Issue

Syensqo currently uses SAP functionalities in ECC to cover HSE requirements relating to Safety Datasheets,  Labelling, Dangerous Goods Management, Substance Volume Tracking and Compositions.  These SAP functionalities are covered by SAP Product Compliance with S/4 HANA.

S/4HANA offers the option to implement a 'Classic Version' or a 'New Version' for SAP Product Compliance. A decision is required, which version of S/4HANA Product Compliance (New or Classic) should be implemented considering scope and timelines.  

Recommendation

The recommendation is to implement the S/4HANA for Product Compliance 'Hybrid Version' (Option 4).

This is partially driven by the following key points:

• S/4HANA Product Compliance 'New Version' (Option 1) is only available for implementation in the S/4HANA 2023 product, however will only attain its full functionality from 2027 onwards.  Until then, the new version will have significant functionality gaps as compared to the 'classic version'. 
• Remaining with ECC 'On Premise' would mean a very restrictive longevity and poses a major draw back on integration with other core functions such as Logistics, Transportation Management, Product Master etc.  It should be ruled out on the basis of S/4HANA adoption being the core of ERP Rebuild.  Further, the feasibility to maintain an ECC6 stack for this option would be question.  Hence the continuation with ECC6 (Option 3) is not viable.
• The implementation of S/4HANA Product Compliance 'Classic Version' (Option 2) requires a new re-implementation project (big bang) before the end of support of the 'classic version' is reached in 2036. This would effectively be a greenfield implementation of Product Compliance as the data models are not compatible. 
• S/4HANA for Product Compliance 'Hybrid Version (Option 4) enables the phased use of New Version functionality when it becomes available.  It decouples SAP scope availability from the timeline of the ERP Rebuild project.  It enables Syensqo to implement newly available S/4HANA Product Compliance functionality based on business readiness.  Implementation projects are expected to be of smaller scale due to phased approach.  The hybrid option gives the business the benefits of new features to cover future requirements without having to cover scope gaps with additional enhancements.

Background & Context

Explain the context in which the decision is being made.

S/4 HANA for Product Compliance includes the following components (upon full scope availability):

1. Dangerous Goods (DG) Management including:
   1. Regulatory/country specific data management 
   2. DG classification
   3. DG checks
   4. DG data integration for outputs and EDI
2. Product Marketability and Compliance including:
   1. Composition management
   2. Product Master integration
   3. Checks incl. marketability, supplier material
   4. Substance Volume Tracking (SVT)
3. Safety Datasheet SDS and Label Management including:
   1. SDS/label generation for country specific requirements
   2. SDS check integration with logistics processes
   3. Automated and manual SDS shipments

The SAP strategy is focused on the complete renewal of Product Compliance in SAP S/4HANA.  At a high level S/4 HANA for Product Compliance offers two sets of capabilities in Private Cloud.  

1. Classic Version - existing capabilities.
2. New Version - new capabilities.

The database model and code is very different between 'Classic Version' and 'New Version'.  The 'Classic Version' continues to use the Specification Database Workbench, the same as ECC6.0.  The 'New Version' uses a CDS-based data model (SAP Core Data Services) and a new process model.  SAP CDS is an infrastructure for data modelling that enables data models to be defined and consumed on the database server rather than the application server.  A full-on migration/re-implementation is needed to transition between 'Classic Version' and New Version.

HSE Landscape As Is

Assumptions

Clearly describe the underlying assumptions which informed or limited the choices available, or impacted the decision: cost, schedule, regulatory requirements, business drivers, country footprint, technology, etc. Include links as necessary. This section is important because a future change in circumstances might invalidate some key assumptions, which then prompts a decision to be revisited. 

It is assumed that:

• S/4HANA Product Compliance 'Classic Version' includes all capabilities required by Syensqo.  SAP currently states that almost all features of SAP Product Safety and SAP Product and REACH Compliance are available.  The features of MSDS Maker is not available in the 'Classic Version' and has been replaced with CosSta (Conditions for Safety Statements), a functionality within SAP EHS Rule Editor.
• Any impacts of this KDD on other ERP Rebuild EHS KDDs will be managed via the subsequent KDDs of the relevant ERP Rebuild EHS components.
• ERP Rebuild does not end up with an unsupported platform following platform license negotiations and that a supported version of S/4 will be the core platform (see related KDD in 'References').
• S/4HANA Product Compliance 'Classic Version' is contained EML in as per SAP 'CAL EML Getting Started Guide v2' for SAP S4HANA Cloud Private Edition 2023 (added to references).  Whilst not specified as 'Classic Version' it is assumed to be compatible.  

Constraints

Capture any additional constraints that the chosen alternative (i.e. the decision made) might impose on other parts of the overall design, solution, or processes.

1. S/4 SAP EHS does not offer different sets of capabilities in Private Cloud.  S/4 HANA EHS includes the following components:
   • Emissions Management
   • Waste Management
   • Incident Management
   • Industrial Hygiene
   • Occupational Health
2. A decision for 'Classic Version' needs to consider that a reimplementation of Product Compliance will be required before 2036 for a greenfield implementation of 'New Version' for S/4 HANA Product Compliance.
3. SAP have not been able to provide clear guidance on the roadmap and alignment of features for Syensqo purposes at the time of writing.

Impacts

Describe the impact of the decision on processes, infrastructure, other SAP modules or systems, data cleansing and migration, developments, automations, interfaces, in-flight projects, etc.

• A migration or re-implementation project will be required to move to the 'New Version' of Product Compliance after it attains feature parity with the 'Classic' solution (currently planned for 2027), and before it goes out of SAP Support in 2036. Due to the significant data model differences, this will be a considerable project and not a straightforward technical upgrade. 
• All capabilities of business area "Product Compliance" are available in S/4HANA, the exact scope may vary compared to the ECC-based products.  Options are:
  • Licensed "SAP S/4HANA" and "SAP S/4HANA for Product Compliance": choice to either use the so-called "classic functionality" or the "new functionality". 
  • Subscribed to "SAP S/4HANA Cloud, private edition" and "SAP S/4HANA Cloud for product compliance, private edition": choice to either use the "classic functionality" or the "new functionality". 
  • Subscribed to "SAP S/4HANA Cloud, public edition" and "SAP S/4HANA Cloud for product compliance, public edition": the Product Compliance "new functionality" can be used.

Business Rules

The decision may translate into business rules which enforce the decision and will require configuration. List these business rules here. For example, "An Outline Agreement cannot be created via the RFQ process. An awarded RFQ can only result in a Purchase Order". 

Decision for 'Classic Version' is expected to result in limited investment in change of scope in the time between the implementation of the 'Classic Version' and the greenfield implementation of the 'New Version' for Product Compliance.

Options considered

List the options (viable options or alternatives) you considered. These often require a longer explanation with diagrams, or references to other documents (links are best, but attachments are also possible). Use enough detail to adequately explain what you considered so that a project or business stakeholder reviewing this decision will not come back and ask "did you think about...?"; this leads to loss of credibility and questioning of other decisions. This section also helps ensure that you considered enough suitable alternatives rather than just copy/pasting SAP's recommendations.

Option 1: New Version

Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

• New process model, SAP Fiori apps.
• New data model, CDS-based.
• New integration into product master, sales, delivery, procurement, transportation.
• No full scope yet, innovation roadmap.
• Available from 2027 with limited scope only with S/4 HANA 2023.  Full scope available with S/4 HANA 2027.

Option 2: Classic Version

Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

• All features of the SAP ERP based product safety and product compliance solutions
• SAP GUI and Web Dynpro transactions
• Specification database, workbench approach
• Full scope, no functional enhancements.
• Available now.
• SAP standard maintenance available 2029 to 2036.
• Requires new project for greenfield implementation of Product Compliance between 2027 and 2036.

Option 3: Continue with ECC 6.0 'On premise'

Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

• Option to continue with SAP ECC 6.0 'on premise', supported until the end of 2027. 
• Post 2027 extended support from SAP is available, which is chargeable.
• Assumes continuation of  As Is on ECC 6.0 'On premise' systems.  
• Requires new project for greenfield implementation of Product Compliance between 2027 and 2030.

Option 4: Hybrid between Classic and New Version

• Hybrid between Classic and New Version using 3E Hybrid Adapter synchronising data between versions.
• Functionalities implemented from Classic to New Version as and when additional scope becomes available in New version (Hybrid roadmap).
• Requires smaller scale implementation projects when Classic Version functionality is implemented in New Version.
• Means multiple smaller scale implementations spread over time rather than 'Big Bang' from Classic to New Version.
• User impact potentially dealing with two different S/4HANA versions on day-to-day basis.

Evaluation

Outline why you selected a position. The best format could be a pro/con table (sample below), but is up to you as the author. You must consider complexity, feasibility, cost/effort to implement, but also ongoing operational impact and cost. You must consider the program principles and explain any deviations in detail. This is probably as important as the decision itself.

An evaluation overview based on the detailed Pros and Cons for each capability in the subsequent table further clarify the reasoning behind the recommendation.

See also

SAP Notes:

• 3015382 - Product Compliance: Strategy and Roadmap Overview
• 2269324 - Compatibility Scope Matrix for SAP S/4 HANA

Further SAP related documentation:

KDDs:

• S/4 HANA 'Private vs Public Cloud'

• KDD001 - Permit to Work

Change log

Workflow history