Points to consider before you adopt SAP S/4HANA
When SAP announced the arrival of the post-modern ERP, SAP S/4HANA, organizations were challenged with the decision on how and when to adopt SAP S/4HANA. While a majority of the made their decisions, some of them decided to worry about it later. Well, it seems that ‘later’ has arrived. With SAP announcing the deadline of 2025 for SAP ECC ERP, more and more organizations are ready to adopt SAP S/4HANA.
The benefits of SAP S/4HANA have started to become much clearer. But, the decision to move to SAP S/4HANA presents a list of tough questions which must be considered before moving forward with the project.
- Will you adopt SAP S/4HANA on-premise, adopt SAP S/4HANA Cloud or do both and adopt a hybrid model?
- Will you take up a brownfield SAP S/4HANA system conversion from SAP ECC to SAP S/4HANA, an SAP S/4HANA landscape transition involving system consolidation, or go for a completely new SAP S/4HANA Greenfield Implementation?
- What do you intend to do with hybrid applications such as SAP SuccessFactors, SAP Ariba, SAP Concur, SAP Hybris, SAP Fieldglass, etc. which can operate alongside SAP S/4HANA? Do these change the shape of your landscape?
- Do you need support from external partner(s) and if so how do you find the right one(s)?
Based on the organization, there could be more questions as well.
Once you figure out the answer to those questions, you get faced with a bigger one. When you’ve made your strategic choices, how are you going to run things day-to-day? How will you transition the business from where you are today to where you need to be?
A question of what you want and need to be
For most companies, the move to SAP S/4HANA is a major undertaking. It may take many years to achieve a complete transition. Due to this specific reason, some enterprises are looking to move to Business Suite on HANA DB first. They’ll then try out SAP S/4HANA finance or SAP BW on HANA before adopting the transition to enterprise management.
Most of our major customers elect to go with an SAP S/4HANA Greenfield Implementation due to their complex landscape and processes. This will be a multi-year programme to get to where they want and need to be. During this transition, they’ll be running their financial reporting from S/4HANA, even though their logistics and supply chain will still be in ECC ERP for some time to come.
They’ve realized that although the endgame with their entire business on SAP S/4HANA is important, they need to be mindful of the journey. Just because you’re undergoing a transition doesn’t mean your business can stop. You will need to consider:
- How to manage and align business alterations during the transition
- Ways to synchronize current ERP systems with new SAP S/4HANA systems
- How to consolidate ERP systems to prepare for a single SAP S/4HANA system
- How to automate testing to validate the end-state
Solutions to support the adopt SAP S/4HANA journey
Out of all the points to consider, the most important one is how you will manage, align and synchronize changes between your current ERP and SAP S/4HANA so that business can run without interruptions while your SAP S/4HANA implementation stays on track.
An SAP S/4HANA accelerator like KTern can deliver the controls needed to make the transition projects safe and robust by automatically selecting and synchronizing the relevant changes across systems. Features such as effort estimation, impact analysis, project management, system governance, and data validation provide an essential level of governance in complex SAP landscapes. Sign-up and access their free demo for a test run of KTern.
What are your plans and experiences?
One of our clients in Oman decided to opt for an SAP S/4HANA implementation. Access our case study to learn more about the project. If you are someone considering an SAP S/4HANA migration, we would be happy to guide you on the right path to SAP S/4HANA. Get in touch with me at firstname.lastname@example.org.
I’d also love to hear back from more customers who are either planning or already running their “adopt SAP S/4HANA” migration programmes to understand what your plans and challenges are and what approach you’re taking.