Business digital transformation can occur in various forms. It is affected by the type of company and the resources at hand to optimal migration to the new SAP S/4HANA. Top transformation projects for businesses apart from the migration to the SAP S/4HANA include migration to the cloud, merging multiple systems, divesting from other leading companies, preserving and carrying historical data, acquiring and mergers, and performing all board operations and technical upgrades.
Successful digitalization transformation requires appropriate options that will enable transformations and innovations to take place. There are no single approaches to take since all businesses should operate uniquely. Therefore, it is upon the enterprises to use their due diligence and acquire the right approach that is ideal for their company and help them reap tangible and high technological value. Also, the level of flexibility within these digital transformations empowers companies to look for ways to process more ROI.
Therefore, there are various approaches applicable in the migration to SAP S/4HANA. These options are customized and can also be personalized per business to make them more useful.
Flexible Options to Preserve Legacy and Business Functions
Business legacy and critical business functions occur in various departments. For instance, in the finance world, it is essential to have flexible options to the core. An enterprise in the finance sector may want to adopt an ERP platform that will help standardize their systems across the board and ensure they have a more straightforward approach to their processes. However, it is not always guaranteed to work this way for all companies. Some specific segments and teams may need more customized processes to operate. The billing department may require processes that work in-house since they deal with customer-specific data that is not shared across the more comprehensive company. It means standardization across the broad processes would disrupt the critical business functions.
You can enjoy the flexibility to choose which systems ad functions will work best for your enterprise. These are key to improving the ROI effectively without having to depend on coping from other businesses. In the processes, you will preserve the business processes that are not changeable and upgrade the areas that you don’t want to disrupt during the migration processes.
Take Care of Historical Data after the Divestiture
Most companies prefer selective innovation in managing the divesture. There has been a surge in divesture activity over the past year, and many companies tend to reduce their underperforming units to offer a way to more production. Some companies also opt for this path to fortify their core businesses during the market crisis. After a divest, companies still have to take care of their historical data left over from the divested units. This data accumulates over the years owing to unnecessary data stored in the system.
The data is available in the system and takes space, time, and money. You also need to maintain the data to behave normally within the systems even though you don’t need it. Also, during SAP S/4HANA implementation, the data will inhibit an across-the-board approach that will simplify your business processes. Some options require carrying forward historical data when you perform a blanket technical upgrade. Your choice of options will determine the outcome of your data.
After a divesture, historical data is indeed of no use. It will undermine the efficiency of your SAP S/4HANA since you need it to operate optimally and provide proper analytics for your businesses. The power of SAP S/4HANA analytics relies on the availability of valuable data in your systems. You need to have the data that applies to your current production and sales rate to help in proper analysis.
You may only need to carry forward data such as the data that doesn’t affect money, time, hardware, memory, and your technical business footprint. Here, you will need to use a selective approach when it comes to migration to SAP S/4HANA. You will choose what you to innovate, data to migrate, and the data to be left behind. Here, you will enjoy the best of SAP S/4HANA abilities and minimize the associated costs and your technical debt.
Go For the Long View
SAP S/4HANA migration projects occur as multi-phase. Each step of the migration will require the business to have business partner integration, OS/DB migration, data reduction, innovations, and the implementation on the cloud. All the steps occur under separate timelines to allow for business performances. The key here is to have a unique function that will work purposely for your businesses.
The long view in SAP S/4HANA migration allows for easy decision-making regarding what you need to migrate, what to leave behind, and the upgrade processes you require. Furthermore, you can also keep separate and consolidated timelines for making the processes work for you.
Each process has its value and depends on the kind of approach you will take for the migration. A selective approach allows you to have core business values intact while you remove any unwanted data. You are more flexible worming under these circumstances, and you will enjoy most out of the SAP S/4HANA digitalization and transformation.
Barriers to SAP S/4HANA Adoption and Possible Solutions
The common barrier to SAP S/4HANA adoption occurs due to issues with third-party certification. Most businesses trying to join or upgrade their SAP systems need to learn all these new functionalities to make their adoption process simpler. Some customers raise concerns with the SAP third-party certification regarding the latest version of SAP S/4HANA. Here are some findings from research about these concerns and how businesses can mitigate them. Further, SAP is working to ensure no migration and operation of the SAP S/4HANA in the industry.
SAP S/4HANA Upgrade Hurdles
There are former upgrades of the SAP S/4HANA, which lack certifications for core third-party solutions. The good news is, there have been various upgrades to improve this form of SAP, and the business now has unlimited access to certification. However, it is not valid for all. These upgrade hurdles get yearly enhanced, and more solutions come up to let businesses use the new capabilities of the systems.
Most issues also occur when businesses try to make their project-related third-party solutions. SAP is concerned with the security of its customers. It makes it difficult when using some particular approaches in the migration, namely Greenfield and brownfield implementations, to make third-party solutions active. These are studies that come back with percentages. Whereas some companies have no issues regarding these solutions, some have had a hard time implementing these processes.
Risk of Upgrade Issues
Companies use different approaches during the SAP S/4HANA. Over the next few years, SAP customers will have more accessible approaches to use more projects in the systems. The risk to upgrades may occur differently depending on your choice of the approach you will use for adoption. Using the brownfield approach looks to better their processes through project planning and engagement in the implementation projects. Others would want to use their existing third-party solutions to find their SAP S/4HANA environment for fast implementation. Therefore, the group looking to migrate and install has to overcome issues that come with the certified solutions.
Anticipated Hard Halt
SAP is aware of the hard halt business experience when they try to implement more processes above the sandbox environment using the software update manager. It has a physical halt if the third-party solutions are not certified in the SAP S/4HANA target systems. All the solutions present in the SAP ECC or SAP S/4HANA must be certified for the execution to take place. There is also no way to bypass the halt. Some options businesses can use include uninstalling their solutions, running the SUM process, and then reinstalling their third-party solutions. These options are not available in all environments and are time-consuming; therefore, they are unreliable.
Customers who opt for the implementation process without checking the issues with their third-party certification experience more SAP S/4HANA adoption challenges. The real possibility of having a successful implementation project is to ensure every third-party solution you have available on your systems and the certifications are legal.
Barriers to Partner SAP Certification
Most customers require to work with partners who have certifications. The normal timeline for the certification is about 60 days of the general availability for each release. However, the number of partners who get the certification during this timeline is very low. It leaves other partners over a year to get their certifications after the GA. Other partners also have no plans to get certification after every release.
The best way to mitigate these issues address the barriers is to have new solutions from SAP that will prevent the physical halt when using SUM processes. SAP is working on a better and effective process that will help to certify all existing solutions on each SAP S/4HANA release.
According to the SAP S/4HANA version you need, you will find various links to help you choose the proper certification to work with. The solutions are also varied to offer customers a myriad of choices and let them choose what will work as per their business requirements.