SAP S/4HANA: Why data migration deserves high priority

Data migration plays a crucial role in the success of the SAP S/4HANA transformation. Despite its high relevance, in practice it often happens that companies underestimate the topic of data migration and do not give it the necessary importance. However, this can have serious consequences for the further course of the SAP S/4HANA transformation. In the worst case scenario, the go-live date could be postponed and the budget significantly exceeded.

10 hot tips for successful data migration to SAP S/4HANA

In-house or external – what is the right approach?

There are various possible approaches to data migration. Companies can do it themselves or work with an external partner. Which approach makes the most sense depends on various factors. Among other things, the decision should take into account whether the required resources and expertise are available within the company. The time factor also plays an important role.

Why data migration on your own can fail

If companies decide to migrate data to SAP S/4HANA themselves, the aim is usually to save costs. Instead of hiring external experts, the in-house IT department should take care of the data migration. However, this plan often proves to be a fallacy. IT often only has the process expertise, which means that more resources are required for data migration than originally planned. Furthermore, the SAP S/4HANA transformation requires the involvement of employees from the business departments with regard to process design and process implementation. As they have to manage this task in parallel with their day-to-day business, data migration is often neglected and only started at a late stage of the overall project.

Whether the data migration is in danger of going wrong becomes apparent at the latest during the user acceptance test if, contrary to expectations, the result does not meet the requirements and not all data can be migrated. The typical reaction to this is to ask the SAP S/4HANA implementation partner whether they can also take over the data migration. By this point at the latest, the initial goal of saving costs has become obsolete, as data migration is not part of the originally agreed SAP S/4HANA project and is therefore charged separately.

Pitfalls when outsourcing data migration externally

Other companies decide from the outset to assign data migration to SAP S/4HANA to an external partner. They recognize that internal resources are not sufficient for this. However, there are certain pitfalls lurking in this case too, such as a lack of prioritization.

Companies often wait until every process has been fully defined and implemented before tackling data migration. As a result, the remaining time for data migration may not be sufficient. In addition, depending on the constellation, the external partner’s migration experts may not be able to perform test migrations with the company’s data. Under these circumstances, it is unlikely that the data migration can be successfully completed by the desired SAP S/4HANA go-live date.

How to successfully migrate data to SAP S/4HANA

Ideally, when companies outsource data migration to SAP S/4HANA to an external partner, they also give the sub-project the appropriate importance. This undoubtedly includes the realization that data migration is a time-consuming undertaking and requires careful planning, preparation and implementation. It is essential that the migration plan is aligned with the overall project plan for the SAP S/4HANA transformation.
The selection of the right migration partner is also one of the factors relevant to success. In addition to the price and a realistic time frame, an attractive overall package also includes a high level of technological and business expertise so as not to be dependent on the company’s IT department. Otherwise, this could become an unwanted bottleneck, resulting in project delays.

In addition, a competent partner for data migration is characterized by a high level of communication. Stakeholders must be informed about current developments and the next steps. There must be a constant exchange with the project managers on the company side about the milestones achieved and the upcoming requirements.

Conclusion: Data migration requires due attention

A complete and high-quality database is an important prerequisite for getting started with SAP S/4HANA. Accordingly, data migration is of fundamental importance in the SAP S/4HANA transformation. Companies should not take this task lightly under any circumstances, but should take care of it at an early stage and with the appropriate attention. Working with an external partner is probably the most sensible solution for most companies if they do not have the necessary expertise or personnel capacity to carry out the data migration to SAP S/4HANA themselves.