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Have you considered migrating to SAP S/4HANA yet? If not, then this article is for you. SAP ECC has long been a life support for countless companies, streamlining their performance and increasing the market output. Yet, tech development moves on, and SAP ECC can’t keep up with all the challenges of today, slowing down the company’s operability.
That’s the reason why in 2025 its support will be suspended. Instead, companies are offered a more modernized solution – SAP S/4HANA, which will introduce a new and more efficient era of business functioning, especially when managing vast amounts of customer data.
As 2025 is getting closer than ever, it is time to consider the migration to S4HANA, to avoid all the rush closer to the deadline and interruptions of the company performance.
What Is SAP S/4HANA?
To understand why migration to S4HANA is a necessity, first, let’s learn what this system is. SAP S/4HANA is an ERP system that is based on the SAP HANA in-memory database and enables businesses with real-time data analysis and transactions.
SAP S/4HANA creates the digital core of the company, being the main tool for digital transformation. It remodels the company’s functioning, by introducing flexibility, responsiveness, and resilience – the main characteristics required in the modern commercial world.
SAP S/4HANA makes every company an intelligent enterprise, whose decisions are fully based on real-time data inputs and reports. Migration to SAP S/4HANA system isn’t simply a necessity, but rather a demand of time and the most efficient tool to keep up with competitors, and market challenges.
What Are the SAP S/4HANA Migration Types?
Migration to new software, even from the same ecosystem, requires proper preparation, as it is important to keep the company functioning, not lose customers, and deliver exceptional customer experience. There are three major ways to migrate:
1. Greenfield Approach
A Greenfield approach is a ‘start-from-the-scrartch’ approach. It redesigns the whole system according to the latest implementations. A Greenfield approach is time-consuming and arduous, yet, the result is a renewed and efficiently working company structure.
A Greenfield approach is beneficial for any company regardless of its structure and size. New companies and startups that haven’t accumulated large volumes of data, will experience a relatively easy setup of a new system. Large enterprises, however, will take more time sorting all the data and choosing the most important to keep while transitioning. Moreover, the staff training will require more time.
2. Brownfield Approach
A Brownfield approach is not a full reimplementation, but an upgrade of a system. It includes the migration of a database and the conversion of applications. As there is no need to reinstall the whole system, the whole adaptation period is faster, without the disruption of current business performance.
While being time-efficient, this approach can cause some technical issues after a while, if not implemented properly. SAP is a highly complex solution, thus, it requires highly skillful developers to introduce it to the company,
LeverX is a leader in SAP implementation services and a certified SAP Partner. Its knowledgeable and experienced developers will establish an SAP-reinforced company system and provide all the required support.
3. Hybrid Approach
A hybrid or selective approach is used for transitioning specific data centers, or various organizational elements. Businesses choose new configurations they are willing to improve.
Why Migrate to SAP S/4HANA?
While migration is inevitable due to technical reasons, benefits are coming with it:
- Powerful database – as SAP S/4HANA is based on the SAP HANA in-memory database, it speeds up the queries and enables powerful analytics exploiting external and internal data pools.
- Better integration capabilities– SAP S/4HANA can work as a connector for other SAP modules, allowing businesses to build a fully digitalized structure of a company with 24/7 access to any department, full visibility into the company’s functioning, and control over the whole performance.
- Business transformation – SAP S/HANA supports real-time data analytics, access to IoT, AI, and chatbots, automates business processes, upgrades systems according to current demand, etc. It turns a regular company, into an up-to-date company, able to develop and grow with the market demand.
- Intelligence – the introduction of SAP S/4HANA will start the era of efficient decision-making, accurate future predictions, timely analytics and reports, and instant data exchange due to its cloud-based nature. Thus, all the information and data exchange is performed in real-time, being accessible to those who need it.
- Centralized platform – SAP S/4HANA can make the informational and data hub of a company, which gathers all the company’s interactions, teams, and departments into one place, providing centralized management.
FAQs
In this guide, we have covered the basics of SAP S/4HANA migration and its benefits, but let’s delve a bit deeper with some FAQs:
Q1. What Are the Key Differences Between SAP ECC and SAP S/4HANA?
- SAP ECC (ERP Central Component) is based on traditional, disk-based databases, whereas SAP S/4HANA is built on the SAP HANA in-memory database platform.
- SAP ECC primarily focuses on transaction processing, while SAP S/4HANA integrates transaction and analytics processing in real-time.
- SAP S/4HANA offers a simplified data model, enhanced user experience through Fiori apps, and embedded analytics compared to SAP ECC.
Q2. What Are the Deployment Options for SAP S/4HANA?
SAP S/4HANA can be deployed on-premise, in the cloud, or in a hybrid environment, providing flexibility based on business needs and infrastructure preferences. Cloud deployment offers scalability, reduced infrastructure costs, and automatic updates, while on-premise deployment provides more control over data and customization.
The Final Thoughts
Migration to SAP S/4HANA is a necessity both in terms of time and technology. It allows us to reshape the current business structure and optimize the way it works.
SAP S/4HANA is the main facilitator of the company’s performance in the modern commercial world, which allows businesses to analyze the performance based on instant AI-propelled reports, anticipate and mitigate the risks, and improve the overall performance and thus, the profitability of the company.
SAP S/4HANA implemented by LeverX is an opportunity for every business to create a new model of its performance and grow its market share.
