SAP S/4HANA Migration & SAP BW

SAP S/4HANA Migration – Opportunities for Your Data and Reporting Architecture

Migrating from SAP ERP to SAP S/4HANA not only changes the technological foundation but also the core processes for data integration, analysis, and reporting.

SAP BW, in particular, as an established data warehouse system, is directly affected: Existing data models must be revised, reporting structures adapted, and new opportunities for real-time analyses must be developed.

In this article, we will show you the impact of the SAP S/4HANA migration on your SAP BW and how you can strategically use the new potential for your company.

1. Changes in data integration

With the introduction of SAP S/4HANA, the existing data architecture is being fundamentally revised – with direct effects on SAP BW. The most important changes at a glance:

New Universal Journal (ACDOCA)

"Best Practice" recommendation in S/4HANA: Accounting-based CO-PA largely eliminates previous restrictions in profit analysis.

➜ This requires a comprehensive revision of the CO/PA reports in SAP BW: The CO-PA, Controlling-Profitability Analysis, which is profit and market segment accounting, enables detailed analysis of profits and losses across various dimensions such as customers, products, regions, or business units. It serves to evaluate market segments and improve profitability.

➜ Reporting and data models in BW need to be adjusted: In the future, all business partners will be stored in a central table, with attributes and relationships distinguishing the different partner types. This requires an adjustment of the existing BW data models and reporting structures.

Changes to master data and hierarchies

New hierarchy structures can influence existing BW hierarchies.

➜ Early review and adjustment is advisable: Many companies use BW for hierarchies (e.g. cost centers, profit centers, customers). SAP S/4HANA often brings changes to these hierarchies - especially through the Business Partner Model and the merging of data structures.

Standard Extractors and DataSources

Many standard extractors are no longer available or are being replaced by new interfaces.

➜ Companies need to review existing BW data flows and switch to ABAP CDS Views or Operational Data Provisioning (ODP).

Changes to field lengths and data models

The introduction of SAP HANA as the underlying database leads to technical changes, such as extended field lengths for material numbers and sales documents.

➜ Existing BW transformations and reports must be adapted.

2. Adjustments in the data model

How do BW models and reports need to be adapted to SAP S/4HANA?

The new system architecture brings changes to the data model:

Change from accounting-based to cost-of-sales accounting

➜ Customization of reporting structures and harmonization of the chart of accounts.

Introduction of the new warehouse management system (EWM)

Extended Warehouse Management (EWM) is being introduced as the new standard solution for warehouse management. Existing warehouse processes from SAP WM are being converted, which may result in changes in the BW data flows.

Handling historical data

In many SAP S/4HANA projects, historical transaction data is not automatically migrated but remains in SAP BW as archived data. BW reports must continue to access archived data while remaining compatible with harmonized data from SAP S/4HANA. A clear strategy for historical data storage is therefore essential.

➜ Adjusting or expanding the authorization concept for data access.

➜ Clear strategies for access and authorizations are required.

Simplification of data models

The new architecture of SAP S/4HANA enables simplified data models and faster queries. This can reduce redundancies and improve the performance of the BW system, provided that the existing structures are optimized.

➜ Optimization of existing structures is necessary.

3. Reporting & Analytics – Utilizing New Opportunities

What new analysis options does SAP S/4HANA bring?

In addition to adjustments, SAP S/4HANA also offers completely new possibilities for reporting and analytics:

SAP S/4HANA Embedded Analytics

Real-time operational analyses can be performed directly in the ERP system, allowing you to conduct these analyses within the transaction itself. The new analysis functions should be used to strengthen collaboration within the system and enable better decision-making.

➜ Enables better, data-driven decisions in daily operations.

Learn more ➜

Integration of BW with S/4HANA Reporting

Despite the new possibilities, SAP BW / SAP Datasphere remain central components for company-wide reporting and complex analyses, especially for combining planning and actual data, integrating SAP and non-SAP data, and providing consolidated company-wide key performance indicators and reports.

➜ Developing a clear strategy for the coexistence of Embedded Analytics and classic BW reporting.

4. SAP BW/4HANA and SAP Datasphere as a Strategic Option

What role do BW/4HANA and SAP Datasphere play in the future?

Long-term planning for the data warehouse

Since classic SAP BW will not be further developed in the long term, you should consider which path to take: e.g. a direct conversion to SAP BW/4HANA or a migration to the
SAP Business Data Cloud (BDC).  There is the option to migrate BW 7.5 or BW/4 as PCE (Private Cloud Edition) to the cloud and build new data models in a modern, future-proof environment. This enables companies to optimally prepare for AI/ML requirements and
to remain competitive in the long term.

➜ Checking the possible migration solutions.

Integration into the migration strategy

If you're planning an upgrade to BW/4HANA or a gradual implementation of SAP Datasphere, it should be included in the migration strategy early on. This helps avoid duplicate efforts and unnecessary adjustments.

➜ Early involvement and planning prevent duplication of effort.

Use of technological advantages

SAP BW/4HANA offers a more modern architecture, better performance, and native HANA optimization, especially for large amounts of data and real-time analyses. At the same time, SAP Datasphere enables a cloud-based, flexible data architecture for hybrid and heterogeneous landscapes.

➜ Weighing up which data management platform is suitable.

➜ Building a powerful, flexible platform for hybrid data landscapes.

SAP BW/4HANA Migration

The migration from SAP BW to SAP BW/4HANA offers numerous advantages in terms of performance and flexibility. By switching to a modern, simplified architecture, efficiency improvements can be achieved while laying the foundation for future requirements. A structured migration process is crucial in order to fully exploit the advantages of SAP BW/4HANA and address potential challenges at an early stage.

Successful migration through strategic planning

The SAP S/4HANA migration brings significant changes for SAP BW.

A successful transition requires:

Sophisticated adaptation of data integration.
Optimization of BW models and reporting structures.
Strategic use of new reporting and analysis options.

Our offer:

With our expertise in Data & Analytics, we help you to optimally adapt your SAP BW landscape to the new requirements - and to make your reporting processes future-proof.

Giancarlo Schifano

Senior Analytics Consultant

KNOWLEDGE

Things worth knowing

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