What is SAP S/4HANA?

SAP S/4HANA is an enterprise resource planning (ERP) software package. With standard support for SAP R/3 and SAP ECC ending in 2027, many companies are facing one of the most significant IT transformations in recent years: the transition to SAP S/4HANA. This migration is far more than a technical upgrade—it requires strategic decisions about data, processes, and the future system landscape. Bissantz supports companies in this transition.

SAP S/4HANA is SAP’s current ERP suite and the direct successor to SAP R/3 and SAP ECC. The system is based on the SAP HANA in-memory database, which processes data in memory.

The key reason for migrating to SAP S/4HANA is that SAP will end standard support for SAP ECC at the end of 2027. Without regular support, companies will no longer receive updates, security patches, or functional enhancements. SAP does offer paid extended maintenance, but this is intended only as a transitional solution and comes with significant additional costs. Companies should therefore begin preparing for the SAP S/4HANA migration at an early stage.

SAP S/4HANA is the successor generation of SAP R/3. A transformation is necessary for many companies because standard support for R/3 and ECC ends at the end of 2027.

The key differences between SAP R/3 or SAP ECC and S/4HANA include:

• Database technology: R/3 uses traditional relational databases; S/4HANA is based exclusively on the SAP HANA in-memory database.
• Performance and processing: S/4HANA enables real-time analytics, simplified data models, and faster transactions.
• User experience: R/3 uses SAP GUI; S/4HANA uses SAP Fiori as a modern, role-based user interface.
• Data model: S/4HANA reduces redundant tables (e.g. by eliminating aggregates), streamlining processes.
• Processes and functions: Many functions have been redesigned or integrated, for example in finance (Universal Journal) and logistics.

Implementing S/4HANA is therefore both a technical and organizational step that enables the transition to the new ERP platform and provides the foundation for further process adjustments. At the same time, it requires a strategic decision about which existing structures should be retained, adapted, or redesigned from scratch.

Companies can theoretically operate an ERP suite such as S/4HANA in different variants:

• S/4HANA On-Premise: The traditional installation in the company’s own data center or hosted by a service provider. It offers maximum control over the system, data, and SAP S/4HANA customizing.
• SAP S/4HANA Cloud: This variant comes in two forms:
  • S/4HANA Cloud Private: Offers greater freedom in customizing and flexibility similar to on-premise, but is operated as a cloud service.
  • S/4HANA Cloud Public: Enables rapid implementation but is radically standardized, strictly regulated, and technologically constrained. As a result, existing data and processes from R/3 can only be transferred to a very limited extent—most data must be recreated, following a greenfield approach.

SAP is positioning the Public Cloud as its future operating model and is investing the majority of its innovations in this edition. For companies, this means that those wishing to benefit from future developments in the long term will have little choice but to adopt SAP Public Cloud. At the same time, this clear focus brings limitations, particularly in terms of customizing, data history, and transparency regarding processes and KPIs.

Bissantz ERP Solutions close this crucial gap with an end-to-end analytical layer that combines historical and current data, harmonizes complex SAP structures, and defines KPIs consistently. This enables companies to retain full management and control capabilities despite standardization.

The migration to SAP S/4HANA involves various challenges that should be addressed at an early stage:

Companies currently using R/3 or ECC as their ERP system face the question of to what extent data from R/3 can or should be migrated to S/4HANA.

Traditionally, three implementation approaches can be distinguished: brownfield, greenfield, and bluefield. Their practical relevance to S/4HANA implementation has changed, however, since SAP has increasingly promoted the Public Cloud as its preferred operating model.

Typical implementation approaches:

• Brownfield: Technical system conversion from the old to the new environment. This approach is suitable for largely retaining existing processes and customizing structures. However, because the Public Cloud edition significantly restricts the transfer of legacy data and customizing, a conventional brownfield approach is practically impossible when implementing S/4HANA in the Public Cloud.
• Greenfield: Complete new implementation. Companies build an entirely new S/4HANA system. Processes, structures, and master data are newly defined based on standardized SAP best practices. This allows potential legacy issues from the existing R/3 system to be left behind, but it also means losing the data history. For the Public Cloud, SAP considers the greenfield approach the standard because individual customizations can hardly be transferred.
• Selective migration (bluefield): A combination of both approaches—enabling companies to realize innovation potential without having to rebuild the entire system.

Moving to SAP S/4HANA is therefore not merely a technical upgrade but a fundamental decision about processes, data, and corporate management. The key is to plan the implementation carefully, take dependencies into account, and define at an early stage how data history, reporting, and KPIs will look in the new system landscape.

S/4HANA migrations change central data structures, master data, and business processes. This creates specific requirements for data quality, reporting, and the comparability of KPIs. In addition to the technical migration, mappings, balances, historical data, and existing reports must therefore be reviewed and transferred in a traceable manner. The goal is to ensure that controlling and management can continue to access reliable figures during and after go-live and manage the company with confidence.

Bissantz supports S/4HANA migrations as an data analysis partner—including the analysis of migration errors, validation of mappings, reconciliation of balances, and ensuring reporting continuity.

SAP S/4HANA migration with Bissantz

SAP S/4HANA is not an option but a necessity: the end of SAP ECC support in 2027 is forcing companies to migrate to the new ERP platform. The choice of migration approach—brownfield, greenfield, or bluefield—has far-reaching consequences for data history, process design, and reporting continuity. Particularly with the Public Cloud edition promoted by SAP, there is a risk of losing historical data and established KPI definitions. Bissantz closes this analytical gap, enabling companies to retain full management and control capabilities despite the system transition.

business intelligence controlling reporting data analysis