credits and support services, to offset expenses and ease the financial burden of moving to S/4HANA.

4. Prioritise Change Management

Successful migration involves humans, processes, and technology. Invest in change management activities to prepare your teams for the new system and guarantee a seamless transfer.

5. Prepare for Custom Code Migration

Identify and analyse bespoke SAP ECC code. Determine which codes are still required and which may be replaced with standard S/4HANA functionality or transferred to SAP BTP for improved integration.

Benefits of Migrating from SAP ECC to SAP S/4HANA

The list of possible SAP S/4HANA advantages is broad. Most stem from S/4HANA’s HANA origins, which accelerate queries and analytics on potentially enormous internal and external data pools. The overarching theme is speed.

A further major set of prospective advantages is enabled by SAP S/4HANA Cloud’s SaaS architecture and close connectivity with the SAP Business Network and other cloud-only technologies, particularly AI.

Other significant benefits of both cloud and on-premises versions of S/4HANA include the following:

1. Real-time analytics using consolidated data

Analysing all of your company data in one location can provide fast insights, allowing you to make faster, wiser decisions with up-to-date, accurate information.

2. Faster period-end financial closures

Automate and streamline financial operations to close books faster. This will save manual effort, mistakes, and delays, allowing you to have a comprehensive financial picture sooner.

3. More precise prediction

Use real-time data and built-in intelligence to forecast demand, sales, and inventories more accurately. This promotes better planning and resource allocation.

4. Simpler user interface

S/4HANA has a simple, modern interface that is intuitive and user-friendly. This allows workers to perform more effectively with minimal training.

5. Process automation

Automate repetitive operations, such as invoices or approvals, to save time and minimise mistakes. This increases productivity and allows employees to concentrate on more strategic tasks.

6. Simpler to upgrade business models

Adjust corporate procedures and models quickly to respond to market changes with minimal impact. This guarantees that your organisation remains competitive and agile.

SAP ECC to SAP S/4HANA Migration Challenges

1. Complex Data Migration:

Transferring data from old systems to SAP S/4HANA involves meticulous preparation and execution, especially when working with significant amounts of data. It is vital to ensure data correctness, integrity, and completeness throughout the migration process.

2. Customisation Compatibility:

Organisations frequently customise their current systems to fit unique business requirements. Because the underlying architecture and data types differ, integrating these customisations with SAP S/4HANA may take substantial effort.

3. Technical integration:

Linking SAP S/4HANA with other systems, apps, and processes in the organisation can be technically challenging. Smooth interoperability is critical for avoiding interruptions to established operations.

4. Cost and Resource Management:

Migration costs can be high, not only because of software licensing and execution, but also because professional consultants, technical specialists, and project resources are required. Adequate finance and resource distribution are critical to a successful move.

5. Challenging Business Processes:

SAP S/4HANA introduces new functionality and process improvements, which may require organisations to rethink and redesign their business processes. Adapting to these changes may be time-consuming and challenging.

6. Test and Quality Assurance:

Thorough testing is required to ensure the correctness and operation of the migrated system. Companies must set aside enough time and funds for testing to prevent problems after migration.

7. Downtime and disruptions:

The relocation procedure may cause downtime, which might disrupt normal corporate operations. Minimising interruption and ensuring a seamless transition is critical to company continuity.

8. Change Management:

Implementing a new ERP system such as SAP S/4HANA necessitates excellent change management. Employees must be taught and prepared for the new system to guarantee its smooth adoption.

Conclusion

Migrating to SAP S/4HANA is a huge project, but with careful preparation and execution, it can be a game changer for your organisation. By taking a disciplined approach and employing the relevant tools and methods, you can maximise S/4HANA’s potential for creativity, effectiveness, and growth.