SAP S/4HANA, the reimagined, simplified, fourth-gen ERP business suite is a major milestone in the company’s evolution of product line. SAP redesigned all processes with simplification and digitization at the core and used the latest innovations in the speed of data processing, such as in-memory databases, machine learning, web and user-friendly GUI, and so on.
Companies that have SAP as the backbone of their ERP are now contemplating their shift to SAP S/4HANA. The migration to SAP S/4HANA can become hassle-free with the right strategizing and planning.
To justify the need for an upgrade, we first need to chalk out the moving parts of the puzzle and bring them into a single picture to analyze the impact, the how, and the when of migration.
- Ownership – Business and IT leadership impact the overall strategy when it comes to making a digital transformative move within any enterprise. While IT leadership makes a case for advanced technologies, business leaders justify the shifts for the business.
- Business Environment – While some organizations like to be early adopters of new technologies, others want to wait until it is ripe for implementation. Early adoption comes with its risks and quick benefits. Business risk can be mitigated if the timing of migration is correctly determined.
- Timing the Upgrade – New and better systems are getting unveiled every day. There is no perfect time for scheduling an update as new versions evolve with time. If organizations wait for too long, support costs escalate and the shift becomes harder and more intricate to plan.
Waiting for SAP S/4HANA to mature might not be the best move for organizations. A research report from Gartner outlined when and why organizations should migrate to SAP S/4HANA. The big black conclusive statement from Gartner advises organizations not to wait and perform an analysis now.
Gartner also predicted that there would be a tsunami of SAP S/4HANA adoption between 2021 and 2023, which means the implementation costs might go up as skilled resources are scarce. SAP customers might have to recruit substandard professionals, which might result in unsuccessful implementations.
Assessing the Current Business Systems
Whether you are looking to migrate to SAP S/4HANA as a technical upgrade or a business transformation, the first step should be understanding the current environment and predicting what SAP S/4HANA can bring to the table.
This migration guide from itelligence provides a framework for you to work out the strategy one bit after another. We have broken down a lengthy framework into bite-sized pieces you can individually work on, to assess your current environment.
Most organizations are confident in their understanding of their current business system landscape. But, in reality, integrations and processes evolve over time, making systems more complicated than they look. Heavy customizations, various software versions, and organizational silos add complexity to the current organizational system.
To minimize any risk from disruption and estimate costs of migration to SAP S/4HANA, it makes sense to carry out a comprehensive evaluation of the business’ processes and technologies.
Cloud or Not?
While undertaking a larger step toward SAP S/4HANA, it is critical to investigate your business process portfolio and decide whether or not to shift existing processes from the traditional ERP to the cloud.
Since there are several benefits of moving processes to the cloud, this decision impacts the overall effectiveness of migration.
Now or Later?
As previously stated, waiting might leave you with scarce resources and increased cost of migration to SAP S/4HANA. Here are a few reasons why this might be a good time to move to SAP S/4HANA:
- Reliability and Efficiency – Your legacy SAP ERP platform has now been running for several decades. Understandably, it may have outdated configurations, inadequate system resources, custom codes, and an array of other issues. Moving to SAP S/4HANA will modernize your operations and refresh your ERP implementation to add reliability and efficiency to your system.
- Third-party Integrations – Shifting to SAP S/4HANA might have immediate effects for your tech stack if you have been using third-party apps. SAP has been working with the likes of Microsoft and Apple, looking to provide new apps and more powerful integrations for HANA. Therefore, you might need to reconsider your support strategy of third-party app vendors, as you could lose support for existing apps before 2025, or miss out on the latest functionality.
- Customer Retention – The customer runs your business now. They expect personalized experiences and on-time results across all channels of interaction. Can your legacy ERP keep up with these changing customer demands?
- Talent Retention – Employees too have certain expectations with the technology they use to work. This is especially true in the case of millennials. Organizations are in a war to attract top talent and it’s going to get harder for you with outdated systems.
If you are convinced, itelligence offers an SAP S/4HANA migration workshop to help assess your current environment and enable your top leadership to understand:
- Digital transformation and what it could bring for your business
- The SAP S/4HANA core digital strategy
- Evolution of SAP products
- Various deployment options that come along with SAP S/4HANA
- A simple, risk-free approach to SAP S/4HANA migration
- Defining a business case for moving to SAP S/4HANA
When you’re ready to make the move, itelligence offers a Fixed Fee Migration to SAP S/4HANA Digital Core that includes a three-month accelerated timeline and one year of free access to a dedicated expert advocate to ensure a smooth migration and operation of your converted system.