The implementation of S/4HANA is a done deal - the rollout is imminent. The right approach now determines success or failure. What preparatory work is required for the successful migration of master data to SAP S/4? We recommend a four-step approach.
Companies that have decided to implement SAP S/4HANA for master data management face a challenge: as with every release upgrade, the switch to SAP S/4HANA means that the master data from the previous database must be correctly exported from the old ERP system and imported into the new system. This includes accounts payable, accounts receivable and material master data. Particular attention is paid to accounts receivable and accounts payable, as these are replaced by the business partner in SAP S/4HANA. However, the migration of master data when switching to SAP S/4HANA is also associated with special challenges, as SAP has not only changed the tables and structures for these two standard objects.
Even if SAP provides a simplification list for the smoothest possible conversion to SAP S/4HANA, data migration is not a task to be underestimated - also with regard to the amount of data records that form the basis of the business processes and can be considerable depending on the type and size of the company. The basic prerequisite is therefore that the data migration is error-free and complete.
At the same time, however, this task also offers the opportunity to optimize data quality and streamline processes so that they can work efficiently with the new system right from the start. After all, master data is often not perfectly maintained. The use of software for analyzing and modeling processes, such as that from the provider Engage Process, is ideal for this. The cloud-based approach ensures quick access to the analysis of existing processes and the graphical modeling of target processes. With a focus on the data, the aim should be to get rid of legacy data in advance and only transfer correct, complete and redundancy-free data to the SAP ERP system. This can also have a positive effect on the migration effort, as the more obsolete supplier, customer and material master data is transferred to SAP S/4HANA, the more costs and resources will be required for the migration later on.
"According to estimates, poor data quality causes an increase in time and budget expenditure for around 40% of the entire migration project."
Andreas Stock, Head of Presales & Customer Success, zetVisions
What preparatory work is required for the successful migration of master data to SAP S/4? We recommend a four-step procedure:
1. data analysis - looking under the hood of SAP R3
Before optimizing the data, it is essential to take stock. A lack of knowledge of your own data and processes is one of the most common reasons for additional costs and time overruns in migration projects. By gaining an overview of the quantity and quality of the master data, the total migration effort can be correctly estimated. You should critically check which data is still required. There may be data that is no longer valid or that is no longer actively used in the new system.
If you take a look at the business processes, it should quickly become clear what is still relevant. This is an opportunity to get rid of unnecessary ballast and keep the new system clean of legacy data from the outset. Instead of migrating blindly, master data that is no longer required can be archived, provided it cannot be deleted due to legal requirements. It can be helpful to get professional help for this. For example, with its cloud-based solution msgFIT, the SAP full-service provider msg offers the possibility of an automated overall analysis that completely examines the use of the systems by users, authorizations, license assignment and development and identifies optimization potential.
Duplicates are a frequent source of errors in the master data already mentioned. Here it is important to define when data records are considered duplicates. How do you deal with two data records that are identical but differ in spelling, name or address? In order to identify duplicates, the degree to which two data records must match in order to be considered duplicates must be defined. This can be done, for example, for the customer/vendor using the VAT identification number or for the material using the material name, manufacturer part number or specific characteristics. The reasons why duplicates arise should also be examined. If too many employees have write access to the SAP ERP system, this can encourage the duplicate creation of data records. It is therefore worth defining exactly who actually needs access and who must have which authorization.
Incomplete data is another common problem. In addition, fields are often not maintained consistently. In many cases, these are also not used for their intended purpose, but for different information. This results in an inconsistent data source, which can cause problems in master data management. Here it can be helpful to rely on tools that make it possible to check the database for such inconsistencies using flexibly definable validation rules. One possible tool is the zetVisions Data Quality Analyzer.
Another aspect that should be included in the analysis is the differences between the old and new systems. As already mentioned, SAP S/4HANA brings some changes with it. There may be changes to existing processes or the length of certain input fields may differ, meaning that content could be cut off during migration. These discrepancies and possible solutions should also be part of the analysis.
2. data cleansing - the basis for a clean start in SAP S/4HANA
The quantity and quality of the ERP data are now known and the next step on the path to data migration to SAP S/4HANA follows: cleansing the master data. In addition to deleting data records that are no longer required, such as duplicates, it is also important to supplement and complete incomplete data records so that they can be used efficiently in the new system.
The key question is how the cleansing and data enrichment should be carried out. Of course, it can be done manually, but this has the major disadvantage of being extremely time-consuming. Alternatively, it is possible to carry out the cleansing automatically. However, as this is not entirely safe, in many cases it is advisable to use a service provider such as msg. This is because important data can be lost if the procedure is not carried out correctly.
3. migration of data to SAP S/4HANA - efficient and coordinated
After all the preparatory work, the time has finally come: the data can be migrated to the new system. By checking and cleansing the data to be transferred in advance, old and incorrect data is excluded and only high-quality and relevant master data is transferred. Here too, it should be checked in advance exactly how the data can be transferred to the new system and which tools and aids are suitable.
Once data migration has been completed, it is essential to check that all data has been transferred completely and correctly. This guarantees a high level of master data quality as the basis for your business processes.
4. ready, steady, go...
Congratulations! The master data has been successfully migrated to SAP S/4HANA and nothing now stands in the way of starting with a clean database without legacy data.
To ensure that the effects do not quickly fizzle out, it is advisable to ensure that the data quality remains consistently high. So take the time to carry out a quality check regularly. Have duplicates crept in again? Are data records incomplete, inconsistent or incorrect?
