Migrating to SAP S/4HANA is a complex and challenging process, as it involves transferring data and processes from an existing platform to a new one. Choosing the right SAP conversion models is fundamental to the success of the project, as it will have a direct impact on the time, cost and risks involved.

There are three main SAP conversion models:

• Brownfield: The brownfield strategy involves migrating data to a new platform using existing infrastructure. This is the fastest and least expensive strategy, but it can also be the most complex.
  
• Greenfield: The greenfield strategy involves creating a new implementation of SAP S/4HANA from scratch. This is the slowest and most expensive strategy, but it may also be the simplest.
  
• Shell conversion: The shell conversion strategy involves creating a new S/4HANA system, but maintaining the existing transactional data in the SAP ECC system. This is a hybrid strategy that can be a good option for companies that need to migrate quickly, but also want to take advantage of benefits of S/4HANA.

Challenges in selecting an SAP migration strategy

Conversion model selection can be challenging as there are many factors to consider. Some of the main challenges include:

• The size and complexity of your data: Data is one of a company's most important assets. It's important to consider the size and complexity of your data when choosing a migration strategy.
  
• Performance and availability requirements: SAP S/4HANA is a next-generation platform that offers advanced capabilities. It's important to consider your performance and availability requirements when choosing a migration strategy.
  
• Your budget: Migrating to SAP S/4HANA can be an expensive process. It's important to consider your budget when choosing a migration strategy.
  
• Your experience with data migration: Migrating to SAP S/4HANA can be a complex process. It's important to consider your experience with data migration when choosing a migration strategy.

Advantages and disadvantages of each SAP conversion model

Brownfield Strategy – Legacy System Conversion

The best approach for companies that want to leverage existing solutions, save historical data and quickly convert to S/4HANA, and then gradually adopt innovations enabled by SAP.

In it, we load all configurations, customizations and transactional data, that is, the entire history and migrate to the new environment.

Brownfield Advantages:

• Faster
• Cheapest
• Easier to integrate with existing systems

Disadvantages of Brownfield:

• More complex
• Requires more testing and validation
• Can be difficult to climb

Greenfield Strategy – Implementation of a new system

During the implementation of this method, all processes and systems are completely reinstalled and configured. All environmental systems will be reviewed and, if necessary, replaced throughout this process.

Greenfield Advantages:

• Simpler
• Easier to manage
• Scalable

Disadvantages of Greenfield:

• Slower and more expensive
• Biggest risks
• More difficult to integrate with existing systems

Shell Conversion Strategy – Migration from legacy to new system

It is the combination of the Greenfield and Brownfield approaches; and leverages the values of the existing solution, but offers greater flexibility in defining the execution phase, allowing separate executions for different business codes and optimizing system downtime.

Shell Conversion Advantages:

• Combines the benefits of brownfield and greenfield strategies
• Faster than the greenfield strategy
• Enables companies to realize the benefits of S/4HANA faster
  

Shell Conversion Disadvantages:

• Requires maintenance of two systems at the same time
• May be more expensive than the brownfield strategy

When each strategy is recommended

The best migration strategy for your company will depend on your specific needs. In general, the brownfield strategy is recommended for companies that need to migrate quickly and have a limited budget. The greenfield strategy is recommended for companies that want to make the most of the benefits of S/4HANA and have a more flexible budget. The shell conversion strategy is a good option for companies that need to migrate quickly, but also want to take advantage of the benefits of S/4HANA.

The choice of SAP conversion models is fundamental to the success of the migration project to SAP S/4HANA. It's important to consider all factors involved, including the size and complexity of your data, performance and availability requirements, your budget, and your experience with data migration.

See also: 1st Market Research on S/4HANA in Brazil