By Arun Natesan, Chief Architect at JDC Group
From validated design to a working solution.
The Realize Phase marks the transition from discovery and planning to tangible execution. In Part 1 of this phase, the focus is on system configuration, extensions, data preparation, and laying the technical groundwork to bring your Cloud ERP solution to life.
What Happens in the Realize Phase – Part 1?
This stage is where your Fit-to-Standard decisions are transformed into actual configurations. It includes activating scope items, executing key-user extensibility, managing development work, and beginning integration and data migration activities.
Objective: Translate business design into system configuration and prepare the environment for testing and deployment.
Core Activities in Realize – Build & Configure
- System Configuration Based on Fit-to-Standard Outcomes
Configuration is guided by the outcomes of the Explore Phase. Scope items identified earlier are activated, and settings are applied in the system to match business requirements.
Use SAP’s pre-delivered configuration content to reduce manual setup and ensure alignment with best practices. Allows flexibility to add additional configuration based on business needs. Start with Org Structure, financial settings, scope items, and specific configurations based on Line of Business (LOB) needs.
- Key-User and Developer Extensibility
S/4HANA Cloud supports a clean core approach through extensibility options:
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- In-App Extensibility (Key-User Tools): Add custom fields, logic, or UIs without writing code
- Developer Extensibility (SAP BTP): Build custom apps or side-by-side extensions using SAP Business Application Studio, CAP, or low-code tools
Follow SAP’s extensibility guidelines to avoid breaking the upgrade-safe architecture.
- Initial Data Migration Execution
Data migration is not a one-time event—and execution cycles start early. In this phase:
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- Extract, cleanse data, and validate for relevance and quality
- Use SAP Migration Cockpit to upload and validate data
Focus on Big-4 master data (customers, vendors, materials, and finance) first, and stage transactional data in later waves.
- Integration Setup and Validation
Modern ERP environments rarely exist in isolation. Integration setup is critical and includes:
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- Standard SAP APIs (OData, SOAP) for external connectivity
- SAP BTP services for advanced workflows, AI, or document management
- Middleware configuration if needed (e.g., SAP Integration Suite)
- Firewall/Infrastructure changes, as needed by the organization
Reconfirm your integration points from the Prepare and Explore Phases and start with interface building activity.
- Unit Testing and Functional Validation
Before broader testing, each configured process and integration must pass unit-level validation. This ensures that each scope item behaves as expected and forms the baseline for future testing stages.
Establish clear entry/exit criteria for each unit test. Use automation tools if available to speed up validation.
Deliverables of Realize Phase – Part-1: Build & Configure
- Activated scope items and applied configurations
- Completed extensibility developments and documentation
- Initial data migration test cycles with validated records
- Working integrations and interface documentation
- Signed-off unit tests and functional validation logs
Key Takeaway: This Is Where the System Takes Shape
In Part 1 of the Realize Phase, your blueprint becomes a living system. Through methodical configuration, validated extensions, and well-planned integration and data activities, you lay a solid, scalable foundation for deployment. This is the fourth blog in our SAP Activate series, designed to demystify each phase of the S/4HANA Cloud implementation journey.
What’s Next?
In Post 5, we will move to Realize Phase – Part 2, focusing on quality assurance, end-to-end testing, and user enablement. It’s all about preparing for a successful deployment. Stay tuned!
Click here to read the previous part of this series – the Explore Phase.
Click here to read the next part of this series – the Realize Phase, Part 2.
