Are you planning a transformation to SAP S/4HANA? 

If yes, then you are in the right place.  

Have you heard of the SAP S/4HANA Readiness Assessment? 

An assessment to check the organization’s readiness to transform to SAP S/4HANA. 

Unlike any other evaluation, the “SAP S/4HANA Readiness Assessment” helps you in determining your current systems compatibility with SAP S/4HANA, identify potential risks and challenges, and develop a roadmap for a successful migration or upgrade. 

In short, this assessment is essential to ensure a smooth and successful migration to SAP S/4HANA and prevent any potential business interruptions. 

Let’s dive into the definition of SAP S/4HANA Readiness Assessment. 

SAP S/4HANA Readiness Assessment 

“A process for assessing a company’s preparedness to adopt SAP S/HANA or to migrate from SAP ECC to SAP S/4HANA, is defined as SAP S/4HANA readiness assessment. This assessment analyses systems, procedures, and data of an organization to assess the viability and hazards of the SAP S/4HANA migration.” 

5 reasons to conduct an SAP S/4HANA Readiness assessment  

There are several reasons why the SAP S/4HANA readiness assessment is necessary. Here are some of the top reasons:   

Identifying critical Business Processes: The readiness assessment assists organizations in identifying critical business processes like Record to Report (RTR), Plan to Inventory (PTI), and a lot more that can be enhanced or optimized.  

Identifying Risks and Reducing Them: Analyze the potential hazards, reduce the complexity of data transfer and manage end-to-end process’s testing and validations to mitigate risks.  

Establish the Scope of the Migration: Establish the scope of the SAP S/4HANA migration by deciding the systems and procedures to be moved in order to create a strategy to close any gaps. 

Creating a Migration Plan: Build a comprehensive migration roadmap that details the procedures required to switch transform from the current system to SAP S/4HANA. 

Analyze the benefits of Transformation: Businesses can understand the potential advantages of the SAP S/4HANA migration and identify the areas where they should improve to reap the maximum benefits and increase the ROI. 

Objectives of SAP S/4HANA Readiness Assessment 

The objectives of the SAP S/4HANA readiness assessment are:   

➔  Analyze the systems, procedures, and data of an organization today.

➔  Analyze the IT infrastructure readiness of a company.

➔  Determine which current business procedures and processes may be affected by the move.

➔  Examine the accuracy and comprehensiveness of the data in the current systems.

➔  Determine any technological constraints or problems that might affect the transition to SAP S/4HANA.

➔  In terms of resources, education, and change management, assess the organization’s capacity to support the new SAP S/4HANA system.

Key Components of the SAP S/4HANA Readiness assessment 

Simplification Items – A piece of information that describes the effects that migrating from one version of SAP to another could have on the organisation 

SAP Fiori App – With task and process simplification and increased user productivity, SAP Fiori apps provide a direct advantage to businesses. 

Extended Integration Analysis – Investigates the trigger-enabled tables used for SAP Landscape Transformation replication and seeks elements that are either directly or indirectly influenced by simplification items. 

SAP Innovative Business Solutions – Solutions developed by SAP Innovative Business Solutions must be checked for compatibility with the target SAP S/4HANA release. 

Process involved in SAP S/4HANA Readiness assessment 

The assessment generally involves assessing an association’s IT structure, business processes, data structures, and user interfaces to determine what needs to be streamlined or changed to support S/4HANA. The following are the major steps involved in the readiness assessment:

Let’s learn more about them in detail. 

• System Analysis  

System analysis is the process of carefully reviewing and comprehending an organization’s current systems, processes, data, and infrastructure. The following are the steps involved in system analysis: 

➔  Analyze the SAP system’s overall design, considering the network configuration, system landscape, and hardware infrastructure.

➔  Review the communication parameters, application servers, database servers, and other SAP system components settings.

➔  Determine the performance bottlenecks, which includes ineffective program logic, or insufficient hardware resources.

➔  Analyze the efficacy and efficiency of the business processes that the SAP system supports.

➔  Check the points of integration between the SAP system and any external systems or third-party apps.

➔  Analyze the preparedness and effects of upcoming system updates or additions.

• Business Process Analysis  

Business process analysis involves assessing and improving the organization’s current business procedures to bring them into compliance with SAP’s best practices and functionality. This study is essential to ensuring that the SAP deployment fulfils the organization’s unique requirements while maximizing efficiency and productivity. The procedure involved here are: 

➔  Provide a clear specification of business processes and SAP modules before evaluation.

➔  Discuss pain areas, difficulties, and inefficiencies with process owners and stakeholders to get opinion.

➔  Review important process metrics, such as cycle time, mistake rates, or resource use.

➔  Identify the points of interaction between various SAP modules or external systems that are engaged in business operations.

➔  Determine which activities in the business process can be automated with SAP functionality or through custom programming.

➔  Review the efficiency of the improved processes on a regular basis in comparison to the set criteria and goals.

• Data Analysis  

Examining and managing data within the SAP system to guarantee its integrity, correctness, and completeness is known as data analysis. It includes a variety of actions targeted at comprehending the data requirements, assessing the caliber of the current data, and formulating plans for data transfer, cleansing, and integration. There are five major steps involved in this process and they are: 

➔  Utilize SAP tools like SAP InfoSet inquiries, SAP Query, and SAP Report Writer to extract data from the SAP system.

➔  Cleanse and modify the retrieved data.

➔  Build a single dataset for analysis, combine data from many SAP modules or outside platforms.

➔  Create data monitoring systems that guarantee the correctness, consistency, and quality of the data.

• Technical Analysis    

Technical analysis is the process of analyzing and evaluating a system’s technical components, such as SAP. For the system’s deployment and operation to be successful, it places a strong emphasis on the configuration, customization, integration, and performance of the system. Here are the key steps involved in technical analysis: 

➔  Examine the system design to make sure it complies with the organization’s demands.

➔  Evaluate the system’s configuration to make sure it complies with SAP’s recommended standards and best practices.

➔  Analyze system performance parameters including response times, and resource use.

➔  To secure the integrity of the system and the data, identify vulnerabilities and suggest security changes.

➔  For thorough system monitoring, think about installing tools like SAP Solution Manager. 

• Risk Assessment  

Risk assessment in SAP involves identifying, evaluating, and mitigating potential risks that may impact the security, availability, and integrity of the SAP system and its underlying data. The key steps involved in conducting a risk assessment are: 

➔  Determine the SAP system’s possible risks and hazards.

➔  Examine the possible effects in terms of potential financial loss, operational interruption, reputational harm, or regulatory non-compliance.

➔  Based on the possible impact, rank the identified hazards in order of importance.

➔  Create plans and corrective measures for the threats that have been identified. Think about risk management strategies, preventative measures, and security controls.

➔  Conduct user awareness campaigns and teach staff about data handling protocols, potential security issues, and best practices for security.

Last Thought 

The first and most important phase in the organization’s S/4HANA migration process is the Readiness Assessment. For all the organizations who are preparing to convert to S/4HANA, completing this initial step with the utmost care is advised.  

 “Every organization needs a strong engine to propel it forward. “ 

The greatest insights are further accessible through KTern.AI, our transformation accelerator. KaarTech’s AI solution is designed to help organizations effectively achieve digital transformation. Our team of digital transformation consultants are here to assist you throughout the entire SAP S/4HANA Readiness Assessment. 

Are you planning on going through your S/4HANA Transformation soon? Start working with us at the demo.

Check out KaarTech’s website to know more about our products and services.

 

FAQ’s

What is SAP HANA readiness assessment?

A unique SAP project assessment tool called SAP S/4HANA Assessment provides a thorough analysis of your SAP system, IT architecture, operational procedures, data, and analytics. 

What is the objective of SAP readiness assessment? 

The SAP Readiness Check is made to help customers plan and get ready for the transition from the SAP ECC system to SAP S/4HANA. They can carry out an operation to validate several features of an existing SAP ERP system. 

What are the phases of SAP S/4HANA Readiness assessments? 

The phases of the SAP S/4HANA Readiness assessment are planning, implementing, reviewing and maintaining. 

Why SAP Readiness Assessment is important? 

The SAP Readiness Assessment helps in determining the expert skill sets required for your project. There is a clear distinction between activities that must be completed and those that can wait until later project phases.