The Transition Process from SAP ECC to SAP S/4HANA

Enterprise Resource Planning (ERP) is a system whose solutions are designed to enable businesses to manage their basic operations with a software. ERP manages to reduce costs and increase productivity by automating all business processes such as material management, finance, accounting, production and sales. The technological conveniences offered by ERP software increase the need of businesses for these systems. SAP S/4HANA and SAP ECC are Enterprise Resource Planning software offered by SAP. However, there are differences between the two software. In this blog post, we covered the differences between SAP ECC and SAP S/4HANA, and the transition from ECC to S/4HANA.

What is SAP ECC?

SAP ECC (Enterprise Resource Planning Central Component) is the previous generation of enterprise resource planning software released by SAP in 2005. It is a modular system that can be customized according to the needs of a business and can work with SAP and non-SAP systems or customized applications. It uses different modules for each business unit. In other words, it ensures the optimization of business operations in different departments such as finance, logistics, product planning and HR. However, changes made in one module in SAP ECC are highly likely to affect other modules as well. SAP ECC support will end in 2027 due to the inadequacy of the module functionality of SAP ECC compared to SAP S/4HANA. For this reason, businesses are encouraged to migrate to SAP S/4HANA.

What is SAP S/4HANA?

SAP S/4HANA is the latest Enterprise Resource Planning (ERP) software from SAP. It uses modern technologies such as artificial intelligence, machine learning and advanced analytics. Based on the SAP HANA in-memory database, SAP S/4HANA offers a more innovative approach to enable businesses to streamline their business processes, adapt to change, work faster and more efficiently. It also provides a better user experience by getting support from SAP Fiori.

Why should Companies Migrate to SAP S/4HANA?

Examining the Differences Between SAP S/4HANa and SAP ECC

The two software have in common that they are Enterprise Resource Planning (ERP) software offered by SAP. However, there are important differences between the two created by technological developments.

• Database

SAP S/4HANA uses the SAP HANA in-memory database that enables real-time analysis and processing of data. However, SAP ECC is not optimized for in-memory technology, even if it runs on some databases, including HANA.

• User Interface

SAP S/4HANA has a user-friendly and modern interface. This user interface reduces the number and duration of operations required for business processes. At the same time, it provides faster and easier transactions with its fast reporting feature.

• Universal Journal

SAP S/4HANA features the Universal Journal, which facilitates the analysis and retrieval of financial information and provides a single, accurate source for financial data.

• MATDOC

MATDOC within SAP S/4HANA is a new item that allows real-time inventory management.

Migration Approaches from ECC to S/4HANA

The transition process from SAP ECC to S/4HANA differs according to the needs and current structure of businesses. SAP S/4HANA has offered different migration approaches to enable businesses to take full advantage of advanced ERP technology. The most popular transition approaches can be listed as Greenfield, Brownfield and MBIS Springfield.

• Brownfield

Businesses that do not need a radical change in their business processes can use the Brownfield approach for the transition to SAP S/4HANA. This approach allows for superficial use of S/4HANA, although it performs the migration process quickly and at low cost.

• Greenfield

The Greenfield approach enables businesses to move data from their old ERP software and redesign their ERP structure with SAP S/4HANA. Unlike the Brownfield approach, it allows using all the functions of S/4HANA.

Why Should You Migrate to SAP S/4HANA?

• You increase your performance.

SAP S/4HANA offers you the opportunity to improve performance and speed up your response time.

• You increase your user experience.

SAP S/4HANA has a redesigned user interface with improved navigation and simplified workflow that enhances the user experience.

• You optimize your business processes.

SAP S/4HANa helps you streamline and improve your business processes and better use your resources.

• You get real-time data.

SAP S/4HANA provides advanced real-time analytics and insights so you can gain more insight into your operations.

• You reduce costs.

SAP S/4HANA enables you to reduce your hardware, software and maintenance costs and accordingly lower your IT systems operating costs.