Gain a thorough understanding of the components that make up a successful Selective Data Transition, one of the potential routes for your S/4HANA...
5 Business Benefits of Selective Data Transition for Your SAP S/4HANA Migration
The Selective Data Transition approach puts data at the heart of the strategy and increases the likelihood of a smooth go-live with an SAP S/4HANA transition.
With more businesses evaluating whether Selective Data Transition (SDT) is the right methodology for their SAP S/4HANA transition, I felt that a quick summary of reasons why SDT makes sound business sense might be useful.
If you’d like to learn more about Selective Data Transition before getting started, check out the following articles:
SDT Benefit #1 – Get the SAP S/4HANA Move Underway Faster
In a recent coffee break episode, Senior VP of Product at Syniti, Tyler Warden said, “(Selective Data Transition) is all about speed, and the ability to unleash the downstream benefits of moving to S/4HANA, faster. Once the organization sees their data and processes in S/4HANA that will only increase the rate of change.”
Speed and accelerating time-to-value is a significant reason why organizations adopt a Selective Data Transition for S/4HANA migration. The SDT approach advises the creation of a template “shell” of your legacy ERP that can be taken and installed in the SAP S/4HANA instance. This process dramatically reduces cutover downtime, eliminates the need to re-wire all existing processes, and increases user confidence in the platform post-transition due to the familiarity.
Syniti’s approach also features automated custom code remediation (with our partner smartShift), an approach that uses automation technology to bring over the most vital system customizations from a legacy ERP to S/4HANA. This significantly reduces project timelines and short-cuts the need to rewrite or recalibrate certain bespoke features.
While adopting a New Implementation/Greenfield approach would invariably grant you the flexibility to design “the ideal set-up,” the shell creation and custom code remediation components of Selective Data Transition create a powerful compromise that accelerates the implementation and launch of S/4HANA.
SDT Benefit #2 – Lower Risk
When compared to a system conversion/Brownfield approach, the Selective Data Transition methodology gives organizations the confidence to know they’re moving quickly, but with a robust answer to the biggest project vulnerability, data.
The SDT approach works so well because you’ll be concentrating efforts and resources only on the most high-priority data and processes. For some businesses, this may be in asset management, for others it may be in finance, and for some, it may be a supply chain problem. Regardless, utilizing effective master data harmonization and process design will help bring these under control and address typical data challenges such as duplication, inadequate validation, and human errors.
The risk mitigation benefits of an SDT project comes from improving master data quality and having a good answer for transitioning heavily-customized processes over to S/4HANA. Both of these, which are addressed in a Selective Data Transition methodology, drastically reduce the likelihood of go-live delays.
SDT Benefit #3 – Low Cost
Against BOTH ends of the S/4HANA route continuum, an SDT approach can prove to be the most cost-effective route. Versus the New Implementation route, the cost savings are obvious. A quicker timeline and less process transformation ultimately leads to fewer resources and tools required to make the transition work.
But even against a system conversion (Brownfield), an SDT is likely to be the more cost-effective route long-term. A “lift and shift” approach, may on paper seem the cheapest option, and in the very short term, it may be; however, unless your data is already in pristine condition, you’ll ultimately need to implement a data quality strategy at some point, otherwise your new platform simply won’t deliver the benefits you’d envisioned. This excellent Infoworld article digs deeper into the dangers of lift and shift and articulates why you’re always better either addressing data pre-migration or having a solid strategy for how you’ll address it during the move.
SDT Benefit #4 – Retain your Customizations
Many businesses developed bespoke customizations in their ERP platforms to help accelerate innovation and streamline processes. These customizations represent challenges when you’d like to quickly migrate/upgrade to a new standardized ERP, like SAP S/4HANA.
This is where custom code remediation can be very effective for organizations. Through automated custom code discovery and refactoring, delivered by software such as Syniti’s partner smartShift, you can smoothly lift the legacy customizations you want and have them migrated for immediate use in S/4HANA just as you would with your data.
If you’ve stalled S/4HANA plans because of fears over your customized legacy system, Syniti’s Selective Data Transition approach is tailormade for you.
SDT Benefit #5 – Fully Unleash the Power of SAP S/4HANA with Trustworthy Data
Let’s face it, a new ERP is nothing without the data fuelling it. Like an engine running on polluted oil, an ERP operating with bad data will not run as smoothly as you’d like.
The Selective Data Transition approach puts data at the heart of the strategy and increases the likelihood of a smooth go-live. From analyzing our work in the field, it’s apparent that when customers explicitly track data quality as a KPI, they view their projects as more successful.
Going live on S/4HANA with optimized data means you can trust what the data-driven analytics are telling you, allowing you to capitalize on the wide-ranging benefits that S/4HANA promises.
To learn more about why data is such a critical element to get right in your Selective Data Transition, dig into my blog Why Data Is the Heart of Your Selective Data Transition and subscribe to the Syniti blog today.