SAP S/4HANA Migration

Since SAP announced that all SAP customers must complete the transition from SAP ERP 6.0 to S/4HANA by December 2027, migrating to SAP S/4HANA is no longer optional.

The growing level of interest and willingness to begin this transition well before the deadline is already reflected in the numbers: according to Statista, the SAP S/4HANA customer base is currently growing at 18% per year.

What is the SAP S/4HANA Migration?

The SAP S/4HANA migration describes the  transition from SAP ECC to SAP S/4HANA. SAP S/4HANA is the latest generation of the SAP Business Suite and replaces its predecessor, SAP ERP 6.0 (also known as SAP ECC). Because of the fundamental changes in system architecture, new applications and functions, and the growing importance of the Fiori Launchpad as the central user interface, this is not a simple upgrade – it is an entirely new product.

In addition to the mandatory use of the SAP HANA in-memory database, the transition brings further new technical approaches. With its “Single Point of Entry” concept, S/4HANA  enables users to access all the applications and informations relevant to them and initiate business processes from a single location.

This simplifies access to various modules, transactions, and data within the SAP system. In S/4HANA, this is reflected not only through the provision of new transactions but also through the SAP Fiori Launchpad as the central UI.

Info

SAP Fiori Launchpad

The SAP Fiori Launchpad provides a user-friendly interface organized around tiles and apps. Redundant and similar functions are consolidated here. The "Principle of One" that SAP pursues with S/4HANA does not mean S/4HANA is less powerful – quite the opposite: the system is leaner thanks to its reduced data model, which reduces the data footprint.

These key changes mean that existing authorization concepts cannot simply be transferred into SAP S/4HANA 1:1. Instead, they need to be adapted to meet the new requirements and applications in S/4HANA.

Custom code migration to SAP S/4HANA also plays an important role here: most organizations have made extensive customizations and extensions to their existing ERP systems through in-house developments tailored to their individual business processes. When switching to SAP S/4HANA, these custom developments must be carefully reviewed and – where necessary – adjusted to be compatible with the new technical and functional requirements.

7 Benefits of Migrating to SAP S/4HANA

Migrating to SAP S/4HANA offers organizations many advantages that go well beyond simply modernizing their IT landscape:

  1. 1

    SAP HANA Database and Reduced Data Latency

    Unlike disk-based databases, an in-memory database holds all data in working memory, enabling fast data access and significantly reducing processing times. Organizations gain real-time insights into their business data and can respond immediately to changes.

  2. 2

    Simplified Data Structure

    Tables and applications are consolidated, and data quality is improved.

  3. 3

    Advanced Analytics

    With the right analysis tools, data patterns can be identified, forecasts generated, and well-informed business decisions made.

  4. 4

    AI, IoT, and Big Data

    Modern technologies enable large volumes of data to be captured, processed, and analyzed in real time.

  5. 5

    SAP Fiori Integration

    SAP Fiori provides a role-based, intuitive, and user-friendly interface that simplifies access to key business information and processes.

  6. 6

    Cloud, Hybrid, and On-Premise Options

    SAP S/4HANA offers a wide range of product variants – as a cloud solution, a hybrid variant, or an on-premise installation. Cloud products offer lean, practical "out-of-the-box" solutions that are particularly attractive for smaller organizations.

  7. 7

    Long-Term Success

    According to a PwC study on SAP S/4HANA experience in the DACH region, 82% of the organizations surveyed achieved a positive business case after introducing SAP S/4HANA.

SAP S/4HANA Core and Cloud Solutions overview diagram – showing S/4HANA core functions on the left and cloud solutions such as Ariba, SuccessFactors, and Concur on the right

Which Product Variants are Available?

When switching to SAP S/4HANA, the first decision is which of the 4 product variants to choose. Key factors in this decision include the complexity of your processes and the extent of custom code.  For a complete overview of the available options, see the SAP S/4HANA knowledge hub.

SAP S/4HANA CloudPublic Edition


  • Configurable standard processes
  • Public cloud
  • Standardized extension via SAP Business Technology Platform (BTP)
  • Lowest total cost of ownership
  • Subscription model (Grow)

SAP S/4HANA CloudPrivate Edition


  • Full scope, comparable to the on-premise solution
  • Customer-specific system landscape based on a cloud infrastructure
  • Full extensibility possible
  • Lower total cost of ownership
  • Subscription model (RISE)

SAP S/4HANAEnterprise Cloud (HEC)


  • Full scope
  • Customer-specific system landscape
  • Fully customizable
  • High total cost of ownership
  • Subscription model or BYOL (Bring Your Own License)

SAP S/4HANAOn-Premise


  • Full scope
  • Customer-specific infrastructure or hosting partner
  • Fully customizable
  • High total cost of ownership
  • License purchase

Migration Methods: Greenfield, Brownfield & Bluefield

When moving to SAP S/4HANA, different migration strategies are available. For a detailed side-by-side comparison, see our article on the SAP S/4HANA transformation. The three most common approaches are:

Greenfield

In the Greenfield approach, the ERP system is  implemented as a new system, often on a new data center or cloud infrastructure. This allows both new and existing SAP  customers to reconfigure all business processes, data, and settings from scratch, enabling a comprehensive redesign and optimization of business processes.

The Greenfield approach typically applies to organizations introducing an SAP ERP system for the first time and wanting to start with a future-proof, high-performance solution. A key disadvantage is the significant effort involved in transferring data, authorizations, and business processes. That said, it is also the best way to leverage  the full benefits of S/4HANA from day one, while staying in the SAP standard.

Brownfield

The Brownfield approach, also known as System Conversion, migrates an existing SAP ERP 6.0 system to the new SAP S/4HANA release. The advantage is that it can be implemented faster, since the existing system does not need to be rebuilt from scratch. Existing business processes, data, and configurations are carried over. The downside: this also means existing technical debt, outdated processes, and established inefficiencies c carried over to the new environment.

Bluefield

The Bluefield approach is a hybrid method combining the advantages of Greenfield and Brownfield. Only selected, business-relevant data and processes are migrated, with the option to optimize certain business processes. This means the entire system does not need to be rebuilt from scratch (as in Greenfield), while unnecessary legacy  structures that often accompanies a Brownfield migration can still be avoided.

Challenges in the SAP S/4HANA Migration

The transformation to SAP S/4HANA is  highly complex and time-intensive process that  requires significant project resources and demands intensive planning and coordination. According to a survey by PwC and LeanIX, the 3 biggest migration challenges are:

  • Complex legacy systems
  • High degree of customization
  • Unclean master data

One of the most important decisions to make at the outset is choosing the right SAP S/4HANA solution and the right migration method. Delays and unforeseen cost overruns are common risks in large IT projects – and the migration to SAP S/4HANA is no exception.

Authorizations are a particular area of risk: because applications are consolidated and optimized in S/4HANA – and with the possible use of the SAP Fiori Launchpad –  obsolete or deprecated applications in roles must be replaced with new ones (see the SAP Simplification List). This means your existing role concepts must be reconciled with the Simplification List, and your roles must  be built in compliance with SU24. No manual or modified authorization objects may be included in roles. Checking for  compliance with SAP standard and making the necessary adjustments are therefore essential for a successful migration.

Key Migration Statistics (PwC Study)

82%

of organizations have seen a positive impact from SAP S/4HANA

65%

expect recurring annual savings

50%

estimate migration will take at least 3 years

70%

work with a partner for the migration

Source: PwC Study – SAP S/4HANA: Experiences from Organizations in the DACH Region

6 Best Practices for SAP S/4HANA-Migration

To make the transition to SAP S/4HANA efficient and successful,  organizations should follow proven methods and strategies:

  1. Run the SAP Readiness Check: use the SAP Readiness Check to verify whether your system is ready for the transition and which steps are still required.
  2. Build a Migration Plan: develop a detailed migration plan that clearly defines all steps in the project.
  3. Analyze, Categorize, and Clean Up Data:
    • Hot: current, frequently used data with high relevance to business processes
    • Warm: less frequently used data that is still relevant
    • Cold: old or rarely used data with low relevance to ongoing business processes
  4. Account for the Scope of Potential Process Changes: evaluate the impact of the  transition on existing business processes and factor in necessary adjustments early on.
  5. Analyze Roles and Reconcile Authorizations with the SAP Simplification List:
    • Role quality and SU24-compliant role  design
    • S/4HANA-driven changes
    • Alignment of role content with business departments
    • Integration of new functions, including Fiori apps
    • Implementation of adjustments in the system
  6. Work with Experienced Partners: according to an IDC survey, 77% of organizations rely on an experienced partner for their S/4HANA migration. Xiting is happy to support you in making the transition smooth and rolling out the role migration efficiently.

Successfully Migrate to SAP S/4HANA with Xiting

Xiting offers a powerful solution within its Authorization Management practice to significantly accelerate your migration to SAP S/4HANA. The Xiting Authorizations Management Suite (XAMS)  can increase efficency up to 75%  compared to a manual approach.

Services:

  • SAP system analysis including Readiness Check
  • Migration via Brownfield or Greenfield approach

Highlights:

Your Path to SAP S/4HANA

Start your SAP S/4HANA migration now: contact us and kick off your project with a competent and experienced partner at your side. For authorization-specific go-live risk management, see our Go-Live Risk Minimization consulting service. For license analysis and optimization as part of the migration, XAMS also offers dedicated tooling.

FAQ

What is the Difference between SAP HANA and SAP S/4HANA?

SAP HANA is an in-memory database that enables particularly fast data processing. SAP S/4HANA is an ERP suite built on SAP HANA, featuring new functions and simplified processes.

The SAP Simplification List is a document describing all the changes and simplifications in SAP S/4HANA compared to previous versions. It lists deprecated functions and applications that have been removed, along with new technologies and approaches that have been introduced.

SAP ERP 6.0 maintenance ends in Dezember 2027. Organizations should therefore plan their migration to SAP S/4HANA before. What is the SAP S/4HANA Migration Cockpit?

The SAP S/4HANA Migration Cockpit is a tool that supports the migration of data from legacy systems to SAP S/4HANA. It provides predefined migration objects and simplifies data transfer.

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