What you need to know - > SAP S/4HANA Cloud - Public vs. Private Editions

 SAP S/4HANA Cloud - Public vs. Private Editions

When choosing between Public and Private Editions, it’s always important to consider some decision factors such as the current key business processes, existing SAP landscape together with the organizational technology roadmap, data governance requirements in the domain, available IT resources, and implementation timeline. 

Here is a breakdown of the key themes and focus areas to consider when choosing between SAP S/4HANA Cloud Public and Private Edition implementation:

We look at the deployment models, customization options, implementation approaches, and cost considerations. The emphasis is on making the "right" choice depending on an organization's specific needs, existing SAP landscape, and willingness to embrace standardized processes.

1. Deployment Model:

• Public Cloud (Essential Edition): This is a Software-as-a-Service (SaaS) offering where multiple customers share the same cloud infrastructure. Public clouds offer efficiency and affordability and are often multi-tenant – meaning the provider runs your service in a shared environment. It can be managed by hyperscaler cloud providers such as Amazon, Microsoft Azure, and Google Cloud Platform.

• Private Cloud: Offers a dedicated, single-tenant environment for each customer. With the private cloud, services are maintained on a private network protected by a firewall. Private editions are single-tenant environments where the provider runs our services in a dedicated environment. This can be built within a customer's own data center or using IaaS providers like AWS, Azure, GCP, or Alibaba Cloud. 

2. Customization and Extensibility:

• Public Cloud: Customization is limited to SAP Fiori apps and the SAP Business Technology Platform (BTP) for extensions. With the public cloud solution, customizations are made through SAP Fiori apps designed to facilitate changes like Custom Fields and Logic, and Custom Business Objects. For complex customizations that cannot be done through the existing Fiori apps, the SAP Business Technology Platform extension suites are readily available and easily integrated into SAP S/4HANA Cloud. Direct access to the backend SAP GUI and modification of SAP source code are not permitted. No access to backend GUI...Can not modify SAP source code.

• Private Cloud: Allows for greater customization, including structural changes and modification of SAP source code. Customers can customize(including structural changes) and also modify the SAP source code. Customers have full visibility and control with access to the backend of the system through the SAP GUI. This offers full access to the on-premise extensibility framework.

3. Implementation Approach:

• Public Cloud: Typically requires a "Greenfield" implementation, meaning a fresh start with predefined processes. "Greenfield only. Could be a component of selective data transition. It's designed for companies willing to redesign their processes to align with SAP's best practices. Existing or new customers who have the desire to move to the cloud, who are ready to start fresh with a clean system by giving up on any existing investment made on any ERP solution, and who are open to a process redesign. This is a choice for companies who are ready to embrace the future of ERP with a new implementation and predefined process"

• Private Cloud: Supports "Brownfield, "Selective Data Transition," and "Greenfield" implementations. "Brownfield, Selective Data transition and Greenfield". This allows existing SAP ERP customers to migrate to the cloud while retaining their existing investments and processes. "Existing SAP ERP customers who have the desire to move to the cloud, do not want a complete process redesign and who want to retain their current investment made to their existing SAP ERP system."

4. Total Cost of Ownership (TCO) and Return on Investment (ROI):

• Public Cloud: Generally offers the lowest TCO and highest ROI due to its shared infrastructure and standardized processes. "Lowest TCO and highest ROI."

• Private Cloud: Typically has a higher TCO due to the dedicated infrastructure and greater customization options. "Comparatively higher TCO."

5. Release Cycle and Updates:

• Public Cloud: Follows a more frequent and standardized release cycle, with updates fully managed by SAP. Two major releases per year, and Continuous Feature Delivery (CFD) updates delivered monthly. Provides enhancements that are automatically installed by SAP.

• Private Cloud: Follows the annual base release of SAP S/4HANA On-Premise, however there is a requirement to install at least one upgrade every five years to stay within mainstream maintenance.

6. Business processes and Industries:

• Public Cloud: Highly standardized business processes covering selected lines of business and industries.

• Private Cloud: Covers all 25 industries like SAP S/4HANA on-premise.

General Decision Factors:

• Business Processes: If an organization requires highly customized business processes, the Private Edition is generally a better fit. If the business is willing to adopt standard processes, the Public Edition offers the benefits of lower cost and faster implementation.

• Existing SAP Landscape: Existing SAP ERP customers with significant investments in custom code and specific configurations might find the Private Edition a more suitable migration path.

• Data Governance and Security: The Private Edition provides greater control over data governance and security due to its single-tenant environment.

• IT Resources: The Public Edition requires fewer IT resources for ongoing maintenance and updates, as these are managed by SAP.

• Implementation Timeline: The Public Edition generally offers a faster implementation timeline due to its preconfigured processes.

• Control: Private cloud customers have total control over their upgrade and maintenance schedules to ensure that there is minimal downtime or disruption to their organization.

The choice between SAP S/4HANA Cloud Public and Private Editions is a strategic decision that requires careful consideration of an organization's unique requirements and priorities. The Public Edition offers cost-effectiveness, speed, and streamlined processes, while the Private Edition provides greater flexibility, control, and customization capabilities. 

Ultimately, the choice between SAP S/4HANA Cloud Public and Private Editions is a strategic decision that requires careful consideration of an organization's unique requirements, priorities, and strategic technology roadmap. Always discuss the details of the above points with the relevant SAP partners, SI to help make the decision that works for your business. 

Here are some other useful websites to dig deeper into the key items to be considered:

https://www.vc-erp.com/sap-s-4hana-public-cloud-vs-private-cloud-top-5-differences-explained/

https://www.spinnakersupport.com/blog/2023/10/06/sap-s-4hana-public-vs-private-cloud-edition/

https://kps.com/global/en/company/blog/2024/sap-cloud-public-vs-private.html

#SAPS4HANA #FinanceArchitecture #DigitalTransformation

𝐅𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐄𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞 𝐒𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬 - 𝐂𝐚𝐧 𝐒/𝟒𝐇𝐀𝐍𝐀 𝐛𝐮𝐢𝐥𝐝 𝐨𝐧 𝐄𝐂𝐂 𝟔.𝟎's 𝐒𝐮𝐜𝐜𝐞𝐬𝐬?

 Having had the opportunity to consult on 25+ SAP projects across various SAP versions from SAP 4.7 to S/4HANA Cloud, I've seen firsthand the transformative power of SAP's innovations, e.g. From revolutionizing reporting capabilities - slashing processing times from 40 minutes to under 20 seconds, drilling down top-line revenue to granular profitability insights, I've seen SAP transform the way organizations operate and make informed decisions.

Reflecting on my journey, of the previous SAP versions, for me SAP ECC 6.0 stands out as a monumental success in terms of reliability and having a robust foundation that businesses worldwide have relied on for years and which made SAP the company it is today.

🌟 To me, ECC 6.0 was great for these reasons:

• 𝐒𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐑𝐞𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲: ECC 6.0 was renowned for its rock-solid stability and reliability, which allowed businesses to build critical processes on a trusted platform.

• 𝐒𝐜𝐚𝐥𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐅𝐥𝐞𝐱𝐢𝐛𝐢𝐥𝐢𝐭𝐲: With its robust architecture, ECC 6.0 enabled seamless scalability and adaptability to changing business needs, from small-scale deployments to large, complex landscapes.

• 𝐂𝐨𝐦𝐩𝐫𝐞𝐡𝐞𝐧𝐬𝐢𝐯𝐞 𝐅𝐮𝐧𝐜𝐭𝐢𝐨𝐧𝐚𝐥𝐢𝐭𝐲: Functionally rich and structured in its presentation. It delivered strong functionalities across the key backbone modules (FI, CO, SD, MM, PP) that catered to diverse business requirements, yet in a strong integrated manner.

• 𝐂𝐮𝐬𝐭𝐨𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐦𝐞𝐧𝐭: Supported extensive customization through ABAP development and enhancement frameworks such as BADI and user exits, allowing for tailored solutions, which helped cater to varying/ unique business processes.

• 𝐃𝐚𝐭𝐚 𝐂𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐜𝐲 𝐚𝐧𝐝 𝐈𝐧𝐭𝐞𝐠𝐫𝐢𝐭𝐲: Ensured high levels of data consistency and integrity with its simple setup of a centralized database and transactional processing capabilities.

• 𝐒𝐭𝐫𝐨𝐧𝐠 𝐄𝐜𝐨𝐬𝐲𝐬𝐭𝐞𝐦: ECC6 with its stable core, fostered a vibrant community of partners and developers, creating a rich ecosystem of solutions and support.

We’re beginning to see the adoption of SAP S4 HANA and I feel that to truly make it the bedrock where SAP future Enterprise solutions will be built, we need to see it evolve into a stable, long-term foundation similar to ECC 6.0.

Perhaps in 2035, we'll look back and say that S4 HANA was the foundation that helped build the next-gen of enterprise solutions for all SAP customers, powered by cutting-edge technologies like Agentic hashtag#AI, Enterprise hashtag#Blockchain, Edge hashtag#Cloud computing, etc. 

⏱ 𝐂𝐡𝐚𝐧𝐠𝐞 𝐢𝐬 𝐭𝐡𝐞 𝐎𝐧𝐥𝐲 𝐂𝐨𝐧𝐬𝐭𝐚𝐧𝐭 : 𝐀 𝐏𝐚𝐫𝐚𝐥𝐥𝐞𝐥 𝐁𝐞𝐭𝐰𝐞𝐞𝐧 𝐅𝟏 𝐑𝐚𝐜𝐢𝐧𝐠 𝐂𝐚𝐫𝐬 𝐚𝐧𝐝 𝐎𝐫𝐠𝐚𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐒𝐲𝐬𝐭𝐞𝐦𝐬

In the fast-paced digital age, remaining competitive demands constant evolution and openness to embrace change. With the conclusion of the British Grand Prix, we can consider the evolution of racing cars to draw parallels with organizational systems in today’s digital age, which might shed some light on how things have changed to stay relevant.

Let's consider the 1990 British Grand Prix winning F1 car (on the left) as a legacy system, and the 2024 British Grand Prix Winning F1 car (on the right) representing an advanced system with the ability to embed the latest technology. While both are champions in their own right, the technology of the 1990 car makes it nearly impossible to compete with the cutting-edge performance and capabilities of modern racing machines today.

Similarly, organizations relying on outdated systems with a "keep the lights on" mentality risk falling behind in today's rapidly evolving business landscape. Just as the 1990 F1 car would face challenges in competing with the cars of today, legacy systems hinder an organization's agility, innovation, and competitiveness in the digital era.

This is where technologies like SAP S4 HANA solution offer a modern, intelligent #ERP platform that integrates seamlessly with modern #emerging #technologies help to unlock new opportunities for growth and innovation.

To kick-start your digital transformation journey with SAP S4 HANA, here are some insightful articles that could guide you in determining the best path forward.

🔮 8 Key areas to consider when moving to S4 HANA - https://shorturl.at/VgiKz

🏰 10 Things to Consider in an SAP S4 HANA Upgrade Project - https://shorturl.at/E8nBn

⚒️Practical Considerations for a Successful S/4HANA Upgrade! - https://shorturl.at/ipjug

🧮 Part 1 - Get the best out of your SAP Finance system - https://shorturl.at/DEmhA

🧮 Part 2 - Get the best out of your SAP Finance system - https://shorturl.at/JFHlZ

For more reading, I would also recommend checking out the following resources:

📕 Ebook by MuleSoft - CIO Guide to SAP S/4HANA and MuleSoft - https://t.ly/hJdhX

📗 Ebook by Precisely - Streamlining Your SAP S/4HANA Migration: Expert Tips and Best Practices - https://t.ly/6CSCu

📘Ebook by Tricentis - SAP S/4HANA migration guide: https://t.ly/Ekobl

🎙 Webinar contents by Basis Technologies - Get a Fresh Start with SAP S/4HANA Greenfield Transformation: https://t.ly/uwigP

If you’d like help generating a roadmap, project plan, product feature requirement, and templates to get started on the journey, feel free to reach out and I’ll be happy to share some templates and tips on this topic.

Take an inside look on how the 2024 winners bring out their best with SAP: https://sap.to/60429e0CG

8 KEY AREAS TO CONSIDER BEFORE TRANSITIONING TO S4 HANA

 🔮 8 KEY AREAS TO CONSIDER BEFORE TRANSITIONING TO S4 HANA

In the realm of SAP solutions, the move to S/4 HANA is a pivotal decision that can redefine a company's digital landscape.

Recent research from job agent reports indicates that only a mere 16% of SAP clients in Australia & New Zealand have transitioned to S4 HANA. This statistic underscores the meticulous approach many organizations are taking to assess whether migrating to S/4HANA aligns with their long-term objectives and competitiveness in the market.

To help those deliberating on this decision, in this post, I delve into 8 key questions to answer which will help in preparing for a move to S4 HANA. 

This is just to serve as a guidepost, to help in determining whether S/4HANA represents the next logical step in your company's evolution:

Elevating Finance: Unleashing Emerging Tech for Intelligent ERP Transformation

As technology advances, staying competitive requires continuous process evolution. For SAP Finance leaders & architects, it is imperative that integrating emerging technology into key areas is crucial to get ahead of competitors by transforming traditional ERP into an Intelligent ERP system by harnessing cutting-edge technology.

Here are some tips on how to integrate emerging intelligent functionalities in your current ERP system:

𝟏. 𝐌𝐚𝐜𝐡𝐢𝐧𝐞 𝐋𝐞𝐚𝐫𝐧𝐢𝐧𝐠 𝐢𝐧 𝐅𝐢𝐧𝐚𝐧𝐜𝐞:

Implementing machine learning algorithms to predict cash flow fluctuations. By analyzing historical financial data and external factors, the system provides real-time insights, enabling proactive measures to optimize cash management and mitigate financial risks.

𝟐. 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐭 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬:

Utilizing blockchain to enhance transparency in financial transactions, especially in cross-border payments. Blockchain ensures secure, traceable, and tamper-proof transactions, reducing the risk of fraud and enhancing the efficiency of financial operations.

𝟑. 𝐈𝐧𝐭𝐞𝐫𝐧𝐞𝐭 𝐨𝐟 𝐓𝐡𝐢𝐧𝐠𝐬 (𝐈𝐨𝐓) 𝐟𝐨𝐫 𝐀𝐬𝐬𝐞𝐭 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭:

Deploying IoT sensors to monitor the performance of critical high-value assets in a portfolio. Real-time data from these sensors enables intelligent decision-making for asset maintenance, ensuring optimal returns and minimizing risks.

𝟒. 𝐀𝐝𝐯𝐚𝐧𝐜𝐞𝐝 𝐀𝐧𝐚𝐥𝐲𝐭𝐢𝐜𝐬 𝐟𝐨𝐫 𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥𝐢𝐳𝐞𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐬:

Implementing advanced analytics tools to analyze customer financial behavior. This empowers financial institutions to tailor personalized financial products and services, enhancing customer satisfaction and loyalty.

𝟓. 𝐂𝐡𝐚𝐭𝐛𝐨𝐭𝐬 𝐟𝐨𝐫 𝐀𝐮𝐭𝐨𝐦𝐚𝐭𝐞𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐒𝐮𝐩𝐩𝐨𝐫𝐭:

Integrating chatbots for financial customer support within SAP systems. These chatbots can assist with account inquiries, transaction history, and financial advice, providing a seamless and efficient customer experience.

6. Robotic Process Automation (RPA) for Financial Operations:

Automating repetitive manual tasks in financial reconciliation processes. RPA ensures accuracy, reduces processing time, and allows finance professionals to focus on more strategic activities, improving overall financial efficiency.

7.  Machine Learning Applications for Financial Predictions:

Incorporating machine learning applications to analyze market trends and predict stock prices. This enables financial analysts to make informed investment decisions, optimizing portfolio performance.

8. SAP Intelligent Robotics Process Automation in Financial Reporting:

Implementing intelligent RPA to automate financial reporting processes. This not only improves the speed and accuracy of financial reporting but also ensures compliance with regulatory requirements.

9. Situation Handling in Financial Risk Management:

Implementing intelligent situation handling to automatically respond to changes in market conditions that pose financial risks. This proactive approach minimizes potential losses and ensures effective risk management.

10. Governance, Risk, and Compliance (GRC) for Financial Regulations:

Integrating GRC tools to ensure compliance with financial regulations. This includes automating compliance checks, managing financial risks, and enhancing overall governance in financial operations.

By incorporating these intelligent functionalities with a finance-focused approach, enterprises can revolutionize their SAP Finance ERP throughput, driving innovation and efficiency in financial operations. 🌟

𝐊𝐞𝐞𝐩𝐢𝐧𝐠 𝐨𝐧 𝐭𝐨𝐩 𝐨𝐟 𝐒𝐀𝐏 + 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧: 𝐀 𝐖𝐢𝐥𝐝 𝐑𝐢𝐝𝐞 💡🚀

As a certified SAP Finance + Blockchain Architect, keeping pace with not one, but two cutting-edge technologies can present challenges, especially with the breakthrough rapid advancements in SAP solution offerings like BTP, Fiori, Cloud etc, and the ever-evolving Blockchain-based solutions like DeFi, Web 3, NFTs, ZKPs, CBDCs etc in the last 6 years, have all made it quite the ride! 🚀

Despite market fluctuations and technological shifts, the synergy between SAP and Blockchain is transformative, and this combination is destined to catapult the development of the "𝐈𝐧𝐭𝐞𝐥𝐥𝐢𝐠𝐞𝐧𝐭 𝐄𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞 𝐒𝐨𝐥𝐮𝐭𝐢𝐨𝐧” of tomorrow especially now with the everyday-advancement of #𝐀𝐈.💥

Imagine seamlessly integrating blockchain into your SAP environment, enhancing data security, transparency, and traceability throughout your supply chain. Picture real-time insights into financial transactions validated by the source of truth automatically, automated sales & and purchasing processes with no manual verifications required, and immutable records ensuring compliance for direct submission to governments without any 3rd party involvement. These are just a few examples of the transformative potential when SAP and Blockchain join forces with AI playing its part as well. 🌐

It is always going to be challenging to build and develop SAP Blockchain prototypes, but the ability to innovate, drive efficiency, and unlock new opportunities for the growth of lament business processes is what will fuel development and adoption over time.

If you would like to understand what Blockchain is and how it powers ERP solutions like SAP, check out the Blockchain primer article available on ANZSAP Magazine.📝

https://issuu.com/anzsapmagazine/docs/anzsap_issue01_fullmag_design_v13-singlepages/52

If this triggers your interest and you are keen on exploring or participating in a pioneering initiative aimed at constructing an SAP Blockchain solution poised to transform ERP processes, feel free to reach out to connect, converse & collaborate in building "𝐈𝐧𝐭𝐞𝐥𝐥𝐢𝐠𝐞𝐧𝐭 𝐄𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞 𝐒𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬" of the future.

𝐓𝐡𝐞 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐨𝐟 𝐆𝐞𝐧𝐞𝐫𝐚𝐭𝐢𝐯𝐞 𝐀𝐈 + 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧 🧶

Blockchain technology helps to revolutionize industries by eliminating middlemen and enhancing process efficiency through reliable, verified data.

But what if there's even more potential on the horizon? 🔮

According to a recent report by McKinsey & Company, the integration of Generative AI is set to skyrocket the economic value of tasks related to “𝐬𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫 𝐢𝐧𝐭𝐞𝐫𝐟𝐚𝐜𝐢𝐧𝐠”.

Estimates suggest a staggering increase from 𝟐𝟒% 𝐭𝐨 𝟒𝟓% in economic value in tasks related to stakeholder interfacing proving the benefits of the transformative power of #AI automation on #blockchain verified data. 🧮

On a related note, the managing of tasks would be 3 times better in companies that run Generative AI than those without.

https://www.fm-magazine.com/news/2024/feb/generative-ai-whats-the-potential.html?utm_source=mnl:updt&utm_medium=email&utm_campaign=23Feb2024

10 Things to consider in an SAP S4 HANA Upgrade

As more SAP Enterprises are embarking on a business transformation project of moving to S4 HANA, the essence of a seamless transition from ECC to S/4HANA lies in the meticulous attention given to certain items that help to ensure a strategic evolution towards a future-ready, intelligent ERP solution architecture.

Here is a simple starter guide on 10 things to consider to help get started on the upgrade process:

1. Understanding the Landscape:

Before embarking on the upgrade journey, it's crucial to comprehend the existing ECC landscape. Assess the customizations, integrations, and third-party applications to ensure a comprehensive understanding of the system.

Tool: SAP Solution Manager: Utilize SAP Solution Manager to perform a comprehensive system analysis. The Landscape Management Database (LMDB) in Solution Manager provides a centralized view of your entire system landscape. Also explore SAP Signavio, which creates an easy-to-use system by enabling modeling, analysis, and effective workflow management on a single platform. This allows companies to use data to examine all levels of their business processes and identify what works and what doesn't.

2. Key Functionalities in S/4HANA:

Familiarize yourself with the key functionalities introduced in S/4HANA, such as the Universal Journal, Fiori apps, and real-time analytics. These features enhance efficiency and offer a more streamlined financial management experience.

Tool: SAP Fiori Apps Library: Explore the SAP Fiori Apps Library to identify and understand the available Fiori applications relevant to finance processes. This helps in leveraging the enhanced user experience in S/4HANA.

3. Impact Analysis:

Conduct a thorough impact analysis on existing business processes. Identify potential disruptions and mitigate risks by planning for necessary adjustments in workflows, interfaces, and reporting structures.

Tool: SAP Readiness Check for SAP S/4HANA: This tool assesses your existing ECC system and provides insights into the potential impact of an S/4HANA migration. It outlines necessary adjustments and highlights areas that might be affected.

4. OSS Notes and Patches:

Stay informed about the latest OSS notes and patches related to the S/4HANA upgrade. Regularly check SAP's support portal for updates, as these notes address known issues, provide fixes, and offer valuable insights into optimizing system performance.

Tool: SAP Support Portal: Regularly check the SAP Support Portal for the latest OSS notes and patches. The portal provides a centralized location for accessing SAP's knowledge base, updates, and fixes.

5. Data Migration Strategy:

Develop a robust data migration strategy to ensure a smooth transition of critical financial data. Consider utilizing tools like SAP Data Services for cleansing and transforming data, minimizing the risk of inconsistencies post-migration.

Tool: SAP Data Services: SAP Data Services is a comprehensive data integration and migration tool. It helps in cleansing, transforming, and migrating data from ECC to S/4HANA, ensuring data consistency and accuracy.

6. Collaboration with Stakeholders:

Engage with key stakeholders across departments to garner their input and address concerns. Collaborative efforts ensure that the upgrade aligns with overall business objectives and minimizes disruptions to day-to-day operations.

Tool: SAP Jam Collaboration: SAP Jam facilitates collaboration among stakeholders. Create groups for different project teams, share documents, and foster communication to ensure alignment across departments.

7. Testing Protocols:

Rigorous testing is paramount. Establish comprehensive test protocols to validate end-to-end processes, ensuring that the upgraded system meets performance, security, and compliance standards.

Tool: SAP Solution Manager Test Suite: Leverage the testing tools within SAP Solution Manager, such as Test Management, to create and manage test cases. Execute end-to-end testing scenarios to validate system functionality.

8. Training and Change Management:

Invest in training programs to upskill your team on the new S/4HANA functionalities. Implement change management strategies to ease the transition and encourage user adoption.

Tool: SAP Enable Now: SAP Enable Now provides in-application guidance and training content. Create customized training materials to educate users on the new S/4HANA functionalities, aiding in change management.

9. Strategic Roadmap:

Develop a strategic roadmap that aligns with the organization's long-term goals. Consider phased implementations to minimize downtime and optimize resource allocation.

Tool: SAP Roadmap Viewer: The SAP Roadmap Viewer offers a structured view of the implementation and upgrade roadmaps for SAP solutions. Tailor the roadmap to align with your organization's strategic goals.

10. Post-Upgrade Support:

Prepare a robust post-upgrade support plan. Monitor the system closely in the initial stages post-migration, addressing any unforeseen issues promptly and ensuring a smooth transition to business-as-usual operations.

Tool: SAP Solution Manager Monitoring: Leverage SAP Solution Manager's monitoring capabilities to closely track the system's performance post-upgrade. Set up alerts and notifications for proactive issue resolution.

An informed and strategic approach is imperative for a successful ECC to S/4HANA upgrade, especially given SAP's support for ECC end in 2027. By understanding the intricacies, collaborating with stakeholders, and staying abreast of updates, organizations can navigate their S4 HANA transformation effectively.

5 Accounting principles to consider in an SAP Finance Implementation

As I’ve mentioned in many previous articles, I’ve always believed that implementing SAP Finance Enterprise solutions is more than just working on SPRO configurations and writing tech/functional specs, it is equally important to lay down a finance roadmap by tapping into core accounting principles that serve as the guiding star in converting the Finance department from a cost center to a “value-centre”. 🌠

Having had the opportunity of working with multiple clients in designing and delivering SAP Finance Enterprise solutions, for me, focusing on these 5 Accounting principles has helped in delivering SAP Finance Implementations that have made a difference.

🚚 Inventory Accounting

 SAP's Material Ledger functionality can be used to capture multi-currency, multiple valuation approaches, and actual costing. Setting up material costing with real-time updates to calculate standard costs, could help you ensure your inventory valuations can be used to forecast product profit margins, etc. The ability to push the assignment of overhead costs based on actual activities helps to identify the true cost of your inventory down to the granular level. There have been instances where we’ve hit the maximum number of cost components (20max) aiming to provide granular level details for cost management accountants.

🧮 Accounting Methods & Standard:

 A good knowledge of IFRS, AASB, and IAS will help to enforce a consistent accounting method and practices across all business units and subsidiaries. This comes in very handy when preparing group and consolidated reporting using SAP BPC or other recon/reporting tools such as Hyperion, Blackline, etc. Not to forget that consistency enables meaningful financial analysis and benchmarking, which helps to compare like-with-like aiding insightful decision-making across the business. In the retail domain, the ability to compare like-by-like stores/centers helps to improve efficiency and plan expansions accordingly.

💶 Multi-currency:

 If setting up SAP to handle multi-currency transactions, make sure to setup the functionalities like SAP MCA and parallel ledger with different currencies, which will help to track and report currency conversion and revaluation as per relevant accounting standards (e.g., IAS 21) and help enterprise to be ahead on potential unrealized gains/losses and plan accordingly.

📇Accrual Accounting:

 In an SAP Finance implementation, accrual accounting ensures that revenue and expenses are recognized when earned or incurred, even if cash hasn't been exchanged. This principle is crucial for working capital management, allowing accurate tracking of outstanding invoices, payables, and receivables. Setting up internal systems to capture, calculate, and deliver these accruals in a timely value will make a world of difference.

and a favorite of mine has always been “Working Capital Management” 📈  as this truly helps an organization's financial health.

Developing SAP’s standard functionalities to streamline AR processes, and optimize AP processes with SAP Invoice Management and auto payment based on liquidity needs and cash management strategies of the enterprises could help directly impact the WCM health of an entity. Using SAP’s cash application to focus on identifying key drivers on WCM strategies and develop reporting of WC ratios such as Acid test, Current Asset, etc, will help achieve hidden value in the process.

However, it's crucial to acknowledge that while these prospects are enticing, their viability varies across clients due to their distinct SAP landscapes, versions, and integration setups. This reality underscores the importance of addressing potential prerequisites in other areas before fully unlocking the potential of SAP Finance. The guiding principle remains clear: progress incrementally toward a more promising future.

Though these are items that are exciting to explore and implement as a Finance architect, their viability varies across clients due to their distinct SAP landscapes, versions, and integration setups. The reality is that there might be potential prerequisites in other areas to be addressed first, before embarking on exploring all that SAP Finance has to offer. The guiding principle remains clear: progress incrementally toward converting finance as a “value-center”.  💎

Practical Considerations for a Successful S/4HANA Upgrade!

Getting SAP Certified is undoubtedly valuable, understanding what to do is one thing, but knowing how to do it in the best way possible, tailored to each client's unique requirements and strategic goals, is where the real magic happens. After all, the golden rule in our realm is crystal clear: "Every client is DIFFERENT"! 🎢

With SAP pushing for a 2027 deadline to move to S4 HANA, as a client if you are gearing up for an S/4 HANA upgrade or are simply curious about the process, these practical considerations to deliver a successful S/4HANA #upgrade might come in handy! 📚