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SAP Landscape Transformation

There are various approaches to considering and transferring an existing system landscape as part of an S/4HANA transformation. We differentiate between three basic methods: a new implementation, system conversion and a selective transition.

During the new implementation, an existing SAP system is completely replaced by a new S/4HANA instance. This approach gives you the option of rethinking your business processes and migrating them to a modern and future-proof platform using the latest functionalities.
System conversion refers to updating an existing SAP system to S/4HANA. In contrast to a new implementation, the existing data and processes are retained, but the system is upgraded and updated to a more modern and powerful platform. This approach tends to take less time overall than a new implementation, but also carries the risk of compatibility problems with existing applications and user-defined functions.
Selective transition is a hybrid approach in which certain parts of the existing SAP system are migrated to S/4HANA while other parts are retained. This approach offers companies greater flexibility when migrating, as they can migrate only certain areas or functions instead of replacing or updating the entire system. Selective transition requires a precise analysis of the existing system landscape to ensure that new and old business processes can be seamlessly integrated.

Regardless of which approach you prefer and implement: An S/4HANA transformation is always a complex project that requires careful planning, preparation and implementation. Companies are therefore well advised to work closely with experienced SAP partners to ensure that the transformation runs smoothly and that business processes are also optimized across the board.

SAP new implementation

With a new SAP S/4HANA implementation, SAP S/4HANA is implemented from scratch. This means that your existing system, such as the old SAP system or even your legacy system, is not transferred to the new implementation. Instead, the SAP S/4HANA system is built from the ground up.

A new SAP implementation is therefore not restricted by old data structures or outdated processes. Instead, new functions and processes can be implemented in full to provide optimum support for business processes. This method also enables a realignment of business processes that are better aligned with the company’s current requirements.

Although SAP re-implementation may require a higher level of investment than the other two methods of System Conversion or a Selective Transition, it offers the advantage that a company can utilize the latest technology and highly efficient business processes available with the new SAP S/4HANA ERP suite.

SAP System Conversion

As part of an SAP S/4HANA system conversion, an existing SAP system is converted into an SAP S/4HANA system. With this approach, all existing data, settings, configurations and processes are transferred from the existing SAP system to the new SAP S/4HANA system as far as is reasonable and possible.

System conversion can be a faster and more cost-effective approach than a new implementation to implement SAP S/4HANA. This enables companies to integrate their existing business processes and data into the new target system, resulting in less business disruption and reduced risk.

However, it should be noted that system conversion does not usually allow the latest functions and benefits associated with SAP S/4HANA to be fully utilized. Both old and new functions and options must be evaluated individually as required and re-implemented if necessary.

SAP Selective Transition

The third, most common method of transforming an SAP landscape is a selective transition. This involves transferring selected business data from an existing SAP system to a new SAP S/4HANA system. However, in contrast to system conversion or a new implementation, only certain data, processes or modules are migrated from the existing system to the new SAP S/4HANA system. This can be particularly useful if, for example, a company only wants to convert certain business areas to SAP S/4HANA or if the existing system contains data that is no longer required. To implement SAP S/4HANA, the Selective Transition can be faster and more cost-effective than a complete data transfer. This is because companies can specifically select which data is to be transferred. This ensures that only relevant and up-to-date data is available in the new system. Selective Transition allows you to avoid unnecessary data and throw your legacy data overboard. A key success criterion for a selective transition, as opposed to a system conversion, is a detailed check of whether the migrated data is compatible with the new business processes and configurations of the SAP S/4HANA system. Companies must also ensure that all dependent data and processes that are linked to the transferred data are available in the new system.

SAP Landscape Transformation