Many SAP clients plan to migrate to the latest ERP solution, SAP S/4HANA. Over 22,000 companies have already adopted licensed SAP, and many others are actively migrating to SAP S/4HANA, particularly with the looming 2027 deadline.
This deadline marks the end of SAP’s support for older versions, such as SAP ECC and SAP R/3, and it will also discontinue security updates. Organizations must migrate to SAP S/4HANA before the deadline to mitigate the risks of using outdated and unsupported software for critical business operations. Migrating SAP systems requires thorough attention to security considerations and a commitment to best practices. Now, let’s move forward to the challenges and best practices of SAP S/4HANA migration.
Challenges of SAP S/4HANA Migration
Migrating to SAP S/4HANA offers several benefits without any doubt. However, you should also know the challenges you might face while migrating. Which includes:
Landscape Buildout and Cutover Maintenance
Managing the changes involved in the migration process is a significant challenge for businesses. Since most S/4HANA systems are built in phases, the entire landscape won’t be available at the start of development, and the landscape will evolve throughout the project. SAP automation can help ensure a smooth transition. Automated change management software offers comprehensive visibility into every change, automatic sequencing dependency checks, and alerts for potential conflicts before they become issues.
Dual Maintenance
This concept involves managing change across multiple landscapes simultaneously. Dual maintenance in SAP is crucial for businesses that cannot afford to pause critical business innovation while migrating to SAP S/4HANA, which can take months or even years.
Data Migration
Migrating data from an older solution like ECC to S/4HANA can be complex and time-consuming. It requires meticulous planning and execution. Most SAP users are not on the latest version of ECC, but SAP recommends updating to at least ECC 6.0 before migrating to SAP S/4HANA. It means applying several years’ worth of updates, a significant project.
Application Compatibility and Custom Code Complexity
Some applications compatible with ECC may be incompatible with SAP S/4HANA. It requires businesses to modify or replace these applications. Additionally, when migrating custom code to SAP S/4HANA, thorough research must be conducted during the preparatory phase to evaluate the use of custom code. This analysis determines whether the system requires a SAP ECC to S/4HANA conversion or a complete re-implementation.
Stakeholder Agreement
Change can be challenging, especially for the estimated 60% of businesses using legacy systems over ten years old. The migration cost, potential downtime, and other risks must be considered. Businesses need a reliable, proven integration partner to instil confidence in stakeholders.
Know-how
The migration processes require thorough planning, and many in-house teams may lack the skills to manage a complete SAP migration project with available resources effectively. For most companies still using SAP ECC, this project needs external assistance, such as SAP Managed Service providers.
Best Practices for a Successful SAP Migration
Businesses should follow these best practices when migrating to SAP S/4HANA:
But… How do you plan the migration?
Planning is the first step in Migrating to the SAP S/4HANA system. It can be complex and confusing if you are not well-versed in it. So, let’s go through the proceedings first.
Plan It
First, you need to determine your approach to the migration process. This plan must be thoroughly rehearsed and communicated to your team.
Your planning phase should include the following steps:
- Data Mapping: Identify the correct data and disregard incorrect data.
- Data Cleansing: Remove errors from your system.
- Data Extraction: Extract the ‘cleansed’ data from your current storage.
Once you have planned everything, here’s what you must do next.
Ensure Data Quality
Once you have extracted the data, the next step is to assess its quality. The data you need to migrate should be complete and error-free. Also, ensure consistency and accuracy throughout the process.
Ensure Data Security
Believe it or not, it’s easy for someone to intercept the data you’re migrating and steal information from it. It can impact your organization’s efficiency and reputation. To mitigate these risks, you should encrypt the data you’re migrating.
Ensure Data Validation
By conducting data validation, you can ensure the completeness and accuracy of the data being migrated. This process helps identify any related errors. While it may require some time, the effort is worthwhile.
It’s crucial to perform validation checks during or throughout the migration process. Before these checks, ensure the data has been loaded into your new SAP S/4HANA system.
Back Up Everything
Even with careful processing, there’s always a risk of data loss. Therefore, it’s advisable to back up everything before proceeding further.
Note: use automated tools to streamline the process. It will save you a lot of time to focus on something else.
The Bottom Line
Migrating to SAP S/4HANA is time-consuming, so it’s crucial to select the appropriate migration method and stick to it.
If you encounter difficulties, Phimax, one of the best SAP Consulting Services In Germany, is here to assist you throughout the process so you can prevent errors and expedite the process.