Uptake of the solution has been steady, however, with SAP extending support of its current ERP business solution to 2027, further migrations could be delayed. Research from the SAP User Group revealed that more than half (58%) of users are not planning to make the move to S/4HANA in the next two years.
The business benefits of S/4HANA are clear, as it introduces agility, innovation, simplicity and efficiency to business processes, while helping to facilitate digital transformation initiatives. The main reasons companies cite for not making the move to S/4HANA are due to being uncertain of the migration path and change management requirements, along with the cost implications. However, the biggest misconception about moving is that it is an ‘all or nothing’ project, when a phased approach to migration is not just possible, but preferable.
By moving individual elements over to S/4HANA separately it reduces risk and allows lessons to be learned for future migrations. This can be achieved, within the warehouse environment of the supply chain, by transitioning to EWM (Extended Warehouse Management) on S/4HANA and continuing to operate all other aspects of the business on SAP ECC. This approach offers companies a lower risk and lower cost option than a full business transformation to S/4HANA at once.
The cost outlay of S/4HANA has also been cited as a concern, however, it is important not just to look at the initial cost outlay, but also the long-term cost savings that can be achieved as a result of moving onto the S/4HANA solution. The sooner the move is made, businesses can begin to realise the operational cost savings that can be made through enhanced functionality, which enables more streamlined business operations for increased productivity and efficiency.
Each business is different and a one size fits all approach does not work, which is why a tailored plan should be adopted, as Ian Scott, our Sales Alliance Manager, explains: “Those businesses that start to prepare for the move to S/4HANA now, and adopt a phased approach to the migration, will stay one step ahead of competitors as they begin to reap the rewards of a more streamlined operation.
“With a proven track record in S/4HANA migration, we have a robust process in place for managing the move, which is tailored to meet the requirements of each individual business to ensure a smooth transition.”
To read more about the considerations that need to be made when moving to S/4HANA take a look at our Demystifying S/4HANA Migration guide.