1.0Preliminaries
An ECC to S/4HANA Conversion Project involves upgrading an existing SAP ERP Central Component (ECC) system to SAP's next-generation ERP software, S/4HANA. S/4HANA is designed to provide users with faster data processing, real-time analytics, and an improved user experience. The conversion project aims to help organizations modernize their business processes, take advantage of new technologies, and stay competitive in today's digital economy.
The conversion process involves a technical upgrade of the ECC system to S/4HANA and a migration of data from the ECC system to the new S/4HANA system. Additionally, the project may involve changes to business processes, system landscape and custom code to take advantage of the new features and functionalities offered by S/4HANA.
To ensure the success of the conversion project, it is important to have a comprehensive plan in place that covers all aspects of the project, including technical, functional, and project management considerations. The SAP Activate methodology is a recommended framework for managing the ECC to S/4HANA conversion project, which involves a series of phases, such as Prepare, Discover, Explore, Realize, Deploy, and Run.
2.0Why a company may choose to do an ECC to S4HANA Conversion
There are several reasons why a company may choose to do an ECC to S4HANA conversion project:
·Improved Performance and Scalability: S4HANA is designed to leverage in-memory computing capabilities, which can result in significant performance improvements and scalability benefits over traditional SAP ECC systems.
·Enhanced Analytics and Reporting: S4HANA includes advanced analytics and reporting capabilities, such as embedded analytics, predictive analytics, and real-time data processing that can help organizations make more informed decisions and gain a competitive edge.
·Better User Experience: S4HANA has a modern, intuitive user interface that can improve user productivity and satisfaction.
·Simplified Data Management: S4HANA uses a simplified data model that eliminates redundancies and improves data consistency, making it easier to manage and maintain data.
·Compliance with Future SAP Roadmap: S4HANA is the future of SAP's ERP software, and SAP has announced plans to end support for ECC in the future. By migrating to S4HANA, companies can ensure they remain on a supported platform and avoid potential compliance and security risks associated with using unsupported software.
3.0Key challenges in executing ECC to S/4HANA conversion project
An ECC to S/4HANA conversion project can be a complex and challenging endeavour. Some key challenges that organizations may face during the execution of such a project include:
·Data Migration: Data migration is one of the most critical aspects of an ECC to S/4HANA conversion project. The process involves transferring large volumes of data from the legacy system to the new S/4HANA system. Data quality, completeness, and accuracy must be ensured throughout the migration process, which can be challenging due to differences in data models and structures between ECC and S/4HANA.
·Custom Code Adaptation: ECC and S/4HANA have different underlying data models and technical architectures, which may require significant changes to custom code developed in the ECC system. Adapting custom code to work with S/4HANA can be a complex and time-consuming process, and may require specialized skills and expertise.
·Business Process Changes: The migration to S/4HANA can require changes to existing business processes to take advantage of new functionalities and features. These changes can impact user adoption and require extensive training and support for users.
·Project Scope Management: An ECC to S/4HANA conversion project is a large-scale effort that can involve multiple teams and stakeholders. Managing project scope and expectations, ensuring alignment with business goals, and communicating progress and risks to stakeholders can be a significant challenge.
·Resource Constraints: The complexity of an ECC to S/4HANA conversion project requires a dedicated and experienced team with the right skills and expertise. Resource constraints, including limited availability of skilled resources and competing priorities, can pose a significant challenge to project execution.
4.0SAP ECC to S/4HANA Conversion Phases
The SAP Activate Methodology is a framework for implementing SAP solutions, including migration from SAP ECC to S/4HANA. The following are brief overviews of each phase of the SAP Activate Methodology for ECC to S/4HANA migration:
·Prepare: In the Prepare phase, the project team identifies the scope of the migration, develops a migration plan, and establishes project governance. The team also performs an assessment of the current SAP ECC environment to identify technical and functional gaps and potential risks.
·Discover: In the Discover phase, the project team conducts workshops with the business and IT stakeholders to identify and document the organization's requirements for the S/4HANA migration. The team also assesses the organization's readiness for the migration and identifies any potential barriers.
·Explore: In the Explore phase, the project team performs a detailed analysis of the organization's business processes and evaluates how they will be impacted by the migration. The team also creates a prototype of the S/4HANA solution and conducts testing to validate its functionality and performance.
·Realize: In the Realize phase, the project team develops, configures, and tests the S/4HANA solution. The team also performs data migration, including data cleansing and data validation. The team also performs system integration testing and user acceptance testing.
·Deploy: In the Deploy phase, the project team deploys the S/4HANA solution to the production environment and transitions to the support phase. The team also performs cutover activities, including final data migration, cut-over planning, and post-go-live support.
·Run: In the Run phase, the project team supports and maintains the S/4HANA solution to ensure it continues to meet the organization's requirements. This phase involves incident management, problem management, change management, service level management, and continuous improvement.
The SAP Activate Methodology for ECC to S/4HANA migration consists of six phases that cover the entire migration lifecycle, from initial planning to post-migration support and maintenance.
4.1Prepare Phase
The purpose of the "Prepare" phase is to define the scope and objectives of the project, assemble the project team, and establish the project plan. It also involves conducting a readiness assessment to identify potential risks and issues that could impact the project.
Activities:
The activities involved in the "Prepare" phase include the following:
·Define project scope and objectives: In this activity, the project team identifies the scope and objectives of the project, including the areas that need to be converted to S/4HANA. This includes identifying the customizations, modifications, and extensions that need to be remediated and the business processes that need to be aligned with the new system.
·Assemble project team: In this activity, the project team is assembled, and roles and responsibilities are defined. This includes identifying the project manager, functional and technical experts, and other stakeholders who will be involved in the project.
·Establish project plan: In this activity, the project plan is established, including the timeline, budget, and resource allocation. The project plan includes a high-level timeline for each phase of the project and identifies key milestones.
·Conduct readiness assessment: In this activity, the project team conducts a readiness assessment to ensure the organization is ready for the project. This involves assessing the current system and identifying potential risks and issues that could impact the project.
Deliverables:
The deliverables of the "Prepare" phase include the following:
·Project scope and objectives: This document defines the scope and objectives of the project, including the areas that need to be converted to S/4HANA.
·Project team: This document identifies the project team and their roles and responsibilities.
·Project plan: This document establishes the project plan, including the timeline, budget, and resource allocation.
·Readiness assessment report: This document outlines the results of the readiness assessment and identifies potential risks and issues that could impact the project.
4.2Discover Phase
The purpose of the "Discover" phase is to analyse the existing ECC system, identify the customizations and modifications, and map the relevant business processes to S/4HANA. This includes conducting an impact assessment to determine the impact of the conversion on the system landscape and identifying any risks and issues that need to be addressed.
Activities:
The activities involved in the "Discover" phase include the following:
·Analyse the current system: In this activity, the project team analyses the current ECC system to identify the customizations, modifications, and extensions that need to be remediated. This involves reviewing the existing code and identifying areas that need to be updated or modified.
·Map business processes to S/4HANA: In this activity, the project team maps the relevant business processes to S/4HANA. This involves identifying the business processes that need to be aligned with the new system and determining how they will be mapped to the new processes.
·Conduct impact assessment: In this activity, the project team assesses the impact of the conversion on the system landscape. This includes identifying any risks and issues that need to be addressed and determining the impact on other systems and processes.
·Define conversion approach: In this activity, the project team defines the approach to be taken for the conversion. This includes determining whether a system conversion or a new implementation is the best approach and identifying any tools or methods that will be used.
Deliverables:
The deliverables of the "Discover" phase include the following:
·Customization and modification inventory: This document identifies the customizations and modifications that need to be remediated.
·Business process mapping: This document maps the relevant business processes to S/4HANA.
·Impact assessment report: This document outlines the results of the impact assessment and identifies any risks and issues that need to be addressed.
·Conversion approach document: This document outlines the approach to be taken for the conversion and identifies any tools or methods that will be used.
4.3Explore Phase
The purpose of the "Explore" phase is to define the scope and the detailed roadmap for the conversion project. This includes identifying the requirements and the gaps between the current ECC system and the target S/4HANA system, and defining the functional scope for the conversion.
Activities:
The activities involved in the "Explore" phase include the following:
·Define functional scope: In this activity, the project team defines the functional scope for the conversion by identifying the processes that will be implemented in S/4HANA.
·Analyse gaps: In this activity, the project team analyses the gaps between the current ECC system and the target S/4HANA system. This involves identifying the areas where the current system does not meet the requirements for the new system.
·Define technical scope: In this activity, the project team defines the technical scope for the conversion by identifying the technical components that will be involved in the conversion.
·Develop conversion roadmap: In this activity, the project team develops a detailed roadmap for the conversion project. This includes identifying the key milestones and the timelines for the project.
Deliverables:
The deliverables of the "Explore" phase include the following:
·Functional scope document: This document defines the functional scope for the conversion project.
·Gap analysis report: This report identifies the gaps between the current ECC system and the target S/4HANA system.
·Technical scope document: This document defines the technical scope for the conversion project.
·Conversion roadmap: This document outlines the key milestones and the timelines for the conversion project.
4.4Realize Phase
The purpose of the "Realize" phase is to execute the detailed roadmap defined in the previous phases, which includes code remediation, functional and landscape transformation, testing, and data migration. This phase also involves configuring and setting up the new S/4HANA system to ensure that it meets the functional and technical requirements of the project.
Activities:
The activities involved in the "Realize" phase include the following:
·Code remediation: In this activity, the project team performs remediation of the custom code to make it compatible with the new S/4HANA system.
·Functional and landscape transformation: In this activity, the project team implements the new business processes and adapts the system to the new landscape requirements.
·Testing: In this activity, the project team performs various types of testing, such as integration testing, regression testing, and performance testing, to ensure that the new system works as expected.
·Data migration: In this activity, the project team migrates the data from the old ECC system to the new S/4HANA system.
·Configuration and setup: In this activity, the project team configures and sets up the new S/4HANA system to ensure that it meets the functional and technical requirements of the project.
Deliverables:
The deliverables of the "Realize" phase include the following:
·Custom code remediation report: This report documents the changes made to custom code during the conversion project.
·Business process documentation: This documentation outlines the new business processes implemented in the new S/4HANA system.
·Test scripts and results: These documents describe the various types of testing performed during the conversion project and the results of those tests.
·Data migration report: This report documents the data migration process and the results of the migration.
·System configuration and setup documentation: This documentation outlines the configuration and setup of the new S/4HANA system.
4.5Deploy Phase
The purpose of the "Deploy" phase is to move the new S/4HANA system from the testing environment to the production environment. This phase also involves verifying that the new system works correctly in the production environment and that all stakeholders are trained to use the new system.
Activities:
The activities involved in the "Deploy" phase include the following:
·Final system testing: In this activity, the project team performs final system testing in the production environment to ensure that the new system works correctly and meets the requirements of the project.
·User training: In this activity, the project team provides training to end-users to ensure that they are familiar with the new system and can use it effectively.
·Data migration validation: In this activity, the project team validates the data migration process and verifies that all the data has been migrated correctly to the new system.
·Go-live planning: In this activity, the project team plans for the actual deployment of the new system, which includes scheduling the deployment, preparing the deployment environment, and identifying and mitigating any potential risks.
·System deployment: In this activity, the project team deploys the new system into the production environment and ensures that it is operational.
Deliverables:
The deliverables of the "Deploy" phase include the following:
·Production system: This is the new S/4HANA system deployed in the production environment.
·User training documentation: This documentation outlines the training provided to end-users and provides instructions for using the new system.
·Data migration validation report: This report documents the validation of the data migration process and verifies that all data has been migrated correctly to the new system.
·Go-live plan: This plan outlines the steps involved in the actual deployment of the new system.
·Deployment report: This report documents the deployment of the new system into the production environment and verifies that it is operational.
4.6Run Phase
The purpose of the "Run" phase is to ensure the smooth operation of the new S/4HANA system in the production environment, monitor system performance and make necessary improvements, and provide ongoing support to end-users.
Activities:
The activities involved in the "Run" phase include the following:
·System monitoring: In this activity, the project team monitors the performance of the new system in the production environment and addresses any issues that may arise.
·Incident management: In this activity, the project team manages any incidents that may occur in the production environment, including system errors, user errors, and other issues.
·Change management: In this activity, the project team manages any changes that need to be made to the new system, including upgrades, patches, and new functionalities.
·Continuous improvement: In this activity, the project team continuously evaluates the performance of the new system and makes improvements to optimize system performance and meet end-user needs.
·End-user support: In this activity, the project team provides ongoing support to end-users to ensure they can use the new system effectively.
Deliverables:
The deliverables of the "Run" phase include the following:
·System performance reports: These reports provide an overview of the performance of the new system in the production environment, including any issues that may arise and their resolutions.
·Incident management reports: These reports document any incidents that occur in the production environment, including the steps taken to resolve them.
·Change management records: These records document any changes made to the new system in the production environment, including upgrades, patches, and new functionalities.
·Continuous improvement reports: These reports document the efforts to optimize the performance of the new system and improve end-user satisfaction.
·End-user support documentation: This documentation outlines the ongoing support provided to end-users to ensure they can use the new system effectively.
5.0Key tools in executing ECC to S4HANA conversion project
Executing an ECC to S4HANA conversion project can involve a range of different tools and technologies to help manage the complexity of the project and ensure a successful outcome. Here are some key tools that organizations may use during the project execution:
·SAP Readiness Check: SAP Readiness Check is a tool provided by SAP that helps organizations assess their readiness for an S4HANA conversion project. The tool analyses system data, identifies potential issues and challenges, and provides recommendations for remediation.
·SAP Solution Manager: SAP Solution Manager is a comprehensive tool that provides end-to-end support for SAP system implementations, including ECC to S4HANA conversions. It offers functionalities for project management, testing, and deployment, and can help streamline the conversion process.
·Data Migration Tools: There are several third-party tools available that can help with the data migration process, such as SAP Data Services and SAP Advanced Data Migration by BackOffice Associates. These tools can help automate data mapping, cleansing, and migration, and ensure data quality and accuracy.
·Custom Code Analysis Tools: Custom code analysis tools, such as SAP Custom Code Migration Workbench (CCM) and SAP Readiness Check for Custom Code, can help analyse and adapt custom code to work with S4HANA. These tools can identify code that needs to be adapted, provide recommendations for changes, and help automate the adaptation process.
·Project Management Tools: To manage the project scope, timeline, and resources, organizations can use project management tools such as Microsoft Project, JIRA, or SAP Project and Portfolio Management (PPM). These tools can help plan and track project tasks, manage project risks and issues, and provide visibility into project progress and status.
·Testing Tools: Testing is a critical aspect of an ECC to S4HANA conversion project to ensure that the new system functions correctly and meets business requirements. Testing tools such as SAP Test Acceleration and Optimization (TAO) and SAP Solution Manager can help automate testing and ensure comprehensive test coverage.
Overall, selecting and utilizing the right tools and technologies is critical to ensure a successful ECC to S4HANA conversion project. The choice of tools will depend on the organization's specific needs, requirements, and available resources.
6.0Next Step
After completing an ECC to S4HANA conversion project, organizations can take several future directions and next steps to further enhance their ERP systems and drive business growth. Here are some possibilities:
·Explore New Capabilities: S4HANA offers a range of new functionalities and features that were not available in ECC, such as advanced analytics, machine learning, and artificial intelligence. Organizations can explore and adopt these capabilities to gain insights, automate processes, and drive innovation.
·Move to Cloud: S4HANA can be deployed on-premises or in the cloud. Moving to the cloud can offer several benefits, including greater flexibility, scalability, and cost-effectiveness. Organizations can evaluate the feasibility and benefits of migrating their S4HANA systems to the cloud.
·Implement Industry-Specific Solutions: SAP offers a range of industry-specific solutions built on the S4HANA platform, such as SAP S/4HANA for Utilities, SAP S/4HANA for Retail, and SAP S/4HANA for Manufacturing. These solutions provide pre-configured business processes and functionalities tailored to specific industries and can help organizations streamline their operations and gain a competitive advantage.
·Improve User Experience: S4HANA provides a modern, intuitive user interface that can improve user productivity and satisfaction. Organizations can further enhance the user experience by leveraging SAP Fiori, a set of design guidelines and user interface technologies that provide a consistent and responsive user experience across devices and platforms.
·Adopt Advanced Technologies: Organizations can continue to adopt advanced technologies, such as the Internet of Things (IoT), blockchain, and edge computing, to extend the capabilities of their S4HANA systems and drive innovation.
An ECC to S4HANA conversion project is just the beginning of a journey towards modernizing and transforming an organization's ERP systems. By exploring new capabilities, adopting advanced technologies, and optimizing processes, organizations can achieve greater efficiency, agility, and competitiveness.
