What are the three transition scenarios for an S/4HANA implementation?

In the context of an S/4HANA implementation, the correct understanding involves recognizing the different transition scenarios that organizations can choose depending on their existing SAP landscape and business needs.

One of these scenarios is the "new implementation." This approach is typically chosen by organizations that are either migrating from non-SAP systems or have the need to start fresh with S/4HANA without any legacy data. In a new implementation, businesses focus on leveraging the best practices and capabilities of S/4HANA right from the outset. They can redesign their processes and align them with the functionalities available in the new system, thereby enabling a more significant transformation and optimization of their operations.

The other scenarios, while also relevant, serve different purposes. "System conversion" refers to converting an existing SAP Business Suite system into S/4HANA without starting from scratch, while "system activation" is often associated with activating S/4HANA functionality for existing users but retains much of the legacy structure. Understanding these distinctions is crucial in assessing how best to transition to S/4HANA based on an organization's specific context and goals.