Tag: SAP S/4HANA

SAP ECC is ending support in 2027, leaving leaders with one choice: migration to SAP S/4HANA. This strategic move promises business benefits like improved operational efficiency and advanced analytics. Although, the many advantages, the path to migration is fraught with many risks and challenges. What are these critical risks, and how can leaders prepare to mitigate them for a successful transition? This blog will help you explore the top ways to navigate SAP S/4HANA migration risks.

An Introduction to SAP S/4HANA

The SAP S/4HANA system is modern ERP software that runs on the SAP HANA in-memory database. This enhances the system’s ability to process transactions faster and provides real-time reporting capabilities. It also has three modes of deployment: private cloud, public cloud, or on-premises.

S/4HANA also works effortlessly with older SAP programs as well as external systems. It connects all departments within the organization, ensuring smooth operations. The tools provided by the S/4HANA system will help organizations stay competitive with an upper hand.

Why is it Urgent to Migrate to SAP S/4HANA?

The digital world keeps progressing with impeccable speed. To stay significant in the current market, companies must adapt to upcoming trends. Listed below are some of the main reasons why migration to S/4HANA is an urgent matter:

1. End of Support for ECC

Companies currently using SAP ECC have no choice but to migrate to SAP 4/HANA. SAP has declared to end mainstream maintenance for SAP ECC by 2027. This means SAP will no longer offer regular updates, support, or security for ECC systems. Migrating to S/4HANA can help businesses stay relevant with effective operations and growth strategies.

2. Technological Advancements

In-memory computing processes data much faster than legacy databases. This enhances real-time analytics and reporting. The new simplified model is designed to reduce the complexity and size of the software database. This improves performance and cuts the cost of ownership. The advanced user interface for SAP 4/HANA also offers an intuitive and interactive experience.

3. Business Benefits

S/4HANA also offers real-time insights and integrative analytics. Its enhanced data processing causes real-time analytics. This enables organizations to make quicker and more informed decisions. It also has extra features, such as integrative analytics and machine learning. They enhance the company’s predictive capabilities.

4. Integration with Innovation

S/4HANA can integrate with existing SAP products seamlessly. This fosters innovation. Further enabling the optimization of emerging technologies like IoT, AI, and ML.

5. Cost Efficiency

S/4HANA opens up a plethora of long-term reduced-cost benefits. From reduced infrastructural costs to lower maintenance costs, it can lead to significant savings.

What is the Difference between S/4HANA Conversion and Migration?

S/4HANA migration means transferring transaction data into another system. During this process, pre-project adjustments are not necessary. It is generally referred to as the Greenfield or Selective Migration Approach. It involves the setup of a new system and the migration of the initial data load.

System conversion, on the other hand, refers to converting an existing system. For instance, it could mean converting an SAP ECC system into an SAP S/4HANA system. This approach is also called the Brownfield Approach. Here, pre-project preparations are necessary. These preparations include data migrations and software customization.

Read more: Various Paths to SAP S/4HANA Migration – A Detailed Guide

What are the Challenges of Migrating to SAP S/4HANA?

With S/4HANA, companies can upgrade their IT infrastructure and boost business operations. Yet, this process comes with its fair share of challenges. These include change management, customizations and integrations that need careful handling, the need to maintain data integrity during transfer and more. Let’s discuss some of the challenges here. Following, you will read how to mitigate these S/4HANA migration risks.

1. Gaining Support from Senior Management

This is a crucial step during the migration process. It involves requesting the necessary resources and budget allocations. You will have to make promises about advancement’s alignment with business goals. Persuading stakeholders about the necessity of migration is challenging.
There must be effective communication about the technical requirements and the migration process. Emphasize the positive outcomes. Elaborate on how the investment will have cost-effective benefits in the long run. Draw attention to the enhanced efficiency, improved integration, and futuristic IT infrastructure.

2. Maintaining Effective Controls

During the migration process, many customizations and integrations are underway. These processes need to be handled carefully to ensure a successful migration. This step involves identifying potential risks and developing effective ways to mitigate risks. It ensures that the migration process is carried out safely and minimizes the chances of any adverse impact on operations. Furthermore, managing controls can protect data integrity throughout the migration process.

3. Data Migration

This is the main step in the SAP migration process. It involves transferring large volumes of initial data from one system to another. Data integrity is the top priority, followed by accuracy and consistency. Any mishap in this step could cause a recurring issue throughout the organization. Creating a strong migration approach is important for a seamless transition. This includes planning the data extraction, transformation, and loading processes.
Developing a data-centered framework that automates workflows is also important. It is well-advised to delete old data from the legacy system before the migration process. Skimming through the legacy system to delete any unnecessary data is crucial. This will help optimize the transaction data. Furthermore, it reduces the risk of migrating inaccurate information.

4. Change Management

Also known as dual maintenance, this term describes managing changes across landscapes. The complete transition will take time. Most companies cannot afford to pause their business operations. Here, it becomes vital to deliver changes across many landscapes seamlessly at the same time. It is crucial to ensure that S/4HANA landscapes mirror any changes made in the legacy systems. Dual maintenance can be a tiring task, but it is a necessity.

5. Custom Code Adaptation

The Custom Code developed by SAP requires many technological modifications. This way, the system software will be compatible with the S/4HANA system. Modification of custom code requires a thorough assessment. Check your legacy system for any incompatible codes. These are usually no longer within your productive business applications. This guarantees the utmost functionality and eradicates any potential post-migration problems.

What is the Biggest Risk when Performing a Database Migration?

Every project has its fair share of risks to look out for. The biggest risk for a S/4HANA migration project is data loss. Losing crucial data can cripple a business, so that is something that needs to be cared for. There are other risks involved as well that have the potential to crumble the project and stunt business operations. Listed below are some of the major risks to keep an eye out for:

1. Data Migration Challenges

The data migration to the S/4HANA process is the more risk-prone stage. The entire process is extremely complex. Consisting of high risks such as data loss, corruption, and compromised data integrity. These issues appear with differences in field gaps between legacy systems and S/4HANA.

2. Poor Planning and Migration Strategy

Ensuring you have an ironclad migration strategy is crucial. Without a proper plan, you may face delays, cost overruns, and data issues. Careful planning will ensure the mitigation of any irrelevant datasets.

3. Technical and Operational Risks

Technical risks, such as integration issues and incompetence in infrastructure, arise during migration. Evaluating your organization’s readiness for migration is a precaution. The proper implementation of appropriate tools must be a priority. This will have a direct impact on business operations and service levels.

4. Customization and Compatibility Issues

Companies are bound to get attached to their legacy system customizations. Especially when these systems have been running for many years. S/4HANA cannot always support these deep customizations. For example, an ABAP source code must be modified to the SAP code. This can sometimes become backward compatible and counterproductive.

5. Lack of Expertise

The migration process becomes complex with heavy data and many technical tools. The company then needs to hire professionals to do the job. This is not always a pocket-friendly option and may sometimes exceed the budget.

What are the Risks of Server Migration with the S/4HANA System?

The most common risk is the change in file structure on the application server. Regardless of the approach, most companies encounter this problem. This is due to a lack of professional experience with migration. As a consequence, organizations fumble and buy expensive extensions to the project.

Check the validity of the entries before migrating to technical roles. SAP programs read and write data on the file system to check the authorization of objects. Verifying the validity of these entries before the migration process will help mitigate the risk to the application server.

When you change migrated files, the termination of the program is prevented. These invalid values in authorization get stored as a short dump. This problem needs to be resolved before further testing. This could put the entire migration process on hold. Even system administrators have to work extra hard to analyze and correct such issues.

Strategies to Execute Safe and Seamless Migration

Organizations can install effective migration strategies during their S/4HANA migration process. These steps will make the process much smoother and help mitigate the S/4HANA migration risks.

1. Comprehensive Planning

Planning should start with closely reviewing the organization’s current IT infrastructure. This will help you understand the scaling and parameters of the migration process. The next key step on the list is risk assessment. It will help you be prepared for any challenges that come your way. Assess all your options and select the right migration strategy for your organization. This is the first step in the migration process. An effective S/4HANA migration strategy must include a detailed timeline for each phase. It will also consider resource allocation and a risk management plan.

2. Data Quality and Validation

Do not underestimate the process of data validation. In this step, you will pinpoint data that is important and needs to be migrated. There must be residual data left in the legacy system to prevent overloading. Assess the data stored in legacy systems to root out any unnecessary elements. This is a great way to mitigate risk. The migration process provides the company with the chance to clean their data. This ensures the migration of only relevant and important data.
Businesses can use the SAP S/4HANA migration cockpit for this. It consists of programmed tools and templates that enable streamlining the migration process. This tool also helps companies regulate S/4HANA data migration activities. It also prevents errors and speeds up the timeline for the S/4HANA migration process.

3. Technical Readiness

Your company’s IT infrastructure must meet the technical requirements. Regardless of which method of migration you use, ensure to invest in the necessary hardware, software, and network upgrades.

4. Collaborate with Experienced Partners

The S/4HANA migration process is a complex transition. One might encounter technical issues in SAP S/4HANa migration journey. It should be handled by professionals with adequate experience. Otherwise, it can lead to many extra costs post-migration. Partnering with experienced consultants is highly recommended. It can also add value, insight, and best practices for successful migration. These professionals will help tackle the most challenging technical issues, guaranteeing a seamless transformation into the S/4HANA system.

Migrating to SAP S/4HANA with Fingent

According to statistics, over 21,707 companies worldwide will have started using SAP S/4HANA as an ERP tool. The migration process is a difficult one, but not with a partner as reliable as Fingent. Fingent has been an SAP Silver Partner and has more than 18 years of experience working with SAP’s products.

Fingent analyzes your IT infrastructure and provides tactical advice on choosing the right migration method. At Fingent, your migration process will have a unique perspective. Our experts will help you prepare, explore, configure, and deploy your project. We also provide post-migration support, project closure, and maintenance. As Certified SAP HANA specialists, we can help you migrate to SAP S/4HANA seamlessly.

Give us a call and let’s see the best way forward for your migration plans.

SAP S/4HANA Transformation is paving the way for businesses to lead stress-free and effective operations. Offering reliable and flexible solutions, SAP S/4HANA is helping companies tackle changing market dynamics, the rapid evolution of new technologies, legacy processes, siloed data and departments, sudden disruptions in the supply chain, and more.

Thanks to SAP S/4HANA, the intelligent ERP system of the new generation is designed to help companies standardize and manage end-to-end processes. Improved speed and agility, enhanced predictability, and accelerated digital transformation are a few other perks of adopting SAP S/4HANA. However, successfully transforming your business with SAP S/4HANA needs strategic planning and the right approaches. This comprehensive guide aims to provide basic guidance to master SAP S/4HANA transformation.

Why SAP S/4HANA Is the Game-Changing Digital Platform for Business Modernization?

Powered by the SAP HANA in-memory database, SAP S/4HANA is central to most enterprise transformation projects today. SAP S/4HANA transformation helps gain real-time data-driven insights, accelerates the pace of business, supports new cloud capabilities, enables usability, and drives innovation, all while streamlining and simplifying your business processes. It facilitates accelerated deployment by lowering costs with a standardized digital core and improves business agility through an open, modular, scalable, and innovative platform. Undoubtedly, we can say that SAP S/4HANA is a game-changer for your digital business strategy, and it is a vital blueprint that will aid you in your journey to becoming an intelligent enterprise.

• Numerous opportunities to apply data and pivot to new business models in a short span of time.
• Single source of facts to improve decision-making and complete business processes without leaving your current interface.
• Automation of tedious routine tasks to streamline business processes and free up workers to focus on more productive actions.
• Faster predictive analytics and insights enable huge efficiency and cost and time savings.
• Lowers infrastructure ownership and maintenance costs by enabling public or private cloud deployments along with SAP’s virtualization.

How Can the C-Suite Derive Value From SAP S/4HANA?

“The longer your critical SAP operations remain mired in yesterday’s technology, the FARTHER YOU WILL FALL behind your competitors.” – Frost & Sullivan

As the financial engine that runs your business operations, SAP solutions are inextricably tied to your digital transformation strategy. Though most SAP customers have plans to move to SAP S/4HANA, many need help with execution. Here are a few practical tips on how CEOs and senior business leaders can accelerate SAP S/4HANA migration to reap business benefits more quickly.

How SAP S/4HANA Transformation Benefits Your Digital Growth Strategy?

SAP S/4HANA aligns with your organization’s needs and provides clarity amid the evolving digital business landscape.

• Simplified, real-time insights to make well-informed decisions.
• Deep personalization to deliver an intuitive and relevant user experience.
• Cloud readiness and adoption powered by a simplified IT landscape.
• Easy to integrate with your existing business applications and solutions.
• Scalable digital core that evolves with your growing business needs.
• Automation capabilities to save your effort and enhance productivity.
• Reduce your IT infrastructure ownership and maintenance costs.

Leading Industries That Benefit From SAP S/4HANA Transformation

1. Supply Chain & Logistics

SAP S/4HANA supply chain management offers a collection of LOB modules, including Sourcing and Placement, Extended Procurement, Manufacturing, Supply Chain, and Asset Management centered around processes for supplier relationship management and supply chain management.

• Early visibility into sales, purchase, and stock transport orders to facilitate planning and scheduling of goods in transit.
• Single warehouse management platform to optimize labor, processes, and warehouse operations.
• Live inventory management with automated and transparent material flows.
• Built-in transportation management to plan, manage, and carry out transports end-to-end.
• Extensive portfolio of software to address every supply chain need.

2. Retail

SAP S/4HANA Retail connects your retail processes across the entire value chain to increase efficiency in real-time and provide an end-to-end real-time experience.

• Empower your store associates and managers with real-time customer and product information.
• Actionable insights to serve customers effectively and deliver world-class shopping experiences.
• Steer your company in real time by adjusting rapidly to changing business needs.
• Understand every aspect of your business and take advantage of new revenue opportunities.

3. Financial Services

SAP S/4HANA Finance allows CFOs and finance professionals to gain insights into a business’s financial aspects, including financial accounting, controlling, treasury and risk management, financial planning, financial close, and consolidation.

• Predictive analytics and insights generation capabilities to enhance visibility across business functions.
• Accurate budgeting, planning, and forecasting based on real-time data and prediction of future outcomes.
• Optimize risk management and establish a cost-effective approach to effectively respond, adapt, and survive in the wake of uncertainties.
• Intelligent automation for every finance process – from accounting to risk management.

4. Healthcare

SAP S/4HANA for Healthcare offers smart healthcare industry solutions to drive high-quality, cost-effective care and improved patient outcomes.

• Cut through complexity and reduce paperwork, freeing healthcare workers to focus on strategic tasks.
• AI-driven healthcare software to control costs, reduce resource constraints, and run efficiently.
• Analysis of health data from electronic medical records and medical sensors to personalize patient care delivery.
• Pursue sustainable healthcare: zero emissions, zero waste, and zero inequality.

Why Do Businesses Need to Switch From SAP ECC to SAP S/4HANA?

SAP will support ECC and other core Business Suite 7 applications until the end of 2027, with optional extended maintenance until the end of 2030. It’s wise for the current SAP ECC customers to prepare for an SAP S/4HANA Migration soon. Here’s a quick rundown of the basic differences between SAP S/4HANA and SAP ECC.

Benefits of Moving from ECC to S/4HANA

• Simplified data architecture and technology landscape.
• Leverage AI, ML, analytics, and automation to power innovative solutions.
• Speed to market, business growth, and expansion.
• Consistent user experience across all channels, platforms, and devices.
• Real-time data insights to improve decision-making.
• Stay ahead of the competition with a next-generation ERP suite.

Strategizing a Successful SAP S/4HANA Implementation Project

With SAP planning to eventually sunset ECC, implementing SAP S/4HANA will be inevitable for all existing SAP users.

Here are a few steps to consider when preparing for SAP S/4HANA implementation.

• Define your SAP S/4HANA implementation goals and objectives.
• Assess your organization’s readiness to adapt to the changes.
• Develop a detailed implementation plan with predefined milestones.
• Ensure you get adequate support from business leaders and the C-suite.
• Redesign legacy business processes so they adapt quickly to S/4HANA.
• Install, customize, and configure S/4HANA to match your specific needs.
• Migrate your legacy data from non-SAP or older SAP systems to S/4HANA.
• Test the new SAP environment thoroughly to resolve errors and bugs.
• User training, go-live, and post-implementation support and maintenance.

How to Successfully Migrate to SAP S/4HANA?

Business leaders and C-level executives often require speed in executing efficiency. Transforming business with SAP S/4HANA can also be a streamlined and quicker journey with established policies for digital success and innovation.

• Set the tone for your organization and employees to become change-resilient.
• Adopt a hybrid or multi-cloud strategy that prioritizes critical workloads to become cloud-ready.
• Save development time by replacing cumbersome versions of SAP Business Suite with flexible SAP S/4HANA.
• Ensure the availability of team members and budget when planning SAP S/4HANA implementation.
• Be sure all business leaders are accountable for meeting deadlines and assigning resources to the project.
• Engage a certified SAP partner to accelerate S/4HANA migration and predictably manage IT costs.

How Businesses Can Accomplish a Smooth and Swift Transition to SAP S/4HANA?

• Analyze the right deployment option (On-Premise or Cloud) that fits your business requirements and budget.
• Evaluate if data cleansing is required to avoid licensing risks and downtimes.
• Create a detailed business roadmap to provide end-to-end technical support for seamless data migration in s4HANA.
• Create SAP Sandbox environment initially as a proof of concept (POC) to test the workarounds in real-time.
• Methodical and systematic execution from planning to migration is successful migration of legacy SAP system to SAP S/4HANA.
• Provide ongoing support and maintenance to ensure your SAP S/4 HANA environment functions without glitches.

Choosing an SAP S/4HANA Migration Approach That Ensures Business Continuity

Large volumes of historical and incumbent business-critical data and complex system landscapes require enterprises to adopt a well-defined S/4HANA migration approach. The best migration technique helps organizations ensure business continuity, embrace innovation, and stay relevant and competitive.

Selective Data Transition, aka Hybrid Approach or Landscape Transformation, is a popular S/4HANA migration approach that enables organizations with multiple ERP systems to consolidate everything into a single source of truth. If required, SDT allows historical data to be kept, converted and transformed to fit the new S/4HANA configuration.

• Performance optimization, secure and practical implementation.
• Improved functionality and agility, competent and compliant infrastructure.
• Supervised implementation reduces downtimes, risks, and costs.
• Uninterrupted data transfer and modernization of IT processes.

Tools for SAP S/4HANA Implementation

Data migration is an important part of any system implementation. SAP provides user-friendly, state-of-the-art tools to ensure that your data is of high quality and assists you in achieving your organizational goals, post the migration to S/4HANA. These tools are easy to use and help reduce your test efforts and downtimes.

• SAP S/4HANA Migration Cockpit
• SAP S/4HANA Migration Object Modeler (MOM)
• SAP Rapid Data Migration with Data Services
• SAP Readiness Check
• Guided Configuration for SAP S/4HANA
• SAP Landscape Transformation (SLT) Software

The Final Word

To remain competitive, businesses must ensure their critical operations are fully modernized and cloud-ready. Migrating legacy SAP Business Suite to SAP S/4HANA will make your business more agile, efficient, and cost-effective. However, the migration must be carefully considered as part of a strategic cloud initiative.

Our strong partnership with SAP gives us early access to new enhancements, tools, and features that enable your business to gain an edge over competitors.

Learn more about how SAP S/4HANA transformation can boost your business to unlock new possibilities.

Talk To Our SAP Expert

One-size-fits-all? Not anymore, and definitely not when it comes to SAP S/4HANA! If you’ve made the choice to transition from your legacy systems to SAP S/4HANA, then you’re on the right track! It is surely the first step towards business transformation. However, the next step is crucial, i.e., finding the right path to SAP S/4HANA Migration. Many factors are unique to your business, including your current system layout, business needs, and long-term goals. Your migration path can be defined based on these factors to drive a successful transition journey. Explore the various paths to SAP S/4HANA migration in this blog, and identify what suits your business the best!

1. New Implementation (Greenfield Approach)

What Is the Greenfield Approach? 

The Greenfield approach is essentially a completely fresh start with a new S/4HANA. This approach allows you to redesign and optimize your business procedures from scratch. It is also referred to as ‘a new implementation’. 

The new implementation approach completely reengineers the system, which could simplify processes with a technological backbone. All systems are reinstalled and re-coded to fit business needs. The Greenfield approach is suitable for new and existing customers alike. It helps multifaceted and complex systems simplify their processes. Let’s explore some benefits and challenges of the Greenfield approach. 

Benefits:

• Fresh start: During the Greenfield approach to transformation, existing in-house developments and third-party systems undergo a thorough examination. This helps business owners find the root cause of any shortcomings or mishaps. Re-starting with a clean slate can ensure that no incompetence is carried forward from legacy systems. 
• Process Optimization: This approach and reinstalling systems also encourage business owners to redesign business processes from scratch. It eliminates the need to adjust old processes to conform to industry standards. It helps you focus on the current needs and standards and implement them. This way, you can fully leverage S/4HANA capabilities.
• Latest Features: Classical in-house developments in the core system are being replaced by new architectures. The Greenfield approach can achieve these architectures. The new architectures allow regular modernization through rapid updates. Instead of major upgrades, these architectures focus on subareas. They continuously update the system’s smaller, more integral aspects, and the entire system is completely renewed in a few years. 

Considerations:

• Cost, time, and history: The biggest fear concerning the Greenfield approach is its cost. Starting from scratch may feel like a regression and require more effort and longer project timelines. Another note is that the new implementation may lead to losing historical context that is still relevant to your business.
• Change in Management: A clean slate entails a complete shift in management. This may affect employees and users as they must get accustomed to the new system. 

2. System Conversion (Brownfield Approach)

What Is the Brownfield Approach?

Also known as System conversion, the Brownfield approach enhances your existing SAP ERP system. This approach lets you migrate to SAP S/4HANA without causing much disruption to your existing system. It upgrades only specific existing elements of the SAP landscape, such as interfaces to suppliers and partners. With the Brownfield approach, you can retain your systems’ customizations and historical data. The system conversion approach allows you to re-examine your existing processes and improve the lagging ones.

Benefits:

• Reduced Disruption: Whereas it might feel like your system is shaken to its core with the Greenfield approach, the Brownfield approach is gentler. There is minimal disruption to the users. The loss of previous customizations is also prevented. 
• Cost-effective: This approach does not require a complete reboot, so the cost of implementation is low. It is also not time-consuming and is best suited for companies already associated with SAP ERP.
• Data Continuity: This approach only upgrades systems, leaving all historical data untouched. It also removes the need to migrate customizations. 

Considerations:

• Technical Complexity: It is sometimes viewed as a stifling innovation. This is because all the previous data from your SAP ERP is being ported over without any modifications. This process requires thorough preparation and testing. 
• Customization Clean-up: This approach requires users to manually clean up incompetent customizations and useless data to leverage S/4HANA fully.

Read more: Navigating SAP S/4HANA Migration Risks For Transformation

3. Selective Data Transition or Bluefield Approach

What Is the Bluefield Approach?

Greenfield and Brownfield, together, give birth to the Bluefield Approach. This approach, also known as the selective data transition, involves transitioning only selected data and processes to the S/4HANA system. It allows you to enhance certain areas while seamlessly retaining others. This hybrid approach takes on the best of both the parent “fields” and is becoming the most preferred approach. 

The Bluefield approach best suits large-scale enterprises with extensive data and complex systems. With this approach, you can eradicate any problems you may otherwise face with the Greenfield and Brownfield approaches. You can handpick aspects of your system that you want modified. These can be enhanced while your current system remains unbothered by data cleaning and migration into the new system. 

Benefits:

• Flexibility: Since you can select which aspects of the system you want updated, this approach is highly flexible and can be adjusted to meet your unique business needs.
• Process Improvement: You can enhance only the key processes that require optimization without re-starting from scratch.
• Data Control: Another key advantage is that you can pick what customizations to retain and which historical data to migrate. All the data tabs are under your supervision and control. This also benefits users, as they do not have a complete perceptual shift. 

Considerations:

• Complex Planning: All the aforementioned benefits can be reaped only with thorough planning. Since you have to select parts of the system to upgrade, there is a lot of effort spent on preparation. The new system needs to be tested and validated. Data needs to be mapped accurately. Customizations have to be replicated. All this needs to be done before migration and usually calls for a team of experts or a third-party tool
• Balanced Approach: Balancing the old and new system elements without losing track of them is the challenge. Handling the aftermath of the implementation is where the real work begins. This includes expert Change Management to ensure smooth transitioning. Employees must be trained to handle this hybrid system as well.

4. Central Finance

What Is the Central Finance Approach?

Central Finance is a novel approach. It involves implementing S/4HANA Finance as a central system simultaneously with your existing ERP system. SAP Central Finance is a system that is used to receive data pivotally from multiple source systems. It then transforms and processes financial data at your pace, with your ERP in the background. 

Benefits:

• Gradual Transition: Because it works with the backdrop of your existing ERP, it follows a phased approach. This allows users to move at their own pace, and migration happens according to the user’s wishes.
• Financial Insights: It establishes a streamlined source for consistent reporting and analysis. With real-time replication of financial data, it provides information for intelligent decision-making on the go and instant advice to enhance financial processes.
• Consolidation: All the financial data that flows into the system is consolidated into a unified view. This gives users centralized access to all relevant information. Users can thus analyze their transactional processes without any hassle. 

Considerations:

• Integration Effort: Since data is received from multiple sources, communication must be robust between these sources and the central S/4HANA system. Maintaining seamless integration among these two can be time-consuming and require expert manpower. 
• Limited Scope: As the name suggests, this system is bound to focus on the financial aspects of the business. This may not always be helpful and can lead to stunted migration later. 

How to Choose the Right Path?

Every business has a perfect integration path fit. As you have seen, there are multiple approaches you can choose from. Whatever path you decide to take will depend on several other factors. Factors such as your current system landscape, business goals, project timeline, and company budget. Below are a few things you should consider before deciding which integration path to take. 

• Assess Current System: Assess your current state – your ERP system, customizations, data quantity, and quality. Examine how each path will impact your company’s efficiency and try to predict what your business will look like after implementation. Assessing your budgets, project timelines, and current system landscape is essential. 
• Define Objectives: Take a step back and reevaluate your business objectives and goals. Draw a strong link between your business goal and S/4HANA. This will help you clarify your priorities before you move forward. 
• Consult Stakeholders: Ask for advice amongst your most trusted. Involve your key stakeholders from various departments in your business. Consider their opinions and ensure that they are on board with the implementation plan. They will need to put effort into gathering input and preparing for the migration. 
• Plan Thoroughly: A well-thought-out plan is least likely to fail. Don’t spare any effort in developing detailed, foolproof migration plans. They should include timelines, resource allocations, and risk mitigation strategies. Always be prepared with a post-implementation plan as well. 
• Engage Experts: Consider involving SAP consultants or partners. Their expertise in S/4HANA migrations will certainly guide you through the process. 

Transforming Your Business with Fingent

Statistics show that, in 2024, over 20807 companies worldwide will have started using SAP S/4HANA as an Enterprise Resource Planning (ERP) tool. The question then is not if but when you will migrate. 

Granted, the process of migration is never an easy one. Nonetheless, transitioning to SAP S/4HANA is a journey worth taking. It can make a monumental difference in your business capabilities. By considering and learning about the different integration paths, you can become more prepared for this change. By carefully planning your approach, you can ensure a seamless transition that meets your unique needs. Regardless of your method, moving to S/4HANA will boost your organization for future growth and progress. Begin your transition process today and enjoy the benefits of S/4HANA to the fullest. With decades of experience in helping clients with SAP products, our team at Fingent can help you find and journey through the best migration path for your business. Let’s talk.

It’s official! SAP will end ECC support in 2027. SAP ECC has been a cornerstone for many industries and has undoubtedly had a good run. But now it’s time to embrace change!  Over the years, industries have evolved with the changing digital landscapes. The end of ECC support is yet another distinctive change compelling businesses to transition with time. But why are experts urging SAP ECC to SAP S/4HANA Migration? What happens if companies still stick with ECC, and how can one plan a smooth SAP ECC to SAP S/4HANA migration? Learn all this and more in this five-minute read!

Why Switch From SAP ECC? 

The 2027 deadline is fast approaching! Have you considered the aftermaths of sticking with SAP ECC? Continuing to use SAP ECC after the end of support would mean managing outdated technology. For one thing, you will be crushed under higher maintenance expenses. More importantly, your business will have to tackle significant security vulnerabilities. 

Can you afford to let your business fall behind while your competitors upgrade to cutting-edge, supercharged systems? 

Opting out of transitioning to SAP S/4HANA is basically giving up on the latest features and improved security measures. It’s like refusing a fully loaded lifeboat while your ship goes down. 

What Happens if I Choose to Stay With ECC?

To put it bluntly, it could very well take you down. It’s time to jump on the SAP S/4HANA lifeboat before you drown. Here are some sound reasons: 

1. Lack of Flexibility and Agility:

With ECC, flexibility becomes a challenge because upgrades are difficult. The interface between extensions and SAP code with ECC is lacking. ECC also relies on batch processing, which significantly slows down response times. This makes upgrades more time-consuming and complicated, directly affecting the business’s ability to scale and adapt. 

2. Impediments to Modernization: 

SAP ECC runs on different database systems than HANA. Though this provides a level of flexibility, it does not meet the standards of the HANA database. In addition, crucial technologies that run the modern world, like AI, machine learning, RPA, etc., are not available in ECC. The fact that ECC cannot be deployed on the cloud is reason enough to say it’s time to move out.

3. Complicated User Experience: 

User Experience is often underestimated, but to be true, it is the most important aspect of any technology. The traditional user interface that SAP ECC offers focuses on the business function. This served a purpose for a time but was complicated to a normal end user. However, the need of the hour is a more role-based and easy-to-use interface. A system that can be used by anyone.

What Is the Advantage of S/4HANA Over ECC? 

Transitioning from SAP ECC to SAP S/4HANA is a true upgrade. It’s promising revolutionary progress for businesses with in-memory computing abilities, simplified data models, cloud enhancements, and refreshing user experiences. Here’s a detailed view of the distinctive advantages of SAP S/4HANA over ECC.

1. In-Memory Computing: SAP S/4HANA employs in-memory processing technology with SAP HANA. This significantly speeds up data processing and analysis. Thus offering instantaneous insights and decision-making abilities. Old-fashioned disk-based ECC databases may be sluggish and unresponsive.

2. Simplified data model: SAP S/4HANA’s simplified data model eliminates duplication and lessens the requirement for data reconciliation. 

3. Improved User Interface: S/4HANA’s SAP Fiori interface offers a contemporary, user-friendly experience. It allows users to work faster and more efficiently, increases application adoption, decreases errors, and saves training costs.

4. Sophisticated Analysis: S/4HANA has integrated, predictive, instantaneous analytics built into the system. On the other hand, ECC frequently necessitates additional tools to achieve these functions, resulting in fragmented and delayed insights.

5. Cloud Capabilities: S/4HANA has been created with cloud integration as a priority. This powers business operations with increased scalability and flexibility. In comparison, ECC has limitations, which will only increase with the support deadline.

6. Automation and AI Integration: S/4HANA facilitates the incorporation of advanced technologies such as AI, machine learning, and robotic process automation. This allows for more intelligent and effective business operations, while ECC’s abilities in these areas are restricted and frequently need significant customization.

7. Simplified Business Operations: SAP S/4HANA offers integrated end-to-end solutions. Think of it like running a well-oiled machine, where everything works together effortlessly. Not so with ECC, which is a disjointed and standalone approach.

Why Seize the Moment Today and Switch to SAP S/4HANA? 

Switching to SAP S/4HANA now can gain you numerous perks:

1. Cost Savings: Early migration spreads the investment, avoiding high costs associated with a rushed transition. It’s akin to booking tickets in advance to avoid exorbitant prices later. Moreover, as the 2027 deadline nears, migration service demand will surge, likely raising costs.

2. Avoid Last-Minute Complications: A planned migration minimizes disruption to business operations. Procrastination only sets the stage for slip-ups and system glitches. It’s like gearing up for a marathon: steady prep beats any last-minute sprint.

3. Maintain Business Efficiency: Early migration enables immediate benefits from SAP S/4HANA’s enhanced capabilities, preserving and enhancing operational efficiency. Why get left in the dust with old tech when you can glide ahead with the latest?

Read more: Navigating SAP S/4HANA Migration Risks For Transformation

How Can Fingent Simplify the SAP S/4HANA Migration Journey?

At Fingent, we have experts who can walk you through the changing SAP trends and help you discover migration approaches that best suit your business. Our consultants can prepare customized strategies just for you, ensuring minimal disruption during migration. We identify challenges and opportunities through comprehensive assessments, streamlining the migration process effectively. 

With precise data migration and integration, we ensure a smooth transition. We empower your business with enhanced capabilities. Our customization and optimization services tailor SAP S/4HANA to fit your specific needs. This maximizes efficiency and productivity. With comprehensive training and ongoing support, we equip your team. Trust Fingent to navigate your ECC to SAP S/4HANA journey seamlessly. Unlock new growth opportunities and success.

Collaborate with Fingent today for a smooth shift to SAP S/4HANA, opening up possibilities for growth. Avoid procrastination – keep ahead by choosing Fingent as your migration partner.

In today’s fast-paced business world, staying competitive goes beyond traditional strategies. The digital age requires a seamless blend of cutting-edge technologies. SAP, a global leader in enterprise software, offers a powerful solution – SAP S/4HANA Cloud and SAP Business Technology Platform (BTP).

In the journey of digital transformation, the collaboration of SAP S/4HANA Cloud and SAP BTP is a formidable alliance. This synergy streamlines operations and sets the stage for ongoing innovation. In this blog, let’s explore how SAP S/4HANA Cloud and SAP BTP shape the future of business, making transformation a continuous and evolving reality.

The Top Benefits of Integrating SAP S/4HANA Cloud and SAP BTP

In the ever-evolving landscape of digital transformation, the strategic combination of SAP S/4HANA Cloud and SAP Business Technology Platform (BTP) emerges as a game-changer. This powerful alliance not only streamlines business operations but also unlocks a myriad of benefits that propel organizations toward unparalleled efficiency and innovation. Let’s delve into the top advantages that businesses can harness by integrating these two robust SAP solutions.

1. Seamless Integration for End-to-End Processes

In the pursuit of operational excellence, the integration of SAP S/4HANA Cloud and SAP BTP shines as a beacon. By seamlessly connecting disparate business processes, organizations break down silos and achieve a unified, end-to-end view of their operations. This ensures not only streamlined processes but also empowers decision-makers with comprehensive insights, fostering collaboration and efficiency across the entire business spectrum.

2. Accelerating Innovation with Intelligent Technologies

The amalgamation of S/4HANA Cloud and BTP isn’t just about integrating systems; it’s about propelling innovation through intelligent technologies. S/4HANA Cloud leverages the power of artificial intelligence and machine learning, while BTP provides the platform to seamlessly integrate these intelligent technologies. The result? An innovation powerhouse that enables organizations to stay ahead of the curve, automate processes, and create new possibilities for growth and competitiveness.

3. Real-Time Analytics and Insights

In the digital age, information is power, and the combined might of S/4HANA Cloud and BTP ensures that power is harnessed to its fullest potential. S/4HANA Cloud’s in-memory computing capability facilitates real-time analytics, providing instant access to critical insights. 

Complementing this, SAP BTP plays a pivotal role in enabling real-time analytics and harnessing data-driven insights. This not only enhances decision-making processes but also transforms raw data into actionable intelligence, fueling a proactive and agile business environment.

4. Agility and Flexibility in Cloud-Based Solutions

Agility is non-negotiable in the fast-paced business environment, and the integration of SAP S/4HANA Cloud’s cloud-native architecture with SAP BTP sets the stage for unparalleled flexibility. This collaboration allows businesses to respond swiftly to market changes and evolving demands. Integrated with SAP BTP, these cloud-based solutions empower organizations to navigate uncertainties with agility, ensuring seamless alignment of technology with business needs.

Read more: Driving Business Efficiency With The New SAP S/4HANA Cloud Public Edition

5. Integrated Development and Extension Scenarios

SAP BTP simplifies the development and extension of applications, streamlining the process for businesses to customize and enhance their solutions. This integration accelerates the development lifecycle and equips organizations with the tools needed to create tailored applications precisely aligned with unique requirements. The collaboration between S/4HANA Cloud and BTP fosters innovation and efficiency in the development and customization of solutions.

6. Data Management and Governance

Effective data management is fundamental for successful digital transformation. SAP S/4HANA Cloud contributes robust capabilities for data management, while SAP BTP ensures governance, offering a comprehensive approach to maintaining data integrity in the digital landscape. This collaboration enhances data quality and establishes a framework for responsible and compliant data practices, ensuring a solid foundation for digital initiatives.

7. Security and Compliance

In an era where data breaches are a constant threat, the security of digital assets is paramount. SAP S/4HANA Cloud addresses security considerations within its infrastructure, and SAP BTP plays a pivotal role in ensuring compliance with industry regulations. Together, they provide a comprehensive security blanket, safeguarding businesses against risks and ensuring the integrity of sensitive information through a unified security and compliance framework.

8. Scalability and Cost Optimization

As business landscapes evolve, technology must evolve with them. SAP S/4HANA Cloud’s scalability features, coupled with the cost optimization potential of cloud-based solutions, ensure that businesses can scale resources based on demand. This collaboration not only enhances operational efficiency but also guarantees long-term value through scalable and cost-effective solutions, aligning technology seamlessly with evolving business requirements.

Driving Business Excellence: A Case Study on How SAP S/4HANA Cloud and SAP BTP Propel Efficiency

A case in point is Corvias, a real estate innovator, as highlighted in a recent SAP news article. Let’s delve into this use case to understand how the combination of SAP S/4HANA Cloud and SAP BTP has driven efficiency and excellence for Corvias. 

Corvias: A Case Study in Efficiency Maximization

Corvias faced the challenge of optimizing their complex real estate operations, spanning housing, construction, and property management. By implementing SAP S/4HANA Cloud and SAP BTP, Corvias experienced a holistic transformation. The seamless integration of end-to-end processes, from financials to supply chain management, broke down operational silos, providing Corvias with a unified view of their business.

• Agility and Flexibility: The cloud-native architecture of S/4HANA Cloud enabled Corvias to respond to market changes swiftly. Integrated with SAP BTP, the solutions provided unprecedented flexibility, allowing Corvias to adapt its technology infrastructure to evolving business demands.
• Innovation Acceleration: Leveraging the intelligent technologies within S/4HANA Cloud, Corvias embraced artificial intelligence and machine learning. SAP BTP facilitated the integration of these intelligent technologies, fostering innovation in processes, predictive analytics, and decision-making.
• Real-Time Analytics and Insights: In-memory computing in S/4HANA Cloud empowered Corvias with real-time analytics. SAP BTP’s role in enabling real-time analytics ensured that decision-makers had access to critical insights, driving informed decision-making across the organization.

The results were tangible – streamlined processes, enhanced collaboration, and ultimately, maximized results. The success story of Corvias exemplifies how the integration of SAP S/4HANA Cloud and SAP BTP can drive business excellence. 

Read more: SAP S/4HANA Cloud Migration – All That You Need To Know!

Leveraging SAP Tools with Fingent

Wondering how to make the most of modern SAP tools? Fingent, a seasoned expert in SAP solutions, provides a robust suite of services. Collaborating with Fingent offers:

• Seamless Integration: Fingent excels in integrating SAP systems, ensuring a smooth flow of information across organizations.
• Customized Development and Extensions: Leveraging SAP BTP, Fingent creates bespoke applications tailored to specific business needs, boosting innovation and efficiency by aligning technology precisely with unique requirements.
• Top-notch Data Management, Governance, and Security: Fingent’s SAP data management expertise, combined with SAP S/4HANA Cloud’s governance capabilities, ensures the integrity and security of critical data. Collaborating with Fingent guarantees a secure and compliant digital environment.

Unlock efficiency, innovation, and security by harnessing SAP tools and Fingent’s expertise. Take the leap towards a tailored, scalable, and secure digital future – collaborate with us today!

Which transformation path aligns with your business objectives? This is a critical question to ask when designing your business transformation journey. This makes it vital to take the time to know all the available options. It is also important to consider all aspects of each option and their implications before you embark on your business transformation. This blog will explain all you need to know about the new SAP S/4HANA Cloud 2111 release. It will also describe how SAP S/4HANA Cloud 2111 helps in solving business issues.

What is SAP S/4 HANA Cloud?

SAP S/4 HANA Cloud is an intelligent Enterprise Resource Planning (ERP) system. It has built-in intelligent technologies like ML, AI, advanced analytics.

It helps organizations smoothen their business transformation by assisting them in adopting new business models and managing business change at speed. Also, it can orchestrate internal and external resources while using the predictive power of AI.

SAP S/4 HANA Cloud can empower businesses to consistently outperform with instant intelligence and actionable insights. It can be implemented quickly and reduce support costs.

Now that we know what SAP S/4 HANA Cloud is, let’s understand what is the difference between the old SAP S/4 HANA Cloud version and the new version.

Read more: SAP S/4 HANA: Transforming CFO’s into a Business Value Creator and Role Model

Difference Between the Earlier SAP S/4 HANA Cloud Version And The New 2111 Version

Many think that SAP S/4 HANA Cloud 2111 builds on the earlier version. In fact, the latest version exceeds the earlier version. It has increased flexibility in the consolidation process. This means users can now create additional customer individual consolidation unit attributes. These help in defining validation rules.

SAP S/4 HANA Cloud 2111 comes with enhanced core consolidation rules. These include more flexibility in source and destination rules. Companies can now benefit from an improved ‘import consolidation master data’ app. This new feature helps users gain time and makes maintenance easier.

Along with many other enhanced features, SAP S/4 HANA Cloud 2111 now provides enhanced movement flow management. This means that SAP customers can have full control over the ‘default subitem’ field allowing them to edit and assign default subitems.

How Can Your Industry Leverage The New SAP S/4HANA Cloud 2111?

SAP S/4 HANA Cloud 2111 brings many exciting innovations to various industries. Here are some examples:

1. Manufacturing

The newer version has revised the SAP Fiori app. The ‘Maintain Tim-Dependent Stock Levels’ option is specifically designed for the manufacturing industry. It allows its users to display, create, and update time-dependent stock levels for specific materials.

Manufacturers can define safety stock levels based on validity intervals. This enables them to react to varying demands dynamically. By ensuring sufficient stocking of products at all times, users can reduce deficiency risk.

2. Supply chain management 

To support supply chain management SAP Fiori app is enabled to support split valuations in the goods-receipt process. This allows users to create their own global valuation types.

3. Service companies 

SAP S/4 HANA Cloud 2111 has enhanced service order planning based on spare part reservations. This enables customer service managers to gain better insights into stock availability and to ensure that planned quantities of spare parts are always at hand. Such accurate service order planning ensures on-time delivery.

4. Finance 

SAP S/4 HANA Cloud 2111 provides SAP Fiori apps in ‘collections and dispute management.’ This modernized process offers extensibility options that help the app deliver a seamless user experience.

These new apps improve the process of collecting receivables and handling dispute cases. Along with several other features, it provides in-depth data insights to its users.

Read more: 6 Capabilities of SAP S/4HANA That Will Help You Become An Intelligent Enterprise

4 Top Challenges SAP S/4 HANA Cloud 2111 Helps Resolve

1. Project management

The latest release SAP S/4HANA Cloud 2111 allows project managers to plan, trigger and monitor materials or services enabling them to ensure on-time delivery.

Here is how it helps resolve challenges in project management:

• Date alignment is accelerated by reducing manual efforts leading to more accurate planning of project demands.
• Purchase contract for specific demand.
• Automatic demand blocking prevents requesting for unrequired demands.
• It provides a comparison chart for improved monitoring.

2. Sales

SAP Self-Billing Cockpit allows users to receive and process self-billing messages, edit messages, and receive multiple order reasons and condition types in case of errors or differences. This latest feature offers a central entry and overview page to its users, leading to a more efficient sales process.

3. Product compliance 

Monitoring of substance volumes will help users to comply with chemical regulations. It is integrated with the logistic processes of purchasing and manufacturing.

Substance Volumes Tracking feature enables users to identify possible risk factors. It can track, calculate, monitor volumes for substances either imported or produced within the country.

This will help users to define legal entities and map production plants. Thus, it increases transparency by directly linking the aggregated substance volumes to the original logistic documents.

4. Asset management

SAP S/4HANA Cloud 2111 introduces four process phases:

• Reactive maintenance
• Proactive maintenance
• Improvement maintenance
• Operational and overhead maintenance

Process phases help in creating specific maintenance requests for technical objects like functional locations or a piece of specific equipment.

These requests allow users to store relevant information that will help the employees to identify and solve any problems that might occur. Such simplified work requests for maintenance reduce the unnecessary effort for logging maintenance issues.

Read more: How Fingent Helps CFOs Gain New Insights and Reliably Enable Key Decisions

How Does Fingent Smoothen Your Transit To SAP S/4HANA Cloud 2111?

SAP S/4HANA Cloud 2111 can empower your business to stay relevant and competitive. Fingent is a leading SAP Silver partner. To be classified as an SAP silver partner there are certain rigorous criteria that a company must meet around SAP certification and dedicated SAP resources.

We offer a broad range of services under the umbrella of SAP. This includes business consultation, implementation, and post-implementation services and support.

Take a look at our Case Studies to see how we have implemented various aspects of SAP for our clients.

We work with our customers from pre-planning through to project execution and application support. We assure you that you will receive the best possible care in the long term. Give us a call and let’s discuss your project.

SAP S/4HANA is a catalyst for business success, weaving its transformative power across the ERP landscape. SAP S/4HANA is more than just any software; it’s a realm of possibilities. It is like a digital fortress that integrates and orchestrates your supply chain, ensuring harmony and efficiency throughout your organization. 

With a single source of truth, it empowers organizations to make informed decisions based on accurate, up-to-the-minute insights. It’s like having a trusted compass that illuminates the hidden paths of your operations, empowering you to confidently navigate the ever-changing terrain of the business landscape.

Understanding SAP S/4HANA – A Visionary Leap Into The Future

SAP S/4HANA is not your ordinary ERP solution. It harnesses the power of in-memory computing, real-time analytics, and a simplified data model to deliver a seamless and intelligent ERP experience. It is a technological marvel that blends speed, agility, and simplicity into a single transformative platform.

The shift from traditional SAP ERP systems to SAP S/4HANA marks a significant milestone in the ERP landscape. It represents a move from a row-based data model to an in-memory, columnar-based data model, resulting in lightning-fast data processing and real-time analytics.

With the transition to SAP S/4HANA, businesses unlock a plethora of benefits. They gain real-time insights for faster decision-making, simplified processes for improved efficiency, and intelligent technologies for enhanced automation and predictive capabilities. It’s like upgrading to a futuristic command center that propels your business into a new realm of success.

Let’s begin by unveiling the key features and capabilities that make SAP S/4HANA shine.

• It brings the power of real-time insights, allowing businesses to make decisions based on up-to-the-minute data. 
• SAP S/4HANA simplifies processes, reduces data redundancies, and eliminates complexities to streamline operations. 
• It leverages advanced technologies such as artificial intelligence (AI), machine learning, and predictive analytics to unlock automation, insights, and predictive capabilities.

Read more: A Beginner’s Guide To Implementing SAP S/4HANA

Key Benefits of SAP S/4HANA

1. Grasp The Pulse of Your Business at Any Given Moment with Real-Time Analytics.

With its in-memory computing capabilities, SAP S/4HANA processes massive amounts of data in real-time, allowing for faster and more responsive operations. With real-time analytics, you have the power to respond swiftly to changing market dynamics, identify emerging trends, and seize opportunities before they fade away. It’s like having a nimble and swift chariot that propels your business forward, helping you stay ahead of the competition.

2. Enthralling User Experience

SAP S/4HANA’s intuitive interface and personalized dashboards transform ERP navigation into a delightful journey. It’s like stepping into a realm of effortless elegance, where tasks are completed with grace and efficiency, where your teams can work seamlessly, unlocking their full potential and driving productivity to new heights.

3. Declutter Your Landscape with a Simplified Data Model

SAP S/4HANA can help you bid farewell to the tangled webs of complexity and data redundancies. It enables you to declutter your business landscape, allowing you to focus on what truly matters—innovation and growth. With a simplified data model, your organization gains agility, flexibility, and the ability to adapt swiftly to changing business needs.

Now that you are aware of the business benefits let’s discuss how you can prepare for SAP S/4HANA implementation.

Prepare For SAP S/4HANA Implementation

With the right foundations in place, organizations can embark on their SAP S/4HANA implementation with confidence, ready to unlock the full potential of this transformative platform.

1. Assessing Business Readiness:

Assessing the organization’s readiness for SAP S/4HANA implementation is like taking stock of your supplies before embarking on a grand expedition. Evaluating data readiness ensures that your information is accurate, complete, and compatible with the new system. Additionally, allocating resources appropriately – including skilled personnel and budget – ensures that you have the necessary support to navigate the implementation journey smoothly.

2. Building the Implementation Team:

On a voyage, each member has a vital role to play. Project managers steer the entire implementation process. Functional consultants bring their expertise in specific business areas, ensuring that SAP S/4HANA meets your unique requirements. Technical experts handle system configurations, integrations, and customizations. Together, this cross-functional team brings together diverse perspectives, fostering synergy and ensuring that all aspects of the implementation are addressed comprehensively.

3. Chart your Course by Defining Implementation Goals and Scope:

Defining clear goals and scope for the SAP S/4HANA implementation provides a clear direction and prevents aimless wandering. By identifying key business processes, you prioritize areas that will benefit most from the new system. This focused approach optimizes time and resources enabling effective project planning and increasing the likelihood of a successful SAP S/4HANA implementation.

Six Phases of SAP S/4HANA Implementation

Each of the following well-defined phases of the SAP S/4HANA phase brings your organization closer to harnessing its and unlocking new levels of efficiency, agility, and competitive advantage:

Phase #1 Project Planning and Preparation:

Planning and preparation are like laying the foundation for a solid structure. Activities in this phase include creating a detailed project plan, establishing timelines, and defining deliverables. By clearly outlining project objectives, tasks, and responsibilities, organizations ensure a structured and well-organized implementation process. 

Effective stakeholder communication is vital during this phase, keeping everyone informed and engaged. Change management strategies are implemented to address any resistance to change, ensuring the smooth adoption of SAP S/4HANA.

Phase #2 System Installation and Configuration:

System installation and configuration start with assessing hardware requirements and designing the system landscape, ensuring optimal performance and scalability. The SAP S/4HANA system is then installed, configured, and integrated with other systems, creating a cohesive IT ecosystem. This phase requires careful consideration of factors like network infrastructure, security, and software installation.

Phase #3 Data Migration and Conversion:

Data migration and conversion are like transferring belongings to a new home. Legacy data is extracted, transformed, and loaded into the SAP S/4HANA system. This process involves data cleansing, eliminating duplicates, and ensuring data accuracy. Data validation is crucial to verify the integrity and consistency of migrated data. 

Phase #4 Customization and Configuration:

This phase is like arranging furniture in a new space. Configuration involves setting up master data, defining workflows, and configuring system functionalities. This phase ensures that SAP S/4HANA aligns with the organization’s unique processes, enabling efficient operations and improved user experience.

Phase #5 Testing and Training:

Testing and training form the backbone of a successful SAP S/4HANA implementation. Thorough testing is conducted to validate the system’s functionality, performance, and data accuracy. This includes unit testing, integration testing, and user acceptance testing. 

Training programs are designed to equip end-users with the necessary skills and knowledge to effectively utilize SAP S/4HANA. 

Phase #6 Go-Live and Post-Implementation Support:

Going-live is like opening the doors to a new facility, enabling users to work with real data. Post-implementation activities include monitoring system performance, addressing user feedback, and providing ongoing support. Continuous improvement initiatives and enhancements are implemented based on user experience and evolving business needs. Regular system maintenance and updates ensure the system’s optimal performance and long-term success.

These are some best practices and lessons learned from previous SAP S/4HANA implementations. They offer valuable insights that can guide your organization toward successful implementation. These can help you avoid common pitfalls and maximize the benefits of SAP S/4HANA. 

Read more: A Simple Guide To Handling Common SAP Errors and Troubleshoots

Strategies You Can Use to Overcome Common Challenges

Challenges during SAP S/4HANA implementations can vary, but some common ones include data migration complexities, resistance to change, resource constraints, and technical integration issues. To overcome these challenges, organizations should:

• Engage experienced consultants and leverage their expertise.
• Invest in data cleansing and migration tools to streamline the process.
• Prioritize change management activities and communicate the benefits of SAP S/4HANA.
• Allocate sufficient resources and budget for implementation and post-implementation support.
• Collaborate closely with SAP experts and leverage their guidance and best practices.
• Monitor the implementation progress regularly and adapt the plan as needed.

How Can Fingent Help?

Fingent can provide comprehensive services to deploy SAP S/4HANA for better supply chain management. We at Fingent offer consulting services to assess your supply chain management requirements and design a customized SAP S/4HANA implementation strategy. Our advisory services provide expert guidance on how to optimize your operations and drive digital transformation.

Are you currently using an older version of SAP ERP? If so, we can analyze your existing system, assess the impact of the conversion, and guide you through the conversion process.

Fingent leverages SAP Leonardo’s intelligent technologies, such as machine learning, IoT, and analytics, to enhance your supply chain management processes. With our expertise in SAP S/4HANA and supply chain management, we can guide you through the entire deployment process, from strategy and implementation to ongoing support.

Reach out to us, and let’s work magic for you. 

SAP ERP has been taking up the technological market by storm, and somehow they always have newer and better versions of it releasing consistently. Sometimes it can be hard to keep up with it all, so we are here to help you figure it out, one step at a time. 

Before we can bite into the big chunk of how to implement this technology into your organization’s workflow, let us first take a nibble and understand what SAP S/4HANA is.

SAP S/4HANA – A Powerhouse of Solutions

S/4HANA, created by SAP Software Company, was devised specially to make Enterprise Resource Planning (ERP) faster and easier to access through a simplified data model, sleek architecture, and a new advanced user experience. S/4HANA is essentially integrated with a number of emerging advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), the Internet Of Things (IoT), and Advanced Analytics. 

Implementing SAP S/4HANA for your business carries a load of benefits with it, including performance boost, simplified processes, enhanced user experience, stability, flexibility, and so much more. It improves the overall functional efficiency of the workplace and drastically cuts costs.

Understanding SAP S/4HANA 

With many powerful advanced technologies forming its backbone, S/4HANA gives organizations the opportunity to better manage product development, production, and distribution processes. With its assistance, companies can better supervise product quality, minimize production errors, and significantly enhance the efficiency of their supply chain. 

Before the domination of HANA, all SAP software functioned on third-party databases. HANA changed this pattern by bearing SAP’s own in-memory platform. This feature of S/4HANA provides a much faster rate of access and analysis of data. With regard to software development, SAP S/4HANA is also considered a platform for customer-defined applications. 

Key Benefits Of SAP S/4HANA 

SAP S/4HANA comes with many benefits. Jotted down below are a few of the more important benefits of implementing SAP S/4HANA for your business:

• Real-time Analysis: SAP S/4HANA aims to provide end users with active decision support and data analysis in real time. Real-time analytics is when logic and mathematics are applied to data to provide insights for making better decisions at a faster pace.
• Improved User Experience: It provides an innovative user experience that enables users to easily use Overview Pages, Work Lists, and List Reports. Its UI is designed with added intuition, personalization, and simplicity which allow users to interact with the software and access required details.
• Simplified Data Model: S/4HANA immensely simplifies the management and administration processes to an extent that simplicity is one of the key features SAP imbibed into its application structure. 
• Business Process Optimization: It also enables the unification of hardware and network resources to serve as the digital core by accessing its HANA in-memory database, for business process optimization.
• Digital Transformation: Lastly, S/4HANA has a digital crux that presents organizations with a unique platform for boosting main business processes along with analytical and decision-making capabilities in real time.

Read more: A Simple Guide To Handling SAP Errors and Troubleshoots!

Preparing for SAP S/4HANA Implementation 

Implementing SAP S/4HANA is not going to be an option anymore. It will be inevitable. Before you start on this journey, however, here are a few precautions to keep in mind:

1. Assessing The Organization’s Readiness 

Before making any hasty decisions, regardless of how smart they may seem to be, it is of utmost importance to first completely analyze your company’s situation. The process of assessment will require you to review your system requirements and gauge the scope of your S/4HANA implementation. Your organization’s readiness to cope with the change is very important. Factors such as business process analysis, data readiness, and resource allocation need to be kept in mind.

2. Building The Implementation Team

With the right partner and the perfect team backing you up, there are slim to zero chances for any sort of slipups. Your implementation team should have a set of common objectives and performance goals that they share with you. It should draw up a program management plan that includes not just your system integrator, but also activities for your business users, internal resources, and any other third parties that you are bound to include. Having a cross-functional team is vital. These teams retain the responsibility of moving all of their user stories and tasks forward on their own and their main objective is to be as self-sufficient as possible so that they rarely need to step outside of their own team to accomplish a task.

3. Defining Implementation Goals And Scope 

Write down and share your business’s needs, goals, and scope, and understand the business processes that will be influenced by the implementation. Business Process Modules are graphical representations of an organization’s business processes or workflows. They help organizations enhance efficiency, productivity, and agility. Remember to identify these processes and determine their modules and functionalities before implementation. 

Phases Of SAP S/4HANA Implementation

Once you have determined that your organization is ready to implement SAP S/4HANA, you can acquaint yourself with the different phases of implementation that will help you achieve successful implementation.

1. Project Planning And Preparation 

Included in this phase are activities such as creating a project plan, establishing timelines, redefining business priorities, forming an efficient implementation team, adequate communication between stakeholders and project managers, and finally, change management strategies. The project planning section will include considering all the details and factors, which can be challenging due to the vast landscape. 

The next step is to form the dream team – an effective and hardworking implementation team that truly cares about your project. You will need to specify your requirements to the SAP implementation team and based on your needs, the team can assist you in picking the right tools and approaches that will benefit your business. 

In addition to a team of experts, it is well advised to have a committed manager to oversee the implementation processes. This entails effective communication among the key players within your team and the business at large. Also, ensure that your implantation team has fool-proof change management strategies at their disposal. 

Finally, you will have to redefine your business priorities, objectives, and goals. This is bound to be a daunting task but it is essential for change and progression. It is wise to also determine key performance indicators (KPIs) and milestones to establish timelines and measure progress. 

2. System Installation And Configuration 

The next step is the implementation phase. Here, the team will conduct baseline configurations to ensure your new SAP processes meet your business needs. This helps to dramatically reduce and eliminate discrepancies from your blueprint. The team will also need to perform robust testing to assess the operation’s success and highlight probable errors. 

The configuration of the baseline system will follow close behind. It is during this step that all project plan fine-tunes are done and all gaps found are eliminated from the business blueprint to ensure seamless SAP implementation. Any customization required can also be taken care of by the implementation team during this phase. Three key factors to keep in mind during this phase are – hardware requirements, system landscape designs, and software installation.  

3. Data Migration And Conversion 

Data migration and conversion is a very intricate procedure. One slip-up and your company could lose tonnes of data and ultimately the loyalty of its customers. Legacy System Migration Workbench (LSMW) is widely known as a tool that supports the transfer of data from non-SAP systems to SAP systems. This transfer can be one-time as well as periodic. LSMW also actively supports the conversion of data from the legacy system in numerous ways during migration. 

Data cleansing is the first step of conversion during migration. It is of vital importance because there is a high chance that incorrect data may be present within the migrated data set. Data cleansing through data transformation and data validation is by far a cheaper and more efficient method. This step will eradicate errors even though multiple sources of data are at play. 

4. Customization And Configuration 

Everyone enjoys experiences that feel personalized. S/4HANA implementation involves an entire phase just for customization and configuration. However, in the context of SAP, customizing is the process of adjusting the SAP software to the requirements of a business by tracing the organizational structures and processes of the company into the SAP system. The organizational structure includes the basic data information needed to be customized for the SAP implementation to be successful. It may not seem like a big deal but accurate customization is one of the biggest exhibits. 

5. Testing And Training 

Any freshly implemented software needs to be rigorously and thoroughly tested. The purpose of testing in SAP is to ensure that business-critical processes work and there are no gaps in the system. When a new process is set up, when an existing process is adjusted, and when SAP updates its system, testing happens at every stage. Testing prevents bugs from spreading, reduces developmental costs, and enhances performance. Testing paves a path for a sustainable way to approach planning, strategizing, and highly controlled execution and monitoring. 

Training of employees for the new installation is also very important. It is most essential to ensure that end-users of the software are trained adequately on how to effectively use SAP S/4HANA. 

6. Go-live And Post-implementation Support 

During this final phase, migration of all the data to the production environment’s SAP systems is performed. All the data is migrated scrupulously to the new SAP S/4HANA systems. After this, the project managers will need to run frequent tests to check if everything works as expected. SAP systems are consistently supervised and optimized for better performance. 

Implementing a successful SAP S/4HANA system for your business goes beyond traditional methods; the last step in ensuring a successful SAP implementation is to create a highly reliable support team that can assist with any post-implementation issues that may arise. Aftercare is important and should not be underestimated. Your support team should monitor and rectify both major and minor errors during post-production.

Read more: Strategizing A Successful SAP S/4HANA Migration for Businesses

How Fingent Can Help

There is no doubt that implementing SAP S/4HANA is good for your business, but it is wise to be aware of some of the challenges that could come with its implementation. Disorganization, improper and insufficient preparation, complex data to be transferred in the source system, complex custom code, and lack of testing and validations – could hamper the successful implementation of SAP S/4HANA. 

Fingent can help. As a silver partner for SAP, we have the expertise needed to navigate all the challenges of implementation and help you make a success of it. 

Our approach unites the best of SAP Activate methodology with preconfigured solutions, focused templates, and a modular and agile framework. Our experts assist clients through every step of the implementation process and even provide excellent post-implementation support by monitoring performance, addressing user feedback, and providing any fixes if necessary.

Reach out to us and allow us to help you on your SAP S/4HANA journey.

“You on the cutting edge of technology have already made yesterday’s impossibilities the commonplace realities of today.”     – Ronald Reagan

True to these words, the development and improvement of technology make possible several tasks we previously deemed impossible. The sky is quite the limit as long as humans are willing to innovate, create, and migrate.

This article will look at one of these brilliant technological advancements – SAP S/4HANA. We will also discuss how you can effectively migrate to this technology and benefit your business.

Introduction To SAP S/4HANA

SAP S/4HANA is SAP’s most famous product that works as a business suite with an in-memory database. It allows businesses to perform transactions, manage functions, and analyze data in real-time.

SAP S/4HANA is the digital heart of SAP’s plan to help its customers with digital transformations, including tedious tasks of modifying existing and new business processes. It is fabricated to house various advanced technologies, such as AI, machine learning, IoT, and advanced analytics. This enables it to help solve complex issues and analyze more information in real-time faster than any previous products.

Read more: SAP S/4HANA: The Definitive Guide!

Why Migrate To SAP S/4HANA?

There are innumerable reasons to migrate to S/4HANA, and listed below are a few important ones:

1. Cost-effective and fast

S/4HANA’s famous in-memory database improves the performance of complex business processes along with scalability and processing speeds. It plans, executes, analyzes, and reports data at exponential speeds.

2. Flexibility 

The greatest benefit of S/4HANA is its compatibility with other databases, hardware, and software, making it the most versatile data solution available.  It provides the flexibility to install new business acquisitions, proactively manage assets and eradicate mundane tasks from an employee’s workday.

3. Analytic Capacity

In-memory technology automatically means there will be no waste of time loading data from one location to another. S/4HANA reduces the time needed to perform even the most extensive reports. This, combined with its deftly built-in business intelligence functionalities, makes it capable of processing data in real time and taking required actions to overcome any hurdles.

4. Simple User Interface

For the sake of nostalgia and previous acclimations, SAP did not abandon its GUI of 20 years. However, a few modifications were still made to portray the enhanced business processes.

5. Future-proofing IT Investments

The sooner an organization migrates to SAP S/4HANA, the sooner it modernizes its business ecosystem. SAP is actively investing in this suite of business processes, and any future technological advancements will inevitably be pushed toward this fast-evolving and ingenious solution. Placing your eggs in this basket can help you in the long run.

Challenges Of Migrating To SAP S/4HANA

Just as with any business and technological transition, you are bound to face a few challenges while migrating to SAP S/4HANA. Listed below are a few:

1. Disorientation And Confusion

Being well-prepared for a conversion plan is always the first step in any SAP S/4HANA conversion project. Making conversion plans with fully detailed tasks to be performed in sequence and accurately calculating the time and effort it takes to convert the system is a serious responsibility.

2. Poorly-recorded legacy processes

Before jotting down a conversion plan it is imperative to evaluate existing processes. Often companies carry their existing problems to the new platform and regret the decision.

3. Complexity Of Custom Code

Custom code can be the backbone of information or the core code that unifies it. Conversion of any custom code to S/4HANA is an extremely complex task. An intensive study should be conducted to identify and evaluate the use of custom code. This analysis will then be the factor in deciding if the system can be converted or simply re-implemented.

Read now: How SAP S/4HANA Can Help Your Business to Become An Intelligent Enterprise?

Best Practices Of Migrating To SAP S/4HANA

As we’ve already seen, despite its many benefits, migrating to SAP S/4HANA can be challenging. It is far from impossible, however. Here are 5 best practices to keep in mind while making this conversion in order to keep the transition seamless:

1. Visualize your end goal

Figure out what your ideal ERP infrastructure and functionalities should look like. Starting a SAP migrating process means reverse integrating your ideal plan.

2. Determine what to rationalize, what to refine and what to conserve

This practice depends entirely on the application and which part of the business process it affects. Asses each module, component, and individual process that will be affected by the change and apply this practice to it.

3. Determine how much data is required for the move

If you want to reap the complete harvest of SAP S/4HANA with its advanced analytics, you have to carry over data from your existing ERP. The preceding data is what oils S/4HANA’s motors to be predictive and accurate in the first place.

4. Formulate an implementation strategy that reduces migration barriers

Every company’s migration process is different. However, Greenfield and Brownfield are the most famous ways of SAP S/4HANA migration. Greenfield is a total change from the old platform to the new platform and Brownfield is a technological upgrade.

5. Choose a consultant who specializes in selectivity

Picking the perfect partner for S/4HANA migration is critical to get the most out of the project. Find a partner who specializes in SAP environments and understands what the migration needs. Ensure that their selectivity in choosing what to migrate, what to preserve, and what to develop is on point.

How Fingent Can Help?

Fingent provides end-to-end planning, migration, and post-migration support and maintenance services. This includes tactical advisory on choosing the right S/4HANA migration path to suit your requirements. Our unique SAP S/4HANA service implementation methodology assists you with preparing, exploring, configuring, and deploying your project. We also provide support, project closure, and maintenance.

Fingent has a proven track record of helping clients across the globe with SAP S/4HANA implementation and migration. We can help you empower your business with this powerful too!

Reach out to us and talk to our experts.

SAP ECC and SAP S/4HANA are two key ERP software offerings from SAP that allow enterprises to simplify the management of business processes, enable effective data processing, and facilitate streamlined information flow across organizations. Though SAP ECC is the most commonly used ERP software, things will change as SAP ends its support for ECC 6.0 in 2027. As ECC is reaching the end of the line, the most practical way for businesses to benefit from SAP’s exceptional solutions is to migrate to SAP S/4HANA.

Like ECC, S/4HANA too offers solutions to enhance business process efficiency and the customer experience in areas like finance, inventory and asset management, sales, marketing, HR, logistics and supply chain, and product development, but in an incredible and unprecedented manner.

Before moving to the world’s most intelligent and modern ERP, it’s important to understand how SAP S/4HANA is different from its predecessor, SAP ECC.

What is SAP ECC?

SAP ECC is short for SAP ERP Central Component, the previous generation of SAP’s enterprise resource planning (ERP) software. Due to its modular design, SAP ECC is highly customizable and can be configured to suit the different needs of a business, such as finance, logistics, warehousing, human resources, product planning, customer service, and so on. The most striking feature of ECC is its ability to work with third-party or customized applications. For example, ECC can operate on a third-party database such as IBM DB2 or Oracle database and can work with customized applications like business messaging apps.

Due to its interaction with different components in the landscape, ECC is flexible, which also brings in more complexities. This is because a change in one component can affect how other parts function in the ecosystem. So, rolling out any change, such as customization, upgrades, add-ons, or enhancements, demands a thorough and careful testing of the landscape to ensure that your important business functions remain undisrupted.

With SAP phasing out ECC, users are left with only one alternative: moving to S/4HANA.

Read more: SAP for Business: 9 Ways to Maximize Business Performance

What is SAP S/4HANA?

SAP S/4HANA is the world’s most intelligent, complete, and modular cloud ERP software that simplifies your business landscape. It facilitates accelerated deployment by lowering costs with a standardized core and brings agility through an open, modular, scalable, and innovative platform. S/4HANA service management integrates crucial functions from various lines of businesses and industries and incorporates parts of SAP Business Suite Products.

What is the difference between SAP ECC and SAP S/4HANA?

Though ECC provides modules covering a full range of industrial and enterprise applications that can be run on a database of the user’s choice, the legacy ERP system fails to leverage the intelligent technologies needed to be competitive today. S/4HANA differs from ECC in many aspects:

Why Move to SAP S/4HANA Now?

Making decisions based on accurate and appropriate data is critical to gain a competitive advantage in today’s dynamic world. With SAP S/4HANA, organizations can use data, people, and enterprise assets in an aggregated manner that best suits their business. Moving to SAP S/4HANA offers you the following advantages:

1. Simplified Technical and Data Architecture

Businesses are attracted to SAP S/4 HANA due to its simplified data table structure and access. SAP HANA’s in-memory computing platform provides a database that operates way faster than the database options used in ECC or any traditional OLTP system. In SAP S/4HANA, there is no need to separate OLTP and OLAP applications into different databases or applications, as a single HANA database can handle both types of operations effectively. The traditional OLTP systems are generally slow at reading and analyzing data that gets updated while processing transactions. SAP S/4HANA offers restructured data models, allowing customers to access data reports faster.

2. Access to Innovative Technologies

Introducing a fresh bulk of innovative technologies will help you address all the upcoming business requirements. Built-in machine learning is an outstanding capability of S/4HANA that automates key business processes across your organization. Real-time insights, predictive BI, and automation free your employees from mind-numbing work and help them focus on value-adding tasks. Access to innovative trend technologies will keep you one step ahead of your competitors.

3. Invest in Your Growth Strategy

You can build an appropriate strategy with fully-automated data if your business is growing and venturing into new markets. Remember that your current SAP ERP  has a shorter shelf-life. Failing to catch up with the latest trends and developments will be costly. Investing in an intelligent ERP system is a business imperative, for it will support and complement your growth strategy and increase your speed-to-market.

4. Consistent User Experience Across All Devices

SAP Fiori – the design system that powers the user experience of SAP S/4HANA – defines how the new business value of S/4HANA is delivered to users. The Fiori design system delivers a modern user experience that works on various devices (desktop, laptop, tablet, smartphone) to ensure faster response times and better performance. Digital age user experience, end-to-end real-time analytics, new business processes (such as Group Reporting, Central Procurement, and Predictive MRP), and intelligent automation (such as Situation Handling, AI/ ML proposals, RPA) scenarios are the key value drivers for using SAP Fiori in SAP S/4HANA. Above anything, you need SAP Fiori to configure, adapt and extend SAP S/4HANA.

5. Avert The Risk of Falling Behind

SAP is no longer investing in ECC as the legacy ERP is reaching its end of life in 2027. On the other hand, SAP S/4HANA incorporates many innovative features through its dynamic quarterly releases that make its core even more intelligent. Several companies around the globe have already started their migration, and some are working fervently on their migration plans. Considering the predicted shortage of skilled SAP consultants and the rising cost of quality consulting services, it’s vital to bridge the gap and avert the risk of falling behind by acting now when there are available resources. Working with a trusted and certified SAP specialist, you can keep your project time, budget, and risk to the minimum. Also, if you have any plans to renew your hardware or hosting solutions, the SAP S/4HANA migration process and hardware purchase should happen simultaneously to avoid any non-compliance.

How Fingent Helps You Accomplish a Seamless Migration to SAP S/4HANA?

With Fingent, your SAP S/4HANA journey can never be complex. We offer the right S/4HANA solutions, expertise, and end-to-end services, including strategic advisory on choosing the right S/4HANA migration or conversion path to suit your requirements.

SAP S/4HANA Conversion Services

Our S/4HANA conversion services are customized to enable the smooth and rapid transition of your business systems, processes, and applications. We offer:

• Convert to SAP S/4HANA on a fixed budget and schedule
• On-premise or cloud-hosted S/4 implementation
• Selective Data Transition (Hybrid approach)
• More flexibility, higher success rate, and lower cycle time
• Enhanced UX, lower costs and risks, and ongoing support services

SAP S/4HANA Migration Services

Improve your enterprise’s resilience by championing your migration to SAP S/4HANA with Fingent. Here are the SAP S/4HANA journey steps we follow:

• Detect challenges, define the business case, and decide where to start
• Pre-configured scenarios and process mining to mitigate risks
• Identify deployment and hosting options
• Perform pre-checks before implementation
• Functional scope and custom code analysis

Our unique SAP S/4HANA service implementation methodology is a tried and tested practice with several successful implementations. Fingent top software development company will combine the best SAP Activate methodology, preconfigured solutions, focused industry templates, automation solutions, and a modular and agile framework. We help you integrate strategy, process, policies, people, and technology to ensure that your organization is process-driven. Transform your complex IT landscape into a simplified business system with SAP S/4 HANA.

Contact our SAP consultant to learn more.