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How Selective Data Transition helps ourcustomers to MOVE to SAP S/4HANAThorsten SpihlmannGo to Market Lead, SAP S/4HANA MOVE – Selective Data TransitionApril, 2021
CONTENTSSAP S/4HANA – Deployment options & Transition ScenariosComparing the approachesDetails on Selective Data TransitionTarget System Build – Process Redesign or ReuseWhat do our customers do - ExamplesQuestion & Answers
SAP S/4HANADeployment Options & Transition Scenarios
SAP S/4HANA – Deployment OptionsSAP S/4HANA CloudCustomers who desire: A complete, modern, native SaaS ERPsolution with the full benefits ofpublic cloudSAP S/4HANA On-PremiseSAP S/4HANA Cloud, private editionCustomers who desire:Customers who require: Gradual transformation to a pure SaaS landscapeat their own pace Complete control and ownership oftheir application and data landscape Software, support, technical managed services, andinfrastructure, from a single point of contact, withone set of SLAs The ability to manage unique, customerspecific needs which cannot be addressed bypublic cloud or private cloud offerings The fastest path to innovation andthe lowest TCO A clean Cloud ERP solution withoutconverting old/legacy ERP processes andconfigurations. Full SAP S/4HANA functionality – 25 industries/64countries – with benefit of subscription-based,cloud economics The utilization of their existing IT departments,infrastructure, budget, and IaaS vendoragreements To reimagine business processes and takeadvantage of standardized best practices Ability to safeguard prior investments includingECC customizations, configurations, and partneradd-ons including SOLEXs and certified solutions Specific compliance with industry- and countryspecific regulatory requirements 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC5
SAP S/4HANA -Transition ScenariosProcess ReusePure Brownfield In-place conversion As-IsProcess RedesignGreenfield Client Transfer Reuse existing ECC customizing asbaseline („Shell Conversion“) build new customizing on topSystem Conversion „Build from Scratch“ / „Mix&Match“existing ECC customizing with newcustomizingPure Greenfield Use SAP Best Practice as jump start Customize completely newNew ImplementationSelective Data Transition Full Reuse Pre-dominantly brown ( 50%) Pre-dominantly green ( 50%) Full Redesign No/very limited process redesign 50% process redesign 50% process reuse No/very limited process reuse S/4HANA Simplification /Mandatory Items S/4HANA Simplification /Mandatory Items S/4HANA Simplification /Mandatory Items S/4HANA Simplification /Mandatory Items 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC6
SAP S/4HANA -Transition ScenariosKeep allDataSystemConversionSDTSelective DataTransitionNewImplementationStart withNew DataProcess Reuse 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICProcess Redesign7
SAP S/4HANA – Characteristics, delivery and operation viewSAP S/4HANA Cloud***Transition PathExtensibilitySAP S/4HANA Cloud, private editionNew ImplementationSAP S/4HANA On-PremiseConversion, Selective Data Transition, New ImplementationWithin SAP S/4HANA Extensibility FrameworkCustomize & Extendand SAP S/4HANA Cloud ABAP EnvironmentModificationsNot allowedRelease Upgradesincluded and mandatoryCustomer owned, technical installationon request includednot includedUpgrade entitlement2 times per year (4 in 2021)yearlyyearlyMinimum Upgradefrequency2 times per year (4 in 2021)5 years (stay in mainstream maintenance)not limited (maintenance to be considered)Pre-delivered ContentIncludedEnterprise management layer optional extra, Best Practiceactivation** included and optionalnot included3rd Party Add-onsCertified public cloud partner add-ons availableWide list of partner add-ons available and allowedallowedPartner TemplatesPlannedProduct SupportSAP *SAP *Technical OperationsSAP *SAP *Partner / Customer / SAP HECHyperscaler / SAP*Customer DC / Hyperscaler / SAP /Premium Supplier / PartnerInfrastructureApplicationManagement Services& Content Life CycleManagementnot recommended, but allowedSAP / Hyperscaler*SAP ** Included in SAP subscription 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC* * only one country activation is includedallowedSAP / Resell PartnerPartner / Customer / SAP HANA Enterprise Cloud (HEC)*** please note that the SAP S/4HANA Cloud, extended edition deployment option is not captured on this slide8
Definition – Selective Data Transition The Selective Data Transition covers the migration of relevantbusiness data from SAP ECC to SAP S/4HANA .It allows a tailored scope between system conversion and newimplementation with the flexibility to adapt data and processes in onestep. The approach allows to combine redesign of businessprocesses with retaining historical data aligned to a new businessreality. 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC9
SAP S/4HANAComparing the approaches
Setting the Context – Side by Side Comparison*CriteriaSystem ConversionSelective Data Transition(On Premise or Cloud*)Shell ConversionProcess reengineeringData cleansingData transformationPhased GoLiveHistorical dataSystem split orconsolidationNew ImplementationBuild from scratchProcess changes in someareas. Org structure changespossibleExtensive changes inseveral areas incl. orgstructure changesFundamental process redesign including orgstructures possible-Inconsistencies to be fixed.Selection of active data.Cleansing “on-the-fly”possible.Selection of active data.Cleansing “on-the-fly”possibleNew data construction –fully clean for newprocessesOnly mandatory changes areadoptedStructural and fieldmappings possibleStructural and fieldmappings possibleNew data construction –fully clean for newprocesses.Full system conversion, nophased approach possibleFully supported (percompany code ideally)Fully supported (percompany code ideally)Fully supported (percompany code ideally)Full transactional historyconvertedE.g. per time-slice, functionalarea, org unitE.g. per time-slice,functional area, org unitOnly master data andopen items. Can becombined with SDT forcertain objectsFor either split orconsolidation scenarios.For either split orconsolidation scenarios.For either split orconsolidation scenariosSimplification items (SI) adoptedduring project. Innovationsusually done after Conversion-Optional Archiving prior to theproject* S/4 HANA Private Cloud Edition 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC11
Selective Data TransitionDetails
Top 5 Reasons why SDT scenario for transition to S/4HANA?Selective ProcessAdjustmentMove to Cloud or differentData Center Adjust selectively processes orconfigurations where it matters Redesign and/or retain existingprocesses (e.g. in finance andlogistics)Move to S/4HANA private cloudor simply to different data centerClean-Up and reorganize SAPERP landscapeOne project bypassingpreparation projects in ECC Why docustomersrequireSDT?Bypass prep projects by executingseveral conversion-related projects in asingle S/4HANA transition project (e.g.CVI, Account to Ledger, Unicodeconversion) Systems grown over the years, affected by M&A,consolidate systems, merge multiple SAP clients Reorganize S/4H instances with functional /divisional / regional split or as a single S/4Hinstance from different ECC instancearchitecture.Selective and transfer ofhistorical data 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSelective data migration by particular company codes, takingover selective data only from the last X (e.g. 2-3) years13
Selective Data Transition – At a glanceSelective DataData CreationM I G R A T EOrganizational Units§ Company codes§ Plants§ Controlling areaY O U RD A T ASAP ERPSAP S/4HANATransactional DataTransactional DataMaster DataMaster DataTime Slice§ All transactional data§ Last x years§ Only open processesMaster Data§ Customers orvendors§ Materials or products 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICData Transform on the flyFunctional Mapping§ Harmonizationrequirements§ Technical MappingsCombination ofMigration Approaches§ Direct DB Inserts§ Migration viaStandard SAPInterfacesTarget System Creation§ Mainly Re-UseScenario (ShellConversion)§ Mainly Re-Design (Mix& Match)Data Model Changes§ XPRA, XCLAS§ SDM§ Material Ledger14
Selective Data Transition CapabilitiesGuided Data Migration – Guided process from simulation to extraction, transformation & load and validation – Customergains early end-to-end insight in the whole migration process and can validate early via simulation upfront (No Blackbox)Key ProcessesBuilding BlockDescriptionData Object ScannerOrganizational Structure ScannerSystem Comparison (Customizing, Repository,Master Data, Number Range) Scanner§Analysis§§§Extraction§§Extraction Simulation & Customer ValidationExtractionTransformation§§§Attribute EnrichmentValue MappingStructure Mapping§§§§§§§§Load§§Load Simulation (Table-Level and API-Level)Load (Table-Level and API-Level)Validation§§Technical ReconciliationBusiness Validation Support§§ 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC§Scan your system and capture scope of org-structure, data objects, custom tables, custom fields instandard tables including data volume etc.Capture customizing, repository, master data and number range conflicts between two systems ormore.Simulate the extraction of desired selective data based on agreed selection rules during designphase.Validate if the extraction simulation results fit.Extract relevant data from ECC source system after the simulation is validated upfront.Transform the ECC data according to agreed transformation rules and S/4H data model changes.Transformation rules can be value and structure mapping, document and master data renumberingor rule-based changesEnrich attribute with correct value which has no or incorrect value in data sourceConduct value mapping and structure mapping (across data-objects)Simulate the load of the data into S/4HANA either at table level or at API-level depending onmigration scenariosLoad the transformed ECC data into S/4H target either at table level or at API-level depending onmigration scenarios.Several technical checks for technical reconciliation were performed out of the box incl. error logs,table count reconciliation logs, foreign key checks against customizing or master data to strengthenproject scope and success rate especially in the early project phases during the initial test cycles.We provide technical tool and content as accelerator to support the business to perform businessreconciliation.15
Selective Data Transition – On the fly Chart of Account ConversionChanges to charts of accounts in your SAP system arenecessary or desirable, for example in connection withthe following§ Introduction of the new chart of accounts due tocountry-specific requirements and regulations§ Introduction of International Financial ReportingStandards (IFRS)§ Business-driven change due to corporationrestructuring (Unified CoA)§ Introduction of a new unified chart of accounts 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC16
Parallel valuation – Customer overviewParallel valuation has to be done on specialvaluation GL accountsParallel accounting using the account approachClassic GL 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICParallel valuation takes place on identical GLaccounts, but different ledgersParallel accounting using a ledger approachNew GL, Universal Journal17
Selective Data Transition – On the fly Customer Vendor Integration§ Business Partner will be created based on vendorsand customers that are migrated from the sourcesystem1§ CVI customizing only in target necessaryKNA1§ Renumbering of customers & vendors possible tosolve numbering conflicts between customers &vendors (applicable where customers and vendorshave same number ranges)KNB1 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC3 populate BP tablesLoad tables§ No Business Partner creation in source SAP-ECCsystem needed (no pre-project is needed)§ Flexible extension of customer and vendor rolesS/4 HANATargetERPSource 2 Structure mappingPartnerKNA1BUT000NameKNB1BUT020GroupGuid LFA1LFA1BUT000LFB1LFB1BUT020 18
Target System BuildProcess Redesign or Reuse
Target System Build – Two Philosophies – Redesign or Reuse?Shell Conversion ApproachBuild from scratch / Mix & Match§Customizing reeuse (pre-dominantly brown)§Customizing redesign (pre-dominantly green)§Create new target shell and reuse existing ERPcustomizing as baseline§Create customizing from scratch in targetenvironment (Customer)§Adjust and build new customizing on top(Customer)§Reuse part of ECC customizing which fits to newtemplate (Customer)Shell ConversionBuild from scratchRepository ECC to S/4HANAüManual / TransportCustomizing ECC to S/4HANAüManual / TransportManualManualCustomizing / Repository Adjustment 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICPart of ServiceConsulting activity20
Target System Build via Shell ConversionShell Conversion from ERP to S/4HANA system:§ Target system contains repository cross-clientcustomizing as minimum. Client-specific customizing canbe excluded if needed.§ Target system always has the same release as sourcesystem and upgrade to ECC6.0 needs to be applied ifneeded§ Convert the ECC6.0 shell system into S/4HANA shellsystem§ The S/4H shell is typically used as S/4HANA developmentsystem and source (golden client) to build S/4HANA targetproduction system (via system copy)One Time-OffECC SourceCustomizing /Configuration1Existing fromECC2Redesigncertain elements1Full ECC Customizing iscopied & converted intoS/4HANA system2Perform fit-gap analysis andredesign certain elementse.g. new order typesS/4HANA DEVECC Shell1Shell Creation(No Data)2Shell Conversion via SUM( DMO if not yet HANA) LTS/4 HANA LT4Data Migration (withselective data scope)3S/4HANAProduction ShellSystemCopySUM Software Update ManagerDMO Database Migration Option 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC21
Target System Build via Build from scratch / Mix&MatchMix & Match of ECC and S/4HANA:§§§ECC SourceImport SAP Best Practice Configuration into S/4H DEVTransfer selectively configuration using controlled procedureusing SAP Retrofit (with linked to ATC/Simplification DB) withS/4H compatibility check mechanismConduct data migration from ECC to S/4HANA1S/4HANA DEV2Selective Transfer of configuration andcustom code using controlled procedurevia SAP RetrofitImport SAPBest PracticeConfigDeltaConfiguration3SAP S/4HANASystem CopyTransactional Data4Master DataCustomizing /ConfigurationCustomizing /Configuration1SAP S/4HANA1 New Install22DesignelementsS/4HANA ProductionCustomer builtRepositorySAP S/4HANAInstall standard SAPS/4HANA systemSAP Repository5 LTData Migration (scope can be determined individually withoutor with (selective) historical dataPerform fit-gap analysis andredesign major processes 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC22
Selective Data TransitionWhat do our customers do
Customer Example – Client Transfer IT solutions for healthcare sectorProject facts§§§§§§Multi-Client ECC system (Non-Unicode)Migration to S/4 1809Phased approach to minimize riskAll data (client transfer, client by client)DB MigrationProject ongoing (4 years / 50 clients)SelectiveInnovationMandatorychangesRoll OutApproachPhasedSelective DataAll dataCustomer benefits§Introduced CVI, universal journal, material ledgerand material document (MATDOC) on the flyDeploymentScenarioOn PremiseSource-TargetRelationship1:1
Customer Example – Client Transfer U.S. multi-national consumer goods corporationProject facts§§§§§Migration to S/4 1809Logistics & financeDB migrationProject duration 10 monthDatabase size 45 TBSelectiveInnovationProcessredesignRoll OutApproachBig Bang NZDTSelective DataSelective dataCustomer benefits§Creation of the new template by shell copy and verylimited process adaption§Selective migration (org units time slice)§NZDT approach to minimize downtimeDeploymentScenarioOn premiseSource-TargetRelationship1:1
Customer Example – Greenfield German electric utility companyProject facts§§§§§§Migration to S/4 1709Logistics & financeCombination of DB migration (Logistics, controlling)and posting approach (Finance, stock)Phased go-live§ DB migration logistics & controlling§ Finance, assets & stockProject duration 12 monthDatabase size 2 TBCustomer benefits§§Reduced data footprint to open processes onlyImplemented new corporate templateSelectiveInnovationProcessredesignRoll OutApproachPhasedDeploymentScenarioOn PremiseSelective DataOpenProcessesSource-TargetRelationship1:1
Customer Example – Greenfield Paper industryProject facts§§§§§Migration to already productive S/4 1709Logistics & financeCombination of DB migration (Logistics, controlling)and posting approach (Finance, stock)Project duration 10 monthDatabase size 0,5 TBSelectiveInnovationProcessredesignRoll OutApproachBig BangSelective DataOpenprocessesCustomer benefits§Integrate and adapt data from acquired company toown processes§Reduced data footprint to open processes onlyDeploymentScenarioOn premiseSource-TargetRelationship1:1
Customer Example – Special Case STE BrownfieldSuisse mechanical engineering companyProject facts§§§§§New install into STESpecial solution: Reference system conversion onpremise system - baseline for customizingmigrationDB migration of transactional data from on premisesystem for Logistics & financeProject duration 8 monthDatabase size 0,6 TBCustomer benefits On the fly product switch from on premise to STESelectiveInnovationMandatorychangesRoll OutApproachBig BangDeploymentScenarioSTESelective DataAll dataSource-TargetRelationship1:1
Reference Projects by Selective Data TransitionCompanySelective DataTransitionChallengeConvert from S4HF1605 to S4H1709Project description§ Convert from S4HF1605 to S4H1709 and integrate recent acquired company in SAP ERP application tothe same instance of SAP S/4HANA. Integration and adaption from acquired company to their ownprocesses.§ Hybrid approach posting accounting and LT migration for MM including 12 months history.§ Company Code Details transfer for each of the plants.§ gmt-landscape-transformation.html?source socialatw-mailto&pdf-asset 4e8b7157-8a7d-0010-87a3-c30de2ffd8ff&page 1Agile Selective Data Transition ECC6.0 EHP7 to S/4HANA 1709§§§§§ERP system 32 TB to migrate in aNew S/4HANA system to minimize§ ERP system 32 TB to migrate in a New S/4HANA system to minimize TCO. Use of existing customizingand migration of specific data to speed up realization phase§ Creation of Target System via Shell Creation. Selective Data Migration of all FI documents for 2019 andall FI open items, all sales and purchasing open items with all corresponding history. Migration of allmaster data§ d-0010-87a3-c30de2ffd8ff.htmlSelective DataTransitionSelective DataTransition 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC6-Step-ApproachComplex migration rules: Split, restrictions, transformingMaster Data Freeze Safeguarding by comparing table snapshots for 1.200 tables on daily basisApprox. 1.700 tasks to be executed in around 3 weeks in a 24/7 ata-mgmt-landscape-transformation.html?pdfasset 004884fa-a17d-0010-87a3-c30de2ffd8ff&page 2&source social-atw-mailto29
Selective Data Transition – Lessons Learnt Know your SME team – The Subject Matter Experts in your organization are essential in makingthis journey to SAP S/4HANA with it being on time and within budget Know your data – Data is essential for making your business a success and needs to be treatedaccordingly for migration to SAP S/4HANA or decommissioned Testing is crucial – Thorough testing practices adopted by SAP customers means that their journeyto SAP S/4HANA is successfully achieved with minimal issues Confirm innovations – SAP customers should review all opportunities in SAP S/4HANA to adoptwhere the return on investment is achieved within a short time frame Limited Business Downtime possible – SAP customers can take advantage of near-zerodowntime to avoid any unnecessary stress on their business, requires additional effort 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC30
Recommended information Roadmap Viewer provides access to completeSAP Activate methodology content (all tasks, templates, andaccelerators), contains project experience fromSAP S/4HANA implementations, and supports implementationprojects of SAP S/4HANA with structured documentation.SAP Readiness Check for SAP S/4HANA to get an overviewand planning baseline about important topics you need to takecare of and the related efforts and required skills.Run the simplification items checks as soon as possible, assome business process adaptions may be complex and requiremore time than expected.Check your custom code with ABAP test cockpit and optimize itfor SAP S/4HANA. Further info emconversion-custom-code-adaptation-process/ 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Smoothly transition from SAP ECC to intelligent ERP with theSAP S/4HANA Movement program Read: Mapping Your Journey to SAP S/4HANA - A PracticalGuide for Senior IT Leadership & Custom Extensions in SAPS/4HANA Implementations - A Practical Guide for Senior ITLeadership. See how customers are succeeding with SAP Landing Page for Selective Data Transition Engagement Knowledge Base Article Selective Data Transition Blog 1: Move to SAP S/4HANA with Selective Data Transition Blog 2: Options for your SAP S/4HANA Transition1
Questions and Answers
THANK YOUThorsten SpihlmannGo to Market Lead, S/4HANA MOVE – Selective Data Transition,T 49 6227 7-77291M thorsten.spihlmann@sap.comSAP Deutschland SE & Co. KGHasso-Plattner-Ring 7, 69190 Walldorf, GermanyAfrican SAP User GroupOffice: 27 11 235 6000 info@afsug.comSAP Business Park, 1 Woodmead Drive, Woodmead, 2148www.afsug.com
SAP * Partner / Customer / SAP HANA Enterprise Cloud (HEC) SAP S/4HANA Cloud*** SAP S/4HANA Cloud, private edition SAP S/4HANA On-Premise * Included in SAP subscription * * only one country activation is included *** please note that the SAP S/4HANA Cloud, extende
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