SAP S/4HANA is the next-gen business suite that helps companies to simplify their digital transformation journey. Yet, as every organization is different, S/4HANA implementation has to be tailored for each business. That is why it is vital to understand the different ways to implement the business suite and how the relevant approach will facilitate the company’s readiness and leadership vision.

Getting Started With SAP S/4HANA

To explore the various S/4HANA implementation approaches better, it is essential to underline their pros and cons and review how they will affect key drivers like current investments, change management, and risk. Some of the main things that should be considered by the leaders and stakeholders to determine the right approach for S/4HANA implementation include:

• The areas covered by the implementation approach
• The specific scenarios where the approach is more suited and how it surpasses the capabilities of other approaches in that particular scenario
• How it differs from other approaches in terms of complexity, timeline, scope, etc.
• How disruptive is the approach when compared to other modalities
• The level of innovation and transformation; whether it entails any mandatory changes or if they are optional
• The future technical and functional scope as well as constraints of the approach when compared to other approaches
• How it provides opportunities for extending scope in various aspects without affecting the timeline, risk, or other metrics.

There are plenty of solutions available out there, which can help to effectively carry out large projects like conversion of legacy systems to innovative SAP technologies. However, it is important to determine the right S/4 HANA implementation roadmap that allows for deep analysis and appropriate distribution of the process over time.

Consequently, leaders and stakeholders should look beyond simply upgrading the system to support the current business functions and processes. Instead, they need to focus on solutions that can create opportunities to develop their capabilities further and help to achieve future goals of the company.

Guide to Successful S/4HANA Implementation

To start the S/4HANA implementation right, it is imperative that the company prepare all the business processes and functions for the conversion. Likewise, leaders should be aware of how to carry out the process and learn about all the key information, such as the capabilities of SAP S/4HANA, what expenses it could involve, and the timeline to complete the task, before starting the conversion. When at it, below are a few checks to run for planning the most productive course of action.

Readiness

It is crucial to analyze the technical and functional aspects of the system to ensure its readiness for the desired transformation. Using advanced analytical solutions, businesses can determine the most favorable path for the conversion to SAP S/4HANA architecture and bring about the sought-after outcomes.

Simplification

Identifying the key elements of the existing system that need significant upgrades and understanding how the changes can be implemented is the next step to decide the right path for S/4HANA implementation. At the same time, it is important to realize how the new environment will support the current processes.

Custom Code

Verifying the ABAP code and ensuring its compatibility with S/4HANA programming standards is also a vital part of determining the best SAP implementation solutions. It involves validating SQL queries in ABAP programs in accordance with the existing standards and requirements as defined by S/4HANA.

System Architecture

As part of the readiness check, leaders should also keep an eye on system architecture and infrastructure elements to ensure that it meets all the standards to support the functioning of SAP S/4HANA applications. This ranges from the specific architecture employed for the client when an arrangement is required with the Equipment Service Provider to build a physical environment.

System Sizing

Estimating the required system sizing and individual equipment resources for SAP S/4HANA implementation is also vital before getting started. This includes the necessary system architecture for the application server and databases, data collection and storage features, verification standards, information growth, reference values, and the like.

Choosing the Right Conversion Path for S/4HANA  

Migrating to the SAP S/4HANA system is not just a technical challenge but it also affects almost all aspects of the business. This is one of the main reasons why organizations are skeptical about adopting the modern business suite, as they cannot figure out the right conversion path for S/4HANA implementation. On the other hand, some businesses do not move ahead with the adoption to avoid a radical reconstruction of their existing SAP environment.

With S/4HANA system conversion though, the current elements of the SAP environment can be massively improved and built on systems that interface with partner and supplier systems. Generally, a gradual approach instead of a full migration will allow minimum disruption while reducing any delays as well in testing mission-critical applications. In any case, the following are the common approaches that businesses can choose for smooth SAP S/4HANA implementation.

1. Greenfield Approach for S/4HANA Implementation

A Greenfield approach to deploying SAP S/4HANA implementation is a modern way of moving forward with full reengineering of the existing SAP processes and workflows. This means that the customizations carried out on SAP ECC 6 will also be completely erased during the transition. So a Greenfield approach can give a fresh start to organizations that have been working with SAP solutions for a very long time and are facing troubles due to the accumulation of heavily customized code and complicated workflows.

The Greenfield approach can pave the way to reduce complexities and overhaul the use of SAP in such cases as well. Likewise, it can also be a great way to get started with SAP solutions for new companies as well as move their data to the platform from non-SAP legacy systems. What’s more, a Greenfield implementation of S/4HANA can be done both on-premise and in the cloud, making it simpler to predefine migration goals. This further reduces the costs involved in moving to modern architecture.

However, while a Greenfield approach allows for convenient digital business transformation, migrating all the data to the new system can take a lot of time. This can pose a serious risk for businesses that rely heavily on customer data for their business operations. Organizations will also need to redevelop the customizations on S/4HANA as that on the previous version of SAP to manage their critical business functions. Therefore, all the stakeholders and leaders should be well prepared for changes and any delays before the move.  

2. Brownfield Approach for S/4HANA Implementation

A Brownfield approach to deploying SAP S/4HANA implementation is more like upgrading the existing SAP solutions rather than going with a complete overhaul. The SAP S/4HANA system can be set up and made operational while migrating the existing SAP workflows and systems to the new platform gradually. This also allows companies to keep the traditional tried-and-tested business processes and customizations to manage customer data. With the Brownfield approach, organizations can easily assess and reevaluate their existing processes and only migrate the ones that are working for them.

It is seen that a Brownfield approach to SAP S/4HANA implementation is faster and cheaper than a Greenfield approach. However, the strategy has its downfalls as well. For instance, it can often create an innovation block as almost everything from the old platform is migrated to the new architecture. So the upgrade only works truly depending upon how the company replicates the existing workflows and systems. Besides, there is no room for exploring how any complexities can be mitigated to improve the poor workflows in the current process.

The Brownfield approach is also limited to on-premise implementation and best suits those who prefer to continue using their existing SAP ECC 6 or other solutions. Therefore, it may not be ideal for companies that are new to SAP applications and will be better to rapidly convert from old SAP platforms alone. Yet its reduced implementation time and lower costs in terms of process upgrade make it a good option to access the modern functionalities of S/4HANA without changing the business structure.

3. Hybrid Deployment of S/4HANA

A hybrid approach to deploy SAP S/4HANA implementation is gaining more and more traction these days. Modern organizations look for proactive measures to hold fast to their critical customizations and solutions while redesigning some of their business processes, workflows, and systems. The hybrid implementation can fulfill their demands in terms of both advanced upgrades and low costs. It does not require starting over from scratch or migrating all the data and workflows to a new SAP solution. Instead, it cherry-picks the best parts of Greenfield and Brownfield approaches for successful S/4HANA implementation.

This can be the ideal choice for large enterprises that work with complex systems and a lot of data. There are multiple ways to deploy hybrid S/4HANA implementation as well, which further allows companies to explore the right approach to move ahead with their digital transformation goals. A hybrid deployment can also help to mitigate the risks related to SAP S/4HANA system conversion while allowing to selectively redesign the required aspects of the current architecture.

Companies can also shell-out the processes and workflows that are not working for them when moving forward with a hybrid approach. The only concern with the hybrid deployment of SAP S/4HANA is that it requires relying on a third-party tool in contrast to the Greenfield and Brownfield approaches that are essentially a part of the migration plan. That is why leaders and stakeholders should consider all the pros and cons of each of the approaches carefully to determine which SAP S/4HANA implementation strategy will accommodate their needs and goals in the best way.

Timing is the Key to Success

It might seem that there is a lot of time until 2027 to transition to the newer SAP platform. However, waiting until the last moment can be risky for businesses that want to stay ahead of their competition in the market. Moreover, when considering the time required in understanding the potential of the S/4HANA system to improve business processes and workflows, planning the adoption, and deployment of the platform using the right approach, it will be a wiser move to start right away to carry out the implementation successfully.

Postponing the move to S/4HANA further can make it quite difficult to collaborate with the partners and proceed with the intended digital transformation plans. That is why businesses should develop a well-thought-out SAP S/4 HANA implementation guide considering all the processes, workflows, applications, and individual solutions used in the company to ensure the expected results in terms of upgrading their architecture with superior performance. It is also important to carry out a pre-implementation analysis as the preliminary step to S/4HANA deployment, which means starting at the earliest.

Wrapping Up

A transition to S/4HANA is inevitable for organizations that use SAP solutions for managing various business elements. The earlier the analysis is done, the sooner the company can determine the right path to update the system in a more balanced way, which is key to explore all the capabilities of S/4HANA for improved business growth.