Your guide for successful migration to SAP® S/4HANA
SAP migration

Your guide for successful migration to SAP® S/4HANA

The need to migrate to SAP® S/4HANA is urgent, as SAP ERP will only be maintained until December 31, 2027. This guide will help you get the project going.

Author: Marcus Woide
Marcus Woide
17.07.2024

What you can expect from the S/4HANA migration
Greenfield, brownfield, or something in between?
Simplify migration with RISE with SAP
SAP S/4HANA Cloud: Public Cloud, Private Cloud, or on-premises
New terminology and functions
Checklist for the migration to S/4HANA
AEB is here to support you

What you can expect from the S/4HANA migration

Anyone who misses the deadline for migration by the end of 2027 can make use of the extended maintenance offered, but will also incur additional costs. The migration to S/4HANA is not only a technical necessity, but also offers direct advantages and opportunities in the application. These include improved clarity, reduced process complexity, and faster data processing.

SAP ERP Maintenance
SAP ERP Maintenance

Greenfield, brownfield, or something in between?

A successful migration begins with thorough planning. Decide early on whether you want to pursue a greenfield or brownfield approach. The greenfield approach means a completely new implementation of SAP S/4HANA, while brownfield is a technical conversion of the existing SAP system.

Greenfield

Advantages

Disadvantages

A new beginning: Get rid of outdated processes and data by redesigning your SAP system from the ground up.

High costs and time expenditure: You will be faced with extensive planning and implementation, which can lead to higher costs and longer project durations.

Optimized processes: Business processes can be completely rethought and optimized, which can lead to more efficient workflows.

Complexity: A completely new implementation can be complex and resource-intensive, especially for large companies with many processes.

Clean data: By starting afresh, you can ensure that only relevant and up-to-date data is migrated.

Organizational effort: The changeover to new processes and systems can mean a considerable amount of training for employees.

Brownfield

Advantages

Disadvantages

Faster changeover: A step-by-step migration is possible, allowing the system changeover to be implemented more quickly.

Legacy data: Existing inefficiencies and outdated processes are transferred to the new system.

Lower costs: As a rule, the costs are lower than for a completely new implementation.

Technical debt: Customizations and in-house developments from the old system must be migrated.

Proven processes: Proven and functioning processes are retained, which makes it easier for employees to accept the new solution.

Limited optimization: The possibility of fundamentally optimizing business processes is limited, as existing structures are retained.

In practice, companies often choose a strategy that combines both approaches. Only inefficient systems and processes are redesigned. Everything else is kept and taken over. However, the complexity can be correspondingly high due to the mixture of approaches.

Simplify migration with RISE with SAP

In line with SAP's Clean Core strategy, it is advisable to minimize modifications as much as possible in order to leave the core functionalities of the SAP system untouched. This is exactly where RISE with SAP comes in and supports companies during migration. It offers a holistic solution that covers both the technical conversion and the transformation of business processes.


AEB offers modification-free add-ons that are specially designed for the "RISE with SAP" project approach for the expansion of corresponding functionalities in customs, global trade, and logistics. This reduces the complexity of your system and saves you unnecessary technical effort in the future.

You can find out more about our add-ons for SAP on our product page.

SAP S/4HANA Cloud: Public Cloud, Private Cloud, or on-premises

There are three different operating models to choose from when migrating to SAP S/4HANA.

Public Cloud

If you want to get started quickly, don't need extensive customization, and want to save costs, the Public Cloud is a good choice. It is particularly suitable for smaller companies or those that have standardized processes without many adaptations.

Pros:

  • Automatic maintenance and operation by SAP
  • No IT resources required

Con:

  • Limited options for adapting the system

Private Cloud

For companies that require specific customizations and greater control over their data, the Private Cloud is the better choice. It offers a good balance between flexibility and control, but is more expensive and more complex to manage.

Pros:

  • Extended options for adapting the system
  • Hosted and self-operated applications are possible in parallel

Cons:

  • Higher costs compared to the Public Cloud
  • More complex planning due to extended options

On-premises

If security and complete control over your IT infrastructure are a top priority, this option can be considered. It is suitable for large companies with the necessary resources and the need for extensive customization. However, the company bears sole responsibility for keeping the system up to date and secure, which ties up a lot of technical resources.

Pros:

  • Complete freedom in setting up and designing the system
  • Maximum customizability of the system

Cons:

  • Highest technical effort for operation, maintenance, and updates
  • High costs for hardware and specialist staff

New terminology and functions

SAP S/4HANA introduces new terms and functions. For example, a distinction can be made in future between the expiring “Shipment” object and the future “Freight Order” object. Customers and vendors are now combined under the umbrella term of “business partners” in S/4HANA. The maintenance of master data has also changed fundamentally. For example, master data could be created in SAP Master Data Governance (MDG) in the future and supplemented in the area of global trade data via International Trade. These are just a few of the relevant changes for those responsible for customs and global trade.

Checklist for the migration to S/4HANA

1. Early involvement of the specialist departments

Ensure that specialist departments are involved early in migration planning.

2. Creation of a resource plan

Develop a detailed plan that identifies and allocates the necessary resources for both the IT teams and the specialist departments.

3. Understanding the current processes

Document and analyze the existing processes Product Classification, Trade Compliance Management, Customs Management (Import, Export, O&P), and Transport Management such as the transport service provider connections in order to create reference objects for the migration.

4. Evaluation of adaptations

Check all existing adaptations and in-house developments and evaluate which are necessary in the new system and which can be replaced by standard functions.

5. Implementation of the SAP Clean Core approach

Ensure that the clean-core concept is observed by minimizing unnecessary modifications and leaving the core of the SAP system as unchanged as possible.

6. Start pilot project and derive adaptations

Carry out a pilot project to test the impact of the clean-core approach and the new processes in a controlled environment. Analyze the results and make any necessary adjustments to further optimize the migration.

7. Carrying out the migration

Implement the migration plan, monitor progress, and ensure that all resources are deployed as planned.

8. Post-migration review

Carry out a thorough review after the migration to ensure that all systems are working correctly and that the new processes have been implemented effectively.

AEB supports you with the S/4HANA migration

The migration to SAP S/4HANA is a complex but necessary measure that should be implemented sooner rather than later. We support you with questions relating to solutions for customs, global trade, and logistics processes.

Contact our SAP expert.

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