Issue

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

Recommendation

Based on the evaluation as per 'Details' section the recommendation is to implement the 'Classic Version' of S/4 HANA Product Compliance.  The recommendation is driven by the following facts:

• S/4 HANA Product Compliance 'New Version' is only available for implementation from 2027 with limited scope.  
• remaining with ECC 'On Premise' poses a major draw back on integration with other core functions such as Logistics and 

A decision for 'Classic Version' needs to consider that a new ERP project will be required between 2029 and 2036 at the latest for a greenfield implementation of 'New Version' for S/4 HANA Product Compliance.

Background & Context

S/4 HANA for Product Compliance includes the following components:

1. Dangerous Goods Management (incl. Substance Volume Tracking)
2. Product Marketability and Component Compliance (Product Safety)
3. Compliance Document Management (Product Safety)

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.

Assumptions

It is assumed that ERP Rebuild is considering S/4 HANA Private Cloud for implementation as per KDD 'Private vs Public Cloud'.

It is assumed that S/4 HANA 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.  Awaiting confirmation by SAP which features are not included in SAP scope for 'Classic Version'.

It is assumed that 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.

It is assumed that S/4 HANA Product Compliance 'Classic Version' functionality will be supported until 2029 with standard maintenance until 2036.

Constraints

S/4 HANA EHS includes the following components:

1. Emissions Management
2. Waste Management
3. Incident Management
4. Industrial Hygiene
5. Occupational Health

S/4 SAP EHS does not offer different sets of capabilities in Private Cloud.  

Impacts

Licencing

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

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

Options considered

Option 1: New Version

• 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.

Option 2: Classic Version

• 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 support available until 2029.  SAP standard maintenance available until 2036.
• Requires new project for greenfield implementation of Product Compliance between 2027 and 2036.

Option 3: Continue with ECC 6.0 'On premise'

• Option to continue with SAP ECC 6.0 'on premise', which is supported until the end of 2027. 
• Post 2027 extended support from SAP is available, which is chargeable.
• Requires new project for greenfield implementation of Product Compliance between 2027 and 2036.
• Assumes continuation of  AS IS on ECC 6.0 'On premise' systems.  Requires system integration between ECC and S/4 HANA to support core functionalities e.g logistics.

Evaluation

	Weight (L/M/H)	Option A	Option B	Option C
Compliance and Regulatory		Pro Con	Pro Pro	Pro Con
Business Impact		Pro Con	Con	Pro Pro
Risk		Pro Con
Complexity		Pro Con Pro	Pro Con	Pro Con
Integration		Pro Con
Longevity		Pro Con

See also

SAP Notes:

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

Further SAP related documentation:

KDD 'Private vs Public Cloud' (link tbc)

Change log

Workflow history