Migrating to the SAP S/4HANA platform is a critical step in any transformational business journey, but it’s not always easy. Many companies looking to upgrade and enhance their SAP system want to find a solution that steps into the gap between system conversion and new implementation—the Selective Data Transition (SDT) approach is that solution. It’s quicker and more cost effective than a new implementation, creating a more flexible landscape for targeted process changes in SAP. 

But what is SDT? What are the benefits of this approach? In which scenarios would this be the best option for my business?

At GlueData, our team of SAP data experts is dedicated to educating and informing our customers about every aspect of SAP Data Migration. We cover a range of approaches, including the SDT approach, to ensure you have the knowledge needed for a successful migration.

Let’s unpack your business’s burning questions and uncover whether SDT is the best option for your business:

What is SDT?

There are three options when considering a transition to S/4HANA:

1. System Conversion (Brownfield) approach entails a complete technical conversion of an existing SAP ERP system to S/4HANA.
2. New Implementation (Greenfield) approach involves implementing a new S/4HANA system allowing the adoption of the latest innovations as well as best practices on a clean core.
3. Selective Data Transition (Hybrid) combines the benefits of both Brownfield and Greenfield approaches, giving you the flexibility to adopt the latest innovation and best practices from S/4HANA while selectively retaining customising, custom code and data from an existing SAP ERP system.

What is the right option for you?

GlueData strives to help our clients make informed decisions that are best suited to their business needs. Let us unpack the key considerations for each approach.

	System Conversion (Brownfield)	Selective Data Transition (Hybrid)	New Implementation (Greenfield)
Scenario	Technical conversion (reuse)	Leverage existing investment while adopting innovation and Best Practices (partial reuse). Master data / organisational structure changes	Reingeneer / Implement Best Practices
Project Timeline	Shortest	Moderate (fast time to value)	Longest (faster with fit-to-standard)
Historical Data	All historical data retained	Historical data selectively retained to meet requirements	No historical transactional data (Balance & Open Item take-on)
Custom Code	Well maintained	Well-maintained or outdated	Outdated
Data Quality	Good	Moderate (retain the good, fix the bad)	Poor
Deployment Strategy	Big Bang	Big Bang / Phased	Big Bang / Phased
Downtime	Downtime required	Near Zero Downtime Capability	Downtime required

 

Benefits of the SDT Approach

Companies can reap several advantages when they adopt the SDT approach:

1. Flexibility: ability to configure S/4HANA to meet new requirements and adopt improvements while providing the option to migrate all or selective historical application data. The data migration is decoupled from the system transformation, allowing for flexibility in target design. 
2. Cost-effectiveness: selectively transfer data to S/4HANA according to business needs. This approach offers opportunities for data reduction by migrating a time slice or excluding obsolete organisation units. Legacy systems are decommissioned, and legacy data is stored cost-effectively and audit-proof, significantly reducing database size and associated costs.
3. Faster implementation: Don’t lose your initial investment in your ECC system by not starting from scratch. Reduce project timelines by combining multiple projects into a single go-live using a highly automated, software-enabled process.
4. Risk reduction: the near-zero downtime approach minimises business disruption and enables fast transformation with early detection of inconsistencies. Leverage the power of automated testing.

Optimal Scenarios for an SDT Approach

There are three instances where the SDT/Hybrid model has proven its worth:

1. Transition to S/4HANA

• SAP concludes support for ECC by 2027, and customers face an important decision to select the best approach to transition to SAP S/4HANA
• SDT offers a tailored approach, allowing you to keep the best and transform the rest.

2. Mergers and acquisitions

• A company that wants to combine or integrate two companies after they legally merge.
• A corporation that aims to amalgamate systems, customers, or potentially business units to decrease overhead expenses or reorganise the organisation.

3. Divestiture/ carve-out

• A corporation intends to divest some of its enterprise or operations to a different firm.
• An organisation intends to divide a system or reorganise due to internal considerations.

Conduct in-depth evaluations of your SAP enterprise structure, observe the impact of proposed modifications, develop custom-made roadmaps, and accurately transfer your data.

Key Considerations for the SDT Approach

While the SDT approach offers several advantages over traditional methodologies. It is not a one-size-fits-all solution for all industries, and there are some factors that should be considered:

1. The SDT approach is most suitable when moving from one SAP system to another. A new implementation (Greenfield) is the approach to consider when the source system is any other legacy system.
2. SDT might not be the optimal choice if your goal is to simply upgrade to S/4HANA efficiently and cost-effectively with no real change to business processes. A system conversion (Brownfield) approach may be better suited in this scenario.  
3. If you desire widespread change and standardisation when migrating to S/4HANA and retaining historical transactional data is not important to you, then a new implementation (Greenfield) may be a better-suited approach.

Partner With the Data Experts

GlueData’s team of SAP data experts can confidently and efficiently guide your business through the data migration journey. With a refined methodology honed through years of successful projects, a qualified team of SAP-certified techno-functional consultants, and a proven project management methodology, we ensure mature solutions tailored to diverse scenarios.

Discover how to navigate your Data Migration journey successfully and seamlessly.