As I mentioned in my earlier blog on why to move to S/4HANA, while the end-of-mainstream-maintenance deadline of 2027 is a significant factor, it should not be the only driver for migration. Companies should realize that software that was written two decades ago isn’t going to handle their future needs!
Companies have been building out their ERP systems over the years resulting in increasingly complex technical environments. S/4HANA can reduce the redundancy of satellite systems for simpler, leaner landscape architecture. In addition to simplifying complex landscapes, companies also have an opportunity to take advantage of process improvements that address their business needs. To help companies identify these kinds of options and build the business case for SAP S/4HANA, SAP provides SAP Business Scenario Recommendations, a tool that identifies the functionalities within SAP S/4HANA that will help you meet your unique business goals.
SAP also offers a variety of deployment options for running SAP S/4HANA. You can either deploy a SaaS model or a hyperscaler or use a hybrid approach that provides the control of on-premise with the cost and scalability of the cloud. There are other in-between options for companies that want to commoditize infrastructure while maintaining control. As many companies currently run multiple databases, they don’t want to take on yet another database; they don’t have to do that with a cloud deployment. An incredible advantage is that the functionality of SAP S/4HANA is consistent across all deployment options. So if the customer is not ready for the cloud, they can start with any deployment approach and move to the cloud later on.
With an SAP S/4HANA migration, companies have an excellent opportunity to ensure that their data and code are adequate for future growth. Clean data is critical for SAP ECC customers, and it is essential when moving to SAP S/4HANA. There are three types of data regarding an SAP S/4HANA migration: master data, transactional data, and unstructured data. Plus, much of the historical data does not need to remain in the SAP S/4HANA system as you only want to keep what’s necessary for day-to-day processes with the rest safely stored in an archive that supports quick and easy data retrieval.
Clean code is just as necessary as clean data. Current ECC systems contain a wide range of custom code. As part of migrating to SAP S/4HANA, companies need to understand whether their old code will work after the migration. To help you understand how the existing custom code might conflict with the new SAP S/4HANA architecture and the types of changes to expect due to the simplification provided by SAP S/4HANA, SAP provides the SAP Readiness Check tool. SAP Cloud Platform also allows companies to adjust their old code to work with SAP S/4HANA. Which code to leave in SAP S/4HANA and which to move to SAP Cloud Platform is dependent on the type of enhancement. For example, adding custom fields to an S/4 user interface would be an in-app extension, a completely new user interface or mobile app would be a side-by-side extension. What’s important to note is that you do NOT need to migrate to S/4HANA to utilize the SAP Cloud Platform. With SAP Business Suite you can start adjusting your code to work with SAP S/4HANA, which will save time and effort at the time of migration.
It’s generally a good idea to start your planning early by leveraging SAP Business Scenario Recommendations (BSR) and SAP Readiness Check and help the business understands the inherent value of migration. After all, with SAP S/4HANA being five years old, you should be confident that you are not stepping into untested territory.