Introduction
Migrating from SAP ECC to SAP S/4HANA is not just a technical upgrade—it is a transformation that optimizes business processes, improves performance, and fully leverages SAP HANA’s in-memory computing. One of the most critical aspects of this transformation is Hanatization, a process that ensures applications, reports, and processes are optimized for HANA’s capabilities.
Many organizations assume that migrating to S/4HANA automatically provides performance benefits, but without Hanatization, legacy code and inefficient queries can still impact system efficiency.
In this blog, we will explore:
- What Hanatization is and why it is essential.
- Who is responsible for Hanatization in a migration project.
- What can be automated vs. what requires manual effort.
- Key steps to ensure a successful Hanatization strategy.
What is Hanatization?
Hanatization refers to the process of adapting SAP applications, custom code, and business processes to take advantage of SAP HANA’s in-memory architecture. It involves:
- Optimizing data models by eliminating redundant tables and leveraging columnar storage.
- Enhancing performance by shifting computations from the application layer to the database (code-to-data paradigm).
- Replacing inefficient ABAP code with SAP HANA-optimized SQL, Core Data Services (CDS), and ABAP Managed Database Procedures (AMDP).
- Transforming batch processing into real-time analytics using S/4HANA’s embedded capabilities.
Without Hanatization, many custom developments (Z-programs, reports, and interfaces) will continue running with outdated logic, leading to poor performance and inefficiencies even after migration.
Who is Responsible for Hanatization?
A successful Hanatization strategy requires collaboration across multiple roles:
- Project Managers: Ensure Hanatization is included in the migration scope and budget.
- Functional Consultants: Identify business processes that can benefit from HANA-native enhancements.
- Developers (ABAP Consultants): Adapt custom developments, reports, and queries to leverage HANA’s performance capabilities.
- Basis Consultants: Optimize database configurations, enable indexing strategies, and ensure proper utilization of HANA features.
Key Areas of Hanatization
1. Data Model Optimization
SAP ECC relied on aggregate and index tables to improve query performance. However, in S/4HANA, these are no longer needed because HANA’s columnar storage and in-memory processing handle data retrieval more efficiently.
Key Actions:
- Replace obsolete tables such as GLT0, GLT3, FAGLFLEXA, KONV, COEP, COSS, COSP with S/4HANA’s Universal Journal (ACDOCA) and new pricing tables like PRCD_ELEMENTS.
- Migrate custom reports and queries that reference old tables to use new CDS Views and standard S/4HANA data structures.
Who is responsible?
- Functional Consultants – Ensure reporting needs align with new structures.
- Developers – Modify queries, reports, and custom programs.
2. Performance Optimization
SAP ECC applications often process large datasets at the application layer, leading to high memory usage and slow execution times. Hanatization pushes computations to the database layer, allowing HANA to process data faster.
Key Actions:
- Identify slow-running SQL queries using SQL Performance Workbench (ST05, ST12, ST04).
- Eliminate SELECT inside LOOPs and internal table processing by using joins, aggregations, and CDS Views.
- Convert reports using nested SELECTs and redundant reads to optimized HANA SQL or AMDP.
Who is responsible?
- Developers (ABAP Consultants) – Refactor reports and custom developments.
- Basis Consultants – Tune SQL queries and optimize database configurations.
3. Business Process Optimization
Many ECC processes rely on batch jobs and pre-aggregated reports. In S/4HANA, these can be replaced with real-time analytics using SAP Fiori, Embedded Analytics, and CDS Views.
Key Actions:
- Identify batch reports that can be converted into real-time dashboards.
- Leverage SAP Fiori Analytical Apps to eliminate redundant reporting processes.
- Use Embedded Analytics with CDS Views to enable real-time KPI tracking.
Who is responsible?
- Functional Consultants – Identify process improvement opportunities.
- Developers & Basis Consultants – Implement real-time reporting solutions.
4. Custom Development Adjustments
Many ECC custom programs (Z-programs) reference obsolete tables and outdated processing logic. These need to be modified or rewritten to align with S/4HANA’s optimized architecture.
Key Actions:
- Identify and replace custom ABAP code referencing obsolete tables.
- Modify Z-reports to use standard S/4HANA CDS Views instead of direct table selects.
- Adapt existing ABAP code to leverage HANA-managed database procedures (AMDPs) where necessary.
Who is responsible?
- Developers (ABAP Consultants) – Modify and test custom code.
What Can Be Automated vs. What Needs Manual Effort?
| Hanatization Task | Automated? | SAP Tool Used |
|---|---|---|
| Identify obsolete tables and mapping to new structures | ✅ Yes | SAP Readiness Check, Simplification Item Check |
| Convert standard SAP reports to use new tables | ✅ Yes | S/4HANA Migration Cockpit |
| Identify Z-reports referencing obsolete tables | ✅ Yes | ATC (Custom Code Migration Worklist) |
| Convert slow ABAP reports to CDS Views | ❌ Manual | Requires refactoring |
| Optimize SQL queries with HANA processing | ✅ Partially | SQL Performance Workbench (ST05, ST12, ST04) |
| Replace SELECT inside LOOPs with optimized SQL Joins | ❌ Manual | Requires developer intervention |
| Implement Fiori-based reporting for real-time analytics | ❌ Manual | Requires business process redesign |
Steps to Implement Hanatization in S/4HANA Migration
- Run Readiness Check & ATC Reports to identify areas for optimization.
- Analyze custom developments (Z-reports, custom tables, interfaces).
- Optimize performance using HANA-native processing techniques (CDS, AMDP).
- Redesign reporting and batch jobs for real-time analytics with SAP Fiori and Embedded Analytics.
- Test and validate performance improvements post-migration.
Summing up…
Hanatization is a critical part of any S/4HANA migration. Without it, organizations risk running outdated code on a powerful HANA database—losing the true benefits of the migration.
For a successful transition:
- Project Managers must ensure Hanatization is included in the project scope.
- Functional Consultants must identify areas for process improvement.
- Developers must optimize custom ABAP reports and SQL queries.
- Basis Consultants must fine-tune database performance.
By proactively Hanatizing custom developments, reports, and business processes, organizations can unlock real-time analytics, improved performance, and streamlined operations in SAP S/4HANA.
Are you planning an S/4HANA migration? Ensure Hanatization is part of your strategy to maximize your investment.