How to Choose the Right SAP S/4HANA Migration Strategy

by Amber Wallace IT Solutions, Development Processes, Client Engage

As we all know, SAP plans to end the mainstream support for SAP ERP by 2027. This is one of the key reasons for enterprises to move to S/4 HANA. Besides the fact that the new version also has a lot of new features to offer.

There are different routes to undertake this journey - system conversion (brownfield approach), re-implementation (greenfield approach), or a hybrid approach to assist in determining the most suitable path for your needs, this blog offers a set of comprehensive guidelines.

Although there are improved and upgraded features in S/4HANA, many businesses are still hesitant to move to the new system. They are comfortable with the SAP ERP Central Component (ECC) system with its robust GUI (graphic user interface) and it works well for them. But with the end of support for ECC coming soon, they will have to scramble to upgrade or pay more for SAP support for ECC.

The resistance to change may be due to various reasons: resource constraints, strategic priorities, change management concerns, substantial financial implications, uncertainty regarding ROI, and so on.

Three SAP S/4HANA Rollout Methods

There are three different approaches to the challenging yet necessary process of S/4HANA migration.

1. Greenfield Approach
The Greenfield approach involves starting from scratch. When migrating from SAP ECC to SAP S/4HANA using Greenfield, it means fully reengineering an organization's SAP processes. Any customizations made in SAP ECC will be entirely replaced in a Greenfield implementation.

The Greenfield Approach involves a full-scale implementation of S/4HANA, fostering process simplification and data migration. It offers a fresh start, allowing for the standardization of practices and embracing future digitalization opportunities, such as automation and innovation.

However, it is a complex and costly process, requiring a significant investment of time and resources, and necessitating comprehensive change management. Despite its challenges, this method provides the benefit of addressing deep-rooted issues and aligning the configuration with the organization's strategic goals.

2. Brownfield Approach
Brownfield (or System Conversion) involves transferring your current processes to a new tech platform. It is a suitable choice for organizations wanting to preserve a custom environment, signature processes, and data as it involves a technical upgrade only. The key benefit is a shorter project time, causing less disruption to your business.

Brownfield allows migrating to SAP S/4HANA without new implementation, preserving existing processes, and utilizing elements like interfaces to suppliers and partners in the SAP landscape.

To read the full blog, click here: SAP S/4HANA Migration Strategies