SAP S/4HANA Migration Use Case: What Businesses Need

Organizations relying on SAP are facing a crucial choice. Should we migrate to SAP S/4HANA, and if so, when? SAP’s decision to end support for ECC in 2027 is the primary reason that pushes the necessity to migrate. Beyond the fast-approaching deadline, the transition offers businesses numerous opportunities to unlock innovation. Wondering how your industry peers are enjoying a smooth transition to S/4HANA? Why not take a few minutes to explore some real-world SAP S/4HANA migration use cases? In this blog, we discuss how several businesses are reaping the benefits of the next-gen ERP.

Why is SAP S/4HANA Migration Crucial Now Than Ever?

Here are a few factors that drive the urgency to migrate to S/4HANA:

1. End of Support for ECC

SAP is ending its official support and maintenance for ECC by 2027. That leaves existing SAP users with no second choice but to migrate to SAP S/4HANA.

2. Real-Time Analytics

AI, ML, predictive analytics, and in-memory computing in SAP S/4HANA empower organizations to unlock the true potential of their data. Data-driven insights and decisions foster innovation and growth.

3. Enhanced User Experience

S/4HANA offers a modern, sleek, and intuitive user interface. The accessible, user-friendly UI helps drive employee productivity and user experience.

4. Process Optimization

From data to supply chain management, S/4HANA provides all the support that a business needs in a simple, intuitive package. It helps reduce complexity and increase efficiency across the organization.

5. Improved Integrations

S/4HANA helps integrate complex IT systems without letting companies worry about the technical aspects. That way, companies can focus on growth and expansion. Enhanced integrations allow you to track and analyze data from multiple systems in one place.

How Does Migrating to SAP S/4HANA Benefit Your Business?

Transitioning from ECC to S/4HANA is a promising upgrade for your organization. Here is how SAP S/4 HANA migration benefits your business:

1. Fast and Efficient Decision-Making

S/4 HANA relies on SAP’s own in-memory database, called SAP HANA. It speeds up data processing and analysis, providing companies access to real-time insights. This enables informed decisions that will ultimately increase productivity and competitiveness.

2. Enhanced Scalability and Flexibility

S/4 HANA is designed with cloud integration in mind. Cloud capabilities can supercharge business operations with added scalability and flexibility. It allows organizations to accommodate changing business needs.

3. Intelligent Business Operations

Advanced technologies in S/4HANA, such as AI, ML, and RPA support automated and standardized business operations. Automating routine processes will free your employees so they can focus on value-adding tasks.

4. Limited Data Errors

S/4HANA’s simplified data model eliminates data duplication and common errors. It also reduces the need for constant data reconciliation.

5. Integrated, End-to-End Solution

SAP S/4HANA serves as an integrated, end-to-end business solution. Every component of the ERP syncs and works together, offering your business a single source of truth.

SAP S/4HANA Migration Use Cases

How does SAP S/4HANA drive business transformation across various verticals? Here are three SAP S/4HANA Use Cases:

1. Banking

Organization: A global real estate investment banking services provider

Challenges faced by the bank:

• Legacy IT system loaded with unnecessary data and functions
• Complex IT architecture limiting system performance

Solution:

• Switch to a new high-performance, future-proof core banking system on SAP S/4HANA.

Benefits:

• An integrated solutions portfolio to support the digitalization of processes, including back-end systems
• Standardized the interfaces between systems for more flexibility based on individual components
• Unlocked growth potential with new business models and digitized processes

2. Telecom

Organization: A a leading digital/tele-communications service provider in the APAC region

Challenges faced by the telecom company:

• Legacy systems that couldn’t support evolving business needs in a fast-paced market environment
• Time-consuming monthly management reporting processes
• Fragmented processes that resulted in business inefficiencies
• Poor insights, delayed and wrong decisions, and substandard user experiences

Solution:

• Migrate to SAP S/4HANA to optimize operations, improve user experiences, and gain a competitive edge.

Benefits:

• Enabled finance transformation by establishing a single source of truth
• Faster financial transaction processing and books closing, along with error-free reporting
• Strengthened IT security with improved authorization controls and compliance.

3. Consumer Products

Organization: A leading distributor of products for self-service stores

Challenges faced by the company:

• Decentralized information, leading to data loss and duplication
• Manual processes used for unit conversion
• Lack of security and consistency caused by complex data-entry processes

Solution:

• Manage key logistics processes on SAP S/4HANA with greater efficiency and transparency.

Benefits:

• Faster and more accurate transportation planning with precise projection of shipping volumes
• A powerful, reliable, and flexible solution to integrate and manage the company’s key processes
• Availability of information and reports in real time enables rapid decision-making
• Optimized reservations, purchases, payments, and transportation processes

Debunking Myths With Real-World SAP S/4HANA Migration Use Cases

Myth #1: Migrating to S/4HANA Is a Complex and Time-Consuming Endeavor

With careful planning and execution, you can simplify and speed up the transition from ECC to S/4HANA. Here are a few best practices to consider following a SAP S/4HANA Use Case:

• Develop a strong business case for ECC to S/4HANA transition.
• Define clear KPIs to measure the success and outcomes of the migration.
• Assess the migration readiness of your current ECC system. Identify potential roadblocks and create a detailed plan for addressing them.
• Clean and validate your data. Ensure only high-quality data is migrated to the new system.
• Choose the appropriate deployment model by assessing your current IT infrastructure.
• Develop a comprehensive risk management plan to ensure a successful migration.

Myth #2: Migrating to S/4HANA Can Disrupt My Business

Not true if you plan beforehand. If you don’t want to start from scratch with a new implementation, Fingent can assist you with the Brownfield migration approach. Also known as System Conversion, the Brownfield approach lets you migrate to S/4HANA with minimal disruptions to your system.

Here is how Brownfield migration limits disruptions to your business:

• Upgrades only specific elements of your existing SAP landscape
• Allows retaining your customizations and historical data
• Helps re-examine and improve your existing processes
• Low cost of implementation, less time consuming

Myth #3: S/4 HANA Isn’t Compatible With My Industry Solution

S/4HANA is officially released for ALL industry solutions. Yet, it is important to understand if you can use S/4HANA with your current implementation.

• Find out the features that are not currently supported. For this, you can refer to the SAP Note.
• Compare the features supported with your list of requirements and solution usage.
• Another alternative is to review if you really need the features that are not supported. For this you can seek the support of SAP code inspector tool.

Myth #4: SAP S/4 Hana Is Only Available in the Cloud

S/4HANA comes in two editions, Cloud and On Premise that have an identical code line. The Cloud Edition can only be run in the SAP data center managed by SAP (SaaS). The On Premise Edition can be run in any of the following ways:

• On Premise (in your data center)
• In the SAP HANA Enterprise Cloud
• Using the services of a hosting partner

You choose On-Premise or Cloud Edition that makes sense for your use case.

How Can SAP S/4HANA Migration Secure and Future-Proof Your Business?

While there are many ERP solutions, SAP S/4HANA provides next-gen capabilities in:

• Enterprise resource management
• Business continuity and faster response time
• Compliance and security
• Advanced features for improved efficiency
• Access to a wide portfolio of advanced technologies

Here is how SAP S/4HANA is helping companies future-proof their business:

• In SAP S/4HANA, data is stored, managed, and accessed in a unique, secure way. It makes the platform significantly faster and more efficient than legacy ERP solutions.
• Gives organizations more control over the management information that exists within the organization.
• S/4HANA retrieves any information directly from the database. It allows organizational reports to be made available in real-time.
• S/4HANA’s IT architecture is based on the latest technological insights. This means the ERP package is ready for advanced tech such as IoT, AI, ML, and blockchain.
• S/4HANA is built to be the digital heart of organizations. It enables future developments to be incorporated into processes and reports with ease.
• Easy to run smooth communications with other (cloud) applications. Faster and stable connections to supplier and customer systems.
• Supports the business processes and agility essential for rapid acquisitions, reorganizations, and autonomous growth.
• Elevates the role of ERP from a mere financial reporting aid to a strategic tool. It enables businesses to gain competitive advantages.

How Can Fingent Help You With SAP S/4HANA Migration?

The 2027 deadline is looming and there is no better time than now to kickstart your SAP S/4HANA journey. Our SAP experts can work with your team to simplify your SAP S/4HANA migration journey. We can help your business:

• Discover the right migration approach that suits your business best
• Prepare customized migration strategies to reduce disruptions during migration
• Identify challenges and opportunities through comprehensive assessments
• Customization and optimization services to tailor S/4HANA to fit your purpose
• Ensure a smooth switch to S/4HANA with precise data migration and system integration
• Equip your team for the transition with holistic training and ongoing support

Fingent’s strong partnership with SAP gives us early access to the latest enhancements, tools, and resources that help you gain an edge over competitors.

Contact us to discover the best way forward for your S/4HANA migration project.