If you are currently using or actually planning to implement an SAP legacy software—SAP ERP, BW, and CRM—better think again. By 2025, SAP will conclude maintenance and support for said legacy software as systems will solely operate in a single SAP HANA database. The 2025 deadline entails that businesses may no longer receive customer updates, security, or technical support. With this 2014 announcement and with only 6 years left, your system is on a deadline.
SAP clients Moving to SAP S/4HANA
In a recent survey conducted by IDC market research firm, 54% are planning to deploy SAP S/4HANA in 3 years and 72% are shifting from on-premise to the cloud. From this numbers, 36.3% are moving to SAP S/4HANA Cloud while 36% are moving to SAP partner cloud providers. Moreover, 43%, 33%, and 23% of responses denote that clients are consolidating ERP instances to one SAP S/4HANA instance, a system conversion shall be made from ECC to maintain current data, and a full new implementation will be made, respectively. Lastly, 77% of the customers will utilize SAP partners to transform and integrate change management and deployment. 300 SAP customers participated in the study which were IT and LOB executives that stretched over 10 countries and covered 3 regions.
Consequently, what do these numbers denote? Businesses around the world are starting to mitigate any business risk in terms of their IT operations by recognizing the flexibility and advantages offered by SAP S/4HANA. In fact, IDC discovered that SAP S/4HANA was critical to companies for it is a major component in digital transformation and that it significantly lessens expenses. Not only that but the time for processing and utilizing information for improved analytics and simulations are reduced as well.
Major advantages of Moving to SAP S/4HANA
Perhaps after considering the above listed numbers, you might now be asking, “what is it for my business, then?” On this account, SAP S/4HANA can be of many benefits to your company. As an intelligent ERP, it capitalizes on the HANA in-memory platform and columnar method of storing information in order to provide analytics and computing capabilities in real-time. Since its launch, S/4HANA has experienced countless advances and is considered to be crucial in the ERP market. Here are four other benefits that you can achieve from S/4HANA:
- Real-time access. Gain quick and up-to-date insights of relevant information which enables to clearly plan and forecast business decisions as well as resolve potential issues through real-time transparency.
- Improved efficiency and increased productivity. Streamline business process through SAP S/HANA’S simplified and automated operations that boost productivity all the while reducing manual workload with less prone to error.
- Innovation. SAP has affirmed their principle of ‘innovation without disruption’. Maximize speed and data accessibility through SAP S/4HANA which provides significant innovative solutions that broadens business capabilities.
- Reduced IT cost. With SAP S/4HANA optimizing data volume and simplifying IT landscapes, it removes overlapping data which in turn reduces operating costs and infrastructure maintenance.
As you Move with SAP S/4HANA
Determining how to approach the forthcoming deadline is imperative for businesses since the shift to S/4HANA is a recurring series of data gathering, planning, implementing, and revising. Here are four things to generally consider as you migrate to S/4HANA:
1. Initial Assessment
Before beginning a project, it is important to perform initial assessments and system checks since this will determine the necessary measures when it comes to the migration plan, estimated timetable, and allocated budget. It is essential to evaluate your database, operating system, and SAP platform for there are updated versions that only require little preparation or older versions which might require extensive customization.
2. Strategic Planning
Outline business processes, identify priorities, and pinpoint challenges in order to easily map and monitor your move to SAP S/4HANA as well in terms of making a more comprehensive budget. Also, building a team, such as a functional, technical, or an internal team, which will assure correct functionality of your landscape, refine the system, and set goals and approve necessary business processes, respectively.
3. Execute Migration
As you had strategically planned, the migration process will now take place. It may be a single project within a couple of months or an array of smaller projects that can stretch over a few years. Likewise, the actual migration may transpire together with other projects such as upgrading and merging software or developing products and services depending on obtainable IT infrastructure.
It is vital that you do not merely consider the migration phase itself but what happens beyond it. As soon as the changes are implemented, you will be able to see how your system operates and how your business has been impacted by the said changes. It is a perfect opportunity to analyze modifications, improve approaches and internal processes, and formulate long-term plans for your business.
While every SAP client recognizes that the eventual move is inevitable, many are worried about the project’s price, intricacy, and overall period. It should be noted, however, that the greatest benefit of SAP S/4HANA is that it enables organizations to operate seamlessly in a digital economy. As a result, this has been the key consideration for companies to take into account its business benefits since with 6 years left on the clock, 2025 is not as far-fetched as it seems.
About the author:
Eliza Tarlac is a content writer for Marketing. She is a graduate of Bachelor of Arts, Cum Laude, major in English Language Studies from the University of Santo Tomas. As a writer, she is passionate in technical, academic, and creative writing where she strives to transform ideas and concepts to help businesses deliver their message and establish their brand.