Companies using SAP ERP will need to transition to SAP S/4HANA, SAP has announced a 2027 deadline for suspension of SAP ECC services for ECC clients.  There are several approaches available, including brownfield, greenfield, and hybrid implementation for your transformation. You can choose which strategy works the best for your organization’s distinct requirements and goals. 

In this writing, we’ll look at the SAP Brownfield Implementation strategy, what it implies for your business, and what to think about when planning for a migration. 

What is SAP Brownfield Implementation? 

SAP Brownfield Implementation, also known as System Conversion, involves transitioning from an existing SAP system (such as SAP ECC) to SAP S/4HANA. This approach integrates data migration and system conversion into a comprehensive process, allowing businesses to retain their existing data and processes while upgrading to a modern ERP solution. 

System conversion is highly preferred instead of new installation since it can be divided into various phases, allowing businesses to maintain a clear perspective of the project scope and continually optimize their project management. Consider the following activities will simplify your system conversion: 

• If you are running a lower SAP ERP version upgrade to SAP ECC 

• Adapt to Unicode if you are operating a non-Unicode environment 

• Transform your Customers, Vendors, and Business Partners as required by S/4HANA Convert your SAP ERP source code to S/4HANA source code. 

• Migrate existing databases (such as Oracle, DB2, and MSSQL) to the HANA database. 

• Customize your code as per S/4HANA requisites 

Most conversions can be accomplished in a single step; however, if your system is older than SAP ERP 6.0, you will need to undertake a two-phase procedure. The first step in the two-stage scenario is to upgrade your system to a supported source release. You may then convert it to SAP S/4HANA. 

It is critical to recognize that not every system can be converted to SAP S/4HANA as-is since a number of conditions must be satisfied. Read more to find out the variation between the two deployment methodologies either one-step or multiple steps? 

Deployment Methodologies:  One-step Versus Two-step and Risk Mitigation  

A risk mitigation strategy is a must for each company in its system conversion projects. The subsequent precautionary measures help to scale back the danger factor 

• Organizing the project’s preparatory measures. 

• Revaluating the necessity for data present within the master data. 

• Scheduling and implementing the conversion test cycles. 

• Establishing user permits. 

• Determining the proper Change Management to get rid of unnecessary changes. 

Meanwhile, looking upon the multi-step conversion, it is increasing the total cost and does not reduce the risk factors that might be raised due to accommodation of a huge amount of data, incompatible third-party applications, old ABAP versions of code, etc. Companies using the SAP versions older than SAP ERP powered by SAP HANA, launched in 2013, have higher benefits of system conversion. 

Unlike the businesses which tend to use SAP ERP 6.X versions and EHP 8 upgrading to SAP ERP 6.0 is considered a step towards SAP S/4HANA but not as the transition to S/4HANA. Let’s comparatively detail the key processes involved in your conversion. 

• SAP ERP Powered by SAP HANA 

Migrating to SAP ERP with SAP HANA as a backend first companies who used SAP ERP powered by SAP HANA as soon as it was released in 2013 realized the benefits early on and will have a much simpler time transitioning to SAP S/4HANA. 

Migrating to SAP ERP powered by SAP HANA followed by a system conversion to SAP S/4HANA would be a near-double effort for organizations currently operating SAP ERP 6.x systems on any database results in greater expenses. 

An improvement package update, an SAP NetWeaver technology platform upgrade, and database migration are all part of the shift from SAP ERP 6.x on any database to SAP ERP powered by SAP HANA. An SAP S/4HANA project’s hardware expenditure, possible functional redesign work, testing, and change management are all comparable in the transition. 

• Upgrading to EHP 8  

As previously stated, converting systems with older software release levels may need more work than converting systems that have just been upgraded. However, this has no bearing on the risks associated with your project. As a result, upgrading to SAP improvement package 8 (EHP 8) for SAP ERP 6.0 is hardly a “step towards SAP S/4HANA.” 

However, if you plan to adopt SAP S/4HANA as early as possible, the related costs may be difficult to justify your transition. SAP has extended the basic SAP Business Suite 7 applications’ mainstream maintenance through the end of 2027, with optional extended maintenance available until the end of 2030. 

• Process­-by-­Process Rollouts  

Regardless of the choice selected, the company code is the only suggested unit for rollouts. From a technical standpoint, rolling out SAP S/4HANA process by process (or module by module) is not impossible, but it is highly difficult and, as a result, SAP does not encourage it. In reality, it leads to difficult-to-maintain interim integration scenarios for even the most experienced IT operations teams. 

• Business Fit: 

Unlike the greenfield approach, brownfield implementation allows businesses to retain their legacy data and leverage well-established processes and industry best practices. This makes it an ideal choice for organizations that have optimized their existing ERP systems and wish to transition without a complete overhaul. 

Key Questions to Consider 

Before embarking on a brownfield conversion, consider the following questions: 

• Does your business rely on existing solution enhancements or historical business data? 
• Does your current ERP ecosystem meet the system conversion prerequisites? 
• Are you concerned about potential business disruptions during the transition? 

If you answered “yes” to these questions, a brownfield approach may be well-suited for your organization. 

Phases of SAP Brownfield Implementation 

1. Prepare

The preparation phase involves a comprehensive planning process to align the source system with the target system. Key activities include: 

• Requirement Analysis: Understand the current business processes, functionalities, master data, and integration capabilities within the source system. 

• Process Analysis: Compare the existing process flows with those of the target system to identify gaps and align processes. 

• Time and Budget Analysis: Define the project timeline and cost estimates based on the complexity and scope of the conversion. 

2. Explore

During the exploration phase, the implementation team reviews potential solution scenarios to ensure they meet business requirements within the project’s scope. Key activities include: 

• Validation of Business Functions: Ensure core activities and functionalities are addressed within the new system. 

• Role Definition: Identify and assign key roles and responsibilities for project execution. 

• Governance Establishment: Implement strong governance structures to steer the project effectively. 

3. Realize

The realization phase involves executing multiple runs of the Software Update Manager (SUM) to prepare the target system for go-live. Activities in this phase include: 

• Executing Pre-Checks and Custom Code Reports: Utilize SUM to ensure completeness of data conversion and software updates. 

• Developing a Cutover Plan: Create a detailed plan for transitioning to the new system, including scheduling and risk management. 

4. Deploy

Deployment involves transitioning to SAP S/4HANA while minimizing business disruption. Key activities include: 

• Deployment Timing: Carry out deployment during non-productive hours, such as weekends, to reduce impact on daily operations. 

• User Validation: Once deployed, users access the system to identify and address any issues or concerns. 

5. Run

In the run phase, focus on maintaining the system and continuously improving business processes. Activities include: 

• System Maintenance: Ensure the system remains up-to-date with the latest SAP innovations and technologies. 

• Risk Management: Monitor and manage risks associated with the new system, making adjustments as needed. 

Benefits and Challenges of Brownfield Implementation 

Brownfield Conversion Pros 

• A brownfield strategy is often less expensive because you are moving current data to another site rather than rebuilding your landscape. 

• By embedding old data into your SAP S/4HANA system, you avoid rebuilding certain operations. 

• Your master data is immediately migrated to the new system, saving you from having to extract and load it as if you were starting a new project (the greenfield option). 

• Another benefit of a brownfield strategy is that the conversion provides an opportunity to clean and remove obsolete custom code, as well as minimize the data footprint through data archiving. 

Brownfield Conversion Cons 

• An issue faced by many organizations in the case of the brownfield project is the time it takes to complete the migration. Though the companies benefit from the data cleanup provided by conversion projects, it does come with a timely cost. 

• The conversion has to be done all at once, which means all work will be put to a halt and the time conversion will take will vary based on each organization’s landscape—the larger and more complex a landscape, the more time the conversion will require. 

• A migration also requires a bit of rework and reorganization of your new system. 

How Can We Help? 

KaarTech suggests beginning the conversion process by first discussing and deciding on data purification to ensure seamless conversion. This comprises both master data and transactional data cleansing in accordance with the clients’ statutory obligations. Based on this step the entire cycle falls under four main steps: 

• Pre-Checks: Perform SAP Readiness Checks for SAP S/4HANA, ABAP custom code analysis, and item simplification checks. 

• Planning: Plan the activities for the next two phases based on the observations made during the Pre-checks Phase. 

• Preparation: Complete all necessary procedures to get your SAP system technically ready for migration. 

• Realization: Complete all migration and post-migration tasks. 

Well to know more about how KaarTech can ease out your system conversion, do get in touch with us! 

 

 

FAQ’s 

1. What is SAP Brownfield Implementation? 

SAP Brownfield Implementation, or System Conversion, involves upgrading from an existing SAP system like SAP ECC to SAP S/4HANA. This approach allows businesses to retain their existing data and processes while transitioning to a modern ERP system. 

2. What are the main steps in SAP Brownfield Implementation? 

The process begins with preparing the current system and aligning it with S/4HANA. It continues with exploring solution scenarios, executing system checks, and planning the transition. Deployment involves moving to SAP S/4HANA with minimal disruption, followed by ongoing maintenance and improvements. 

3. What are the benefits of SAP Brownfield Implementation? 

Brownfield implementation is cost-effective as it preserves existing data and processes, avoiding the high costs of a complete system rebuild. It also provides an opportunity to clean outdated custom code and reduce data volumes, minimizing operational disruptions. 

4. What are common challenges with SAP Brownfield Implementation? 

Challenges include the time required for migration, the need for system rework and reorganization, and managing risks related to data conversion and integration. Older systems may require significant adjustments to meet S/4HANA requirements.