SAP offers multiple ERP-systems in its product portfolio, which they have announced to change within the next ten years. Hence, any business currently applying SAP ERP products will need to migrate from ECC 620 to S/4Hana after 2030, to maintain its operating business. That migration is as complicated as it is complex, which means that companies are dependent on third-party consultations for its completion.
There are two main possibilities of how to implement such project. Through a big bang or a dedicated process migration. But what are the criteria for the different scenarios? Which factors determine the approach of the project? And more importantly, which business aspects should be prioritized to guarantee a successful implementation?
Max Brandenburg examines three approaches for a S/4Hana transition i.e. brownfield, greenfield, and landscape transformation. The author explains the concept of decision-making and change management, before evaluating and critically assessing a variety of implementation strategies. His findings are concluded in the Brandenburg Migration Check, which depicts company specific requirements, systematical requirements as well as motives and aims for the digital transformation to S/4Hana. Each factor and its strategic implications are defined. The findings are based on the experiences of different in-house as well as external consultants and are applicable to any kind of ERP change project.
Contents
1 Introduction
1.1 Research focus
1.2 Methodology
2 Theoretical Background
2.1 SAP
2.2 ERP
2.3 SAP ERP ECC 620
2.4 SAP S/4HANA
3 Three scenarios of a S/4HANA implementation
3.1 Greenfield approach
3.2 Brownfield approach
3.3 Landscape transformation
3.4 Critique
4 Change Management
4.1 Decision-making
4.2 Digital Change
4.3 The change process by Kotter
4.4 Critique
5 Implementation Strategies
5.1 Big bang implementation
5.2 Dedicated implementation
6 Methodological foundation and methodological approach
6.1 Overview: Study design
6.2 Survey method: expert interview
6.3 Selection and contacting of interview partners: sample
6.4 Execution of the interviews and description of the interview situation
6.5 Securing the results and identification of the key messages
6.6 Evaluation and discussion of the data
7 Conclusion
7.1 Structure of the thesis and results
7.2 Answering the research question
7.3 Points of criticism and limitations of the own work
7.4 Conclusion and further proposals for another research
Research Objectives and Themes
The primary aim of this thesis is to define universal criteria for enterprises to decide between a "Big bang" or a "dedicated" process migration strategy when switching from SAP ECC 620 to S/4HANA, providing a framework for IT consultants to analyze client situations.
- Migration strategies for S/4HANA (Greenfield, Brownfield, Landscape Transformation).
- Change management concepts, specifically Kotter’s eight phases and Eason’s implementation models.
- Decision-making factors in non-programmed ERP transitions.
- Qualitative expert analysis regarding project duration, business downtime, and functionality gaps.
- Development of a factor-based framework for consulting IT-migration projects.
Excerpt from the Book
5.1 Big bang implementation
The Big bang approach is as the name suggests the implementational change conducted in one take. This does not refer to a short preparation time, but only to the instant introduction of the system. An important requirement for this instant changeover is the careful planning, as all functions have to merge with one another and work simultaneously (cf. Eason 1988: 159–160).
Further requirements for a functioning Big bang implementation are that all working components must be tested, filled with data and validated in order to initiate the change. Fulfilling these requirements becomes easier when processes and functionalities of the two systems are congruent. As the congruency of components provides the implementation team with the ability to not establish any further interfaces in the target system, which results in less work and risk. (cf. Destradi et al. 2019: 548–549) However, the greater the customization of the system is, the greater is the deviation in regard to the congruency of the two ERP systems, which increases the work intensiveness and implies higher costs. As both ECC 620 and S/4Hana are SAP standard systems, the modification of the source system must be retrieved in order to qualify for any general system conversion (cf. Destradi et al. 2019: 521).
Summary of Chapters
1 Introduction: Defines the research objective of establishing criteria for choosing between Big bang and dedicated migration strategies during the transition to S/4HANA.
2 Theoretical Background: Provides the fundamental understanding of SAP SE, ERP system definitions, and the specific architecture of ECC 620 versus S/4HANA.
3 Three scenarios of a S/4HANA implementation: Details the three primary migration paths (Greenfield, Brownfield, Landscape Transformation) and critiques their application.
4 Change Management: Explores decision-making processes and Kotter’s eight-phase model for managing organizational transition during system changes.
5 Implementation Strategies: Introduces and evaluates different pacing strategies, focusing on the distinction between Big bang and dedicated implementation approaches.
6 Methodological foundation and methodological approach: Outlines the qualitative research design, including the selection of expert interviews and the criteria for evaluating the gathered data.
7 Conclusion: Synthesizes the theoretical and empirical findings to provide final recommendations and limitations regarding S/4HANA migration strategies.
Keywords
SAP, S/4HANA, ERP, Big bang implementation, dedicated implementation, migration strategy, change management, ECC 620, business downtime, process migration, IT consulting, digital transformation, data migration, enterprise software.
Frequently Asked Questions
What is the core research question of this thesis?
The thesis investigates the criteria enterprises should use to decide between a "Big bang" or a "dedicated" process migration strategy when upgrading from SAP ECC 620 to S/4HANA.
Which implementation strategies are primarily analyzed?
The work focuses on the Big bang approach (immediate, single-step changeover) and the dedicated strategy (phased, incremental introduction of partial functionalities).
What are the main drivers for companies moving to S/4HANA?
Key drivers include the end of maintenance support for legacy SAP ERP products, the need for improved data analytics capabilities (In-memory technology), and the requirement for modernized digital business processes.
How does business downtime influence the choice of strategy?
Business downtime is a critical factor; companies with 24/7 operational requirements or those unable to afford production halts often favor dedicated, phased migrations to reduce risk.
What is the "initial dip phenomenon" mentioned in the work?
It refers to a common pattern in change management where organizational performance declines immediately following the implementation of a new system before stabilizing and reaching new heights.
How were the empirical findings gathered?
The author conducted seven qualitative expert interviews with IT consultants and managers experienced in SAP ERP transitions, analyzing their insights against theoretical hypotheses.
Why is high data quality emphasized for S/4HANA migrations?
S/4HANA requires high-quality data to function correctly due to its columnar database architecture and the necessity of mapping legacy data into significantly different structures.
Does a high level of system personalization lead to higher migration costs?
Yes, the research confirms that heavily customized (personalized) ECC systems incur higher costs because custom code and legacy modifications must be either retrieved, re-mapped, or re-engineered to meet S/4HANA standards.
- Quote paper
- Max Brandenburg (Author), 2020, Switching the SAP ERP from ECC 620 to S/4Hana. Defining the criteria for Big bang or a dedicated process migration?, Munich, GRIN Verlag, https://www.grin.com/document/937644
