Your S/4HANA Migration Questions Answered

The SAP S/4HANA migration is a transformational change in enterprise resource planning that provides organizations with a smarter and more integrated digital core. Not only does this migration promise greater performance, real-time analytics, and simplified processes, but it also presents your organization with thrilling opportunities for the future.

With SAP’s 2027 cutoff for discontinuing mainstream ECC support looming, it’s imperative that organizations understand the basics of S/4HANA migration. This book aims to demystify the complexity and deliver crisp, actionable guidance on the migration process, helping you make effective decisions on your organization’s digital transformation journey.

Whether you’re just starting to plan or are ready to make the first move, this guide is designed to address the most important areas of S/4HANA migration that are most critical to your business success. You can be sure that we’ll be discussing the most important topics to your organization’s path.

SAP S/4HANA Migration Questions You Need to Ask

1. Why Migrate to S/4HANA? 

The announcement of SAP ECC mainstream support discontinuation by 2027, with extended support up to 2030, presents a compelling imperative for organizational change. Beyond mere compliance, S/4HANA offers transformative advantages:  

• The implementation of SAP’s in-memory HANA database facilitates superior data processing capabilities  

• The consolidation of database tables eliminates redundancies, enabling real-time analytical capabilities  

• Integration of SAP Fiori provides an intuitive, modern user experience 

• The use of cutting-edge technologies that include AI, machine learning, and IoT integration. 

2. What Are the Different Migration Paths? 

Organizations must select from three primary migration approaches, each offering distinct advantages: 

• New Implementation (Greenfield) 

This methodology entails a comprehensive system rebuild, optimal for organizations seeking fundamental process redesign. While resource-intensive, it provides maximum flexibility for organizational transformation. 

• System Conversion (Brownfield) 

This approach facilitates the direct conversion of existing ECC systems to S/4HANA, utilizing SAP’s Software Update Manager (SUM). It is particularly suitable for organizations seeking to maintain established processes while leveraging S/4HANA’s enhanced capabilities. 

• Selective Data Transition (Hybrid) 

This methodology combines elements of both Greenfield and Brownfield approaches, enabling selective process and data migration. It offers a balanced approach between system preservation and innovation. 

3. When Is the Right Time to Migrate? 

The determination of optimal migration timing requires evaluation of multiple factors: 

• When your current system can no longer meet your business needs: If your existing system is outdated, inefficient, or unable to support new functionalities required for growth, it’s time to migrate. 

• When external support or updates are ending: For example, if your software (like ECC) is nearing the end of its support lifecycle, migrating before the cutoff ensures you avoid security risks, compliance issues, and operational disruptions.  

• When your organization is in a stable position to handle the transition: Migration should happen during a period of relative operational calm, not during peak business seasons or major organizational changes. 

• When the new system offers a clear competitive advantage: If migrating will significantly improve efficiency, reduce costs, or enable innovation, the right time is as soon as you’re prepared to execute the move. 

• When you’ve completed thorough planning and testing: The right time is after you’ve validated that the new system works for your needs and have a detailed migration plan in place. 

4. What are the Major Steps of an S/4HANA Migration?  

1. Preparation Phase

This stage is about ascertaining the current landscape and defining the scope of migration. The key activities are:  

• System Assessment: Use SAP Readiness Check to analyze the ECC system for potential challenges  

• Business Process Review: Get stakeholders to chart the current process and identify which ones can be optimized  

• Project Planning: Create a comprehensive roadmap, outlining timelines, resource allocation, and risk mitigation strategy. 

2. Realization Phase 

This is the phase where technical groundwork for migration is done with the utmost care and precision. Critical steps include:   

• Sandbox Testing: Test environment for simulating migration scenarios and identification of issues.   

• Data Cleansing: Ensuring data quality by removal of duplicates, error correction, and standardization of formats.   

• Custom Code Adaptation: Analysis of custom developments to be updated for S/4HANA compatibility using tools such as SAP’s ABAP Test Cockpit.   

3. Deployment Phase

This would be the go-live phase, where the migration takes place. Some key considerations include:  

• Minimizing Downtime: Near-zero business impact approaches should be employed to minimize business disruptions.  

• Change Management: Communication with users and training them on new functionalities will be essential.  

• Validation: Post-migration validation entails complete testing to ensure that the system is working as anticipated. 

5. What Are the Common Challenges in S/4HANA Migration? 

Migrating to S/4HANA can be a complex journey, and encountering challenges along the way is almost inevitable. Some common hurdles include: 

Data Migration Complexity: Moving large volumes of data accurately can be tricky. Tools like SAP Data Services can help streamline the process and reduce errors. 

System Downtime: Zero downtime is something that should always be minimized; for businesses which run 24/7, this is key. It will be important to prioritize this with minimal disruption on operations. 

Skill Gaps: Ensure your team is fully competent in the relevant skills or be willing to form a partnership with experienced experts filling any gaps so you can approach the migration confident and supported. 

Cost Overruns: In keeping your migration project on course, you must have a good plan and budget in place. Proper control over costs will prevent you from making unwanted spends as the project moves along. 

6. How Can Tools Like Tricentis Tosca, LiveCompare, Etc., Simplify the Process? 

Testing is a critical factor in successful S/4HANA migration, with many failures linked to insufficient testing. Tools like Tricentis Tosca, LiveCompare, etc., can:  

• Accelerate Testing: Automate end-to-end functional, regression, and data validation to cut testing time by up to 90%.  

• Improve Coverage: Ensure 100% test coverage of business-critical processes, reducing post-migration issues.  

• Reduce Risk: Leverage risk-based testing and impact analysis to identify defects early, minimizing costly errors and ensuring a smoother transition. 

7. What Are the Cost Implications? 

The cost for an S/4HANA migration is highly variable, contingent on system size, migration approach, and level of customization. The cost components include: 

• Licensing Fees: Understand the cost structure for S/4HANA licenses, which are somewhat different from ECC.  

• Infrastructure Costs: Investment in hardware, cloud platforms, or hybrid environments. 

• Consulting and Training: Let budget be reserved for external expertise and upskilling of your team. 

While it costs more to invest initially, efficiency, scalability, and innovation in the long run make the investment worthwhile. With Zuci Systems as your implementation partner, you get access to Tricentis licenses at low cost on which high value is derived while less investment is made.

8. How to Measure the ROI of S/4HANA Migration? 

Calculating the return on investment (ROI) for your migration involves quantifying both tangible and intangible benefits. Metrics to consider include: 

• Operational Efficiency: Measure the reduction in manual effort for tasks like financial closing, invoice processing, or inventory management. Compare transaction processing times before and after migration. Calculate reductions in hardware, maintenance, and licensing costs due to S/4HANA’s simplified architecture. 

• Cost Reduction: Measure the decrease in system outages or downtime due to improved stability. Compare pre- and post-migration IT infrastructure costs, including database management and server requirements. Quantify savings from migrating to a cloud-based or optimized on-premise environment.  

• Revenue Growth: Track the impact of real-time analytics on revenue. Measure improvements in customer satisfaction scores, repeat purchases, or Net Promoter Score (NPS) due to faster order processing or personalized services. 

Secure Your SAP S/4HANA Migration with Zuci 

This is a major organizational effort that demands careful thought and planning. Organizations need to begin detailed assessment and planning practices as the support deadline nears in 2027. 

The success of S/4HANA migration depends on the type of implementation approach adopted, a proper testing plan, and efficient change management strategy. Strategic planning and choosing the right partner can harness the transformational value of S/4HANA implementation for organizations.