From SAP ECC to S/4HANA: The Final Countdown

Release Dynamix for SAP

The talk of  SAP ERP Central Component (ECC) 6.0  approaching support deadline of 2025 is nothing new. The need for an SAP S/4HANA migration is *supposedly* undebated. For example in reviewing the agenda for SAPPHIRE NOW 2019 one could easily surmise that SAP S/4HANA is a key success factor for the Intelligent Enterprise, which is the theme of this year’s event.

SAP S/4HANA Now 2019

Hosted by SAP and the Americas’ SAP Users’ Group (ASUG), SAPPHIRE NOW 2019, is undoubtedly THE most important event on the SAP calendar. Both organizations – SAP and ASUG – have been vocal advocates of organizations’ need to have back-office core applications like SAP ECC catch up with the pace of innovation for front-office applications.

This year at  SAPPHIRE NOW, Prof. Hasso Plattner, chairman of the Supervisory Board of SAP SE is one of the keynote speakers. His talk will explore how the combination of X-data (experience data) and O-data (operational data) come together for the Intelligent Enterprise. Similarly,  Geoff Scott, ASUG’s CEO was recently quoted as saying that ”Organizations are spending a lot on marketing innovation, such as front-office technology, where there’s a lot of buzz, but the front office and the back office [will] have to be in sync at some point.”

How Imminent Is the Move to SAP S/4HANA?

Despite this clear directive from industry pundits, organizations running SAP ECC are seemingly unfazed by the official product end-of-life. According to a recent survey by ASUG, most (56%) of the respondents are taking a wait-and-see approach. The main reason cited for their reluctance to move? The complexity of an SAP S/4HANA migration.

This means most organizations are planning a move from SAP ERP ECC to S/4HANA, but haven’t taken any concrete steps to get there.

What’s Taking So long?

The ASUG survey has identified the top impediments causing organizations to hold off on moving to S/4HANA:

  • A migration is deprioritized due to other IT priorities
  • Organizations lack IT resources for the labor-intensive migration project
  • Organizations lack confidence in the maturity of S/4HANA.
  • Organizations are yet to build a justifiable business case.

Who Is Moving to SAP S/4HANA?

The ASUG survey further identified a few characteristics for organizations that have started to make the move:

  • They tend to be early tech adopters who can make IT-led business cases.
  • They’ve had to make a business case around external IT factors, such as a merger or acquisition.
  • Or, they’ve needed to do a system refresh and see the move as an opportunity.

Facing Your SAP S/4HANA Migration Obstacles, Head-on

Here are 3 steps you can take today to tackle the most common S/4HANA Migration obstacles:

  1. Use Value Stream Management to realize your IT priorities. Allocate resources based on added value to the end-user experience. Do not automatically assume your most challenging projects are also the most impactful ones.
  2. Start building a viable business case well ahead of your move. This may sound obvious, but apparently, some organizations could use a reminder. Waiting until the last minute means you will have to pay the cost of indecision; technical debt, market share loss to competition and eventually, a rushed, insufficiently resourced migration project.
  3. Connect with Panaya at SAPPHIRE NOW 2019 to learn how you can get ahead by ensuring fast and safe changes to your SAP application – from end to end business process testing through delivering quality SAP change implementations. And if you are starting your move or thinking about moving to S/4HANA, come learn how we can ease your journey so that you ensure quicker return on your technology investments.