The path to the S/4 master plan

S/4HANA opens up new technologies and concepts to companies, such as simplified data models, cloud-based apps, artificial intelligence, in-memory real-time analytics and much more. These are designed to ensure business success in a rapidly increasing digital future. However, the road to the brave new world can be a rocky one, as there are several points to consider to ensure that the project becomes the desired success. A master plan and its evaluation are key success factors.

S/4 changeover - planning is the be-all and end-all

It is obvious that switching to S/4 is a complex project, comparable to building a house. One would never dream of starting such an undertaking without a plan. In IT, this can be a different matter, since here the effort required for a (false) start, to put it exaggeratedly, is only the download time of the current software version. SAP itself therefore also explicitly points out that an evaluation project is required before the actual changeover takes place.

Analogous to house construction, necessary adjustments that are only recognized during project implementation or were simply forgotten can lead to considerable additional costs and runtime extensions. In the worst case, certain corrections can no longer be made subsequently and thus opportunities for the changeover remain unused.

Questions for your master plan

Besides certainly known points, such as compatibility of coding (Custom Code Migration), implementation of CVI (Customer-Vendor-Integration) or the need to migrate to Unicode, the following questions will help you:

• Which of the available migration approaches is optimal and feasible for your system?
• How can I optimally design my target system size, both in the productive system area and in the non-productive systems?
• Which applications do I leave in the ERP, which do I outsource (e.g. HCM, EWM)?
• How do I build a system landscape that allows major changes (S/4 version upgrade) at the same time and is still correctable in emergencies?
• How do I protect sensitive data in test systems from unauthorized access?

Critical success factor: evaluation

An upstream evaluation is, after the plan is created, the next step to project success. However, a meaningful test can only be carried out with the company's own system status. The stumbling blocks of an S/4HANA conversion lie precisely in customer-specific developments, modifications to the SAP standard, any existing data quality problems or add-ons used. SAP cannot foresee and take into account every special constellation in its S/4 migration routines. That is why it is important to test with an image of your own system in order to identify precisely these stumbling blocks.

Keeping evaluation costs under control

The evaluation project can yield many important insights for reviewing and fine-tuning your own planning, but it can come at a significant cost. You can keep these costs under control by knowing the cost drivers and incorporating them into your master plan.

An important factor here is the cost of S/4HANA-compatible infrastructure, because specially certified hardware is required. Due to the in-memory technology, in which the data storage of the HANA DB takes place in the working memory, these systems require the almost identical working as well as disk memory. This is the cost point that needs to be controlled.

For example, anyone who manages to reduce their database from 3 terabytes to 500 GB will save hardware costs in the order of 75 to 80 percent. But how can this be achieved? One component of this is the careful analysis of one's own data inventory in order to identify downsizing potential.

It is often surprising what volumes of data are unnecessarily retained in the form of change documents, old IDOCS, but also application data from entire company codes that have long since ceased to be in use. In addition to the size and associated costs, the significance of this data from a data protection perspective (DSGVO) is a factor that must be taken into account. Synergies can also be achieved here in the context of the S/4 migration if sensitive legacy data is cleaned up in the course of the project.

To cope with this, the use of powerful test data tools is necessary. Compared to a standard system or client copy, the database size of the legacy and test systems can be significantly reduced or sensitive data sets masked, for example, by using time slices or company code filters. However, it is important here that the downsized systems and masked data are still consistent (document chains complete and, for example, masked bank data consistent). One such toolset is the Data Sync Manager Suite from EPI-USE Labs.

This procedure leads to an understanding of the actual system size to be expected when switching to S/4. Accordingly, it is advantageous to procure the new S/4 hardware only when the concrete target size has been determined. A cloud-based sandbox system is advantageous here because it is quickly available and flexible. Important: However, it must contain your data and customer specifics for a meaningful test. A Model Company Sandbox does not meet this criterion, but is more suitable for familiarizing yourself with the new S/4 reference business processes.

Synergies of the evaluation for S/4 project and operation

The effort that now flows into the evaluation project and, if necessary, into the implementation of a toolset, is by no means to be considered only for the latter. The procedure can also be used in the subsequent conversion project and in the operation of the system landscape, where it also creates advantages.

A smoothly running and cost-effective set-up of test systems is obviously a major advantage for a successful S/4 conversion. The more colorful the chosen approach (whether green, blue, brown, or any other color), the more likely it is that an iterative approach will be applied towards productive migration. Each iteration requires a rebuild of the test landscape in preparation for the next test cycle.

For subsequent operation, it is also of immense advantage if you can run your test and sandbox systems - by reducing the size on smaller scaled S/4 instances - without compromising on test data quality. Also, masking of sensitive data has long been required by law and is not optional.

Careful planning with the help of effective tools is the key to success in both S/4HANA conversion and home building. There is no universal master plan that covers all individual needs. The industries and sectors of SAP user companies are too diverse and specific for that. The evaluation points mentioned are universally applicable, thus the master plan leads you to your project success.