The primary objective of transitioning to SAP S/4HANA is to achieve a seamless transition while minimizing costs, time, and associated risks. However, a thorough understanding of the core components of the SAP migration framework and the pivotal role of master data management (MDM) is critical for a successful migration.

The complexity of SAP modernization is primarily determined by the organization's data landscape. Enterprises typically produce substantial amounts of business data in diverse formats and storage systems, frequently utilizing multiple ERP systems for managing both transactional and analytical data. Therefore, it is essential to employ a data-centric strategy for consolidating and migrating data to S/4HANA during the modernization process.

Below are some of the critical components of an SAP migration blueprint and why organizations need a data strategy to support it.

Minimizing Time and Risks in SAP Migration While Managing Costs: A successful SAP migration to S/4HANA hinges on a robust data strategy, critical for reducing the time, costs, and risks involved in modernization programs that can span 18 to 24 months or longer. Ensuring the quality of master data is vital, as it affects business decisions, consistency of machine learning outcomes, and stakeholder confidence. An enterprise-level MDM tool helps maintain data quality, reducing the risk of program failure and avoiding the need for costly post-migration data quality tools. Accelerating the migration process with AI-powered MDM connectors and leveraging SaaS-based intelligent MDM solutions to eliminate duplicates can optimize memory usage and reduce operating costs. These strategies not only enhance the efficiency of the migration but also deliver quick business value and significant cost savings.

Reducing System Downtime While Maintaining Business Performance: Transitioning from SAP ECC to S/4HANA is complex, especially with the shift from a customer/vendor to a business/partner data model. This complexity is compounded in brownfield or selective data transitions, requiring dual maintenance of legacy and new environments. To minimize downtime and mitigate data inconsistency risks during the migration, leveraging Master Data Management (MDM) solutions is crucial. MDM tools enhance data quality, synchronize real-time data, and automate data replication, ensuring both systems remain updated.

Enhancing Business Agility with a Composable ERP Landscape: Embracing a composable ERP landscape, where core and composable modules integrate seamlessly, enhances flexibility and profitability. Managing master data across these components is vital, with MDM tools playing a key role in mastering data across S/4HANA and other applications. Identifying the right migration strategy involves evaluating master data complexity across systems, with MDM solutions aiding in data discovery, masking sensitive data, and managing data dependencies. For a selective data transition, MDM tools provide customizable data models and facilitate quick onboarding of master data. Success in SAP modernization is measured by quick time-to-value and risk mitigation, tailored to business priorities and operational requirements.

Developing and Implementing the Optimal Migration Strategy: Identifying and executing the right SAP migration strategy involves evaluating the complexity of master data across various legacy systems, whether on-premises or cloud-based. Master Data Management (MDM) solutions automate the discovery of master data assets and their domain types, marking sensitive data for masking prior to migration. By examining data hierarchies and relationships, MDM tools identify key dependencies, ensuring cohesive migration of related datasets. For a selective data transition approach, where only priority workloads move to S/4HANA, MDM solutions offer prebuilt, customizable data models. These models facilitate the mastering and onboarding of data by connecting to legacy source systems, ensuring a streamlined and efficient migration process.

The key performance indicators (KPIs) for evaluating the success of SAP modernization program varies based on multiple factors such as business priorities. However, by generating quick time-to-value and mitigating the risks associated with a large-scale transformational project, success can be achieved.

Informatica’s Master Data Management services with its Intelligent Data Management Cloud™ (IDMC), allows organizations to embark on successful SAP migration journeys. Read more about architecting a blueprint for SAP migration success with Master Data Management here.