The document provides an overview of Kaar Tech, an SAP consulting and implementation services provider. It discusses Kaar Tech's history, awards, areas of focus, products, and services related to SAP implementations. It also summarizes SAP S/4HANA, including its evolution, architecture, business outcomes, and transition paths from previous SAP ERP systems to S/4HANA through conversion or new implementation projects. Key steps in SAP S/4HANA conversions are outlined, including pre-conversion preparation, configuration, and use of the Software Update Manager.

1. Decoding
SAPS/4HANA
SystemConversion

2. Transform Your
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Kaar Tech - Snapshot
Founded in
2006
Maran N
Chairman and CEO
Ratnakumar N
Executive Director
Selvakumaran M
Co-founder & Director
Gaurdian George
Co-founder & Director
Citations
Featured by Gartner for
Manged Enterprise Cloud
Services for SAP in EMEA
region
TOP 5 SAP Consulting and
Implementation Services
provider in the Middle East
with more than 20% market
share
SAP Recognitions
 SAP Quality Award ( Bronze) Winner - 2018
 SAP Quality Award ( Bronze) Winner - 2018
 SAP Quality Award ( Bronze) Winner - 2018
 SAP Quality Award (Silver) Winner - 2016
 SAP Quality Award (Silver) Winner - 2015
 SAP Quality Award (Bronze) Winner - 2015
1400+
SAP Projects Executed
10+
Global Locations
10+
Years of SAP Partnership
750+
Deployed SAP Consultants
250+
Global SAP Customers
250+
Offshore SAP Delivery Team
Service & VAR Partnerships
KSA (Gold), Qatar (Gold) , UK
(Silver)and USA (Service)
5000+
Man Years of SAP Expertise
Products
 KTern
 AI.DSD
 KCloud
 KLearn
 KNet
Focus Areas
 SAP Quality Award (Excellence) Winner – 2014
 SAP Quality Award (Bronze) Winner – 2014
 Best SAP Implementation Project – 2013
 SAP Quality Award (Silver) Winner - 2011
 SAP Quality Award (Bronze) Winner - 2010

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Speaker
Vaidehi Srinivasan
SAP S/4HANA Solution Architect – KaarTech
25+ years of SAP Expertise

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The journey - R/2 to S/4
1992 2004 2011 2013 2015
SAP ERP
mysap.com
SAP R/3
Client/Server
SAP R/2
Mainframe
Suite on HANA
ERP on Hana
with Fiori UX
SAP Hana
In Memory
2018 202x
SAP S/4HANA
Digital Core
“X”/4HANA
Intelligent SuiteSAP S/4HANA
Intelligent ERP
SAP Cloud Platform
1972

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Future Direction of the Enterprise
The Digital Era is evolving into The Intelligence Era
ENABLING TECHNOLOGIES
 Mobile &Smartphone
ubiquity
 Cloud Computing
 Social Networks
 Big Data
Cloud, Mobile & Big
Data
2000s - 2010s
Digital
Transformation
 WidespreadPC
adoption
 Broadband Internet
 ERP and business
 process technologies
Client Server &
Internet
1990s - 2000s
Business Process
Automation
Mainframe & PCs
1960s – 1980s
 Transistors & silicon
revolution
 Large scale Mainframe
Computing adoption
 Emergence of PC’s
 Plant floorautomation
Industrial
Automation
 Machine learning(ML)
and Artificial
Intelligence (AI)
 Internet of things (IoT)
and distributed (edge)
computing
 Blockchain
Intelligent
Technologies
2010s - 2020s
Intelligent
Enterprise
ENTERPRISE VALUE CREATION

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Empower every employee to
make faster, better decisions
Eliminate technology hurdles that
create business challenges
Redeploy limited resources
towards customer value
Deploy the power of AI
to differentiate your business model
Drastically
reduce ITcost
Why
Act
Now?
Compared to the emerging competition, you might be running in slow motion
What if you could, quickly and with low risk…

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SAP S/4HANA – The Next Generation Intelligent ERP
Realtime & Prediction
 Real-time KPI’s > all key users
 Insight-2-Action
 Digital Boardroom
 Predict, Simulate, What if…
Automated Processing
 Exception based control
 Automate & streamline business
 From rules to Machine Learning…
 Connect with Digital Assistance
Ease, Automate & Scale
 Customer centric, easy entry
 Integrate Data via IoT
 Leverage Business Networks
 Integrate via SAP Cloud Platform
Record Data Report ResultsProcess Data
Traditional ERP
Intelligent ERP

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SAP S/4HANA – Digital Core
SAP S/4HANA is SAP’s next generation Digital Core
 Optimized for SAP HANA
 New architecture and data models
 “Principal of One”
 Renewed applications
 Fiori based User Experience
 Cloud & on-premise deployment models

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Business Outcomes for SAP S/4HANA Innovations
Re-imagined business models
 Products + Services -> as subscriptions
 Additive manufacturing
 Lot size of one
 IoT/sensor based managements of assets
Re-imagined business processes
 Embedded business functions (WM, TM, MDG, aATP,..)
 New MRP, dynamic inventory, constrained based planning
 Intelligence through machine learning applications
 Industry solutions in the core
Insight to action
 New UX – Fiori – Any Device
 In the moment, embedded
analytics
 Self-service, multi-dimensional
reporting
Simplifications
 Streamlined data models &
landscape simplification
 Better performance and
scalability
 Flexible deployment options
New innovations
Business Benefits
 Predictable revenue and improved customer sat.
 Reduction of inventory, improved mfg. throughput
 Improved operational efficiencies at lower cost
 Improved uptime and asset utilization
Business Benefits
 Improved customer satisfaction(10%-20%)
 Reduced inventory levels(25%-30%)
 Reduced logistics costs(10%-20%)
 Reduction indays to close books (40%-50%)
Business Outcomes

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The Evolution of SAP S/4HANA: Architecture
SAP S/4HANA 1610
EWM PPDS aATP
U-GL BP ML
HANA
CDS views
API
CRM SCM SRM
Add-Ons
SAP S/4HANA
1511
U-GL BP ML
HANA
Add-Ons
CDS views
API
CRM SCM SRM
HANA
ERP
Add-Ons
SAP S/4HANA
Finance 1503
U-GL
HANA LIVE
CRM SCM SRM
SAP S/4HANA
1709 + 1809
FCC
CRM SCM
U-GL BP ML cPro
API
Add-Ons
CDS views
HANA PredictiveAnalytics
Integrator (PAI)
CPM PPM GRep
EWM PPDS aATP TM
SAP Cloud Platform + SAP Data Hub
Machine Learnings
IBP
Digital Payments
SAP Analytics
Cloud
CoPilot
SAP C/4HANA
New 1809
SER & SFA
New 1809
New 1809

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Transition to SAP S/4HANA

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The SAP S/4HANA Family and Transition Paths

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Green Field / Implementation Projects
New SAP system to realize new business models and re-imagined processes based on latest
innovations
 Create new operating models (optimize value or cost)
 Tailor IT landscape to such operating model
 Control risk of significant transformation
 Value grows over time with data

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Brown Field / Conversion Projects
In-place complete technical conversion ofan existing SAP Business Suite ERP system to SAP S/4HANA Conversion GuideLink
 On average, fastest path toS/4HANA
 Low to moderate business process changes
 Test cycle-based methodology
 Organizational requirements for historical data (e.g.,
regulated industries, audit,…)
of New Implementation
duration
simplifications for average
1709 customer
effort is estimated to
testing-related
Cost
effective historical
data archive
70% 59
2/3

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Consider your path, Strategic choices
Business Process Optimization
ERP Rapid Modernization
Business Model Innovation
New Implementation
System Conversion
SAP S/4HANA Cloud
SAP S/4HANA
Including HEC, IaaS
Business Objectives Transition Paths Destination Options
Match your business objectives to possible transition paths and destinations

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Top 10 factors that influence a customer’s S/4HANA conversion decision…
Influencing Factors Conversion New Implementation
Executive Sponsor CIO CEO or Board
Business transformation scope Line of business Enterprise
Business value Incremental to strategic New business models and processes
Duration (months) 4-12 with 8 month average 6-14 with 11month average
Staffing Testing emphasis Design emphasis
Risks Big Bang Project management
Skills Technical Re-imagine business processes
Historical data
requirement
Address natively Additional effort
Downtime requirements Duration proportional to data volume Significantly shorter downtime
No. of in-scope systems Single ECC with inter-operability Multiple ERP and associated systems

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How long does S/4HANA migration take?
New implementation vs. conversion analysis
Q3 ’18 customer analysis =3240
On average, conversions cover
4-5x larger user base
User base affected
Degree of
process
re-design
Greenfield
Conversion
Duration
Degree of
process
re- design
On average, new implementations at
existing customers are 3 months
longer

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Observed customer paths to S/4HANA deployment decision
S/4HANA: different paths, same positive outcome
Conversion
Currentprocesses enable
long-term strategy?
Yes
Re-imagined
processes?
No
Few
Many
No
New business
Models?
Few
Future
Chapter 1
1-step
migration?
Yes
No
2-step
migration?
Yes
New
Implement.
Many
No
Yes
Historical
Data?
Observed customer paths to S/4HANA deployment decision
S/4HANA: different paths, same positive outcome

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SAP S/4HANA
System Conversion – Transition Paths Overview (1/2)

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SAP S/4HANA
System Conversion – Transition Paths Overview (2/2)

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SAP S/4HANA System Conversion or Upgrade
SAP HANA 1.0 to SAP HANA 2.0

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SAP S/4HANA Release Strategy
Definition of deliveries and possible adoption paths

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Transition to SAP S/4HANA
Project Mgmt
Application:
Solution Adopt
Application:
Design &
Configuration
Analytics
Custom Code
Extensions
Testing
Application:
Integration
System & Data
Migration
Technical
Architecture &
Infrastructure
Transitions to
Operations
Project Initiation Execution / Monitoring / Controlling
Organizational Change Management (OCM)
Learning Realization
Build Execution
Security Implementation
Safeguarding the Digital Transformation
Build Design
Analytics Design Analytics Execution
Build Execution
Custom Code Management
Build Design
Platform Execution
Data Migration Design Data Migration Execution
Platform Design
IT Infrastructure Setup & Test IT Infrastructure Service
Finalization
Transition to Operations
Planning the Digital
Transformation
TransitionPreparation
Integration Design Integration Implementation
Integration Setup
Discover Prepare Explore Realize Deploy Run
Closing
OperateSolution
ImproveInnovateSolution

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Important tools supporting your transition to SAP S/4 HANA

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Discover Phase – Activities
Technical & IT Infra Workshops
Functional Workshops
 Landscape & Deployment
 Dual Development
 HA&DR
 Cutover
 Integration with Interfaces
 Testing
 Archiving
 Training
Strategize with IT & Functional SMEs

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Discover Phase - Deliverables
S/4 Adoption RoadMap Functional Impact Analysis
 Business Function and Industry Compatibility Assessment
 Business Process Impact Analysis
 Fit Gap Analysis
 Business Functions and SAP Add-Ons Verification
 Review of Errors and inconsistencies in Pre-Check
 Review of Simplification List
 Sizing
 Deployment recommendation
 Dual Development Strategy
 HA/DR Strategy
Landscape and Infra Consideration
 Data Archiving
 Table Cleansing
 Code Cleansing
 Housekeeping Advisory on Master Data
House Keeping Advisory
 Project Plan
 Testing Strategy
 Cut- Over Strategy
 Custom Code Impact Analysis
 IT Effort Calculation
Project Consideration

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Discover Phase - Maintenance Planner

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Discover Phase - Readiness Check
 Custom code impact with regard to reference,
enhancement and modification to SAP objects
 SAP S/4HANA sizing
 Recommended Fiori apps to replace existing transactions
 Relevant simplification items
 Business Process Analytics
 Data Volume Management
 Business Warehouse Extractor
 Add-ons
 Business Functions

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Custom Code Check
Custom Code
SAP S/4HANA SystemSAP Business Suit System
Custom Code
SAP Code Simple SAP Code

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Custom Code
Maintenance
Planner
SI - Checks
Custom Code
Preparation
Software Update
Manager(SUM)
Application – Specific
Follow up Activities
System
Requirements
Preparation Phase Realization Phase
SAP
S/HANA
Checks
Custom
Code
Evaluation
Functional
Adaption
Performance
Tuning

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Pre-Conversion Preparation
Start with the System Conversion
guide form SAP
Download of OSS Notes needed
for the S/4HANA Preparation.
Perform cleansing and archiving activities.
Archive all you can and cleanse data not relevant
like spool and job logs.
Review versions of SUM,
Maintenance Planner.
Download
DVD for installation
Run and Review SAP Readiness Check
& Maintenance Planner

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Pre – Conversion Configuration
 Target Landscape Hardware & Infra readiness
• Hardware Installation & Provisioning
• Hana OS & DB Checks
• Target Application Server Checks
 Installation of Evaluation Instance
 Uninstalling Add-Ons and adaptation
 Run Pool/Cluster Table Check Jobs - SDBI_CLUSTER_CHECK and
SDBI_POOL_CHECK and SDBI_CHECK_BCD_NUMBERS
 New Simplification Item checks - /SDF/RC_START_CHECK
 DB variant Checks
 RASFIN_MIGR_PRECHECK - FI
 PRECHECK_UPGRADATION_REPORT - GSC
 Functional Pre-Conversion Configuration
 Controlling Area, Asset Accounting, New Depreciation
 BP and CVI

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SUM - UP Time and Down Time
Discovery / Prepare Phase Realize Phase
Maintenance
Planner
Pre-Checks Custom Code Preparation
Software Update
Manager(SUM)
Application – Specific
Follow up Activities
Simplification List
SAP S/4HANA On-Premise
System
Requirements
Pre-Transformation-Checks
Uptime Processing
Uptime Processing
(Dev Lock)
System update (SHD) & Migration
Shadow System
System update (Application Data)
Data Conversion
Downtime Processing
Data Migration
Table replacement, Kernel Switch AIM/XPRAS,
SPAU
Post Processing Uptime
Data Conversion(FIN, ML)

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PreData Migration , Migration and Post Data Migration
Post-Migration activities
• Complete Migration:
• Final reconciliation after
migration
• Set Migration to “Completed”.
• Transfer Application Indexes
• Fill due dates in FI documents
 Define Settings for Ledgers and Currency Types
 Review the Assignment of Ledger and Company Code to Acc.-Principles
 Define Ledger for CO Version
 Define Document Types for Postings in Controlling
 Define Document Type Mapping for CO Business Transactions
 Define Offsetting Account Determination Type
 Define Source Ledger for Migration of Balances
 Check and Define Settings of Controlling Area
 Execute Consistency Check of General Ledger Settings
 Validate Business Functions

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Need for Data Validation
Aggregation
Count the number of entries in each master and
transaction data tables of ECC and S/4HANA
system
Data Quality
Identify the data discrepancies among ECC & S/4HANA
master and transaction data tables

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Finance – Validation Objects
General Ledger
 GL Account Balances
 Totals and Balances
 Posting Totals
 The financial statements program
 G/L Accounts List
 The general ledger line items list
 The G/L account balance list
 The compact document journal
Accounts Receivable
 Transaction Figures: A/C Balance
 Customer List
 The customer sales
 The customer open item list
 The customer recurring entry original documents
 Accounts Payable
 Transaction Figures: A/C Balance
 List of Vendor Line Items
 Vendor List
 The vendor open item list
Inventory
 Inventory Valuation Report
Asset Accounting
 Asset Balances Report
 Posted depreciation by asset and posting period
 The asset history sheet
 The depreciation run for planned depreciation
Cost Center
 Cost Elements: Master Data Report
 Cost Centers: Master Data Report
 Totals report for cost centers
Order
 Actual/Plan/Variance
Projects
 Revenues/Expenditures/Receipts
 Period Comparison - Actual
 Revenues: Actual/Plan Comparison: Periods

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Logistics – Validation Objects
 Supplier Master
 Customer Master ( General)
 Business Partner ( General)
 Assignment Between Customer and BP
 Assignment Between Vendor and BP
 Purchase Request
 Purchase Order - Header
 Purchase Order - Item
 Sales Orders
 Material Master - General
 Material Master at Plant level.
 Purchase Info
 Material Valuation
 Delivery Documents Header
 Shipment - Header
 Invoice Receipt
 Stock report.
 Warehouse transfer orders – Header
 Planned Order
 Consistency Check
 Material Document Item level
 Material Document Header level
 Pricing Condition
 Inventory Balances

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Approach for Conversion
SYSTEM CONVERSION: LIFT & SHIFT AND SCOPE
LIFT & SHIFT
Approach
Moving ECC functionality to S/4HANA as-is
Expecting ~20% process or transaction
changes Minimal Fiori rollout (5 Tiles)
Why?
Reduce risk, less cost, Lease impact on business users and business process, &
improve time to deliver on future roadmap items

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Common Challenges
Incomplete
Assessment Exercise
Thinking of S/4 and ECC with
Fiori User Interface
Underestimating Custom
Code remediation efforts
Underestimating the impact of
change management and training
S/4 Conversion – A Technical or a
functional Upgrade???

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Lessons Learnt - 1
 Take a copy of ECC Dev prior to Conversion
 Archive/Purge data if possible
 Run simplification check
 Create a new DEV system from a copy of Prod database
Pre-Conversion
 Expect the conversion time to be longer
 Have a dedicated server to run SUM
 Compatibility views may not be recommended
 Review the simplification report
Conversion
 Freeze Stack, Pre-Check report, Simplification Check
Versions
Post - Conversion

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Lessons Learnt – 2 - FUNCTIONAL LESSONS LEARNED & GENERAL OBSERVATIONS
 Track leads (cutover, data validation, etc.)
solely responsible for area
 Knowledgeable implementation partner
 SAP Customer Care Program
Resourcing
 More mocks than planned
 Execute a full month-end test
 More data validation than SAP recommendation
 Mock conversion expectations
Testing & Mock Conversions
 Track leads (cutover, data validation, etc.)
solely responsible for area
 Knowledgeable implementation partner
 SAP Customer Care Program
Changes
 Expect multiple errors/warnings during the
conversion
 Expect a large number of defects during
testing
 Plan enough time for defect resolution in the
testing cycles
 Business Partner conversion/migration
Errors & Defects

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Kaar Technologies
kaartech @kaartech in Kaar Technologies G+ Kaar Tech