SAP S/4HANA Cloud Migration: RISE vs GROW

When enterprises begin their SAP S/4HANA transformation journey, they're immediately faced with a critical choice: RISE with SAP or GROW with SAP. While both programs facilitate cloud migration, their approaches and target audiences are fundamentally different.

Why Did SAP Create Two Distinct Programs?

Established enterprises running legacy SAP systems have completely different needs than mid-market companies implementing ERP for the first time. Complex customizations require different approaches than standardized implementations.

Let's explore both options and examine the key differences and selection criteria for each program.

Understanding SAP's Cloud Transformation Programs

RISE with SAP

• Target Audience: Large enterprises with existing SAP ECC systems

• Environment: Complex, global operations

• Philosophy: Migrate from legacy to cloud with one major leap

GROW with SAP

• Target Audience: Mid-market companies implementing ERP for the first time

• Environment: Standard process-driven operations

• Philosophy: Grow alongside SAP

The SAP Cloud Migration Process

1. Discover: Assessing Your Current Situation

The first step is objectively understanding your company's current state. The judgment made at this stage determines the direction of the entire project.

When RISE is Suitable

If you're a large enterprise currently operating SAP ECC, RISE is the natural choice. These organizations are already familiar with the SAP environment and want to maximize existing investments while gaining cloud benefits.

RISE's customized approach is essential for organizations with these characteristics:

• Global multi-country operations: Different regulations, currencies, and language requirements by country

• Complex business processes: Years of accumulated business expertise and customizations

• Various integrated systems: Dozens of peripheral systems connected to ERP

• High availability requirements: System downtime leads directly to massive losses

When GROW is Suitable

If you're a mid-market company implementing ERP for the first time or transitioning from other systems, GROW is worth considering. Starting clean without complex legacy burdens is a major advantage.

GROW's standardization approach is optimal for organizations with these characteristics:

• Standard process focus: Relatively simple, standardizable business processes

• Speed preference: Pursuing rapid visible results over long-term projects

• Predictable costs: Clear pricing structure without complex additional costs

• Limited IT resources: Efficient operations without large IT organizations

2. Prepare: Strategic Approach Differences

The strategic planning stage clearly reveals the philosophical differences between the two programs. This represents fundamental business approach differences beyond simple feature variations.

RISE Strategic Approach

RISE's Fit-Gap approach maintains existing business processes while adapting systems accordingly. It starts with the question: "We have established ways of working—can we do the same in the new system?"

Process Flow: Existing process analysis → Standard function comparison → Gap identification → Customization/extension development

Benefits:

• Business continuity assurance

• Minimal user adaptation burden

Trade-offs:

• Inevitable increases in development costs and complexity

RISE targets comprehensive digital transformation. It includes BTP (Business Technology Platform) credits for a comprehensive approach covering not just ERP but AI, analytics, and extension apps.

RISE Module and Function Scope:

• All core ERP modules (FI, CO, SD, MM, PP, PS, etc.)

• Extended modules including HR, CRM, SRM

• Third-party app integration, industry-specific solution connectivity

• Custom app development support using BTP

GROW Strategic Approach

GROW's Fit-to-Standard approach adopts proven best practices as-is. The mindset is: "Let's learn industry standards and do the same."

Process Flow: SAP standard process learning → Current process adjustment → Business method alignment to standards

Benefits:

• Minimized implementation time and cost

• Upgrade stability assurance

Trade-offs:

• Potential organizational resistance due to business method changes

GROW focuses on core business processes. The strategy starts with immediately necessary functions and gradually expands.

GROW Core Scope:

• Finance (FI), Management Accounting (CO), Sales (SD), Purchasing/Materials (MM) focus

• Pre-configured best practice packages

• Staged expansion possible, but initially core function-focused

• Configuration changes within standard scope

3. Realize: Implementation Stage Differences

The implementation stage actually reflects the previously established strategy in the system. The approach differences directly impact implementation complexity and duration.

RISE Implementation: Customization

RISE's customized implementation makes maximum effort to reflect existing business processes. This brings high satisfaction but increases complexity accordingly.

Typical RISE Customization Areas:

• Z-Transaction development: Implementing unique functions not in standards

• User Exit application: Adding company-specific rules to standard logic

• Interface development: Integration with existing connected systems

• Report customization: Implementing identical outputs to existing formats

• Workflow design: Reflecting company-specific approval systems

Development Resources and Timeline

RISE projects typically require 6 months to over 1 year. Meeting complex requirements necessitates corresponding time and personnel.

• Multiple specialist consultants: Module experts, technical architects, interface developers

• Customer core personnel input: Business experts, IT staff, PMO organization

• Stage-by-stage checkpoints: Design → Development → Unit testing → Integration testing → User testing

• Risk management: Preparing for schedule delays and additional development possibilities due to complexity

GROW Implementation: Standardization

GROW's standardized implementation uses proven settings as-is to ensure stability and speed.

GROW Main Implementation Methods:

• Configuration focus: Meeting requirements through setting changes rather than development

• Standard form utilization: Using SAP-provided standard reports and screens

• Best practice application: Implementing industry-validated processes as-is

• Minimal customization: Limited development only when absolutely necessary

Development Resources and Timeline

GROW projects can complete within weeks to months. Standardized approaches provide high predictability.

• Efficient resource utilization: Consultants familiar with standard processes

• Quick decision-making: Eliminating complex customization review processes

• Simple validation process: Period reduction through standard function-focused testing

• Predictable schedule: High schedule estimation accuracy due to many similar project cases

4. Test: Key Testing Strategy Differences

The testing stage verifies that the built system operates without problems in actual business. Due to the implementation approach differences, testing strategies are completely different.

RISE Sophisticated Test Automation

RISE environments with complex customizations and various connected systems require sophisticated and systematic test automation as essential.

Customization Testing Complexity

• Z-Transaction testing: Verifying operations of company-developed unique functions

• User Exit verification: Confirming accuracy of custom rules added to standard logic

• Interface integration testing: Verifying data transmission/reception with dozens of external systems

• Scenario-based testing: Comprehensive verification of complex business flows from start to finish

Automation Necessity

In RISE environments, manual testing cannot cover all scenarios. Especially considering recurring regression testing during upgrades or patch applications, test automation is essential, not optional.

• Real transaction data-based testing: Verification with actual operational data, not sample data

• Large data processing verification: Performance testing under conditions identical to actual business volume

• CI/CD pipeline integration: Automatic verification in continuous development and deployment processes

• Regression test automation: Automatic checking of change impacts on existing functions

GROW Standard-Based Testing

GROW environments based on standardized processes can utilize SAP's proven testing methods.

Standard Script Utilization

• SAP-provided test cases: Utilizing test scenarios for already-verified standard functions

• Best practice-based verification: Pre-validated test procedures for industry standard processes

• Configuration testing: Verification focused on setting value changes rather than complex development

• Standard interface verification: Verification of SAP standard integration methods

This standardized approach provides clear testing scope, fast execution speed, and low probability of unexpected errors. In standard process-focused simple business environments, this efficient testing method can provide sufficient quality assurance.

5. Run & Innovate: Operations and Upgrades

While building and operating systems is important, stable long-term operation with continuous improvement is even more crucial. The two programs show distinct differences in operational methods.

RISE Operational Approach

RISE's flexible upgrade policy provides options that can be selected according to enterprise circumstances.

Private Cloud Environment:

• 2-year cycle major upgrades: Securing sufficient review and preparation periods

• Stability priority: Careful upgrades with verified versions

• Customization impact analysis: Pre-review of compatibility with existing development content

• Company-specific upgrade plans: Flexible schedule adjustment according to company circumstances

Public Cloud Environment:

• Quarterly automatic upgrades: Rapid application of latest functions and security patches

• Continuous innovation: Quick utilization of new functions

• Management burden reduction: SAP manages overall upgrade process

RISE is a comprehensive package model including BTP credits and process intelligence tools, providing various functions but requiring complex pricing structures and operational organizations demanding high expertise.

GROW Operational Approach

GROW's automatic upgrades aim for simple and predictable operations.

• Quarterly regular upgrades: Stable cycle proceeding automatically 4 times per year

• Standard function focus: Minimal upgrade impact due to少 customization

• Transparent roadmap: SAP provides advance notification of upgrade content, predictable changes

• Minimal preparation: No separate compatibility review process due to standard environment

GROW provides clear pricing based on user count and module scope, with simple operational structures manageable by small IT organizations.

Conclusion

Choosing between RISE and GROW for SAP transformation is not a simple technical decision. It's a strategic choice requiring comprehensive consideration of our company's current situation, future vision, and organizational capabilities.

Key Selection Criteria:

• Complexity vs Simplicity: Is customized implementation needed, or is standardization sufficient?

• Time vs Completeness: Is rapid implementation priority, or is perfect implementation priority?

• Investment vs Efficiency: Can long-term investment be sustained, or is efficient operation priority?

• Expertise vs Accessibility: Can high expertise be secured, or is simple management preferred?

Both programs are based on SAP's proven methodologies, so successful cloud transformation is possible regardless of choice. What's important is making the right choice for our organization.