SAP S/4HANA 2022 Adoption –The Key Considerations

SAP S/4HANA Oct 5, 2022

There are a few key considerations to take into account when adopting SAP S/4 HANA into your business. In this article, we'll be discussing the key considerations for SAP S/4HANA adoption. We'll be highlighting the problems that can arise during adoption, and offering some advice on how to overcome them.

By the end of this article, you should have a better understanding of what to expect when adopting SAP S/4HANA, and how to ensure a smooth transition

Table of Contents:

What is SAP S/4HANA?

SAP S/4HANA is a business suite that runs on the SAP HANA in-memory database. It is designed to help businesses run simple in a digital and networked world.

The suite includes all the core applications that are needed to run a business, such as financials, human resources, and enterprise resource planning. It also includes new applications that take advantage of the in-memory database, such as predictive analytics and big data.

The Best Way to Get Ready for SAP S/4HANA Adoption

There is no one-size-fits-all answer to this question, as the best way to prepare for SAP S/4 HANA adoption will vary depending on the specific organization and its needs. However, some tips on how to prepare for SAP S/4 HANA adoption include:

1. Educate yourself and your team on what SAP S/4 HANA is and how it can benefit your organization.

2. Conduct a business process review to identify which areas.

Important Adoption Factors

There are a few key considerations to keep in mind when adopting SAP S/4HANA:

1. Make sure that your organization is ready for a digital transformation. This means that your processes and data are digitized and ready for a move to SAP S/4HANA.

2. Consider the cloud. Many organizations are moving to the cloud for their SAP S/4HANA deployments. This can help save on infrastructure costs and provide more flexibility.

Getting Started with SAP S/4HANA

There are many reasons to consider adopting SAP S/4 HANA, including the benefits it can bring to your organization in terms of increased efficiency and productivity.

SAP S/4 HANA can help you streamline your business processes, giving you more time to focus on strategic tasks and goals. In addition, SAP S/4 HANA provides a single source of truth for your data, which can help you make better decisions based on real-time information.

SAP S/4HANA Transition

Let's examine the three typical scenarios of system conversion, new implementation and landscape transformation that might quicken your transition to SAP S/4HANA.

Adoption of SAP S/4HANA with System Conversion (Brownfield)

Brownfield - means moving your current SAP ERP system in to the new SAP S/4HANA system.

In SAP S/4HANA

  • An SAP S/4HANA system conversion process involves a tool-based, in-place technical conversion from SAP ECC to SAP S/4HANA using SUM. Downtime minimising options are available using this approach. This method turns the existing system into an SAP S/4HANA system.
  • It makes it easier to switch a database from a classical DB to SAP HANA.
  • Helps to transfer the SAP ERP data model into the SAP S/4HANA data model with all invented data model simplifications and data volume reductions
  • With SAP S/4HANA Application Code, the earlier SAP ERP Application Code is replaced.

Arguments for an SAP S/4HANA System Conversion

Protecting investments while facilitating

The majority of your key business processes still meet the current criteria, but you want to upgrade them to SAP S/4HANA so that your system may add or replace apps gradually and in smaller pieces.

Relevance of custom codes

You have considered the applicability of your custom code, the work required to move it, and the viability and advantages of replacing the current custom code.

Time to value

While maintaining the majority of your present business processes, you want to go live quickly. This facilitates the speedy and autonomous realisation of smaller breakthroughs so as to avoid a protracted big bang project effort.

Adoption of SAP S/4HANA with New Implementation (Greenfield)

Greenfield – It means the implementation of a new S/4HANA system in your organisation

In SAP S/4HANA

  • The SAP S/4HANA system described in this scenario has just been installed (either on-premise or cloud-based)
  • This SAP S/4HANA adoption method is perfect if re-engineering and process simplification based on latest innovations are your primary focus.
  • The benefits of choosing this approach are: Reengineering and process simplification based on pre-configured business processes
  • Predefined migration objects & best practises to avoid intensive migration logic programming
  • The swift and uniform adoption of new innovations

Arguments for an SAP S/4HANA New Implementation

System prerequisites

Your source system's restrictions prevent you from switching to SAP S/4HANA on-premises in a single step.

Redesign

Your main goal is to reorganise your company processes to make it possible to leverage cutting-edge tools like IoT, machine learning, predictive analysis, and business insight.

Rebuild

You want to get rid of old custom code since it increases maintenance costs and slows down the adoption of new features and technologies.

Adoption of SAP S/4HANA with Landscape Transformation

In SAP S/4HANA

A value-driven, selective data migration to the new SAP S/4HANA platform is known as an SAP Landscape transformation.

The emphasis is not on migrating the entire system, but rather on picking and choosing the entities you wish to separate out and move to the SAP S/4HANA platform. As a result, the following sub-scenarios are possible:

  • Consolidation of the current SAP Business Suite landscape (multiple systems or only a few clients of many systems) into a single, global SAP S/4HANA system
  • Migration of only some data based on legal entities, like clients or company codes
  • Real-time reposting of financial transactions into the Central Finance instance as part of the SAP Central Finance Scenario implementation (synchronization of systems)

KTern.AI Transformation Process

  • Therefore, you must work on the SAP S/4HANA Business assessment to develop a plan for your migration after deciding on your migration strategy
  • Migration to SAP S/4HANA entails a full upgrade to a brand-new system, not just a feature upgrade
  • Not a small amount of data is sent. A substantial amount of data is moved from one database to another
  • As a result, the S/4HANA transformation is more complicated than anticipated. Prior to starting the S/4HANA migration process, careful planning is required
  • Prior to migration, the current system's S/4HANA Readiness must be confirmed. This will be confirmed by a complete assessment of your entire SAP
  • Without knowing your current landscape, starting your S/4HANA migration process is difficult. The users will be able to understand and plan their S/4HANA transformation journey with the aid of an appropriate SAP S/4HANA Business Assessment.
  • KTern.AI Digital Maps will assist you in planning your migration and comprehending your current environment

You can better understand the effects of moving from an existing ERP system to SAP S/4HANA by connecting to an ECC system and assessing the complete landscape with KTern's Digital Maps, which comprises five sub-parts.

  1. Landscape Assessment
  2. Business Process Assessment
  3. Custom Objects Assessment
  4. Business Transformation Assessment
  5. Timeline Assessment

Transforming your S/4HANA Upgrade Journey with KTern.AI

Landscape Assessment

The type of SAP system that is connected to KTern can be precisely determined by the landscape assessment. It provides details on things like the Operating System, ECC version, Processor type, and Database type.

Business Process Assessment

It is practically difficult to establish an effective digital transformation plan without a proper understanding of the landscape and knowledge of how each process is being affected. KTern conducts the Business Process Assessment for this reason.

Custom Objects Assessment

Every enterprise is distinct and has a distinct business process. The business processes cannot all be fully covered by SAP's standard software. Therefore, the basic SAP software is modified or adjusted to fit the specific demands of enterprises in order to satisfy their unique requirements. SAP's standard software can be improved using custom objects.

When switching from SAP ECC to SAP S/4HANA, what will happen to these customizations? The Custom Objects Assessment is accurately carried out by KTern to find this data.

Business Transformation Assessment

It is practically difficult to establish an effective digital transformation plan without a proper understanding of the landscape and knowledge of how each process is being impacted.

But,the entire ECC system is scanned by KTern, which also provides customers with data and encourages businesses to go digital. It offers a comprehensive six-level business process mapping.

Timeline Assessment

You may understand the effects of moving from an existing SAP ERP system to S/4HANA thanks to the SAP S/4HANA assessment report. An automated high-level plan of the SAP S/4HANA system conversion process is provided by the Roadmap Guide module of KTern.AI

The roadmap can then be approved by the solution architects and project managers, who can subsequently move forward with the system conversion project.

KTern automatically provides a roadmap and schedule for your S/4HANA conversion after thoroughly evaluating an SAP ECC landscape. This action plan was specifically created for your system. The timeline is generated after taking into account system complexity, modifications, add-ons, integrations, and enhancements.

SAP Activate System Conversion

A standardized work breakdown structure encourages project managers to define and manage project work and concentrate on deliverables and outcomes.

The methodology and in turn KTern, work based on the six phases of your migration project: Discover, Prepare, Explore, Realize, Deploy, and Run.

Business Environment and Difficulties

Leading e-services provider, they offer ready-made and customized solutions to support their clients in realizing their full potential. They had been managing their business operations backend, with SAP ECC for a while. To enhance system efficiency and streamline crucial business processes, they were keen to switch to S/4HANA.

Solutions offered by KTern - SAP S/4HANA System Conversion

The IT department of our client evaluated a number of top products. The team desired in the all-in-one product suite that would enable them to automate and oversee the system conversion from start to end. And they decided unanimously on KTern.AI.

Before the transition

  • To demonstrate the technical, functional, and business process effects of switching to S/4HANA, KTern conducted an automated S/4HANA assessment.
  • It included automatic recommendations for testing strategies, infrastructure, and data archiving.
  • The correct strategy, the right amount of work, the right price, the right system sizing, the right project management, and the right quality were automatically incorporated into KTern's auto-generated S/4HANA conversion design.

During the transition

In your SAP system, you can generate a variety of unique transactions, tables, reports, and objects. However, it is vital to examine all custom items before switching to S/4HANA in order to identify the most popular objects and retire some custom objects. It is quite challenging to understand this without having a single, comprehensive view of all custom objects. KTern is here to save the day, though. It automates the custom object analytics process.

By automating the migration of the custom code, testing, and data validation, KTern gave our client the most benefit possible during this phase. The project's timeframe and effort were considerably reduced by accurate custom code migration and testing.

After the transition

Even after the project went online, KTern continued to add value by:

  • creation of a database of test cases, problems, and faults to facilitate quicker and more secure future upgrades
  • Accessible and readily available data for audit requirements
  • UX transformations using Fiori App Recommendations

KTern.AI Advantages

  • Improved co - ordination and efficiency between all stake holders
  • SAP Activate and "S/4HANAPEDIA" have improved project automation, management, and governance
  • Instead of 20-man days, impact assessment of more than 20 parameters can be done in 3 days
  • One product to manage the conversion from beginning to end.

Next Steps

In conclusion, the key considerations for SAP S/4 HANA adoption are business process, organizational change management, data migration, technical architecture, and cost. By taking the time to understand these considerations, organizations can ensure a successful transition to SAP S/4 HANA.

If you want to know more about the features of KTern.AI, Get Started with us.

If you have any queries, feel free to Contact us.

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Krithik Sharavan S

Enthusiastic about the concept of digital transformation and assisting businesses and B2B organizations in successfully carrying out their SAP digital transformation journey.

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