The SAP world is careering toward the 2027 deadline for the end of business as usual with SAP ECC. Virtually everyone with an SAP ECC installation is planning their next moves. Some have already started the migration, but fewer than you might expect. Everyone else must first answer the question, “Do we need to migrate to SAP S/4HANA now or wait?” Here are 7 reasons why companies need to start the migration to SAP S/4HANA now.
1. You’ll Have Time to Plan a Smooth Migration
The planning process required to move to S/4HANA will vary depending on the complexity of your existing system, but it needs careful preparation. You’ll also need to allow the time required to rework some or all your business processes, depending on the goal you set for your migration. Training your workforce is another topic that requires careful consideration and planning.
Starting your migration planning process now will ensure that you have the time you need to keep existing systems working effectively while planning a move to the cloud.
2. You’ll Have a Simplified Data Structure
SAP S/4HANA is simpler, cleaner, and easier to use than ECC – the data structure is also much simpler than ECC. You’ll have the opportunity to use best practices in developing business processes, which also promotes innovation and growth.
3. You’ll Have Better Reporting Capabilities
SAP S/4HANA will provide you with faster data handling, and you’ll have access to data from across the organization. Your reports won’t take the same amount of time as they do now. You’ll have a better view of your operations, which will give you a foundation for accurate decision-making.
4. You’ll Have the Capability to Make Data-Based Decisions
With real-time access to data, advanced analytics, and decision support systems powered by AI, your decision-making capabilities will expand significantly. Implementing S/4HANA now will make a big difference in how your company grows over the next few years.
5. You’ll Have an Enhanced User Experience
SAP S/4HANA has a new user interface that will be easier for your users to learn and manage. Information is presented to the user in a much more intuitive way than is possible on ECC. You’ll get a head start on using advanced capabilities to help improve productivity and foster innovation.
6. You Won’t Experience Last Minute Migration Syndrome
The odds are that many companies will try to put off the pain of decision-making until they’re close to the deadline. You will encounter problems if you’re in a rush to migrate because anything done at the last minute is naturally full of pressure and stress. There are problems you may encounter:
- It may be more difficult to acquire experts to assist you since the demand will undoubtedly be higher at the last minute.
- Migrating under stress can cause quality problems because you’ll be moving so fast the details will be easy to miss.
- It will be more difficult to execute a migration that minimizes disruption to your operations, which will cost time and money.
- Change management will be more difficult because your employees will need to come up to speed with new processes very quickly. You may not be able to provide all the training and support that your workforce needs to make the most of the new capabilities.
7. Putting Off SAP Improvements Will Delay the Benefits of SAP S/4HANA
Maintaining or improving your competitive advantage is a major benefit of moving to S/4HANA. The sooner you make the switch, the sooner you’ll be able to take advantage of all the benefits that S/4HANA provides, including:
- The opportunity to rethink processes during a planned migration.
- Increases in productivity with a well-trained workforce.
- Reduction in costs when you use a more cost-effective solution.
- More powerful decision-making using native machine learning, advanced analytics, and more advanced and easier to use interfaces.
- Preparing your systems for the future and promoting innovation.
Final Thoughts
Some IT executives are banking on SAP extending their support for ECC as they did in the past. However, savvy experts are saying that SAP can’t afford to keep putting off the end of support for ECC. So, it’s likely that you will need to migrate to S/4HANA at some point in the relatively near future.
It would be to your advantage if your company were one that will spend the time after 2027 using advanced tools to increase your competitive advantage while your competitors are racing to do a last-minute conversion.
Lemongrass helps clients achieve transformation to a digitally enabled, highly automated service delivery model that empowers the greatest level of agility and innovation. We can partner with you to complete the migration and then provide managed services to keep your SAP installation running at peak efficiency.
If you want to learn more about the current state of S/4HANA adoption, and how you can plan for the fastest and easiest way to complete your company’s migration, download our latest eBook, RISE with SAP: How to Manage the Top 5 Impacts on Your Operating Model.
Additionally, to discuss your company’s plans, contact a Lemongrass expert today.
