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all the data and processes. Change management is perhaps is the biggest success or
risk factor for this option.
The migration cockpit (tool that supports this option) is used to migrate data in this
option to the new SAP S/4HANA system. Only master data and open items/balances
are migrated. Historical data is not covered. Also, to note migration cockpit doesn't
support HCM data migration
New implementation means building a new S/4HANA system and go-live would be a
“big bang’. You can choose a passed rollout like migrating one company code at a
time. We didn't consider that as an optimal approach
System Conversion
Asystem conversion preserves your original system, including data, processes, and
custom code. However, the value of retaining these should be assessed. Some of it
may be obsolete such as custom code written for reports that is now readily available
to the user as analytical reports. This was certainly the case in our approach.
Not everyone will agree to abandon their custom code and processes that they have
developed over years. This approach is best suited for those. This approach cannot
be used to migrate to SAP S/4HANA Cloud
With a system conversion, you move/convert your existing SAP ERP system into an
SAP S/4HANA system. This one-step procedure includes:
+ adatabase migration to SAP HANA 2.0 from your current SAP ERP DB
+ conversion of data from the SAP ERP data model to S/4HANA data model
+ Anupgrade, that replaces your SAP ERP application code to SAP S/4HANA
application code
Selective Data Transition
This hybrid or “customized” approach is best suited for use cases where
organization have multiple ERP systems and want to take this opportunity to
consolidate the various ERP systems, Typically use this approach if you need more
than just the master data and open items. You also want to carve/select parts of the
data based on units (such as select company codes or business units)
There's are two options with this approach:
+ Create a Shell copy of your prod system with no master data or transactional data
and then convert to S/4HANA
+ Mix and Match options involves creating a new S/4HANA and then transport
elements of the existing configuration
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Both scenarios require data migration (master data, balances, open items, and any
historical data)
Our Choice - System Conversion
We chose System Conversion based on several factors, but the key one’s were:
+ We had already consolidated over 14 ERP systems in the previous years so
Selective Data Transition wasn't best suited
+ Our organization wasn't quite ready for strategic redesign of their business
processes or
+ ready to adapt completely new standard content with no customizations with a
zero enhancements policy
+ Whilst we had the business buy-in and sponsorship, our project was more of a
“Technical Upgrade” which is a typical case for System Conversion, but it does lay
the foundation for future use of the platform and innovation it offers
+ Since we already were at SAP ERP on HANA, an “in-place” single step conversion
was an easier, less effort and most cost-effective option
+ We also had a strong requirement to retain all data in the system, System
Conversion approach is the best suited option for this requirement
+ The existing system had a large number of interfaces with third party applications
which had to be retained and the best option in this case was System Conversion
+ New Implementation was perceived as high risk due to change in business
processes. Migration cockpit (standard tool used in this scenario) doesn't migrate
historical data, The cockpit doesn’t migrate HCM data either.
Your choice of migration will impact how you adopt the standardized business
processes. Every approach has its pros and cons. Your organization needs to choose
the option that's best suited for it and that can help adopt SAP innovations now or in
the future
About System Conversion
There are some excellent Technical posts and articles about System Conversion. | am
not covering those technical details here however I'll cover some high-level technical
concepts and other aspects of the project
The following figure shows the technical system conversion process:
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System Conversion Process Steps
‘System conversion is a guided process supported by several tools (such as Software
Update Manager) and utilities provided by SAP for analysis.
Software Update Manager (SUM) is a tool used for software maintenance (installing
‘support packages). It also converts an SAP ERP system into an SAP S/4HANA
system. It combines the migration of the system to the SAP HANA database (if you
are not on HANA), conversion of data, and software upgrade into one single step.
Majority of the data conversion (transfer into the new data model) is carried out by
SUM; however, the conversion of financial data is a follow up activity after the data
conversion
You can use the prerequisite check extended mode of SUM before your first
conversion cycle, The tool will execute the same checks however, instead of stopping
at issues, it will collect all of the issues in a single list (@ CVS file). This gives you the
ability to analyze the issues and work on them and prepares you better for the first
conversion
SAP S/4HANA is a new product, and not an incremental update, System conversion
is significantly more than an upgrade. In our case, we chose System Conversion but
that doesn't preclude you from using some of the best features in SAP S/4HANA.
The SAP Fiori provides an innovative user experience. You should introduce the new
Fiori UX for one or more business roles. This will help showcase its value and to
stakeholders and users
Ultimately, system conversion not only increases your readiness to innovate, but also
carves your path for future business transformation. Now that we have taken this
first step to migrate to SAP S/4HANA, we'll continue to leverage the new
functionality and innovation
Some other lessons learnt:
+ We chose System Conversion but please explore, and leverage SAP standard
content. It helps remove lot of redundant processes and harmonize them
+ Redesign your business processes for in-memory computing. This is not about
doing the same things faster so think outside the box, Remember it's not a faster
horse, it's new car and perhaps a Ferrari, Make good use of it
+ Ensure your development team fully understands the new software development
concepts and technologies, ABAP has evolved over the past decade and core data
services (CDS) are available for data centric applications,
+ SAP Fiori is more than a new Web user interface (UI). Embrace it. Don't stick with
the old GUI
+ Clean your master data prior to the transition. Make this a priority. This is critical
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