(3 min read)
SAP’s 2027 deadline, as just announced by SAP, for supporting legacy software might seem a long way off, but that doesn’t mean you should wait to move to SAP S/4HANA. In fact, there are plenty of reasons why a migration now can save you time and money and reduce the risk– here are 3.
Moving to SAP S/4HANA does require thought & planning by any organisation. The overall cost is an obvious consideration, but beyond that, the move can potentially involve multiple departments, requires training on new processes and the allocation of internal resources. No wonder so many companies delay this decision. Moreover, SAP will continue to support legacy ERP solutions until 2027.
What’s the hurry, right?
Waiting until the last minute might appear to be an easy decision, but waiting too long is not always the right thing to do. Here are 3 reasons to migrate to SAP S/4HANA now.
1. Full Maturity for SAP S/4HANA
With any new product, there’s a hesitancy to do the transition too early. I can understand the concerns. Does the software still contain bugs? If I need additional help, can I get access, quickly, to trained experts? I can assure you that when it comes to S/4HANA these concerns should no longer be viewed as barriers to adoption.
Since 2018 and the 1809 release, the product has achieved a high level of maturity. S/4HANA has processes to cover your needs and is industry ready. We now have a growing library of best practices spanning lines of business. That means everyone in the SAP ecosystem, from partners such as itelligence to SAP support, are well trained on how to help customers succeed.
2. Prevent Time Pressure
Take a step back and consider a few simple facts: First, SAP will stop supporting legacy ERP systems in 2027. Second, there is a limited number of knowledgeable and experienced consultants who are able to guide companies successfully in their move to S/4HANA. Third, there are a large number of companies, currently using SAP’s legacy ERP software, who lack clarity on their path to S/4HANA, who are unsure how and when to move to this “new” ERP platform, and are unaware of the implications of this decision gap.
Simply said: The more and the longer companies wait to move to SAP S/4HANA the more likely there will be the situation of a limited number of available supporting SAP partners, like us, able to cover the upcoming wave of transitions starting in, say, 2021.
With that in mind, and though it might sound impossible, we are already facing a time crunch until 2027.
3. Move Smoothly
Humans are very much creatures of habit. Not everybody likes or embraces change. Large scale disruption is something an organisation tries to reduce and mitigate. Something that organisations are unaware of when considering their move to S/4HANA is that you have the flexibility to continue using, shall we say, “old” ERP capabilities, even after you have moved to S/4HANA. SAP Human Capital Management (HCM), a tool for HR professionals, is one example of this. Existing HCM processes and data can continue to be used in S/4HANA under “compatibility scope”, this gives you the ability to move and innovate at a pace of your choosing.
What’s Next? Move Now!
The key first step on the path to S/4 is understanding there are three different scenarios for how you can move to SAP S/4HANA. One is to carry out a New Implementation (also called the Greenfield Approach), and to load master and open transactional data into the new system. Another approach, for a company who wishes to keep their processes and historic data, is to carry out a System Conversion (also called a Brownfield Approach). The third scenario is the so called “Selective Data Transition” approach. This final approach is for existing system landscapes running multiple instances of SAP ERP that need to be consolidated onto a single central SAP S/4HANA system.
Every customer situation can be different and the appropriate scenario has to be adapted to the specific circumstances and therefore modifications of these scenarios are possible.
At itelligence we work hard to minimise the impact of customer specific situations on the approaches. As an example, regarding the system conversion, we have developed an unique method, approach and offering, called the conversion factory, which makes it possible to manage a conversion with both, fixed time and budget.
To sum it up: Moving to SAP S/4HANA needs careful thought and consideration. I’ve provided 3 reasons why moving now would be a clever and forward thinking decision. The truth is, your move to SAP S/4HANA is not a question of if, but of when… and the answer should be now. We know what we are talking about, we have already completed 150+ successful SAP S/4HANA transitions. As a Platinum SAP Partner, partnered with SAP for over 30 years, we have gained the experience, knowledge and understanding to provide you with the best solution.
Why moving now is beneficial for you:
• Mature and stable solution
• Avoid the pressure and risk of the deadline
• Ensured stability for your daily operations
Interested in knowing more about SAP S/4HANA?
Are you convinced that you want to move to SAP S/4HANA now? Not yet? Do you need more information for making this decision? Whether you like to know more about the transition scenarios or about the product itself, you can find that information on our detailed product page.