Application modernization is a crucial component of simplifying and improving company operations. ERP solutions serve as the cornerstone, and their scalability and agility require constant updates. It’s time for companies to modernize their settings and embrace a cloud-native strategy in order to expand their capabilities and boost productivity. Businesses have long benefited from SAP ERP Central Component’s (ECC) ability to streamline resource management.
SAP S4HANA ERP solution, the ERP’s latest flagship system, was released in 2015. It enabled companies to move on with their transformation journey by enabling native in-memory capabilities and cloud compatibility. Numerous businesses have finished or are in the process of completing their SAP S/4HANA migrations to meet the evolving demands of the market, with an emphasis on flexibility, agility, and optimization. This article explores the main advantages and differences of switching from ECC to S/4HANA and provides a summary of the difficulties that arose during the process.
Benefits of Moving from SAP ECC to S/4HANA
Improved user experience:
Compared to SAP ECC, SAP S/4HANA enhances the user experience in many different ways. Users will find it easier to identify and work with SAP S/4HANA’s more modern and user-friendly user interface (UI). ECC uses a more traditional user interface, which could take more training to use than S/4HANA’s SAP Fiori UX. With faster performance, a more simple user interface, and more automation possibilities, SAP S4 HANA migration services provide a more advanced and effective user experience than SAP ECC.
Real-time analytics:
Real-time data exchange is made possible by SAP S/4HANA’s in-memory database design, which accelerates data processing. Faster data access and processing times will enable businesses to make well-informed decisions based on real-time insights. S/4HANA also makes it possible to analyze large data sets in real-time, providing integrated workflows and personalized insights.
Adaptive insights:
Machine learning technology is a great tool for understanding behavioral patterns. It may produce the expected outcomes based on interactions with customers. You can adjust your billing and collection processes using these behavioral data.
Increased flexibility and integration:
S/4HANA’s database compatibility and simple connectivity with current IT infrastructure and applications allow organizations to perform activities with greater flexibility without having to replace existing ERP components. By integrating new features into legacy systems, the team can successfully upgrade your systems.
Cost savings:
Businesses are saving costs by implementing SAP S/4HANA. S/4HANA can handle larger data volumes and has transactional capabilities. As a result, businesses can accomplish more with less, accelerating time-to-value and lowering recurring operating expenses like hardware. Options for cloud, on-premise, and hybrid deployment can also save unnecessary infrastructure investments, increase the total cost of ownership (TCO), and simplify the IT environment.
Challenges of SAP ECC to S/4HANA Migration
Migrating to SAP S/4HANA has many advantages, but there are challenges as well, such as:
Landscape implementation & post-cutover optimization
One of the biggest challenges facing businesses is the need to manage the changes made throughout the migration process. Since most S/4HANA systems are developed in phases, the landscape buildout will change as the project progresses and the complete landscape won’t be accessible when development starts. A seamless and successful transfer can be ensured with the use of SAP change automation. In addition to automatic sequencing and dependency checks, automated change management software can offer comprehensive insight into each change and notify users of any possible conflicts before they become an issue.
Dual maintenance
The concept describes how to deal with change in a variety of contexts, in this case between S/4HANA and ECC. Dual maintenance must be implemented in SAP by companies who cannot afford to stop critical business innovation throughout the months-long, if not years-long, transition to S/4HANA. Dual maintenance is necessary for any S/4 solution, and many companies may need to maintain both systems continuously for a while.
Data migration
Data migration from ECC to S/4HANA can be a challenging and time-consuming procedure that needs careful preparation and execution. The majority of SAP users do not use ECC, despite SAP’s suggestion to upgrade to the most recent version before switching to S/4HANA. A number of upgrades may need to be applied throughout the landscape during the transfer, depending on how long the migration takes. This means implementing upgrades across a number of years, which is a big task in and of itself. Large data transfers can be difficult, and data loss is a possibility. Until a user or program requests it and it is unavailable, the missing data is not detected. Although the data in their target system is not entirely lost, businesses cannot access it.
Managing application compatibility and custom code challenges
Since some SAP S/4HANA-compatible applications can fail with ECC, businesses may need to replace or modify them. Before moving any custom code to S/4HANA, a thorough investigation must be conducted in the preparatory phase to determine and assess its usage. The results of the analysis will be essential in determining if the system needs to be converted from SAP ECC to S/4HANA or re-implemented. This unique code can serve as the foundation for an organization’s information flow or as the primary code for information consolidation.
Best Practices
- Conduct an extensive technical assessment: Before initiating the transfer process, conduct a comprehensive technical investigation of their current ECC system to find any potential vulnerabilities or compatibility problems.
- Create an extensive migration strategy: Create a comprehensive migration plan that addresses every step of the procedure, including the difficulties with application compatibility, integration, and SAP data migration.
- Perform data cleansing and validation: Before moving data from ECC to SAP S/4HANA, companies should perform data cleansing and validation to guarantee that the data is accurate and comprehensive.
- Evaluate the process of migration: Before moving to the production environment, test the migration procedure in a non-production setting to find and resolve any issues that arise.
- Collaborate with a professional migration partner: To guarantee a seamless transition and get beyond any challenges that may come up, work with a seasoned migration partner like Accely.
Accely: A reliable partner for a smooth transition from SAP ECC to S/4HANA
Migrating from SAP ECC to S/4HANA presents both challenges and opportunities. While organizations may face hurdles like data migration complexities, custom code adaptation, and integration issues, the long-term benefits, real-time analytics, improved performance, and enhanced business agility, far outweigh the challenges.
At Accely, we simplify your S/4HANA migration journey with a structured, risk-mitigated approach. Our expert consultants, automated tools, and industry best practices ensure a seamless transition while minimizing downtime and optimizing performance. Whether it’s data migration, system integration, or post-migration support, Accely provides end-to-end SAP solutions tailored to your business needs.