S/4HANA Selective Data Transition: A Smarter Move for Australian Enterprises

18. June 2025

Thinking about switching to SAP S/4HANA? For many Australian enterprises, the challenge isn’t just migration—it’s making the most informed and strategic move possible.

Selective data transition offers a smarter path forward, retaining only essential data and processes to avoid the cost and complexity of full-scale overhauls or rigid lift-and-shift models. It enables agility, compliance, and simplification while minimising interruption. 

In this article, we’ll explore how selective data transition works, its comparison to other migration strategies, and why it’s gaining traction among forward-thinking Australian businesses.

 

 

What is S/4HANA Selective Data Transition?

 

Selective Data Transition (SDT) is a hybrid approach to migrating from SAP ECC to S/4HANA. It combines the strengths of system conversion and new implementation, without inheriting their limitations.

With SDT, your organisation can selectively redesign parts of your ERP landscape while preserving what still works—striking a balance between innovation and continuity..  

Whether you prefer a single “big bang” go-live or a phased rollout, SDT supports both. You choose which ABAP repositories, master data, and transactional records to migrate—and which legacy data to leave behind.

Keep in mind: selecting data isn’t enough. Any imported master data must still be cleansed, harmonised, and adapted to meet S/4HANA’s requirements.

 

 

What’s Involved in a Selective Data Transition to SAP S/4HANA?

 

Selective data transition relies on a combination of SAP-native and third-party tools,  such as SAP Data Management, Landscape Transformation, and Enterprise Transformer for SAP S/4HANA, to execute the migration.

These applications allow a business to selectively move various sorts of data, such as the following:

  • ABAP repository objects and custom developments
  • Configuration (customisation) data
  • Master data
  • Transactional data (open items and selected historical records) 

 

These proven tools are especially valuable in modern M&A scenarios, such as divestitures, where businesses need to carve out and migrate only a subset of data into a new SAP environment.

 

 

Comparing SAP S/4HANA Migration Approaches

 

When planning a selective data transition, businesses typically choose between two main approaches to build the target S/4HANA system: shell conversion and the mix-and-match approach.

Shell Conversion: This involves creating a “shell” copy of your existing SAP ECC system, excluding master and transactional data, and converting it to S/4HANA. 

Mix-and-Match: This method starts with a fresh S/4HANA installation. Configuration settings and ABAP developments are selectively transported or manually recreated, offering maximum flexibility and control.

Both options involve data migration, which includes master data, balances, and open items. This table compares the various ways:

 

 

Criteria  System Conversion  Shell Conversion  Mix and Match  New Implementation 
Process Reengineering  Innovations are typically made after conversion, whereas simplifications are implemented throughout the project. Organisational structure modifies, the possible process adjusts in specific areas.  Major changes in various areas, including modifications to the organisational framework. Basic process redesign, including organisational reconfiguration.
Data Cleansing  Optional pre-project archiving; data discrepancies must be corrected. Active data selection; on-the-fly cleansing. Choice of active data; cleansing on the fly is possible. New data is completely clean for novel procedures.
Data Transformation  Only necessary adjustments were approved. Structural and field mappings are feasible. It is possible to map structures and fields. The latest data is entirely clean for fresh procedures.
Phased Go-live Primarily a single-step conversion; phased go-live is possible with additional planning and tooling. Fully supported (preferably according to company code). Fully supported (preferably per company code). Fully supported (preferably by enterprise code).
Historical Data Full transactional history converted. For instance, per time slice, functional area, or organisational unit. For example, per time slice, functional area, or organisational unit. Only master data is migrated initially; historical data is not included.
System Split or Consolidation  Supports split or consolidation scenarios Supports split or consolidation scenarios Supports split or consolidation scenarios Not applicable

 

 

 

Key Challenges in SAP S/4HANA Data Migration

 

SAP data migration is a critical yet complex process that requires careful planning, skilled execution, and strong business involvement.

Despite careful planning, organisations often encounter several obstacles that impact data quality, project timelines, and overall business success.  

Understanding these difficulties early on allows businesses to handle issues effectively and guarantee an easier integration into their new SAP environment:

 

 

  1. Data inconsistencies and duplicates

One of the most prevalent challenges in SAP data conversion is addressing inconsistencies and duplicate records. Legacy systems often accumulate redundant, outdated, or inaccurate data entries due to individual errors, the absence of validation procedures, or numerous system integrations.

Examples:  

  • Multiple customer accounts for the same entity, with minor spelling variations.
  • Inconsistent naming conventions for materials and vendors.
  • Outdated pricing or master data that no longer reflects current operations.

Impact:  

  • Causes operational inefficiencies after the shift. 
  • Triggers reporting errors and decision-making delays.  
  • To address this, conduct thorough data profiling and cleansing before migration. 

Solution:  

Use automated tools to identify and eliminate redundancies early in the process.

 

  1. Custom Legacy Data Formats

Legacy systems often contain highly customised data structures, fields, and formats that have been developed over time. These customisations rarely align with SAP’s standard data models, making migration complex and time-consuming.

Examples:  

  • Custom material attributes or customer fields not found in SAP standard tables. 
  • Nonstandard date formats, units of measure, or currency codes.
  • Hard-coded validation rules or incompatible field mappings.

Impact:

  • Requires complex transformation logic and manual adjustments
  • Increases the risk of data loss or misinterpretation
  • Can delay project timelines if not addressed early

Solution:  

Conduct detailed data mapping workshops with both business and IT stakeholders to identify and assess custom fields. Use migration tools that support custom transformation logic to ensure accurate and efficient data handling.

 

  1. Volume and Complexity of Data

Large organisations often need to migrate millions of master and transactional records spanning decades. This sheer volume—combined with complex data relationships—creates both technical and operational challenges.

Examples:  

  • Migrating decades of transactional history (e.g., sales orders, purchase orders, financial postings)
  • Complex parent-child relationships in bills of materials (BOMs) or multi-level customer hierarchies
  • Multiple legacy systems with redundant or incompatible data structures

Impact:

  • Longer migration timelines and increased storage demands
  • Higher risk of data loss, duplication, or performance degradation
  • Poorly managed cutovers can lead to extended downtime and business disruption

Solution:  

Use phased or selective migration procedures that ensure only essential and relevant data is relocated first, followed by archiving strategies for older data.

 

  1. Downtime During Go-Live

Downtime during the final cutover can significantly disrupt business operations. For industries with 24/7 requirements—such as manufacturing, retail, or healthcare—even brief interruptions can lead to lost revenue and customer dissatisfaction.

Examples:  

  • Prolonged data loads during go-live cause business disruptions.  
  • Data reconciliation mistakes necessitate rework and reloading.  
  • Unanticipated system crashes occur as a result of underestimated volume or load capacity.

Impact:

  • Missed business opportunities and damaged customer trust.
  • Extended downtime increases operational costs.
  • Business and IT teams face intense pressure during critical periods.

Solution:  

Create a robust cutover plan that includes extensive rehearsals (mock cutovers), backup procedures, and downtime minimisation approaches such as delta loads or parallel running during the final S4HANA Move.

 

  1. Absence of proper data governance

Without strong governance, data migration efforts often become reactive, inconsistent, and error-prone. Clear ownership, accountability, and quality standards must be established from the outset.

Examples:  

  • No single source of truth for key master data (e.g., customers, vendors)
  • Unclear responsibilities for validating and approving migrated data
  • No defined standards for data formats, validation rules, or metadata

Impact:

  • Post-migration issues such as missing fields, inaccurate records, and compliance risks
  • Lack of auditability may lead to regulatory complications
  • Ongoing data corrections can delay project timelines.

Solution:  

Establish a data governance framework with clearly defined roles (e.g., data owners, stewards), documented procedures for data entry and maintenance, and continuous monitoring to ensure data integrity.

SAP data migration is challenging, but by understanding the primary obstacles, businesses can plan ahead, select the right partners and technologies, and implement risk-reduction best practices. 

The upgraded SAP environment will be more valuable, and the move will go more smoothly if you invest in planning, governance, automation, and change management.

 

 

Conclusion

 

Thinking about SAP S/4HANA migration? Australian businesses require more than just technological upgrades; they must also execute their strategies effectively. 

S4HANA Selective Data offers a personalised approach to modernisation, preserving critical processes and data.  

It is more straightforward to use, more economical, and more responsive. By combining creativity and control, this SAP data migration method enables you to proceed with a purpose.

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