SAP S/4HANA transition

Jul 18, 2024

For large companies using the SAP system, the transition to the new S/4HANA system will become inevitable, as the manufacturer will end support for previous editions from 2027.
This transition is not just a simple upgrade, but a transition to a completely new architecture, which brings with it serious challenges and opportunities. Introducing a new solution to your organization's digital ecosystem is particularly challenging, as you need to learn new technologies and solutions that can drive growth.
 

The transition requires thorough preparation. This should not only be thought of as an IT problem, but human and business factors should also be taken into consideration. An appropriate internal change management approach and management support are essential for successful implementation and ensuring long-term effectiveness.

 Migrating to SAP S/4HANA offers many benefits to organizations, including improved real-time analytics, faster financial closes, access to cutting-edge technologies such as artificial intelligence and process automation. The transition to SAP S/4HANA can basically support the company's alignment with its strategic goals and the preservation of its competitive advantage.

When should you start the S/4HANA migration process?

According to SAP, on average, the migration process from a traditional SAP environment to the S/4HANA system usually takes one to one and a half years. Due to the unpredictability of the transition time, it is advisable to start the transition to the appropriate ERP solution as soon as possible. Starting the migration process early helps the organization have more time to implement the transition and to eliminate potential risk factors.

The importance of new architecture

The introduction of the S/4HANA system can fundamentally expand traditional SAP systems. The new system offers new opportunities in terms of data management and business intelligence, but at the same time, it can also result in high costs if the necessary steps are poorly assessed and planned. That is why it is also very important that companies thoroughly prepare for the transition and not postpone it to the last moment, since the capacity of SAP consulting companies may be limited.

The complexity of the transition

The success of the transition largely depends on the effectiveness of change management. People's natural resistance to change can be a serious obstacle, so it is essential to identify, involve and continuously inform the appropriate stakeholders in the organization. The competencies required for the transition must be assessed and, if necessary, supported by training. The new system may create new processes, functions and responsibilities, so not only the existing employees have to be trained, but it may also become necessary to hire new employees and develop new competencies.

Common S4/HANA migration approaches 

The suitability of S/4HANA migration strategies varies from organization to organization and there is no one-size-fits-all approach. Some people choose a green field project, which is basically a re-introduction from scratch, while others prefer a brown field project with a complete system transformation, so that they can basically keep the processes and solutions that were previously established. In addition, the hybrid approach is suitable for those who have their current system environment in the I would like to consolidate into SAP S/4HANA, combining the strengths of the green-field and brown-field implementations. This strategy is most effective for large enterprises dealing with large data and complex systems.

The most common S/4HANA migration challenges

Complex data migration in case of green field investment

Transferring data from legacy systems to SAP S/4HANA requires careful planning and execution, especially when dealing with large amounts of data. Ensuring the accuracy, integrity and completeness of data during the migration process is critical. 

Project management 
 
A detailed and realistic project plan is essential. It should include all transition steps, timelines, resources and risk management plans. Using project management software can greatly facilitate the tracking and management of tasks. Identifying and managing risks during the transition is key. Delays and cost overruns can be avoided with the right risk management plan. 

Technological preparations 

Before implementing SAP S/4HANA, it must be ensured that the IT infrastructure is suitable for running the new system. This includes updating hardware and software and integrating possible cloud solutions 

Costs and resources 

The transition can be costly, not only due to software licensing and implementation, but also due to the involvement of skilled consultants, technical experts and project resources. Ensuring adequate funding and resources is essential for a successful migration. 

Training and support 

Adequate training of users is key to effective use of the new system. Learning how to use the system can be time-consuming, so it is worth providing continuous training and educational materials. Even after the introduction, a well-functioning support structure will be needed to help users quickly solve emerging problems and continuously optimize the system.

Testing and quality assurance 

Thorough testing is essential to verify the accuracy and functionality of the migrated system. Organizations should devote sufficient time and resources to testing to avoid post-migration issues.

How delaware can support the S/4HANA transition

delaware Consulting Hungary's extensive expertise and several decades of experience in the field of SAP enable it to take full advantage of the benefits of SAP S/4HANA. As a first step, we develop the transition schedule, after which we guide you through the entire migration process. 

As we are aware that the implementation of SAP S/4HANA brings fundamental changes in business operations, we also provide comprehensive change management support to facilitate user adoption. Thanks to delaware's competence, methodology and business focus, we have more than 250 successful implementations behind us. 

Every step is carefully planned and executed precisely, ensuring a smooth transition. We support you from start to finish to make every aspect of your migration as smooth as possible. We will work closely with your team to achieve the best results during the transition. 

Are you interested in more about the possibilities provided by SAP S/4Hana?