What is SAP S/4HANA and what does the move involve?

SAP S/4HANA is the ERP suite SAP introduced on 3 February 2015. SAP describes it as the fourth generation after R/2, R/3 and SAP ERP. The “S” stands for “Suite”, the “4” for the fourth generation and “HANA” for the underlying in-memory database. The suite covers finance, procurement, manufacturing, sales, supply chain and project management.

Technically, the key change is that business data is held in main memory. Transactions and analysis can therefore run in the same system, without first copying data to a separate reporting system. The table below compares SAP ERP 6.0 (ECC) and S/4HANA.

For many projects the trigger is a date. On 4 February 2020 SAP announced mainstream maintenance for the core applications of SAP Business Suite 7 (which includes SAP ERP 6.0) until the end of 2027. After that, optional extended maintenance is available from the start of 2028 to the end of 2030, charged by SAP at a premium of two percentage points on the maintenance basis. For SAP S/4HANA, SAP commits to maintenance until the end of 2040.

The cost can be estimated. Purely as an illustration: with a maintenance basis of EUR 10 million, two percentage points come to EUR 200,000 per year, or EUR 600,000 over the three years of extended maintenance. Your actual basis is set out in your maintenance contract; this example is no substitute for checking it.

There is also a functional reason. If finance, controlling and asset data sit in one shared structure, there is less to reconcile. For manufacturing this matters because costs, materials and orders are no longer assembled from separate sources. Please check the maintenance dates directly on SAP’s support pages, as SAP may adjust them.

S/4HANA is not a single program but a combination of database, data model, business applications and deployment model. The overview lists the building blocks that matter most for planning.

Technically, a move is decided at four points.

• Custom code: Self-written code has to be checked for compatibility. Usage data, for example from the SAP tools UPL and SCMON, shows which code is still in use at all.
• Data and master data: The new data model requires consistent master data, especially in finance and materials.
• Interfaces: Every connection to MES, warehouse or machine data has to be tested against the new system.
• Deployment model: Whether cloud, on-premise or hybrid determines release rhythm, room for customization and operational responsibilities.

The sequence is similar in most projects, even though duration and effort differ considerably.

1. Take stock

   The SAP Readiness Check shows which applications, custom developments and interfaces in the existing system are affected.

2. Choose a migration path

   SAP distinguishes three paths: new implementation (greenfield), system conversion (brownfield) and selective data transition. Which fits depends on your data and target picture.

3. Implement and test

   For a system conversion, the Software Update Manager with the Database Migration Option (DMO) is used. Processes and all interfaces are tested.

4. Operate and develop

   After cutover, the focus is on monitoring data flows and gradually aligning processes with the new data model.

Four distinctions prevent common misunderstandings.

• Not the same as SAP HANA: HANA is the database; S/4HANA is the ERP suite built on it.
• Not automatically cloud: S/4HANA is available as cloud, on-premise and hybrid.
• Not a substitute for machine connectivity: The ERP system plans and books, but it does not capture plant states on its own.
• No single standard route: There is no one correct migration, but several paths with different risk.

In practice, moves rarely fail because of the software itself. More often it is grown structures that nobody has fully documented.

• Custom developments nobody remembers but many processes rely on
• Master data with duplicates or contradictory entries
• Interfaces to production and warehouse systems without current documentation
• Business units that can only test process changes late

pronubes does not replace SAP. On the production side it makes sure data arrives where the ERP system needs it.

• pronubes Edge: With connectors and add-ons, machines, plants and target systems such as ERP are connected without a separate interface project for each link.
• pronubes Zones: Zones maps sites, production areas, systems and data flows in a clear structure. This helps assign plants and areas unambiguously in the new ERP system.
• pronubes Insights: Insights shows whether connections and data flows run stably in live operation. Around cutover in particular, you see early when an interface is not delivering.