Step-by-Step Guide to SAP ECC to SAP S/4HANA Migration

AP ECC (Enterprise Central Component) has been a cornerstone for businesses, providing a robust framework for managing enterprise resources. However, as technology evolves, so do the needs of businesses. SAP S/4HANA emerges as the next-generation ERP solution, built on the advanced in-memory HANA database. Migrating from SAP ECC to SAP S/4HANA provides significant advantages in terms of speed, real-time analytics, and simplified data models.

Importance of Migration with SAP Ending ECC Support by 2027

Migrating to S/4HANA is not just an option but a necessity for businesses relying on SAP ECC. With the looming deadline of 2027, when SAP will end mainstream support for ECC, staying on the legacy system becomes increasingly risky and costly. Remaining on ECC past this deadline means missing out on crucial security updates and facing potential compliance issues. Additionally, you’ll lose access to innovations and support, limiting your ability to adapt to the evolving digital landscape. By migrating to S/4HANA, you ensure business continuity, gain access to valuable new features, and position your organization for future growth and success in the digital age. The transition to S/4HANA is an investment that safeguards your operations and unlocks the full potential of your ERP system.

Four Steps for SAP ECC to S/4HANA Migration

Following are four S/4HANA migration steps:

• Step 1: Familiarization with SAP S/4HANA
• Step 2: Data Analysis and Classification
• Step 3: Data Cleansing
• Step 4: Readiness Check

Step 1: Familiarization with SAP S/4HANA

Following are SAP S/4HANA versions:

• SAP S/4HANA Cloud, public edition
• SAP S/4HANA Cloud, private edition
• SAP S/4HANA On-Premises managed by SAP (HEC)
• SAP S/4HANA On-Premises

Let’s look at each of them.

SAP S/4HANA Cloud, Public Edition

SAP S/4HANA Cloud, Public Edition, is a fully managed SaaS solution ideal for businesses seeking a standardized, out-of-the-box experience. With quick deployment and automatic updates, it offers a cost-effective way to access S/4HANA’s core functionalities. This option prioritizes speed and simplicity, making it well-suited for smaller organizations or those with standardized processes.

SAP S/4HANA Cloud, Private Edition

SAP S/4HANA Cloud, Private Edition, provides a dedicated cloud environment with greater flexibility and control. This option allows for customizations and extensions while still benefiting from cloud advantages like scalability and reduced IT overhead. It caters to businesses with unique requirements or those seeking a phased approach to cloud adoption.

SAP S/4HANA On-Premises Managed by SAP (HEC)

SAP S/4HANA On-Premise, managed by SAP, combines the benefits of on-premise deployment with the convenience of SAP managing the infrastructure. This option offers maximum control over your system while relieving your IT team of infrastructure management tasks. It’s a good choice for organizations with strict data residency requirements or those seeking a managed service approach.

SAP S/4HANA On-Premises

SAP S/4HANA On-Premise provides complete control and customization, allowing businesses to tailor the system to their specific needs and integrate it with their existing IT landscape. This option is ideal for large enterprises with complex requirements and an experienced in-house IT team. It offers maximum flexibility but demands greater responsibility for system maintenance and upgrades.

Selecting the Right Deployment Based on Business Requirements

Each type of migration to S/4HANA comes with its own benefits and considerations. This is why it is very important to do a thorough assessment of your business requirements and objectives to make sure that you’re choosing the right migration path that will provide the fastest time to value with the fewest drawbacks.

When to deploy SAP S/4HANA, Public Edition?

If time to value is important for your business and you prioritize rapid deployment, cost-effectiveness and the ability to use standard practices, SAP S/4HANA, Public Edition is a good choice due to its SaaS model which will reduce the burden on internal IT resources.

The downside of this version is if you are an organization that has unique or complex integrations and very specific customizations that are required to support your day-to-day operations.

When to deploy S/4HANA Cloud, Private Edition?

Organizations that want a balance between getting the benefits of the cloud while still being able to customize to meet their business needs would be served well by the SAP S/4HANA Cloud, Private Edition, managed by SAP (HEC). Because this version is a dedicated private cloud environment, it works well for organizations that want to do their migrations in phases while allowing for moderate customizations.

When to deploy SAP S/4HANA On-Premises, Managed by SAP?

Data residency can be a particularly sticky point when making a migration for some regulated industries. Those organizations may want to consider the SAP S/4HANA On-Premises, managed by SAP. This provides the control of an on-premises solution while taking advantage of SAP expertise in managing the underlying infrastructure while freeing internal IT resources for more strategic imperatives.

When to deploy SAP S/4HANA On-Premises?

Finally, for ultimate control and customization, SAP S/4HANA On-Premises allows for integration with the rest of your IT infrastructure, and the ability to adapt the system to meeting the unique needs of the business. The downside is that you need to have experienced SAP-specific IT professionals to customize and maintain the environment for upgrades and system maintenance.

Step 2: Data Analysis and Classification

In the context of SAP S/4HANA migration, data classification is a critical step that involves categorizing your existing data based on its usage and importance. This categorization typically involves three classifications:

Hot Data

Hot data comprises your most critical and frequently accessed data, essential for daily operations and real-time decision-making. Think of transactional data, master data, and any information needed for immediate business processes. This data needs to be readily available in your new S/4HANA system for optimal performance.

Warm Data

Warm data includes data that is accessed less frequently but still holds value for reporting, analysis, and auditing purposes. Examples include historical transaction data, past financial records, or older customer interactions. While not needed for day-to-day operations, this data must be accessible within a reasonable timeframe.

Cold Data

Cold data refers to data that is rarely accessed and primarily retained for archival or compliance reasons. Think of long-term audit trails, legal documents, or legacy system data. While it needs to be preserved, access speed is not a primary concern.

Why Classify Data?

Classifying your data is crucial for several reasons. It allows you to optimize your S/4HANA system by prioritizing the migration and storage of your most critical data. By identifying and archiving cold data, you can reduce your data footprint in the new system, leading to improved performance and lower costs. Furthermore, data classification helps you define appropriate data management strategies for each category, ensuring data integrity, security, and compliance.

Step 3: Data Cleansing

Data cleansing is a critical phase in any S/4HANA migration, ensuring your data is accurate, consistent, and optimized for the new environment.

Key Processes in Data Cleansing

Following are the key processes in data cleansing for SAP ECC to S4 HANA migration:

• Duplicate Removal
• Standardization
• Validation
• Enrichment
• Correction of Errors

Let’s look at each of these one by one.

• Duplicate Removal: This process identifies and eliminates duplicate records within your dataset. Duplicates can lead to inconsistencies and reporting errors, so removing them ensures data accuracy and improves efficiency.

• Standardization: Data standardization ensures consistency in data formats and structures. This involves enforcing consistent naming conventions, units of measure, and data types across your dataset, making it easier to integrate and analyze.

• Validation: Data validation checks the accuracy and completeness of your data against predefined rules and restrictions. This process identifies invalid entries, missing values, and inconsistencies, ensuring your data meets quality standards.

• Enrichment: Data enrichment involves adding valuable information to your existing dataset. This could include appending external data sources, deriving new attributes, or enhancing existing data with more context. Enrichment improves the depth and quality of your data for better analysis and decision-making.

• Correction of Errors: This process focuses on rectifying identified errors within your data. This may involve correcting typos, inconsistencies, or inaccuracies to ensure data integrity and reliability.

How Data Cleansing Works

Data cleansing is essential in an S/4HANA migration to ensure your data is accurate, consistent, and optimized for the new environment. It involves identifying and correcting inaccuracies and inconsistencies and improving data quality and reliability. This multi-faceted approach combines automated tools with manual effort to achieve the best results. The process ensures your data is ready for migration to your new S/4HANA system.

• Data Profiling: This is the initial analysis phase. Data profiling tools examine your data to identify patterns, potential errors. They provide insights into data quality by highlighting areas that need attention, such as invalid data types, missing values, and inconsistencies. This step helps you understand the scope and nature of the data cleansing required.

• Automated Cleansing: This leverages software tools to automate a significant portion of the cleansing process. These tools can identify and correct common errors like duplicates, invalid formats, and missing values based on predefined rules. Automation increases efficiency and accuracy, especially when dealing with large volumes of data.

• Manual Review: While automation handles many data cleansing tasks, some require human intervention. Manual review involves examining data flagged as potentially problematic by automated tools. This allows for a more nuanced assessment and correction of complex errors, ensuring data accuracy and completeness.

SAP Tools for Data Cleansing

SAP provides powerful tools to streamline and optimize the data cleansing process during your S/4HANA migration. Two solutions stand out:

• SAP Data Services: This comprehensive data integration platform allows you to extract, transform, and load data from various sources. It offers robust data cleansing capabilities, including profiling, standardization, validation, and enrichment. With SAP Data Services, you can automate much of the cleansing process, ensuring data accuracy and consistency before migrating to S/4HANA.

• SAP Information Steward: This tool focuses on data quality assessment and monitoring. It provides a centralized platform for data profiling, rule development, and data quality scorecards. SAP Information Steward helps you understand your data landscape, identify data quality issues, and track improvements over time. This ensures your data meets the required standards for a successful S/4HANA migration.

  

Step 4: Readiness Check

The SAP Readiness Check is a crucial step in your S/4HANA migration journey. It’s a comprehensive health check for your existing SAP ECC system, providing insights and recommendations to ensure a smooth and successful transition. It analyzes your current system landscape, identifies potential roadblocks, and helps you plan your migration strategy effectively.

Following are the steps involved in readiness checks:

System Analysis

This initial step provides a high-level overview of your current SAP ECC system, including its version, components, and usage patterns. It assesses the compatibility of your existing system with S/4HANA and identifies any potential technical challenges.

Identify Items for Simplification

S/4HANA introduces simplified data models and processes. This step identifies any functionalities in your current system impacted by these simplifications. It highlights areas that require adjustments or potential re-engineering to align with S/4HANA best practices.

Custom Code Analysis

This step analyzes your custom code and identifies any compatibility issues with S/4HANA. It helps you understand the extent of code adaptation required and prioritize remediation efforts.

Data Volume Management

Migrating to S/4HANA often involves transferring large volumes of data. This step analyzes your data footprint and provides recommendations for data cleansing, archiving, and optimization. It helps reduce data migration efforts and ensure optimal performance in the new system.

Business Process Analytics

This step analyzes your current business processes and identifies areas that can be optimized with S/4HANA. It provides insights into potential process improvements and helps you leverage the new functionalities of S/4HANA to enhance efficiency and innovation.

Important Considerations for SAP ECC to SAP S/4HANA Migration?

SAP ECC (Enterprise Central Component) has a long and storied history, evolving over decades to become a cornerstone ERP solution for businesses worldwide.

• 1972: SAP is founded by five former IBM employees in Germany, initially named System Analysis Program Development. Their vision was to create standardized software for real-time business processing.
• 1979: SAP R/2 is launched, a mainframe-based ERP system that gains traction in large enterprises.
• 1992: SAP R/3 is introduced, marking a significant shift towards client-server architecture. This provided opportunities to broader adoption and sets the stage for SAP’s global dominance in the ERP market.
• Early 2000s: SAP continues to enhance R/3 with new functionalities and modules, catering to varied industry needs.
• 2004: SAP ECC 5.0 is launched, representing a major evolution of the ERP system. ECC stands for ERP Central Component. It provides enhanced features, improved integration, and a more user-friendly interface.
• 2006: SAP ECC 6.0 is released, further enhancing performance and functionalities. This becomes the most widely adopted version of SAP ECC.

For over a decade, SAP ECC 6.0 served as a reliable system for businesses worldwide. However, with the rise of new technologies and evolving business needs, SAP introduced its next-generation ERP solution, S/4HANA, in 2015. While ECC remains a robust system, its mainstream maintenance will end in 2027, prompting businesses to embark on the journey to S/4HANA.

Key Differences Between SAP ECC and SAP S/4HANA

While SAP ECC has been a reliable ERP system for many years, SAP S/4HANA represents a significant leap forward. Here’s a breakdown of the key differences:

Type of Differences	SAP ECC	SAP S/4 HANA
Database	Runs on various databases (Oracle, IBM DB2, etc.)	Runs exclusively on SAP HANA, an in-memory database. This results in faster data processing, real-time analytics, and a simplified data model.
Architecture	Traditional architecture with separate modules and databases	Simplified architecture with a unified data model and fewer tables. This leads to improved performance and easier integration.
User Interface	Primarily uses SAP GUI, a transaction-based interface	Leverages SAP Fiori, a modern, user-friendly interface with role-based dashboards and mobile access.
Functionality	Offers a wide range of functionalities but can be complex and require customization.	Provides streamlined and optimized processes with embedded analytics and innovations like AI/ML capabilities.
Business Processes	Supports traditional business processes	Enables new and innovative business processes with real-time insights and automation.
Deployment	Primarily an on-premises solution	Offers flexible deployment options, including on-premises, cloud, and hybrid.

SAP ECC to SAP S/4HANA Migration Strategies

Choosing the right migration strategy is a crucial decision in your SAP ECC to SAP S/4HANA migration journey. Each of migration strategies offers distinct benefits and considerations. Following are the three options for SAP ECC to S4/HANA migration:

1. Greenfield Migration
2. Brownfield Migration
3. Hybrid Migration

Greenfield Migration

A greenfield migration involves implementing a brand-new S/4HANA system and migrating only the relevant data from your existing ECC system. Think of it as building a new house instead of renovating an old one. This approach allows you to re-engineer your processes, adopt best practices, and start with a clean, optimized system. It’s ideal for organizations looking for a significant transformation and a chance to streamline their operations.

Brownfield Migration

This is a system conversion. A brownfield migration involves a technical upgrade of your existing ECC system to S/4HANA. This approach is generally faster and less disruptive than a greenfield migration but adapting custom code and processes to S/4HANA may require more effort. It’s suitable for organizations seeking a quicker transition with minimal disruption to existing processes.

Hybrid Migration

This is a selective approach. A hybrid migration combines elements of both greenfield and brownfield approaches. It involves implementing a new S/4HANA system while selectively migrating specific components or processes from your existing ECC system. This allows you to prioritize critical functionalities and adopt a phased approach to migration. It’s a good option for organizations with complex landscapes or those seeking a balance between transformation and continuity.

Top-level SAP ECC to S/4HANA Conversion Steps

Pre-Conversion Considerations

SAP ECC to SAP S/4HANA migration requires close analysis of the underlying technologies currently at use in the SAP ECC environment to ensure a clean migration with little rework. It begins with evaluating compliance with Unicode, the ability to migrate data, evaluating customer code and taking the opportunity to optimize your business processes.

Assessing the Current SAP ECC Landscape

To properly assess the condition of your ECC landscape, you need to ensure that your system is Unicode compliant, so that it can handle various languages and character sets. You will also need to ensure that your database is capable of SAP ECC to SAP S/4HANA migration, which runs on its own in-memory database.

Many companies find the need to create custom code to align their code to their business processes. This code needs to be evaluated as well to see if it needs to be adapted for compatibility. The hardware and network configurations used for SAP ECC to SAP S/4HANA migration may also require upgrades or patching.

Fit-Gap Analysis

Once the assessment of the current landscape is complete, it’s essential to do a fit-gap analysis between your ECC and your S/4HANA environments. Basically, a fit-gap analysis looks for discrepancies or gaps between your current system and your target system and it also identifies areas that match.

The fit-gap analysis will inform which conversion strategy might best fit your needs such as greenfield, brownfield or selective data transition. Here you can decide to use standard S/4HANA processes or re-engineer existing ones.

Things to consider are the business scope across the business areas and processes that will be included in the analysis, identifying technical elements like custom code and integrations and setting clear objectives for the analysis and handoffs for the analysis findings. Not executing a fit-gap analysis can lead to unexpected issues, budget overruns and implementation failures.

Software Upgrade Manager (SUM)

SAP Software Upgrade Manager is a multi-purpose tool provided by SAP to help with some of the housekeeping tasks to make sure the conversion from SAP ECC goes smoothly. A major challenge for many SAP customers is the issue of having a backlog of patches to apply. These can be support or enhancement patches that will bring your ECC system to the proper level to perform a successful conversion. SUM will aid in upgrading an ECC system to a higher release.

When the ECC system is ready, SUM can be used to migrate data from a traditional legacy database to SAP HANA, the new in-memory database. During an upgrade, SUM also looks for items that can be simplified and identifies functionalities that require adjustment during the conversion.

SUM is a critical tool for the technical items required to do a brownfield SAP ECC to SAP S/4HANA conversion. It streamlines the software upgrade, the database migration and any adjustments that need to be made between the two systems.

Conversion Process

With your migration strategy defined and data cleansed, it’s time to consider how you’ll deploy your new S/4HANA system. Two primary deployment options exist, each with its own advantages and considerations:

Technical Conversion Phase

The first approach is a phased deployment. This approach involves a gradual rollout of S/4HANA, starting with specific modules or business units. Think of it as a step-by-step approach, where you migrate different parts of your organization to the new system in stages. This allows for a more controlled transition, minimizing disruption to your operations. It also allows for learning and adjustments along the way, ensuring each phase builds upon the success of the previous one. Phased deployments are often favored by large organizations with complex landscapes or those seeking to minimize risk.

The second approach is a full-scale deployment. This involves a “big bang” approach where you migrate your entire organization to S/4HANA at once. It’s a quicker transition, allowing you to realize the benefits of the new system across your entire organization simultaneously. However, it requires meticulous planning and coordination to ensure a smooth cutover. Full-scale deployments are often preferred by smaller organizations or those with less complex systems, where a faster transition is desired.

Custom Code Adaptation and Data Migration Strategies

SAP ECC to SAP S/4HANA migration will require you to adjust any custom code that you are currently using in your ECC environment to make sure it aligns to S/4HANA’s simplified data model and enhanced functionality. You need to be aware that some custom code will not be able to be migrated, and you’ll need a prioritized mitigation plan for those instances.

SAP Data migration can be tricky, and it depends on several factors including how much data you have and how clean and consistent is your data? How business-critical is your data and what constraints do you have in terms of time and budget for a data migration?

Once these questions are answered, you may decide on a selective data migration where you migrate only the data you need; a historical data migration where you migrate all historical data or a phased data migration starting with the most critical data first and moving data in batches as needed.

Post-Conversion Activities

Testing Phases: Functional, Performance, Security, User Acceptance

Gathering user feedback is equally important to understand how well your new system is meeting business needs and user expectations. Actively solicit feedback with the help of surveys, interviews, and user groups. This provides valuable insights into user satisfaction, identifies pain points, and highlights areas for improvement. User feedback helps you tailor your S/4HANA system to better meet user needs, increase adoption, and maximize the value of your investment.

By combining performance monitoring with user feedback, you gain a holistic view of your S/4HANA implementation. This allows you to make data-driven decisions, optimize system performance, and ensure your S/4HANA system delivers on its promise of innovation, efficiency, and business growth.

Cutover Plan and Go-live Preparation

The cutover and go-live plans are the most crucial steps in your SAP ECC to SAP S/4HANA migration journey. You’ll need a very detailed task sequencing that explains the tasks, responsibilities, and dependencies for the cutover period. In the event of critical issues popping up during the cut-over, you’ll also need a rollback strategy to revert to the legacy system, if needed, to prevent business disruption.

Communication and a plan to provide hyper care for users immediately after go-live will reduce frustration and support user buy-in of the new system. Issue tracking and resolution reporting help users feel confident that they are being heard.

Monitoring and Continuous Improvement

Keeping a close eye on system performance is crucial to ensure your S/4HANA system is operating optimally. This involves tracking key metrics such as system uptime, response times, and resource utilization. Monitoring such metrics can lead to identifying potential bottlenecks, address performance issues proactively, and ensure a smooth and efficient user experience. Performance monitoring helps you maintain system stability, prevent disruptions, and optimize your S/4HANA investment.

Continuous Monitoring and System Enhancements

SAP has several monitoring tools that will assist in post go-live performance monitoring including SAP Solution Manager, which will monitoring KPIs such as response times, CPU utilization, memory usage, and database performance.

Going beyond performance security monitoring with SAP Security Audit Log will detect suspicious activities like unauthorized access attempts. Implementing Pathlock Cloud will help monitor user access management making sure that Separation of Duties conflicts are minimized.

SAP regularly provides important updates, security patches and support package stacks that should be applied on a regular basis. (Weekly or Monthly)

The good news is that if you are using S/4HANA Cloud, SAP automatically applies updates on a quarterly or bi-annual basis.

Strategic Iteration and Leveraging Advanced S/4HANA Capabilities

To get the most from your S/4HANA conversion, it’s important to regularly review incidents, problems, and changes to identify areas for improvement in your monitoring, maintenance, and enhancement processes.

Automate routine tasks, such as system monitoring, backups, and applying updates, to improve efficiency and reduce the risk of human error.

Keep up to date with the latest SAP technologies, best practices, and industry trends to ensure your S/4HANA system remains secure, efficient, and aligned with your business needs.

Leverage SAP support services, communities, and user groups to stay informed and get assistance when needed.

Step-by-Step Technical Guide to SAP ECC to S4/HANA Migration

There are four phases of SAP ECC to S4/HANA Migration as follows:

• Phase 1: Planning & Preparation – The Technical Blueprint
• Phase 2: Sandbox Conversion & Testing – Technical Verification
• Phase 3: Development and Test System Migration & Testing – Scaling the Technical Approach
• Phase 4: Production System Migration & Post Go-Live – The Technical Implementation

Each of these four phases has a certain step as shows below, which enables the effective and seamless SAP ECC to S/4HANA migration.

Phases of S/4HANA Migration	Steps for SAP ECC to S/4HANA Migration
Phase 1: Planning & Preparation – The Technical Blueprint	1.Project Scoping and Planning: Structuring the Technical Landscape 2.System Analysis & Preparation: Delving into the Technical Details 3.Sandbox System Setup and Preparation: Technical Replication and Configuration
Phase 2: Sandbox Conversion & Testing – Technical Verification	4. Sandbox SUM Preparation: Configuration and Technical Checks 5. Sandbox Conversion: Technical Execution 6. Sandbox Post-Conversion Activities & Testing: Technical Validation 7. Analyze & Refine: Technical Optimization
Phase 3: Development and Test System Migration & Testing – Scaling the Technical Approach	8. Development System Migration & Testing: Validating the Process Technically 9. Test System Migration & Testing: User Validation and System Stability
Phase 4: Production System Migration & Post Go-Live – The Technical Implementation	10. Production System Preparation: Rigorous Technical Checks 11. Production System Conversion: Technical Execution with Monitoring 12. Post Go-Live Activities: System Verification, Tuning and Stability 13. HyperCare: Intensive System Monitoring and Support

Let’s deep dive into each of these phases and sub-sequent steps involved under these phases.

Phase 1: Planning & Preparation Technical Blueprint

1. Project Scoping and Planning: Structuring the Technical Landscape

The first step in Phase 1 of SAP ECC to S/4Hana migration is project scoping and planning. It’s about defining the technical parameters of the project, which directly impact the migration process itself. It primarily aligns migration goals with specific technical requirements. Following is deep dive into Project Scoping and Planning

•  Quantifiable Goals with Technical Metrics: Define success not just in business terms, but with technical metrics like database read/write throughput (measured using HANA monitoring tools), reduced batch job execution times (measured with ST13), or improved transaction response times (evaluated using STAD).

•  Technical Dependency Mapping for Module Scoping: Go beyond functional dependencies and map technical dependencies between modules. For example: Specific RFC calls, database table interdependencies and custom function module calls. This understanding is vital for managing potential technical disruptions.

•  Time Estimations Based on Technical Assessments: Base time estimates on database sizing, custom code complexity (measured using ATC), and the amount of data to be migrated. Use SUM sizing reports, and custom code complexity analysis to plan the migration downtime.

• Detailed Budget Allocation for Technical Components: Include costs for not only infrastructure, but also licensing (HANA), additional storage (based on sizing calculations), specialized SAP consulting (ABAP expertise, HANA expertise), and specific third-party tooling required for the migration (e.g., custom code analysis tools).

• Technical Skills Matrix for Project Team: Ensure that the project team has the required technical expertise (e.g., ABAP, SQL, database administration (DBA), SAP Basis, and specific S/4HANA module expertise. For example, having a HANA expert will be crucial for database upgrade.

• Deployment Strategy with Technical Infrastructure in Mind: Evaluate cloud versus on-premises deployments based on their technical implications (e.g., latency, network bandwidth, security, high availability options, and backup strategies).

Following are the four available deployments by SAP along with their deployment scenarios:

Deployment Options	Scenario for Deployment
SAP S/4HANA Cloud, public edition	Choose for rapid deployment, cost-effectiveness, and standard practices (SaaS), minimizing IT burden. Not for complex customizations.
SAP S/4HANA Cloud, private edition	Choose for a balance of cloud benefits and moderate customization, ideal for phased migrations.
SAP S/4HANA On-Premises managed by SAP (HEC)	Choose for data residency compliance and SAP-managed infrastructure, freeing internal IT for strategic tasks.
SAP S/4HANA On-Premises	Choose for ultimate control and customization with in-house IT expertise for maintenance and upgrades.

• S/4HANA Target Version with a focus on Kernel, SP and Patches: Choose based on technical compatibility and a detailed understanding of the release notes and simplification list. Focus on the required SAP kernel version, the Support Package stack and the required SAP notes.

• Hardware Requirements, Disk Types, Storage, and IOPS: Analyse the current hardware requirements, compare against SAP sizing notes and recommendations, and prepare the infrastructure using the correct disk types, storage and IOPs, based on anticipated requirements of S/4HANA.

2. System Analysis and Preparation: Delving into the Technical Details

System Analysis & Preparation is not just gathering information, it’s about interpreting technical data to prepare for the migration. Here’s deep dive into System Analysis and Preparation:

• Comprehensive System Inventory with Details: Include details about database client versions (e.g., SQL client, HANA client), database driver versions, the RFC destination details (including gateway configurations), and memory parameters.

• Database Compatibility Analysis with SQL Checks: Perform SQL compatibility checks before the database migration. Check database logs to make sure there are no issues.

• Simplification List Analysis with Specific Impact:  Analyze the simplification list in-depth. Focus on specific impact areas, such as data model changes (e.g., Material Ledger migration) and understand the necessary table conversion requirements.

• SAP Note Review with Relevance Filters:  Filter SAP Notes based on technical impact (e.g., notes for specific ABAP objects, kernel-related notes, notes regarding database migration, and notes regarding specific module functionality)

• Custom Code Analysis with ATC and Code Inspector: Use both the ATC and Code Inspector tools in your ECC system to find potential issues with ABAP code.

• Code Remediation with Specific Example: Analyze the code using ATC, and identify ABAP code using specific commands (e.g., using deprecated statements, access old database tables). Develop a process to modify the code, replace deprecated commands, and use correct APIs for new database tables.

• Code Optimization with SQL Traces:  Analyze database performance of complex ABAP code using SQL traces (ST05) and improve performance using correct SQL statements and database access techniques.

• Code Abandonment with Detailed Reason:  Analyze which code is no longer needed in the new system, and create a plan to remove the code by first moving it to an inactive state.

• Add-on Compatibility with SUM Add-on Check: Use the SUM tool to check if add-ons are compatible, check add-on documentation for migration plans and configuration steps.

3. Sandbox System Setup and Preparation: Technical Replication and Configuration

The sandbox is not just a copy; it’s an exact technical replica for precise testing. Following the is the deep dive into Sandbox System Setup and Preparation

• System Copy with Database Consistency Checks: Perform system copies using the appropriate tools and ensure database consistency by running database consistency checks (e.g., using DB13).

• Sandbox Preparation with Specific Configurations: Configure all relevant technical configurations, like RFC destinations, user authorizations, and memory parameters to mirror the production environment, while minimizing downtime during testing.

• Database Upgrade with Specific DB Commands:  Perform database upgrades using specific database commands and verify that the upgrade is completed without any errors. The commands differ significantly depending on the source and target database systems (e.g., Oracle to HANA vs. SQL Server to HANA).

Phase 2: Sandbox Conversion & Testing – Technical Verification

Phase 2 involves predominantly sandbox SUM preparation, technical execution, post-conversion technical validation and optimization.

4. Sandbox SUM Preparation: Configuration and Technical Checks

Sandbox SUM Preparation is not just about running pre-checks, but also about understanding the underlying technical processes. Following is the deep dive into Sandbox SUM preparation:

• Software Download with Manifest Files: Download SUM files with manifest files and verify the integrity of the downloaded software files by comparing checksums.

• SUM Configuration with XML Configuration Files:  Configure the SUM tool using XML configuration files with specific profiles, directory paths, and system parameters.

• Pre-Checks with Detailed Log Analysis: Go beyond simply running pre-checks. Analyze the SUM logs using specific commands such as grep, awk and other UNIX based commands. Investigate detailed errors in the logs and take corrective actions before moving to the next step. Additionally, SUM also provides its own log viewer and analysis tools, which might be more efficient.

• Address Issues with Specific Technical Knowledge: Resolve issues with database connectivity problems, missing authorization objects, or file permission issues by understanding the root cause of the issue.

5. Sandbox Conversion: Technical Execution

Sandbox Conversion is the controlled execution of the technical steps for the conversion. Following is the deep dive into Sandbox Conversion:

• SUM Execution with Log Monitoring: Run the SUM tool and monitor the execution by using the logs. Troubleshoot any errors by analyzing the log files.

• Error Resolution with Technical Debugging: Use the SUM logs and SAP notes to troubleshoot errors during the SUM execution, and perform any necessary technical debugging to resolve the issues.

• Post Conversion with Manual Technical Steps: Perform all necessary manual steps including add-on installation, database object updates, and technical parameter modifications.

Why Perform Post-Conversion Manual Technical Steps?

• Add-on Installation:

Add-ons (extensions to SAP) require manual installation in S/4HANA after the automated conversion, as the process doesn’t cover their unique complexities.

Why Manual? Installation varies by add-on (specific configurations, order, custom files), often needing manual downloading, notes application, and deployment.

• Database Object Updates:

Custom database objects (Z-tables, etc.) require manual adjustments after conversion due to S/4HANA’s different data model.

Why Manual? Conversion tools don’t handle custom objects; manual analysis, rework, and conflict resolution by developers are needed.

• Technical Parameter Modifications:

System parameters for resources, performance, etc., might differ in S/4HANA, requiring manual adjustments.

Why Manual? These parameters need careful review based on system needs, SAP notes, and expert guidance, as automation may not address all nuances.

Importance of Post-Conversion Manual Steps:

• Failure can lead to:
• Broken add-on functionality.
• Data inconsistencies.
• Performance problems.
• Security vulnerabilities.
• System instability.

6. Sandbox Post-Conversion Activities and Testing: Technical Validation

Sandbox Post-Conversion Activities and Testing is where the technical functionality and performance of the converted system are validated. Following is deep dive into Sandbox Post-Conversion Activities and Testing

• System Logs with Specific Technical Insights:  Use the transaction code SM21 and log files in the file system to analyse the system after migration, and use the SM37 to ensure there are no issues with batch jobs.

• SAP Note Application with Technical Requirements: Ensure that SAP notes are applied by confirming the installation of required ABAP code, configuration, or database objects.

• Functional Testing with Detailed Data Verification: Do detailed validation with data samples to confirm that the system functionality is working as expected.

• Performance Testing with Specific Tools: Use ST05 (SQL trace), ST12 (single transaction analysis), and STAD (statistical analysis) to analyze performance issues.

• Security Testing with Specific Roles and Authorizations: Validate that users have the required authorizations to access functionality, and no additional authorizations have been provided.

• Integration Testing with RFC Connections and Web Services: Test all interfaces using RFC and web service test utilities.

• Data Validation with SQL Statements: Use SQL statements in SE16 or DB02 to validate data. SE16 is primarily for viewing data. For validation, SE11 (ABAP Dictionary) might be more appropriate in some cases, for examples, when you need to validate data using more advanced SQL features beyond simple WHERE clause filters

• Troubleshooting with Detailed Root Cause Analysis: Document each issue with a full root cause analysis.

7. Analyze & Refine: Technical Optimization

Analyze and Refine involves improving the technical aspects of the process based on testing results. Following is the breakdown of Analyze and Refine:

• Issue Resolution with Specific Technical Solutions:  Correct identified technical issues and validate with technical testing.

• Performance Optimization with System Tuning:  Tune the system based on test results by using configuration tools.

• Process Improvements with Technical Efficiency:  Optimize the conversion process for technical efficiency using the findings of all tests.

• Refined Conversion Plan with Technical Details: Improve technical aspects of the conversion plan and documentation to include new learnings and improvements.

Phase 3: Development and Test System Migration – Scaling the Technical Approach

8. Development System Migration and Testing:

It involves validating the process technically. Following is the deep dive into Development System Migration and Testing

•  Development System Refresh with Database Backup/Restore and Delta Updates: Refresh the development system using a recent database backup from production, or by using database restore and applying delta updates.

• SUM Preparation with Modified Configuration Profiles: Modify the configuration profiles for the SUM tool, based on sandbox learnings, and the requirements of the development system.

• SUM Execution with Real-World Data Volumes:  Execute the SUM process in the development environment with real-world data volumes and usage patterns.

• Post-Conversion Activities, Including Custom Object Activation: Activate any custom objects and settings that were modified for S/4HANA using SE80, and SAP specific configuration tools.

• Technical Testing, Including RFC Communication, and Gateway Settings Verification: Test all RFC connections, IDOCs, web services to ensure communication between systems is working correctly. Check all system gateway settings.

• Code Remediation Validation Using ABAP Unit Tests: Validate code remediation by using ABAP unit tests for all modified code and perform performance testing for all complex logic using SQL trace and system log analysis.

• Performance Testing with Batch Job Analysis and Resource Consumption Measurement: Analyze background jobs for system performance by looking at job execution time, using SM37, and other system based job monitoring tools.

• Security Testing with User Authorization Testing Using SU53: Validate security permissions and user roles by running authorization checks using the transaction code SU53.

• Issue Resolution using Debugging and Log Analysis:  Debug and correct technical issues by analyzing the system logs.

9. Test System Migration and Testing: User Validation and System Stability

The test system provides a final opportunity to validate the migration process, technical stability, and overall performance of the system. It also includes business testing by the end users. Following is deep dive into Test System Migration and Testing

• Test System Refresh with Production Clone and Data Anonymization:  The Test System should be refreshed using a recent production clone, and sensitive data should be anonymized before being provided to the user testing groups.

• SUM Preparation with Optimized Parameters:  Configure SUM with optimized parameters based on prior runs, with specific focus on performance and resource utilization.

• SUM Execution with Minimum Downtime:  The SUM execution should be run in the minimum time possible, using all prior learnings and best practices.

• Post Conversion Technical Validation with System Logs and Background Job Monitoring:  Validate the converted system using the system logs, by analysing SM21 messages, and monitoring batch jobs using SM37.

• Technical Testing and Validation of Custom Code and System Functionality:  Validate custom code with unit tests and ensure all system functions are working as intended.

• User Acceptance Testing with Business Process Experts:  Business processes should be tested by the end users and business experts to ensure the system meets their requirements.

• Performance Testing with Load Tests and Stress Tests:  Test system performance by doing load tests using loadrunner, jmeter or other testing tools. Alternatively, for initital performance testing tools like Wily, Introscope could be used which are more integrated with SAP envrironment.

• Security Testing with End-User Authorizations: End-user authorizations must be checked to ensure only authorized users can complete the required tasks.

• Issue Resolution with Detailed Root Cause Analysis and Remediation:  Issues should be resolved with detailed root cause analysis using standard debugging techniques and system log analysis

• Sign-off Documentation and Go/No-Go Recommendation: A final recommendation for production should be completed, and sign off documents should be prepared, based on the outcomes of the tests.

Phase 4: Production System Migration & Post Go-Live – The Technical Implementation

10. Production System Preparation: Rigorous Technical Checks

Final technical preparation before migrating the critical production system. Following is the deep dive into Production System Preparation

• System Freeze with Change Management Control: The system should be frozen by implementing controls in the transport system and restrict user access. This will prevent new changes from being applied during the migration.

• Database Backup with Full and Incremental Backups: The system should be fully backed up using full and incremental backups. Use standard database utilities for this task like BRBACKUP or RMAN depending on the database.

• Downtime Scheduling with Technical Cutover Plan: Downtime for the production system must be scheduled with technical cutover plan to execute all steps in the correct order.

• Cutover Plan Documentation with Detailed Technical Steps: Prepare detailed cutover plan with a list of steps, including all technical tasks, configuration tasks, pre checks, and post checks.

• Rollback Procedure in case of Errors: A detailed rollback plan must be prepared in case of issues during the migration. This must include a time frame and method of data retrieval.

11. Production System Conversion: Technical Execution with Monitoring

Production System Conversion execution of the production migration using the SUM tool with meticulous monitoring. Following is the deep dive Into Production System Conversion

• SUM Preparation with Final Technical Validation: All configuration parameters must be checked for correctness prior to starting the SUM execution.

• SUM Execution with Live Monitoring Using SAP GUI and OS Tools: Monitor the SUM tool using both SAP GUI and standard operating system tools such as top and iostat.

• Error Resolution with Immediate Technical Support: All errors that occur during the upgrade process should be analyzed and resolved with immediate technical support.

• Post-Conversion Steps with Manual Execution and Validations: Complete all manual post conversion tasks including add-on installation, configuration changes, and testing.

12. Post Go-Live Activities: System Verification, Tuning and Stability

System verification, tuning and stability involves verifying that the production system is running correctly and addressing any initial performance or functionality issues. Following is the deep dive into Post Go-Live Activities:

• System Verification with Functional and Technical Checks: Run specific technical checks by reviewing system logs, and checking for background job errors.

• Performance Monitoring with System Monitoring Tools: Monitor the performance of the system using ST02 (buffer analysis), ST06 (operating system analysis), and SM50 (work process analysis). These transactions provide a basic overview. For in-depth analysis, more specialized tools (e.g., HANA Cockpit) are usually needed.

• User Support with Knowledge Transfer and Support Tools: Provide support for users by giving them knowledge transfers and user guides.

• Ongoing Optimization with System Tuning and Monitoring: Continuously tune and monitor system performance by analyzing log files and system monitoring data.

13. HyperCare: Intensive System Monitoring and Support

HyperCare is a period of intensive monitoring and support after go-live to ensure stability. Following is the deep dive into HyperCare step:

• Continuous Monitoring Using SAP Monitoring Tools:  Monitor the system using standard SAP tools such as SM37, SM21, ST02, ST03, and ST06. While these provide valuable information, relying solely on them for continuous monitoring is insufficient. A proper monitoring setup would involve automated alerts and dashboards like those available in the Pathlock Continuous Controls Monitoring solution.

• Support Team on Standby with Clear Escalation Paths: A support team must be on standby to address system errors and issues.

•  Critical Issue Resolution with Root Cause Analysis: Resolve errors with a full root cause analysis and implement solutions using best practices.

Technical Details for SAP ECC to S/4HANA Migration

• Database: HANA Performance Optimizations, SQL Query Tuning, Database Monitoring Utilities.

• Operating System: Process Monitoring, Memory Usage, Disk I/O Analysis, Load Testing Tools.

• ABAP Code: Parallel Processing, Memory Management, Object Caching, Debugging Techniques.

• SUM: Detailed Log Analysis, Troubleshooting Steps, Error Handling Methods, XML Configurations.

• SAP Notes: Specific ABAP Objects, Data Dictionary Changes, Kernel Patching Techniques.

• Fiori: UI5 Application Debugging, OData Performance Analysis, Theme Customization.

• S/4HANA Migration Cockpit: Data Mapping, Data Transformation, Error Handling and Monitoring.

• SAP Readiness Check: Detailed Result Analysis, Incompatibility Reports, Configuration Options.

Significant Considerations for ECC to S/4HANA Migration

• Data Volume: Data Migration Strategy, Data Archiving, Data Selection, Database Partitioning.

• Business Continuity: Failover Mechanisms, High Availability Systems, Business Continuity Plans.

• Training: Role-Based Training, User Adoption Strategy, Knowledge Transfer Sessions.

• Documentation: Technical Specification Documents, System Configuration Settings, Test Scripts.

• Communication: Stakeholder Meetings, Technical Progress Reports, Issue Tracking Systems.

• Expertise: Specific S/4HANA Module Experts, ABAP Technical Experts, SAP Infrastructure Experts, Database Specialists.

Conclusion

Migrating to SAP S/4HANA is a significant undertaking, but with strategic planning and execution, it can be a transformative journey for your organization. By following a structured approach and leveraging the right tools and strategies, you can unlock the full potential of S/4HANA and drive innovation, efficiency, and growth.

Summary of Key Takeaways

• Understand the Why: Recognize the compelling reasons to migrate, from increased efficiency and real-time insights to future-proofing your business in the digital age.
• Embrace Data as a Foundation: Prioritize data analysis and cleansing to ensure a smooth transition and optimal performance in your new S/4HANA system.
• Assess Your Readiness: Utilize the SAP Readiness Check to gain a clear understanding of your current landscape and identify potential challenges.
• Choose the Right Path: Select the migration strategy that best aligns with your business objectives and resources, whether greenfield, brownfield, or hybrid.
• Leverage SAP Tools: Utilize SAP Data Services and SAP Information Steward to streamline your data cleansing and migration efforts.
• Plan for the Future: View the migration as an opportunity to not only upgrade your technology but also optimize your business processes and embrace innovation.

SAP ECC to SAP S/4HANA migration is an investment in your organization’s future. By embracing this transformation, you position your business for success in the digital age and beyond.

Frequently Asked Questions

What are the ways of migrating to S/4HANA from SAP ECC?

The main approaches to moving from SAP ECC to S/4HANA are:

New Implementation (Greenfield)

• What it is: Starting fresh with a brand-new S/4HANA system. You selectively migrate only the data you need from ECC, leaving behind legacy data and customizations.
• Pros: Clean slate, chance to re-engineer processes, adopt best practices, simplified system landscape.
• Cons: Most time-consuming and resource-intensive, requires significant effort in configuring the new system.
• Best for: Companies seeking a complete business transformation, willing to invest time and resources for a fresh start.

System Conversion (Brownfield)

• What it is: Technically upgrading your existing ECC system to S/4HANA. You keep your existing configuration and data, but it undergoes a technical conversion.
• Pros: Faster and potentially less expensive than greenfield, minimizes disruption to existing processes.
• Cons: May require significant effort to adapt custom code, less opportunity for process re-engineering.
• Best for: Companies wanting a quicker transition with minimal disruption, those with heavily customized ECC systems.

Selective Data Transition (Hybrid)

• What it is: A combination of greenfield and brownfield. You implement a new S/4HANA system but selectively migrate specific components or data from ECC.
• Pros: Offers flexibility, allows for a phased approach, balances transformation with continuity.
• Cons: Can be complex to manage, requires careful planning and coordination.
• Best for: Companies with complex landscapes, those wanting to prioritize critical functionalities for migration.

Factors to Consider When Choosing:

• Business goals: What are you hoping to achieve with S/4HANA?
• Complexity of existing ECC system: How heavily customized is it?
• Budget and timeline: What resources are available?
• Risk tolerance: How much disruption can your business handle?
• IT landscape: What other systems need to be integrated?

No matter which path you choose, careful planning, data cleansing, and change management are crucial for a successful migration to S/4HANA.

Which requirements must be met before converting from SAP ECC to SAP S/4HANA?

• First, your ECC system must be Unicode compliant, meaning it can handle various character sets and languages.
• Since S/4HANA runs exclusively on the SAP HANA database, you’ll need to migrate your database before converting.
• Any custom code in your ECC system needs to be analyzed and adapted for compatibility with S/4HANA.
• Your hardware and network infrastructure also need to meet S/4HANA’s requirements, which may require upgrades.

What are the major changes of SAP ECC to S/4HANA?

SAP S/4HANA is a reinvention of SAP ECC, with a modern user interface built for the digital age. While ECC relies on traditional databases and complex architecture, S/4HANA leverages the in-memory power of SAP HANA, resulting in lightning-fast processing and real-time analytics. This ECC6 to S/4HANA migration translates to a simplified data model, a more intuitive user interface with SAP Fiori, and streamlined business processes optimized for efficiency.

S/4HANA also embraces innovation by incorporating AI and machine learning capabilities, while providing flexible deployment options that include on-premise and cloud solutions. Overall, S/4HANA represents a significant upgrade in terms of technology, user experience, and business capabilities, enabling companies to be more agile and responsive in today’s dynamic environment.