Why Should Current SAP Users Migrate to SAP S/4HANA?

Organizations must transform at the speed of the evolving business realities, and in the Digital Economic context, the most nimble ones are set for success. Business technologies should be postured to address current needs and hedge future risks. Today the incentives for organizations to be scalable and gain intuitive enterprise control are higher than ever. Consequently, SAP R3, upgraded as SAP ERP Central Component (ECC) and trusted by big businesses worldwide for decades, is now giving way to SAP S/4HANA, the future-ready ERP.

For inducing a new era in ERP technology, earlier SAP has declared an end of support for SAP Business Suite 7 (including SAP ECC 6) by 2025. Later, the deadline was revised till 2027 to ensure a smoother transition for the existing SAP ECC customers worldwide. Nevertheless, the writings on the wall are more evident than ever. SAP S/4HANA as a product currently dominates the strategic focus of the global ERP leader, and fresh investments and research are unlikely to find their course into its predecessors anymore. Undeniably SAP is pitching SAP S/4HANA as the clergy of innovation for digitally-forward enterprises.

However, the end-of-life scenario for SAP ECC apart, various factors are at play, leading IDC to find that at least 73% of the companies across industries are considering an SAP/4HANA switchover. If you are an existing SAP user hooked on to the exceptional business benefits of its products, there are more than enough reasons to consider an earlier transition to the intelligent ERP suite. A few of them could be:

• Driving a sustainable business advantage: Digital is a formidable differentiator, and embracing SAP S/4HANA puts a complete suite of intelligent technologies at your disposal, otherwise unavailable with its competitors. It includes Artificial Intelligence, Machine Learning, RPA, Advanced Analytics, IoT compatibility, and much more. Now whether you want to automate your legacy business processes, gain real-time visibility into your supply chain operations, intuitively manage inventory levels or drive predictive maintenance of assets, leveraging unmatched S/4HANA capabilities can simplify even the most pressing problem statements.
• Incubating growth: An ideal ERP should be able to match your ambitions and business stride. SAP S/4HANA is an agile ERP designed to grow and adapt to your business needs. Rather than splurging valuable time and resources on systems that are reaching the end of the road, it makes much more strategic sense to meaningfully invest in a futuristic ERP platform that is currently at the center of SAP’s market-leading R&D and support focus.
• Securing competitive advantage: Whether you are considering a Greenfield or Brownfield migration, an early transition to the SAP S/4HANA will put you ahead of your peers to architect new solutions with intelligent technologies and adopt them organically across your enterprise ecosystem. However, continuing with your existing SAP product may only add to the technical debt, making future migration more complex. The more customization, development, and integration that you undertake in your SAP landscape, the more cost-intensive it will be to ensure a seamless and holistic crossover in the future.
• Bridging capability gaps: The company is consistently releasing dynamic quarterly updates and upgrades incorporating a trove of cutting-edge features and applications into the existing SAP S/4HANA package, making its core more intuitive and mission-worthy. It will help if you attempt to bridge this gap at the earliest or risk falling further behind the curve by operating your existing ERP product, with negative implications for your business in the closely contested market space.
• Cultural adoption: Initiating a migration to SAP S/4HANA well in advance will give your business enough headstart to ensure a smooth cultural transition. While SAP S/4HANA is a quick-deployment package with templates like Procure2Pay, Plan2Produce and Order2Cash to have your business processes up and running with minimum delay, a proper solution roadmap is essential for ensuring optimum outcomes. Intelligent technologies are only as effective as their adoption by the workforce. An early transition will give your employees enough time to be a future-ready workforce and settle comfortably into an SAP S/4HANA driven enterprise culture.

Final notes

Globally, the adoption of SAP S/4HANA is no longer a matter of if but when. Several frontline organizations worldwide are already firing on all cylinders towards an SAP S/4HANA-enabled future. Consequently, experts predict a shortage of high-quality SAP consultancy for handholding businesses and delivering the necessary guidance for a seamless transition, driving up project costs. However, If you are ready to start early and are not shy of embracing positive shifts, SAP S/4HANA migration partners like Percipere are standing by with a broad array of specialization to guarantee an optimum return on your investments.

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