Many companies are still using SAP ERP ECC systems, which are less efficient and will stop receiving maintenance support by 2027. Moving to SAP S/4HANA is essential, but the migration can be complex and resource heavy. 

Selective Data Transition (SDT) offers a strategic approach to make this transition smoother and more efficient. By leveraging the expertise of SAP Landscape Transformation professionals, businesses can migrate to SAP S/4HANA with almost zero-downtime and disruption. 

In this blog, we’ll explain what Selective Data Transition is, how it works, and why it might be the best choice for your company’s migration. 

Now Let’s begin by understanding what Selective Data Transition is… 

What is Selective Data Transition? 

Selective Data Transition is a strategic method of migrating to SAP S/4HANA that offers a tailored approach compared to traditional greenfield or brownfield implementations. Here’s a closer look at what SDT entails: 

• Reuse and Redesign:

SDT allows organizations to maintain certain aspects of their existing processes while also redesigning others. For instance, if your logistics processes are well-established and effective, you can choose to keep them intact. Meanwhile, you might decide to redesign your finance processes to take advantage of new capabilities in SAP S/4HANA. 

• Selective Data Migration:

Unlike a full migration, where all data is moved to the new system, SDT allows for selective migration. You can choose to migrate data from specific company codes or business units, either all at once or in phases. This flexibility helps in managing the complexity and volume of data being transferred. 

• Gradual Transition:

With SDT, you don’t need to overhaul your entire system in one go. This method enables a more gradual transition, reducing the risk associated with a big-bang approach and allowing for adjustments based on real-time feedback. 

 

Recent Gartner research predicts that about 25% of SAP ECC customers, or roughly 7,000 to 10,000 businesses, will choose a hybrid approach for migrating to S/4HANA. This highlights the increasing popularity of Selective Data Transition as a preferred strategy for many companies.

When to Consider Selective Data Transition? 

Selective Data Transition is particularly useful in several scenarios: 

• Phased Go-Live Approach:

If your organization plans to implement SAP S/4HANA in phases, SDT allows you to start with one instance or module and progressively add more. This phased approach helps in managing changes and minimizing disruption. 

• De-risking Big-Bang Implementations:

A big-bang implementation involves migrating everything at once, which can be risky and challenging. SDT helps mitigate these risks by enabling a more controlled and incremental migration process. 

• Legacy Data Management:

If you don’t need to bring over all legacy data, SDT provides the flexibility to migrate only what’s necessary. This helps in maintaining a clean and efficient new system. 

• Merging or Splitting SAP Instances:

Whether you’re consolidating multiple SAP ERP systems into a single SAP S/4HANA instance or splitting a large system into smaller, more manageable ones, SDT facilitates the transition by allowing selective data and process migration. 

How Does Selective Data Transition Approach Works – SAP Activate Methodology? 

The Selective Data Transition approach involves several well-defined phases, each playing a crucial role in ensuring a smooth migration: 

Discover Phase: 

• Begin by accessing a trial system to explore SAP S/4HANA’s new features and functionalities. This phase helps in understanding the potential benefits and innovations offered by the new system. 
• Evaluate your current processes and data to identify what needs to be retained, redesigned, or migrated. This helps in creating a clear roadmap for the transition. 

Prepare Phase: 

• Officially start the project with a kick-off meeting to align all stakeholders and set objectives. 

• Prepare the environment by setting up the necessary infrastructure and tools. 

• Analyze existing custom code to identify necessary adjustments. This includes retiring obsolete code and modifying incompatible code. 

• Provide estimates of the changes required based on the analysis. 

Explore Phase: 

• Create a sandbox environment using a shell copy of your current production system. This environment is used for detailed planning and design. 

• Perform a fit-gap analysis to determine how current processes align with SAP S/4HANA and identify any gaps. 

• Develop a product backlog based on findings from delta design workshops. This backlog guides the subsequent development and configuration work. 

Realize Phase: 

• Implement the changes and configurations as per the product backlog. 

• Test the solution and data migration in a quality assurance environment. This phase ensures that everything works as expected before going live. 

• Migrate selected data to the new environment, based on the agreed criteria and requirements. 

• Create and configure the new production environment in preparation for the go-live. 

 Deploy Phase: 

• Conduct a rehearsal of the production conversion to ensure that all processes are ready for the live environment. 
• Perform the actual production conversion and data migration. 
• Transition to the new system and provide post-go-live support to address any issues and ensure a smooth handover to the operational team. 

Key Approaches in Selective Data Transition 

Selective Data Transition can be carried out using various methods, depending on your specific needs: 

• Shell Conversion:

This involves creating a copy of your current production environment without master and transactional data but including the ABAP Repository and configuration. The shell copy is then converted to SAP S/4HANA. This method is simpler and faster as it avoids migrating business data during the conversion. 

• Client Transfer:

In this approach, you select a client’s master and transactional data, along with configuration settings, to be migrated to the new system. This method is useful when transitioning data from specific clients rather than the entire system. 

• Company Code Transfer:

Transfer data from specific company codes to the new SAP S/4HANA system. You can choose to migrate only master data, transactional data, or both, depending on your requirements. 

• System Merge:

Merge data from multiple clients or systems to create a new SAP S/4HANA instance. This approach is suitable when consolidating data from different sources into a single new system. 

Comparing SAP S/4HANA Migration Approaches 

Choosing the appropriate migration strategy for SAP S/4HANA—whether Brownfield, Greenfield, or Selective Data Transition—depends on various factors. Below is a comparative table highlighting the key criteria for each approach to assist in making an informed decision. 

Criteria	System Conversion (Brownfield)	Selective Data Transition	New Implementation (Greenfield)
Future Readiness	Meets the requirements for master data and organizational structures	Allows redesign of master data and structures	Requires a complete redesign of master data and structures
Current System Suitability	Aligns with strategic goals	Might obstruct innovation	Misaligned with current strategy and may block innovation
Data Quality	Maintains good data quality	Good quality or requires data harmonization	Starts fresh with no historical transactional data
Compliance with Regulations	Remains unchanged	Offers opportunities to address compliance issues	Starts new, ensuring compliance from the outset
Retention of Historical Data	Retains all historical data	Selectively retains and harmonizes historical data	No historical transactional data is retained
Custom Code Status	Well maintained	Well maintained or may need updates	Often outdated
Release Version	Requires SAP ERP 6.0 or later	Release version is not a concern	Release version is not a concern
Migration Speed	Generally fast with a mainly technical shift	Quick implementation with selective improvements	Highest speed with a fit-to-standard approach
System Consolidation	No consolidation	Supported with tools	Limited support for consolidation
Phased Go Live Capability	Not applicable	Yes, allows phased go-live	Not applicable

This table provides a clear overview of how each migration approach aligns with specific criteria, helping you decide which method best suits your organization’s needs. 

Benefits of Selective Data Transition 

The Selective Data Transition approach offers a range of benefits tailored to customer needs: 

• Transition to SAP S/4HANA® with minimal impact on business operations. Opt for a single go-live or a phased rollout, such as by country. 

• Move only relevant historical data while leaving behind outdated information, ensuring a streamlined process chain and document flow. 

• Choose the pace of your migration, whether by integrating various projects into a single step or by phasing them separately, including finance harmonization or new implementations. 

• Introduce and adapt new processes while preserving valuable practices and prior investments, such as custom applications. 

• Achieve a transition with minimal technical downtime, limited to just a few hours. 

• Modify your system landscape as needed, whether by splitting or consolidating existing systems. 

Conclusion 

In conclusion, a growing number of SAP ECC customers are opting for a selective transformation when migrating to S/4HANA. This approach balances the need for meaningful changes to business processes, which adds real value to the upgrade. However, full-scale implementation is beyond the reach and scope of most organizations. 

KaarTech, with over 17+ years of experience in SAP implementations, is here to guide you through your migration to SAP S/4HANA. Contact our experts to explore how we can make your transition smooth and successful. 

 

 

FAQ’s 

1. What is Selective Data Transition (SDT)?

Selective Data Transition (SDT) is a method for migrating to SAP S/4HANA that combines the strengths of different approaches, allowing organizations to selectively migrate data and processes while redesigning others. This method helps in managing complexity and minimizing disruption during the transition. 

2. Why should I consider Selective Data Transition for my migration?

SDT is ideal if you want to avoid a complete system overhaul, manage migration in phases, and retain relevant historical data. It offers flexibility in the migration process, enabling a smoother transition with minimal business disruption. 

3. How does Selective Data Transition work?

The SDT process involves several phases: Discover, Prepare, Explore, Realize, and Deploy. It includes assessing current systems, setting up test environments, and selectively migrating data and processes to SAP S/4HANA while ensuring minimal downtime. 

4. What are the benefits of Selective Data Transition?

SDT allows for a phased go-live, minimal technical downtime, and the ability to migrate only necessary data. It also provides the flexibility to adapt new processes while preserving valuable existing practices and investments.