Are you still unsure about migrating to SAP S/4HANA? Then this article is here to help you out. The digital environment introduced qualitative changes to the way businesses function, speeding up communication, operability, and transaction in both local and global terms. The IT sphere constantly evolves its solutions, offering a more efficient performance and thus productivity to businesses.
Successful performance in modern conditions is based on two basic elements — seamless communication with customers and adjustability to a constantly fluctuating market with the help of data analytics. That’s when SAP S/4HANA comes into play.
SAP S/4HANA is the latest update of SAP ERP, which reshapes the company’s architecture aligning it with the company’s aims and the demands of the market.
Let’s dive deeper into the changes and benefits that migrating to this system brings in 2024.
What Is SAP S/4HANA?
Before exploring how SAP ERP migration to S4HANA, you should know that SAP S/4HANA is the latest ERP system offered by the SAP ecosystem. It is based on SAP HANA in-memory database and designed specifically for streamlining the business processes and centralizing the performance of all the departments.
It is the next generation of business suite enterprise software, which helps businesses meet the demands of a digital economy and enhance their current operability.
Why Migrate to SAP S/4HANA?
Migrating to this system offers several compelling reasons for businesses looking to stay competitive and agile in today’s digital landscape:
1. Extensive Database
SAP S/4HANA is based on SAP HANA in-memory database able to process large volumes of data and provide businesses with timely analytics and reports.
2. Simplified Interface
Implementation of ERP systems is a necessity, yet it may cause inconveniences for the employees, as they need to learn to communicate with the new system. SAP S/4HANA is different. It features a user-friendly interface and intuitive function flow, which speed up the learning process and following usage.
3. The Universal Journal
The Universal journal is a single source of truth and a key element of the SAP S/4HANA system. It contains original entries for business transactions and allows for maximized efficiency, faster reporting, and timely insights into the company’s financial activities.
4. Inventory and Warehouse Management
SAP S/4HANA is a single solution covering multiple areas of activities. It features:
- MATDOC – a new item for inventory management, which provides real-time inventory management,
- Real-time MRP – allows for immediate calculation of required materials and inventory.
- Extended warehouse management – keeps track of all the warehouse operations and streamlines its functional performance.
5. Financial management
SAP S/4HANA simplifies financial management and reporting featuring the mergers of Controlling and Finance modules.
6. Scalability
SAP S/4HANA provides businesses with an opportunity to grow and extend their business structure on demand, adding new modules and extensions. This system will be the core of the performance, with all the other modules co-integrated or embedded into the structure.
How to Migrate to SAP S/4HANA?
There are three forms of transition:
– Greenfield approach
A greenfield approach is suitable for new businesses that haven’t accumulated large volumes of data. Put simply, with a greenfield approach SAP S/4HANA will start a new ‘from scratch’ form of business functionality.
It can also be used for large enterprises that are willing to re-establish and re-shape the company’s system, bringing in more efficiency and streamlined communication. It is important to remember that Greenfield’s approach is time-consuming, which can lead to lengthy downtime.
– Brownfield approach
A brownfield approach is a simplified form of transition to SAP S/4HANA, as it allows the usage of already existing databases. Thus, the whole migration routine will be faster, with minimized downtime.
– Bluefield approach
The bluefield approach is a balance between renovation and old features. The company will keep functioning on the already implemented SAP system, with the elements being upgraded on demand.
The choice of the approach depends on the company and its needs. It should be talked through with the company integrator. Migration to the SAP ecosystem can only be performed with certified SAP integrators, who possess a high level of knowledge regarding SAP products, and feature a history of successful SAP implementations.
LeverX is a global provider of SAP solutions worldwide. It provides digital transformation to every client. It offers a full range of high-quality services, from consulting and implementation to support. When contacting LeverX, you will outline all the necessary steps required for transition, and build up a new structure of a company.
FAQs
To give you a better understanding of the migration process and SAP S/4HANA itself, here are some frequently asked questions:
Q1. What Are the Key Benefits of Migrating to SAP S/4HANA?
- Enhanced data processing capabilities with SAP HANA in-memory database.
- Streamlined business processes and improved efficiency.
- Real-time analytics and reporting for better decision-making.
- Simplified user interface leading to faster adoption and usage.
- Integration of financial management and reporting for comprehensive insights.
Q2. How Long Does It Take to Migrate to SAP S/4HANA?
The duration of migration depends on various factors such as the size of the company, the complexity of existing systems, the chosen migration approach (Greenfield, Brownfield, Bluefield), and the expertise of the implementation team. On average, migrations can take several months to a year for larger enterprises.
The Final Thoughts
Migration to SAP S/4HANA is the best way to upgrade the company’s structure following the needs of a modern market. It converts an existing structure of a company into a highly structured and efficient business model, with access to timely reports, real-time insights, AI algorithms, IoT, financial management, etc.
SAP S/4HANA is the foundation for the company’s digital transformation, which is best performed with the help of LeverX and its professional team of developers.
Should you require any further information regarding migration to SAP S/4HANA and the benefits it promotes, contact LeverX assistance, who will provide you with all the requested information.
