Data Selective Transition, by S4IC, SAP supplier in Belgium

SAP S/4HANA migration: neither Greenfield nor Brownfield!

The deadline for migrating legacy SAP systems to SAP S/4HANA is approaching. According to the Enhancement Pack installed, by 2027 or 2030, ECC 6, the ERP of many European companies, will no longer be supported by its publisher, SAP. We need to be prepared to migrate, and there are much more effective alternatives to the Greenfield approach.

Deploying SAP S/4HANA because you are forced to by the end-of-support schedule is certainly the least good reason to migrate. On the contrary, you should take advantage of this generational change to modernise the processes that drive your business, so as to benefit from the technical innovations of this new version. It brings a powerful ‘in-Memory’ database and a host of functions that did not exist in SAP ECC 6. However, migrating a system that has been in production for 15/20 years is no mean feat, explains Alain Rivet, financial consultant, project manager and architect at S4IC :  « Most SAP installations are now over 15 years old. In that time, many companies have undergone multiple transformations: mergers/acquisitions/subsidiary closures, and all this history is reflected in their ERP. Developing a system with such a complex history can be very complicated. A Greenfield approach is therefore an opportunity to get rid of all this obsolete data. » However, starting from scratch can be problematic. For years, companies have been developing specific applications around their ERP. This represents a considerable investment that is difficult, if not impossible, to abandon at the snap of a finger. « The Greenfield approach is not aberrant in itself, but if you have numerous interfaces it can become costly, » underlines Louis Alves, Finance specialist and Product Costing SA expert at S4IC.

In the Activate methodology, SAP proposes the ‘Show and Tell’ technique. For those who choose the Greenfield approach, this technique accelerates the analysis phase. It is based on the best practices implemented to create in SAP S/4HANA the processes corresponding to the customer’s needs. The result of this approach is the BPD (Business Process Description).  « This approach makes it possible to implement these best practices very quickly, » admits Alain Rivet, « but business users often forget the processes that are least used… and it’s during testing or in production that these reappear… with all the consequences that this can have on the business ».

For the expert, SAP is undoubtedly the most configurable software in the world: of the 130,000 transactions it integrates, more than 100,000 are intended for parameterisation. A well-executed Greenfield migration will, above all, focus on this configuration. It is only when the necessary functionality cannot be fully covered that it is supplemented with specific developments.

Brownfield vs Greenfield: to choose between the devil and the deep blue sea!

SAP migration, by S4IC, SAP reseller in Belgium
A nother option is to opt for a Brownfield migration, i.e. to reproduce ECC on SAP S/4HANA almost identically. By keeping the existing settings, users will not be confused by the data in the new version of SAP. Training in Fiori, the new SAP S/4HANA user interface, will suffice. This approach also means that many of the specific developments that have cost the company and its business users so much effort can be retained. However, this approach does not make it possible to take advantage of the new SAP S/4HANA functionalities. What’s more, Brownfield requires a data archiving project beforehand. « It doesn’t make sense to transfer 15 years‘ worth of accounting entries into SAP S/4HANA, » explains Alain Rivet. « Archiving is a relatively complicated process. You have to ensure that the processes are consistent. For example, archiving purchase orders will mean archiving all the subsequent documents (receipts, invoices, etc.), but this is not the standard approach. »

Brownfield upgrades also involve converting existing data and transferring it to the new tables. The automatic conversions in the upgrade process do not cover the situation of all customers. And resolving these specificities can also be very time-consuming.

De facto, the Brownfield approach simply perpetuates the complexity accumulated in ERP over 15 or 20 years. « Choosing between Brownfield and Greenfield is a bit like choosing between the devil and the deep blue sea », says Louis Alves. Each approach has the defects of its qualities. A company that has developed dozens of interfaces on its SAP system will have to redo them all if it opts for Greenfield. It will benefit from all the best practices coded by SAP in S/4HANA, but all the codes that users are used to will change, which will have a real impact in terms of change management.

The hybrid approach, a middle way with multiple advantages

« Experience shows that it is often preferable to opt for a middle way, » says the specialist. This middle way is the hybrid approach (or Data Selective Transition, the official term used by SAP). The basic idea is simple: an SAP system is easy to modify as long as it contains no data. The idea is therefore to separate the parameterisation of the data and to model the ERP according to the company’s needs before reloading the data. This avoids the pitfalls of archiving and converting data during the upgrade, and gives you the freedom to activate new functions or correct things that were not optimally implemented when ECC was installed. Some processes can be kept as they are if they are considered to be performing well or too critical for the company to change. « If the company decides that its purchasing management does not need to change, the migration team will be able to transfer this process to SAP S/4HANA without any impact on users, » explains the expert. Other processes that are considered obsolete can be replaced on the basis of the best practices implemented by SAP. In this way, the company obtains its own installation of SAP S/4HANA with all the functionality it requires. Its data is then loaded into the system. In this way, the new architecture incorporates everything the company wanted to retain from the past and all the improvements it wanted to make. « As the best practices defined by SAP have not been loaded in full, there are far fewer conversions to be made and users will find many of the codes they are used to. »

What’s more, in a Greenfield or Hybrid migration, only those developments that will continue to be used will be retained. « It’s really a modular approach, where we choose the processes that need to remain as they are, those that need to evolve, and all of which will be installed on a dedicated SAP S/4HANA installation, » adds Alain Rivet. « In the end, it’s an ideal approach, because it avoids the need to set up training plans, avoids the stress of change for the teams, and above all contains the time overruns that are so common in these major SAP projects ». With the Greenfield approach, the migration team will be asking business teams who are already working full time on day-to-day management to spend 4 or 6 months thinking about new processes and asking themselves the same questions they answered 15 years ago. This approach clearly raises the issue of lead times, as the integrator’s initial commitment is often doubled or tripled. « The hybrid approach helps to contain these problems, because the data migration to be carried out is much more limited. As we’re not starting from scratch, we’ll save time on training and on getting the system up and running again, because a large proportion of users will be back to their usual way of working. The impact of the migration is less at each stage of the project, and this impact is much better controlled because it’s the company itself that decides what needs to be changed and what doesn’t ».

While migration to SAP S/4HANA is inevitable for all companies that remain loyal to SAP, it is possible to limit the impact of such a project on the business. A hybrid approach (Data Selective Transition) is often the best way to go.

« An SAP project can be summed up in 4 dimensions,’ explains Alain Rivet. ‘On the one hand, there are the processes, which are based on configuration and possibly specific developments. Then there's the repository and transactional data, followed by people and authorisations. By managing each of these aspects independently, we can work on the processes, transform those that can be improved, retain those that need to be, and this will have a direct impact on the complexity of the migration. »

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