Thinking about modernising your core ERP system? It’s a smart step. But it
comes with its fair share of hurdles. In Australia, many companies are facing tight project timelines, legacy system issues, and data cleanup headaches.
Don’t worry, though. You’re not the only one figuring this out.
This article covers the key things you’ll need to know before getting started. From potential roadblocks to smart ways around them—plus how S/4HANA Migration Services can make life easier—you’ll get a clearer view of what it takes to switch smoothly. Let’s get into it.
Understanding SAP ECC to S/4HANA Migration:
The migration from SAP ECC to S/4HANA is a significant improvement that impacts all aspects of your company’s operations. It’s more than just a technical change; it alters the way information flows, how procedures interact, and the way tasks are executed.
What makes S/4HANA stand out is how effortlessly it brings your data to life—real-time insights, a cleaner system layout, and a smoother user experience.
But before you dive in, take a moment to explore how this shift could affect your custom code, system connections, and the way your data is structured.
A little clarity now can save a lot of trouble later. An informed strategy guarantees that your move provides long-term benefits rather than temporary solutions.
Navigating SAP ECC to S/4HANA: 10 Key Migration Challenges Australian Businesses Must Prepare For
Do you know that the advantages of S/4HANA are numerous? It includes real-time analytics, streamlined procedures, and improved user experiences. However, obstacles are more likely to arise during the migration process.
Here we explore the primary difficulties firms experience during migration and how to properly address them:
1. Strategic Planning and Business Alignment
One of the initial issues is developing a clear migration strategy that is consistent with the company’s goals. Choices about whether to opt for a Greenfield (new implementation), Brownfield (system conversion), or Hybrid approach, as well as what to use, a cloud or on-premise arrangement, are critical.
Why it is important: A poorly developed strategy can result in misaligned objectives, lost assets, and disruptions.
Solution: Execute a thorough system assessment, set your objectives, and engage key stakeholders in the beginning phases. This ensures that the migration strategy addresses both urgent demands and lasting aspirations.
2. Data Volume and Quality
ECC systems usually collect large volumes of redundant, out-of-date, or poor-quality data over time. Moving such data to S/4HANA impacts the efficiency of the new platform. It also boosts the overall migration effort.
Why it is important: Inadequate data quality can slow down procedures, influence decision-making, and drive up migration costs.
Solution: Conduct an extensive data audit. Utilise data transformation tools to cleanse, consolidate, and organise data for migration. Develop strong data governance policies to ensure quality after migration.
3. System Downtime
Reduced downtime is crucial, particularly for enterprises that rely on SAP for critical business processes.
Why it is important: Each moment of interruption has an effect on output and client service.
Solution: Use gradual moves or downtime-optimised converting technologies. These options enable enterprises to maintain services during the changeover.
4. Custom code and modifications
Custom code and customisations to your ECC system may not be compliant with the streamlined data framework and processes of S/4HANA. For example, S/4HANA substitutes several standard tables and operations with more efficient equivalents.
Why it is important: Obsolete customisations can lead to mistakes, delays, and unneeded complexity.
Solution: Utilise data transformation tools such as the Custom Code Migration Worklist to examine existing custom code. Optimise or rewrite key customisations to meet S/4HANA criteria.
5. Change management and user training
S/4HANA introduces significant upgrades, including the Fiori interface and enhanced functionality. If improperly handled, these modifications may confuse end users and IT personnel.
Why it is important: Insufficient user engagement can diminish the return on investment and cause frustration.
Solution: Organisations should engage in user training programs tailored to specific job roles. To maximise the benefits of S/4HANA, offer practical knowledge and give an intense support framework to assist users in adapting to the new system.
6. Infrastructure requirements
S/4HANA uses SAP’s HANA database, which has specialised hardware and infrastructure needs. This may need a substantial expenditure on HANA-certified hardware or cloud services.
Why it is important: Improving equipment takes time and money, but it is inevitable.
Solution: Evaluate your current IT environment and compare it to SAP’s needs. Consider cloud alternatives as a way to avoid high upfront hardware expenditures. BUT if you opt for SAP S/4HANA Cloud, SAP will handle much of the infrastructure provisioning, system operations and upgrades.
7. Integration with Existing Systems
Many firms use a combination of third-party apps and non-SAP systems. Providing easy compatibility during and after migration can be a significant task.
Why it is important: Improper interconnections may affect workflows and result in data silos.
Solution: Use middleware, such as SAP Integration Suite, to standardise and streamline data flows between systems. Integration should be thoroughly tested before it goes online.
8. Compliance and Regulatory Requirements
Privacy laws, monetary regulations, and industry-specific requirements must be met during the move. Shifting data between platforms and changing processes can raise regulatory concerns.
Why it is important: Adherence infractions can result in sanctions, reputational damage, and financial losses.
Solution: Implement a compliance audit to discover gaps. Implement robust security measures and ensure that your new system complies with the relevant standards, meeting all required criteria.
9. Functional Differences
The most recent update, S/4HANA, is designed to be more efficient and intelligent than earlier versions, making it easier for organisations to manage their work in today’s rapidly digital world, which often requires restructuring existing business processes.
Why it is important: If your company doesn’t adapt effectively, it risks missing the full value of S/4HANA.
Solution: Collaborate with SAP specialists to gain a deeper understanding and adapt to these changes. Discover opportunities to standardise processes and reduce needless complexity.
10. Cost Management
Migration to S/4HANA has several economic factors, including licensing, hardware upgrades, consulting fees, and user training. Handling these expenses efficiently presents a big challenge.
Why it is important: Uncontrolled costs can put a burden on budgets and delay the realisation of ROI.
Solution: Prepare a precise budget and prioritise investments that will provide immediate company value. Adopt a staggered execution to spread expenditures over time. Additionally, the cloud model is designed to shift expenses from capital expenditures (CapEx) to operational expenditures (OpEx). This shift enhances cash flow management and scalability by replacing large upfront investments in hardware and perpetual licenses with recurring subscription fees.
Strategies to Execute Safe and Seamless Migration
Organisations can implement successful migration techniques during the S/4HANA migration process. These measures will make the S/4HANA transition progress quite smoothly and help reduce the risks:
1. Comprehensive Planning
Planning should begin with a thorough analysis of the organisation’s present IT infrastructure. This will enable you better to understand the scale and parameters of the migration process.
The next important step on the checklist is risk assessment. It enables you to face any obstacles that may arise. Consider all of your alternatives and choose the best migration approach for your organisation. This is the initial step in the migration process.
A successful S/4HANA migration strategy should include a precise timeline for each phase. It will also address resource allocation and risk management strategies.
2. Data Quality and Validation.
Don’t fail to recognise the procedure of data validation. At this stage, you will identify the critical data that needs to be moved. To prevent overburden, the old system must retain certain leftover data.
Examine the data stored in historical systems to identify any redundant or unnecessary elements. This is an excellent strategy to reduce risk. The migration process offers the firm the opportunity to sanitise its data. This guarantees that only relevant and significant data is migrated.
Companies can use the SAP S/4HANA migration dashboard to accomplish this. It includes programmed tools and templates that help to streamline the migration process. This solution also allows firms to manage S/4HANA data migration processes. It also reduces mistakes and accelerates the S/4HANA conversion process.
3. Technical Readiness.
Your company’s IT infrastructure must meet technical specifications. Regardless of the type of transfer you choose, ensure that you invest in the necessary hardware, software, and network updates.
4. Work with experienced partners.
The S/4HANA conversion is a complex transformation that goes beyond technical migration—it demands strategic foresight, deep SAP expertise, and a nuanced understanding of business processes. Without the proper guidance, organisations risk costly missteps that can delay ROI and disrupt operations.
That’s why partnering with consultants who bring both technical mastery and industry insight is essential. Experienced partners not only help navigate the intricacies of system conversion, data migration, and process redesign—they also bring tested methodologies and tools that accelerate timelines and reduce risk.
For example, some partners offer selective data transition approaches that allow businesses to retain historical data while modernising their ERP landscape. Others provide proprietary transformation platforms that have been validated across thousands of projects globally.
Choosing a partner with a strong track record in SAP S/4HANA migrations—especially one recognised by SAP for its contributions to system landscape optimisation—ensures your transition is not just technically sound, but strategically aligned with your long-term goals.
Conclusion
Digital transformation SAP S/4HANA is not only a technology update; it’s an opportunity to reimagine how your organisation operates. However, making the switch from SAP ECC requires careful planning, clean data, and proper support.
With challenges around custom code, integrations, and tight deadlines, having a clear strategy makes all the difference.
By following the proper steps and working with experienced partners, Australian businesses can move ahead with confidence and unlock long-term value. Now’s the time to act—and do it right.
