04_transition_scenarious_and_best_practices.pdf

The Path to S/4HANA:
Transition Scenarios and Best Practices

3
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Customer
Transition to SAP S/4HANA
Three different approaches to move to SAP S/4HANA
System
Conversion
SAP S/4HANA
On-Premise
SAP ERP
System
SAP S/4HANA
New
Implementation
SAP S/4HANA
Cloud
SAP ERP or
Third-party
System
Landscape
Transformation
ERP System
Region A
ERP System
Region B
ERP System
Region C
SAP S/4HANA
New implementation / re-implementation
Reengineering and process simplification based on
latest innovations
▪ Implement innovative business processes with best-practice
content on a new platform
▪ Perform initial data load
▪ Retire old landscape
Bring your business processes to the new platform
▪ A complete technical in-place conversion of an existing SAP
Business Suite ERP system to SAP S/4HANA.
▪ Adopt new innovations at your speed
Value driven data migration to the new platform
e.g. consolidation of current SAP Business Suite
landscape into one global SAP S/4HANA system or
selective data migration based on legal entities
SCN Blog: How to find my path to SAP S/4HANA
SAP S/4HANA
On-Premise
SAP S/4HANA
On-Premise

4
Customer
The SAP S/4HANA family and transition paths
SAP Business Suite
(e.g. BS7i2013)
SAP S/4HANA family
New implementation only!
System Conversion
New Implementation
Landscape Transformation
SAP ERP System
(on AnyDB)
SAP ERP System
(on SAP HANA)
(On-Premise)
SAP S/4HANA
SAP S/4HANA Finance
1503, 1605
S/4HANA Cloud
or

5
Customer
System Conversion
Scenario description
A complete technical in-place conversion
of an existing SAP Business Suite ERP
system to
SAP S/4HANA (Database, SAP
NetWeaver and Application transition in
one step).
Why would you choose this
option?
• Bring your existing business processes
to the new platform.
• Keep your investment in custom code
• Mitigate the risk and investment of a big
bang conversion project by reducing the
scope of the transition project to a pure
technical conversion project, and adopt
new innovations at your speed at a later
point of time and in a phased approach.
(SAP GUI) / SAP Fiori
SAP HANA
SAP S/4HANA Core
SAP GUI
AnyDB / SAP HANA
SAP ERP Core
Software Update
Manager (SUM)
with Database
Migration Option
(DMO)
What How
In-place technical
conversion
tool-based technical conversion process of a SAP Business
Suite ERP system to SAP S/4 HANA using SAP Software
Update manager (SUM);
Downtime minimizing options available
*
*
SCN Blog: SAP S/4HANA System Conversion – At a glance
SAP ERP 6.0 (any EHP level)

7
Customer
SAP S/4HANA system conversion
Overview technical process steps
Application specific
follow-up activities
Application
specific follow-up
activities
Database migration
Software update
Data conversion
Custom code preparation
Preparation phase Realization phase
System
requirements
Software Update
Manager (SUM)
Unicode
conversion
Simplification List
Cross-application & application specific preparation activities
Maintenance
planner
Pre checks Custom code preparation
**) incl. migration of FI
Customizing and Data
*) incl. preparation of
financial data

8
Customer
Summary: Recommended Preparation for a System Conversion Project
– Run the maintenance planner (https://apps.support.sap.com/sap/support/mp) early to confirm that your
SAP ERP system (including SAP and partner add-ons) can technically be converted to SAP S/4HANA.
– Explore in the simplification list (http://help.sap.com/s4hana_op_1610 -> Simplification List) which of the
functionalities relevant for you have changed. The simplification list is also available in XLS format, see
note 2313884.
– Start early to clean up your customer and vendor data in your current SAP ERP system in preparation
for the Business Partner and Customer/Vendor Integration (CVI) in SAP S/4HANA. Further info in the
simplification list.
– Check your custom code and optimize it for SAP S/4HANA. Further info on help.sap.com

9
Customer
New Implementation
New implementation of SAP S/4HANA, e.g. for
customers migrating a legacy system, also known
as “greenfield” approach.
Why would you choose this option?
Customers planning to migrate
• A non-SAP / 3rd-part legacy system,
• A good option for a SAP System, which may be
• Of an older release and/or
• Is highly customized/modified and/or
• Does not meet the system requirements for
a technical system conversion
Benefits for the customer are
• Reengineering and process simplification
based on pre-configured business processes
• Rapid adoption of new innovations in a
standardized manner
Steps How
Install SAP S/4HANA Software Provisioning Manager
Initial data load from
source system
• SAP S/4HANA Migration Cockpit
• SAP Data Services (SAP DS)
both with best practice migration content

10
Customer
Customers who want to consolidate their
landscape or to selectively transform data
into a SAP S/4HANA system.
Why would you choose this option?
• Value-based migration: selective data
transformation allows a phased approach
focusing the first SAP S/4HANA migration
phase on parts of the business with highest
ROI and lowest TCI
• Agility: stay on current business processes
but move gradually to SAP S/4HANA
innovations  Move to SAP S/4HANA at
your own pace
• TCO reduction: system and landscape
consolidation with harmonized/simplified
processes and unified master data lead to
lower cost of operations
Landscape Transformation
Technical migration on table level using pre-configured LT transformation solutions
Consolidation
System Merge of multiple source systems into one SAP S/4HANA
system or transfer of clients into existing SAP S/4HANA system
(build-up multiple client system)
Selective Data
Transformation
Migration of business units/single entities such as company code
Re-platforming scenarios, e.g. PP/DS
Real-time reposting
Implementation of
central finance *
Real-time reposting of financial transactions into Central Finance
instance, e.g. to enable centralized reporting using SAP S/4HANA
(synchronization of systems / side-car scenario)
Legacy
M I G R A T E Y O U R D A T A
select – transform on the fly - insert
*) SAP S/4HANA for central finance foundation (Central Finance)
On-Premise

11
Customer
The Landscape Transformation option migrates data into
SAP S/4HANA systems
The pre-configured Landscape Transformation Scenarios:
- can migrate data
▪ into newly implemented SAP S/4HANA target systems
▪ as well as into systems created via system conversion procedure,
▪ before or after they are handed over to operations,
▪ and independent if they are foreseen for productive use or not.
- can complement the other SAP S/4HANA transition options
Note: SAP Landscape Transformation scenarios are supported within SAP S/4HANA Value Assurance
engagements. The transformation solutions mentioned for technical transformation are not generally released.
Note 2: SAP is ready to discuss and support data migration requirements beyond the pre-configured use cases.
Refer to the data migration services in the Activate phases prepare and explore for details.
Transition to S/4HANA Roadmap Viewer

14
Customer
Actual findings from customer projects & recommendations
▪ The average project duration (project start to go-live) is approx. 8-11 months
▪ System conversion projects are in average shorter than new implementation projects
 System conversion is apparently often chosen for doing a ‚technical uplift‘ to the SAP S/4HANA platform, intensive adoption of new
SAP S/4HANA applications and Fiori UI Technology is not necessarily in the conversion project focus and will be often addressed in
follow-up projects (big bang projects are less often).
▪ The share of customers choosing the system conversion path is increasing rapidly:
• 2015: 25%  2016: 39%  2017 to date: 83%
▪ SAP S/4HANA Finance (Add-On) and SAP S/4HANA projects have pretty much the same project duration
 In general a two step approach by moving to SAP S/4HANA via SAP S/4HANA Finance does not make sense
▪ Starting with a Central Finance Setup to start a step-by-step or process-by-process transition to SAP S/4HANA
for one or many SAP systems is not recommended.
 The objective of Central Finance is to enable a centralized corporate financial reporting, taking data from various source systems into
account.
 Customers wishing to move to SAP S/4HANA and to simplify their SAP landscape, should better consider the standard transition
scenarios. SAP offers tailored services as part of the SAP S/4HANA Value Assurance portfolio to properly plan the digital
transformation.
▪ What is (the benefit of) a phased approach?
• Phased move to SAP S/4HANA by organization units (company code- / client-wise  LT Scenario), vs.
• System conversion approach with scope limited to adapt currently running business processes to SAP S/4HANA
▪ For SAP ERP on any DB customers a two step approach via SAP ERP on HANA has in general no significant benefits
(individual exceptions may make sense in case of for non-Unicode systems & for SAP ERP Systems releases < SAP ERP 6.0)

15
Customer
SAP S/4 HANA
today
Migration efforts
• Product development
• Intensity in use
2025
Small gap
SAP ERP on HANA
time
SAP product
development
big gap
Migration to SAP S/4HANA – the earlier the better

16
Customer
Functional scope: illustrative evolution of S/4HANA overtaking ECC 6 scope
2025
ECC 6
any DB & SAP HANA
S/4HANA
1503
S/4HANA
1511
S/4HANA
1610
S/4HANA
1709
ECC 6
any DB & SAP HANA
ECC 6
any DB & SAP HANA
ECC 6
any DB & SAP HANA
Initial shipment
S/4HANA Finance re-designed
Material Management &
Operations re-designed
Initial Industry-to-Core release
Industry Coverage
Increased Fiori app availability
Extended functionality unification
Special Industry processes
Fiori Co-Pilot and Apps library
Foundation for CRM back to core
ECC 6
any DB & SAP HANA
S/4HANA
25xx
2015 2016 2017 ……
✓
S/4HANA functionally
superior to ECC
Innovation scenarios (eg. Leonardo portfolio) not available for ECC landscape

17
Customer
SAP S/4HANA
Key Innovation Evolution
SAP S/4HANA, on-premise edition 1511 SAP S/4HANA 1610 SAP S/4HANA 1709 *
* This is the current state of planning and may be changed by SAP at any time without notice.
 Industry to core
- Discrete Industries and Mill Products (DIMP) -
 Effective Order Management and Billing
 Efficient Procurement
 Accelerated Material Requirements Planning
 Real-time Inventory Management and
Material Valuation
 Oil and Gas with SAP S/4HANA
 Industry to core – Retail
 Consistent SAP Fiori User Experience
 Optimized Portfolio and Project Management
 Embedded Software in Product Development
 Entire SAP S/4HANA Finance Scope included
 Plan to Produce in ONE System
(Production Planning and Detailed Scheduling – PP/DS)
 Embedded SAP Extended Warehouse Management
 Integrated Quality Management
 advanced Available to Promise (aATP)
 Commodity Management
 Sales – Electronic and Digital Payments
 GRC – Legal Control and Export Classification
 Projects support with
Migration Cockpit and Migration Object Modeler
 Consumer Products – Catch Weight Management
 SAP S/4HANA Central Master Data
 Finance – Machine Learning for automation capability
 QM – Manage usage decisions and Analytics for
Quantitative Results
 EAM – Report and Repair Malfunction
 PLM – Visual Manufacturing Planner and
Recipe Management
 Maximize Fiori Experience with
SAP Fiori Overview Pages
 Predictive Analytics as a system of intelligence
- Contract Consumption in Procurement -
 Embedded Transportation Management
 Demand Driven Manufacturing
 Manufacturing Extension for Complex Assembly
Industries
 Advance Variant Configuration

18
Customer
Project timelines view: SoH is not a head start for S/4HANA later
2017 2018 2019 2020 2021 2022 2023 2024 2025
S/4HANA License investment
S/4HANA Conversion project start
SoH Migration project start
Investing in SoH now and S4HANA later will double the effort (and money) needed compared to investing in a S/4HANA Conversion
project now and keeping the system up-to-date
S/4HANA Conversion project
S/4HANA go-live
S/4HANA stabilisation
S/4HANA operational improvements
S/4HANA Updates (non-mandatory)
S/4HANA Update
SoH Migration project
SoH go-live
SoH stabilisation & improvements
HANA License investment
S/4HANA License investment
S/4HANA Conversion project start
S/4HANA Conversion project
S/4HANA go-live
S/4HANA stabilisation
You are now a
digital enterprise
You are now a
digital enterprise
no access to digital core innovations
additional project budget needed within 5 years after upgrade to SoH
organisational change management

19
Customer
Customers choose their own path
▪ Diversity of drivers – in all cases deployment of
SAP S/4HANA causes impact
Attention to change management topics,
relevant for customers but also
implementation partners
▪ S/4HANA is not ERP6.0
▪ Knowledge transfer is a key element
▪ Involve relevant stakeholders right from the
beginning: decision makers, key users, project
leads, partners, etc.
Simplification means change
SAP S/4HANA – Manage All Parts Properly
Projects
Fiori User Experience
Technical
Prerequisites
Simplifications
Technologies, Configuration,
Extensibility
Tools,
Methodology
Transition
Approach

20
Customer
Project Preparation and Setup
▪ Start early
▪ Tailored up-skilling to understand boundaries and tools
▪ Set focus, assess impact, include business
▪ Understand the impact from the Simplification List
▪ Consider Fiori in every SAP S/4HANA roadmap
▪ Do the homework (specifically in the case of system conversions)
Project Planning & Execution
▪ Familiarize with “top simplification items” (i.e. Business Partner,
etc.)
▪ Exploration resp. sandbox conversions to optimize execution
▪ Demo early to key users to discuss value and change
SAP S/4HANA – Summary of Project Learnings and Success Factors
Start today, not tomorrow!

Thank you.
Diana Todorova
SAP S/4HANA Presales Expert, SAP SEE

© 2017 SAP SE or an SAP affiliate company. All rights reserved. 23
Internal
Where to go for more information
Join the SAP
S/4HANA Community
Discover SAP S/4HANA SAP S/4HANA Trials
SAP Learning Hub
SAP S/4HANA
Release Info
SAP S/4HANA
Roadmaps
SAP Help Portal
S/4HANA Cookbook SAP S/4HANA FAQ
Choose your Path
to SAP S/4HANA

24
Customer
SAP S/4HANA
Check out the following links for more information
Follow this link to the Book
You can find the “What’s New” and the “Feature Scope Description”
with the entire information concerning the SAP S/4HANA 1610
FPS02 delivery on the SAP HELP Page.
http://help.sap.com/s4hana

25
Customer
Information about SAP S/4HANA 1709
Innovation Discovery SAP S/4HANA Road Maps
Follow this link to the Innovation Discovery Follow this link to SAP Road Maps

26
Customer
System Conversion
Maintenance Planner Blog Custom Code Migration
Worklist
Pre-checks Blog

04_transition_scenarious_and_best_practices.pdf

More Related Content

Similar to 04_transition_scenarious_and_best_practices.pdf (20)

Recently uploaded (20)

04_transition_scenarious_and_best_practices.pdf