SAP is committed to supporting SAP ECC until 2027 with extended support until 2030. For SAP customers on ECC, it’s not a question of whether to migrate to S/4HANA – but when. S/4HANA is not just a technical upgrade; it is the digital core of an organization. It offers improved integrations with cloud applications, better access to real-time data, an intelligent data model with a user-friendly interface, integrations to 3rd party solutions, and more opportunities for innovation. Please see this blog for more on that.
An S/4HANA transformation project certainly comes with its challenges. Like any worthwhile endeavor, it certainly helps to dive in with your eyes open and make sure you check your assumptions. As Keith Cunningham articulates in his book ‘The Road Less Stupid’, make sure you do a W.D.I.S. (What Don’t I See) assessment. In this short blog, I’ll summarize a few of the challenges to take into account.
Identify interdependencies within your existing integrated ERP landscapes to create a clear roadmap and target architecture of the future S/4HANA system. Ensure ownership is evident for legacy SAP applications as ERP landscapes may have grown over many years (either due to a global roll-out, user-defined modules, interface dependencies, or manual workflows). In the case of M&A activity, ERP systems may have been taken over rather than consolidated, causing more complexity.
There might also be multiple SAP projects running in parallel supporting various parts of the business – these projects need to be reconciled with the scope of the transformation project.
The complexity of SAP landscapes is one of the challenges during an S/4HANA transformation. To capitalize on the platform’s underlying in-memory database and intelligent data model, you must modify the SAP core and be willing to simplify the central S/4 system. Customizations need to be refined, processes redesigned, and custom Z programs often replaced. Even when opting for a brownfield approach with a shorter project duration, you still need high-quality master data and visibility over the application landscape. See this blog for more on the brownfield approach.
An S/4HANA transformation would require you to make many strategic decisions regarding your existing business processes and system landscape. Therefore, a key challenge is developing a business case for stakeholders to win their support for the transformation. See this blog for more on how to build a business case.
Finally, there is a lack of talent on the supply side of qualified personnel to help you with an S/4HANA transformation. Once standard support for SAP ECC ends and companies find themselves under enormous time pressure, outside services will be in even greater demand. At inoBrix, we understand such challenges and are ready to assist you on this critical journey (much like many of the other SAP partners as well!!).