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Choosing the right migration approach for RISE with SAP
October 25, 2021
RISE with SAP is designed to be a powerful—but simple—way to migrate to SAP S/4HANA and the cloud, without the overhead involved in a typical ERP business transformation. By utilizing this streamlined Business Transformation as a Service offering, customers are able to quickly engage with a subscription-based version of the SAP platform, giving them painless, turnkey access to the latest cloud technologies and features.
But while RISE with SAP represents a singular end result, there are a few ways to get to the finish line. With PwC’s SAP transition framework, our goal is to help customers understand their options for adopting RISE with SAP and to help them choose the migration approach that works for their particular needs.
Functionally, we look at three broad transition methodologies:
Greenfield: Building a completely new installation of SAP S/4HANA, essentially starting from scratch and defining a wholly new operating model.
Brownfield: Commonly referred to as “lift and shift,” brownfield approaches preserve existing enhancements, customizations and data as much as possible by approaching the process as a system and data conversion rather than a replacement.
Hybrid: A spectrum of options that create a vast middle ground, often replacing some systems outright while renovating and refreshing others. This approach uses strategies such as selective data migration and selective process renovation and transformation—leveraging the best aspects of both greenfield and brownfield approaches.
Key factors that influence the S/4HANA transformation journey
Determining which of these approaches is right for a customer requires analysis, which we begin by analyzing the strategic needs of the enterprise. Some of the top factors that inform that analysis include the degree to which the customer wishes to make processes easier or simpler, the desire to reduce costs and improve return on investment and the need to improve reporting and decision-making. We look at a total of nine strategic and tactical factors as part of our recommendation process. Here are some of the top factors that influence a company’s transition decision:
PwC benchmark results: Factors influencing the transformation journey to S/4 HANA
Source: The Journey Guide to SAP S/4HANA
When we examine the responses customers provide when asked about these factors, we are able to hone in on the ideal transition methodology for that customer. Customers who want to support a future-friendly digital workforce or who wish to simplify the enterprise data model (or operating structure) and reduce the total number of business processes used are more likely to benefit from a greenfield implementation approach. On the other hand, customers who wish to minimize the business risk of making organizational changes or want to reduce implementation costs are more likely to benefit from a brownfield or hybrid approach to adopting RISE with SAP.
Typical transition scenarios
What does a RISE with SAP transition look like? Here are a few scenario archetypes that fall into our various frameworks:
Greenfield deployment: A classic greenfield transition offers the greatest opportunity for process improvement and simplification, allowing the enterprise to align its operating structure with leading practices in the market. We generally recommend this option when the quality of data in the existing ERP system is low, or when the current enterprise data model (or operating model) and processes are archaic and inefficient. The goal with a greenfield deployment is to simplify operations by leveraging as many of SAP’s out-of-the-box features as possible, with a focus on standardization and consistency. These deployments generally take the longest, making greenfield the costliest type of transition.
Brownfield deployment: If an organization has effective existing processes and requires all (or most) of its historical data to be migrated intact—generally for compliance reasons—brownfield often makes sense. We generally recommend this approach when the total amount of data to be migrated is smaller, or when the organization simply has no appetite for change. Brownfield migrations can be done quickly, with minimal disruption to the business, but the overall benefits of SAP tend to be more limited once the transformation is complete.
Hybrid deployment (selective process and data transformation): While PwC offers a range of hybrid solutions, a typical configuration might include one that maintains 30 to 50% of existing business processes and replaces the remainder with more efficient alternatives, selectively transitioning data as necessary. This type of transition is often recommended when multiple ERPs—some working, some not—are being consolidated on a global scale, giving the customer the flexibility to be selective about which processes and which data are worth keeping. It’s less expensive and costly than a full-scale greenfield transition, balancing migration speed with ROI.
These are just a few examples of our recommended RISE with SAP migration tactics. Additional hybrid frameworks may land closer to a greenfield solution for organizations that want to define a new operating model while leveraging existing capabilities, or closer to a brownfield solution for organizations that desire a quick transition—making fewer architectural changes in order to build the foundation for a future transformation.
How does PwC S/4HANA industrialization help organizations choose the right transition approach and execute for RISE with SAP?
Our assessment framework, tools and industry benchmarks are designed to illuminate the many considerations every enterprise faces when it comes to an SAP S/4HANA transition, weighing numerous criteria to help guide the organization on the optimal strategic direction it should take as it begins its transformation process.
In order to help you get on the path to S/4HANA, PwC developed the S/4 Journey Guide, a survey-based assessment that can help you quickly determine which migration option may be best for your business.
PwC provides a customized transition offering to help organizations embark on the RISE with SAP journey. Our program includes a vast collection of industry-leading frameworks, methodologies and toolsets, plus automation routines for custom code remediation, selective data transition and business downtime optimization. Our goal at PwC is to help organizations reap the benefit of RISE with SAP in an expedited manner while minimizing overall risk.
If you would like to learn more about how PwC can help guide your transformation and increase value as you implement RISE with SAP, contact us using the form below.
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