A Strategic Opportunity for S/4 With Bluefield

A project that is often associated with challenges such as limited budgets, the pressure to integrate innovations quickly and the approaching end of maintenance for proven legacy systems. However, there is a way to master this complexity not only successfully but also extremely efficiently. The Bluefield approach has proven to be a real game changer, as a practical example from the German automotive industry impressively demonstrates.

The compulsion to leave

Procrastination is no longer an option: the 2027 or 2030 deadline marks a clear deadline for many companies: The end of maintenance for older SAP ERP systems is approaching. But the actual pressure to act is far greater. SAP is investing its entire innovative strength exclusively in the S/4 Cloud platform. This means that anyone still investing in legacy systems today is burning capital. These investments have no future and cannot keep pace with the latest technological developments.

Especially at a time when quantum leaps in disruptive technologies such as artificial intelligence are taking place, their use is essential for business success. AI will fundamentally change the way SAP systems work. These crucial innovations remain out of reach in the old ERP system. Rising support costs for legacy systems pale in comparison to the lost potential for innovation and the associated loss of competitive advantage. For top management, this means Anyone who hesitates now is not only forfeiting technological progress, but also decisive market opportunities. In this context, it is also essential to examine the existing analytical landscape with regard to its AI strategy.

Clever synthesis: Bluefield

Companies facing S/4 migration usually discuss three main approaches: Greenfield (complete re-implementation), Brownfield (1:1 system conversion) and Bluefield (selective data migration). Each has its merits, but the Bluefield approach combines the strengths of the other strategies and minimizes their drawbacks - a smart choice for executives seeking efficiency and value maximization. A leading German car manufacturer, a prime example of continuous growth and success, faced a unique challenge in 2022: an SAP transformation originally planned to take three years was to be shortened from two to less than one year.

The objectives were clearly defined: The range of functions had to remain identical, costs had to be reduced and internal resources - which in this company are not primarily geared towards large-scale IT projects - had to be conserved in the best possible way. A pure brownfield approach would have been too time-consuming, as it often requires lengthy preliminary projects and leaves little room for functional innovations. The immense testing effort would also have been almost impossible to manage in the limited time available. A greenfield approach was ruled out from the outset in view of a well-functioning existing system landscape and the associated project and resource costs.

The best of all worlds

The decision was made in favor of the Bluefield approach - a choice that proved to be the right one, as it offers the best of all worlds: Efficiency and speed: proven functionalities can be adopted and implemented in an optimized way. Lengthy preliminary projects are no longer necessary; complex topics such as business partners and the new general ledger can be implemented during the transformation.

Reduced effort: The number of test cycles is reduced to a minimum. This frees up resources and allows you to focus on value-adding tasks such as process optimization.
Focus on process optimization: The approach offers the flexibility to adapt, optimize or adjust processes without excessively extending the project duration - crucial in dynamic times.

How Bluefield works

At the heart of the Bluefield approach, often referred to as Empty Shell Conversion, is a precisely orchestrated process that maximizes control and efficiency:
Empty shell: First, a copy of the productive legacy system (ECC system) is created, which is cleansed of master and transaction data - an "empty shell" is created.
The S/4 basis: This Empty Shell is then conventionally converted to S/4. This forms the technical foundation.

Processes and customizing: In this S/4 Hana Empty Shell, companies can customize new processes. New functionalities such as the new general ledger or simplifications from S/4 are optimally used and introduced. The result is a perfectly customized empty system shell. Selective data migration: In the fourth step, the real "magic" takes place: using powerful tools such as Crystal Bridge, the relevant data is selectively migrated from the legacy system to the new, optimally configured S/4 system.

The result is a customized, high-performance S/4 system that integrates proven processes and offers new functionalities, all with a drastically shortened project duration and lower resource requirements. In the case of the car manufacturer mentioned above, it was even possible to migrate all data without having to continue operating or decommission the legacy system.

Success factors

The successful go-live at the German car manufacturer, which was even achieved two months ahead of the ambitious target, provides valuable insights for other companies and confirms the strategic viability of the Bluefield approach: a key success factor was the partnership on an equal footing between the customer and the service provider. Projects of this size in particular demonstrate the importance of mutual trust and a shared understanding of objectives. Complex transformation projects can only be implemented sustainably if both sides act as true partners.

Equally central was the in-depth analysis in advance. The Discover and Prepare phase was carried out with a high degree of thoroughness. This included comprehensive system analyses and technical checks that identified potential risks at an early stage. The compatibility scope in particular was examined intensively - a critical step that helped to avoid complications later on. Another success factor was the early planning of the required infrastructure. In a time of tight supply chains, timely provision proved to be particularly sensitive. Delays in this area could have had a significant impact on the overall schedule. The project team countered this risk with clear prioritization and forward-looking management.

The decision to move the infrastructure to the cloud as part of the S/4 transformation proved to be strategically wise. It not only enabled technical modernization, but also created more flexibility and future viability. The cloud migration was not seen as an additional project, but as an integral part of the overall strategy. One advantage of the chosen Bluefield approach was the flexible go-live planning. Unlike traditional transformation paths, the go-live could be scheduled independently of the end of the financial year. This decoupling reduced complexity and helped to find the optimal time for the system change.

Despite all the optimizations, the necessary booking stop had to be precisely coordinated during the final system changeover. Close cooperation with the affected departments was particularly crucial here. Only through precise scheduling and clear communication could the downtime be kept to a minimum and implemented smoothly. The automotive manufacturer's success story proves that the Bluefield approach is a strategically clever and practically feasible solution for the S/4 transformation. It makes it possible not only to master the digital transformation, but also to use it as an accelerator for growth and innovation - at high speed.