In our previous blog post, we highlighted some of the most important points in the transition to SAP S/4HANA. In this post, we explore the three different transition scenarios in greater detail and describe, in which situations they fit the best.

The three different transition scenarios to S/4HANA are New Implementation, System Conversion and Landscape Transformation.

For those organizations who are not currently running SAP systems, the only transition scenario to S/4HANA is the New Implementation. However, all three scenarios are possible for organizations currently using SAP. Overall, the future business needs and the state of the existing SAP system are the main drivers for the suitable transition scenario.

Below, I elaborate the different standpoints in choosing the transition scenario.

New Implementation

In this scenario, a new S/4HANA system will be installed and existing data from previous system will be moved into the new S/4HANA system. The previous system can be a SAP system or another legacy ERP system.

In the New Implementation scenario, organization will attain the new and simplified business processes embedded in S/4HANA. The implementation can be done by using S/4HANA best practices and by utilizing preconfigured and guided processes. By using these tools, the new S/4HANA implementation can be significantly accelerated and rapid innovation of new business processes are enabled in the future.

In the New Implementation scenario, the solution can be run as a cloud service (private or public cloud) or locally (on–premise). Moreover, a hybrid solution between cloud and on-premise is also possible.

System Conversion

This scenario is suitable for organizations that look to transfer and convert their existing SAP ERP system to the S/4HANA.

In the System Conversion, the existing SAP ERP system and its data is transferred to S/4HANA. In the beginning of this project, a custom code check and data cleansing will be performed to remove unnecessary custom code and obsolete data. The System Conversion scenario will not, however, allow to combine several separate ERP systems (SAP or non-SAP) into a single S/4HANA system.

After the transition, the organization can re-evaluate their business processes and adapt them into the S/4HANA system in the way they see most fit. Typically, this transition scenario is favoured by organizations that seek to transfer an existing SAP system into the S/4HANA mainly as it is.

The System Conversion can be done in on-premise world as well as in private cloud but not in public cloud.

Landscape Transformation

This scenario is suitable for those organizations who wish to consolidate their existing separate or scattered systems into a single S/4HANA system. This scenario allows the transitioning organization to focus on its most vital business processes by enabling the migration of specific data and applications into the new system.

The transition can be also phased so that the organization is first able to focus on the strategic and the most important business processes. The Landscape Transformation scenario is less often used scenario since it is usually very complex and hence SAP usually executes the projects themselves.

Landscape Transformation scenario can be implemented in private cloud, public cloud, locally (on-premise) or the mix of them.

In addition to the transition method, the platform must be selected as well: do you want to run the new S/4HANA in a private cloud, public cloud, on-premise or as a combination of cloud and on-premise.

Contact Information:
Tommi Luoto
Chief Technology Officer
+358 40 574 1261

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