It’s March, and the clock is ticking towards the new fiscal year for Indian businesses. Now is the time to seize the opportunity and go live with SAP S/4HANA. We mean, with SAP ECC’s support approaching its lifespan, there’s no better moment than now to upgrade to S/4HANA and start the new financial year with future-proof technology strategy.
And these could be the possibilities: streamlined processes, enhanced analytics, and a user-friendly interface with SAP Fiori.
The longer you wait, the more you risk falling behind the competition. Let’s learn more about this.
Read More: SAP ECC vs SAP S/4 HANA Cloud: A Comparative Guide
ECC has a deadline!
As the deadline for SAP ECC support approaches, the urgency to migrate to SAP S/4HANA is becoming more pronounced for organizations worldwide. Even though SAP ECC will receive support until the end of 2027, with some extensions possible until 2030, many organizations are feeling the pressure to decide sooner rather than later. Extending support may provide more time, but it also comes with increased maintenance costs. Additionally, the sheer volume of SAP ECC customers globally necessitates multiple go-lives every day to avoid massive backlogs.
Despite the approaching deadline, it is crucial not to base the decision to migrate solely on fear. Significant investments, like those required for an S/4HANA project, should stem from strategic planning and a vision for business transformation, rather than being solely driven by looming deadlines. However, for organizations already considering the switch, planning and implementing the transition sooner rather than later can offer several benefits.
Read More:- SAP S/4HANA Cloud: The Future ERP, A Business and Money Saviour
Advantages of Migrating to SAP S/4HANA:
- Built on SAP ECC Foundation: SAP S/4HANA builds on the structure and capabilities of SAP ECC, offering a familiar yet enhanced experience. As of 2020, SAP S/4HANA is in its seventh edition, boasting improved capabilities and stability.
- Smooth Transition Process: Many organizations finish a brownfield conversion to S/4HANA within 12-20 weeks (about 4 and a half months), often using a part-time resource model to control costs efficiently.
- Adaptable Deployment: Organizations can gauge the transition’s impact, as SAP GUI remains fully functional for almost all SAP S/4HANA features. This flexibility enables organizations to determine the timing and method of implementing changes for users.
- Mature Application with Continuous Improvements: SAP S/4HANA is a highly mature application built on SAP best practices, offering incredible extensibility and continuous improvements.
Considerations for Making the Switch:
| Aspect | Staying on ECC | Explorer License |
|---|---|---|
| Cost | Sticking with SAP ECC means your company will keep investing in and supporting outdated software. While you might not have the budget to move immediately, staying put won’t save you money in the long run. It’s crucial to consider a switch sooner rather than later. | Certainly, understanding and budgeting for costs is important. However, it’s essential to note that the cost of an S/4HANA conversion is unlikely to decrease in the future. As time passes, expenses and pressure to migrate will only increase. |
| Roadmap Building | Staying with SAP ECC doesn’t necessarily hinder your organization from planning for future advancements. However, building a future on software that lacks a clear roadmap for development can be a limiting factor. | SAP’s RISE with SAP offering presents a comprehensive vision for a total cloud service offering with S/4HANA, aimed at enabling an intelligent enterprise. S/4HANA also provides a wide range of tools to support the development of a roadmap or business case for your enterprise. |
| Realizing Benefits | You’re probably familiar with the benefits of SAP ECC. However, there’s a saying: “If you always do what you’ve always done, you will only get what you’ve always got.” | Embracing the new and improved digital business processes in S/4HANA can enhance efficiencies, cut costs, and boost revenue. SAP is committed to improving S/4HANA continuously, ensuring that these benefits keep growing. |
| User Experience | If you’re accustomed to working with SAP GUI, you’re likely familiar with its flow and transaction codes. However, SAP’s GUI has faced criticism from many users over time. The advantages of switching to SAP Fiori may outweigh the challenges of making the change. | SAP Fiori, the new user interface, offers several benefits such as embedded analytics, user domain cockpits, and proactive insights. It delivers information and alerts to users, enhancing engagement with S/4HANA. |
| Real-time Mobile Connectivity | While enabling connectivity does come with costs, including investments in laptops, tablets, smartphones, and web services, a modern ERP system can justify these expenses. | The world is increasingly mobile and interconnected, a trend that has only accelerated due to the pandemic. S/4HANA’s cloud capabilities provide real-time insights and enhanced business process monitoring, regardless of your location. |
| Data Access and Predictive Analytics | SAP ECC has traditionally excelled in gathering transactional data and facilitating operational reporting. However, this approach may not align with future needs. | In contrast, S/4HANA offers a significant advancement in predictive analytics. This enhanced access and analysis provides your company with a competitive edge that legacy systems cannot match. With real-time insights, S/4HANA can anticipate and mitigate situations and conflicts before they arise. |
| Decision-making | Data is incredibly valuable, but it’s true worth lies in the resources available to analyze and interpret it. Today, many organizations rely on outdated reporting practices and reactive approaches. While this may suffice, there is a better way forward with S/4HANA. | In today’s fast-paced world, leaders who fail to adapt quickly can soon find themselves falling behind. It is crucial for global leaders to seek comprehensive understanding of their options to make informed decisions. SAP S/4HANA provides a suite of tools that offer actionable insights to enhance operational decision-making. |
Besides the current business drivers, S/4HANA offers additional functionalities resulting from SAP’s 20% R&D investment in the product. Here’s an overview of some recent additions to the latest version of S/4HANA:
- Supply Protection: Helps businesses prevent shortages, reduce excess inventory, and optimize sales margins while prioritizing key customers or distribution channels.
- Flexible Purchasing: Enables the creation of purchase contracts with a generic item, with or without variations as sub-items.
- Business Technology Platform (BTP): Offers a robust digital foundation for accelerating digital innovation, developing powerful solutions, and delivering ongoing value across various business functions.
- Embedded Analytics: Includes a set of pre-defined analytical applications with Core Data Services (CDS) views, smart business dashboards for KPI monitoring, and user-friendly interfaces using SAP Fiori.
- Pack Separately, Ship Together (PSST): Identifies order items that should be shipped together, facilitating strategic consolidation into a single shipment order.
Why Now is the Perfect Moment to Make the Move?
Start today, go live before next FY starts.
With S/4HANA, you’re not just upgrading your software – you’re future-proofing your business. So, why delay? Start planning your migration today and pave the way for a successful future.
We get you and have also answered your last question with ‘how do I do this?’
Uneecops is a proficient ERP strategist and an adept SAP integration architect. We provide comprehensive SAP S/4HANA migration solutions and collaborate extensively with organizations of all sizes, from small and medium enterprises to large corporations. Our focus is on enabling strategic business models that embrace digital transformation and Intelligent Enterprise. Count on Uneecops to lead you through a smooth transition to SAP S/4HANA, unlocking your business’s full potential.
Check out this post to read real use’s migration story: Case Study of Transition to SAP S/4HANA
The time is now, the opportunity is yours…
Let’s make 2024 your year of transformation with SAP S/4HANA!
