Introduction
In this blog I will talk about the different types of S4HANA implementations and the differences between them.
Before we move on we need to understand the different versions of SAP S4HANA available to the customers. Below versions of SAP S4HANA are available to the customers at the moment.
- SAP S4HANA Cloud, Public Edition
- SAP S4HANA Cloud, Private Edition
- SAP S4HANA On-premise
The only difference between the SAP S4HANA Cloud, Private Edition and the SAP S4HANA On-premise is how the SAP server is hosted. Depending on whether the client is hosting the SAP server over the cloud (e.g. AWS or Azure) or physically at a office location we call it as either SAP S4HANA Cloud, Private Edition or SAP S4HANA On-premise. Otherwise, the ERP functionalities wise both are same. As the cloud technology is becoming cheaper, flexible and a new standard, most of the customers are inclined to go with SAP S4HANA Cloud, Private Edition compared to SAP S4HANA On-premise.
In case of SAP S4HANA Cloud, Public Edition, SAP manages everything for the customer. Customer uses SAP ERP as a SaaS (software as a service). He can scale up or down as needed. The ERP functionalities might differ compared to the Private Edition. At the moment all the ERP functionalities that are available in Private Edition are not available in Public Edition. Also, SAP controls the enhancements could be done by the customers.
Implementation Types
Depending on the customer’s situation, the customer can choose one of the implementation options.
- Greenfield Implementation
- Brownfield Implementation
- Selective data transition or System landscape conversion
The differences between these implementation types and when the customer chooses them is given below.
Greenfield Implementation
- A fresh or new implementation of SAP S4HANA without copying any existing code or configuration from the existing ERP.
- Customer has to migrate the master data and transactional data from the existing ERP to new S4HANA.
- Customer’s existing ERP could be SAP ERP or different.
- Customer can choose either Public or Private Edition.
- Customer can model their processes to fully utilize the SAP’s simplifications delivered with SAP S4HANA.
- It is possible to have “Clean Core” from day one.
Brownfield Implementation
- A fresh implementation of SAP S4HANA with the code, configuration and data copied from the existing SAP ERP.
- It is just a system upgrade or conversion.
- Customer can choose only the Private Edition.
- Customer can run the business with the existing solution, but not able to utilize the simplifications delivered with SAP S4HANA.
- It may take less time for the initial implementation but the customer needs to spend the time and money to get the benefits of S4HANA later.
- Customer may prefer this option if they have any legacy business solutions which may be risky to redesign.
- It may not be possible to have “Clean Core” from day one due to the customer’s existing code. Customer can aim towards “Clean Core” by identifying, redesigning and eliminating the customizations which do not comply with “Clean Core” strategy.
System Landscape Conversion
- In this case, the customer wants to consolidate different ERP systems to a single ERP with the existing data.
- Customer can choose only the Private Edition.
- This might be suitable for the mergers and acquisitions.