Unlocking S/4 HANA Potential: An Implementation Consultant’s Guide to SAP S/4HANA Transformation Approaches

As an SAP Finance Solution Architect, I've had a unique opportunity to work within the full spectrum of S/4HANA version implementations i.e. S/4 On-Premises Brownfield with SDT, S/4 Private Cloud Greenfield, and S/4 Public Cloud Roll-Out over the last 4 years, navigating the full spectrum of what S/4HANA across these version have to offer to businesses, and also for what’s actually available for consultants to work with. 😉

This experience has reinforced my core principle when implementing SAP from my SAP R/3 days to S/4 Public Cloud, that is, “there is no one-size-fits-all solution”. Every client is unique and deserves an approach tailored to their specific business goals.

In this article, I’ve tried to provide a snippet on the strengths of each S/4HANA version and the strategic approach/mindset required to successfully implement it.

1. On-Premises Brownfield: Revamp & Supercharge

This works best for established / mature SAP ECC clients who are seeking to transform & optimize existing processes, leverage integrated systems whilst minimizing disruptions.

• Business Case: It's about strategic enhancement – think refining and streamlining familiar processes while capitalizing on existing infrastructure setup.
• The Implementation Mindset: Be ready for a thorough technical assessment and develop a clear data migration and functional code remediation. The focus must be on optimizing the existing core rather than reinventing everything from scratch.

2. Private Cloud Greenfield: Clean Slate for a Tailored Future

Work well for organizations looking for high agility, scalability, and customization without the burden of managing their own hardware.

• Business Case: This is ideal for a complete transformation, but doesn’t mean everything needs to be; it allows building from scratch, taking advantage of the cloud's flexibility and the latest S/4HANA features. It’s about building a future-proof foundation.
• The Implementation Mindset: The primary focus must be on defining unambiguous business objectives and requirements. Selecting a cloud partner and developing a comprehensive data migration strategy are crucial for a seamless transition.

3. Public Cloud Roll-Out: Accelerate and Brace for Innovation

Works well for organisations that have outgrown legacy systems and are now looking to move towards streamlining process efficiencies with a cost-effective yet simple operational system with little to no deep customization required.

• Business Case: Fastest track to accessing the latest SAP Innovations available within simplified/structured functional processes and with a low capital expenditure. It offers out-of-the-box features with some flexibility and continuous updates.
• The Implementation Mindset: A "Cloud-First" strategy is mandatory. Success depends on disciplined adherence to the Clean Core principle; a strong STRONG change management focus is vital to ensure user adoption of standard, simplified processes.

At the end of the day, it all boils down to deeply understanding the client's unique objectives (e.g., global standardization vs. local optimization) and tailoring an approach to fit those needs, rather than forcing a template.

I will share more nuances on the implementations of these versions and some tips in future posts.

Stay Informed, Stay Ahead.

#SAP #S4HANA #CloudMigration #Brownfield #Greenfield #SolutionArchitecture #DigitalTransformation

𝐓𝐡𝐞 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧 𝐏𝐢𝐯𝐨𝐭: From Bitcoin's Gold Rush to Ethereum's Decentralized Future

In 2020, as a SAP Finance architect and a blockchain enthusiast I & some colleagues embarked on exploring PoC solutions in the hashtag#DeFi (Decentralised Finance, now people like to call it as DeFai for obvious reasons) and in developing sovereign Identity PoCs on the hashtag#Ethereum and also some custom blockchains we built internally, we were playing around with scenarios and data challenges, building for a future of decentralized operations when it was just an exploration topic.

Today, it’s more than an exploration topic, the momentum has shifted, Institutional adoption is signaling a new era, led by Ethereum's programmable ecosystem, a financial powerhouse like Tom Lee's firm, BitMine Immersion Technologies , becoming a dominant corporate holder of hashtag#Ethereum, signals a profound belief in its future, obviously there will be corrections over time, but adoption is slowly expanding. The big players are beginning to understand that blockchain's potential extends far beyond a store of value and this transition is being accelerated by AI. 🤖 

For me, personally it’s great to see that the synergy between hashtag#AI and hashtag#blockchain turning out to be a powerful catalyst for technological integration. Solutions like SAP AI Core are optimizing business processes, while GreenToken by SAP is a prime example of blockchain providing verifiable transparency in supply chains.

Furthermore, it’s encouraging to see the rapid evolution of data platforms like Palantir Technologies's Foundry, Databricks, and SAP's Business Data Cloud, all which feed enterprise solutions and AI models. All this demonstrates that we are on the cusp of a significant shift toward a decentralized, AI-driven enterprise system landscape.

I would encourage fellow SAP colleagues to watch this space; this isn't just a theory anymore —it’s practical and turning into tangible proof.

Stay Informed, Stay Ahead.

hashtag#futurearchitecture hashtag#keepbuilding hashtag#sapblockchain hashtag#decentralizedsolutions hashtag#learnsharerepeat

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.