With SAP’s announcement that support for its ECC customer base will end in 2027—and the option for those upgrading to SAP S/4HANA to purchase extended support until 2030—the urgency to develop a comprehensive transition plan has never been greater. Migrating to S/4HANA is a complex, large-scale project that impacts the core of your business and could take years to complete.
According to Gartner®, organizations must “communicate the future role of ERP as being almost always a core enabler of critical business for organizations, necessitating a strategic and long-term transformative view over a tactical one." ¹
Companies must take proactive steps to explore and define their transformation pathways.
The transition from SAP ECC to S/4HANA is not just a technical upgrade but a fundamental shift that requires the entire organization to adapt, evolve, and embrace change. The pace of SAP modernization is accelerating, driven by the need for businesses to enhance their ability to innovate and deliver better products and services. As such, modernization should be viewed and treated as an ongoing business transformation rather than a one-time IT project.
As per Gartner, “Sourcing procurement and vendor management (SPVM) leaders have difficult business choices — and numerous sourcing options, each often requiring significant investment with modernization and change possibly taking many years to achieve."
Many companies focus primarily on IT-related KPIs, leading to outcomes centered on system performance, stability, and security. While these are essential, businesses must also consider commercial and operational impacts. Organizations need a balanced mix of IT and business-related KPIs to accurately measure SAP transformation's success.
IDC research in the Nordic region shows that cost savings alone account for only 10%–20% of the total return on investment. True ROI must be secured through business process optimization and rethinking operational strategies. This reinforces the importance of integrating IT and business KPIs to effectively measure the full impact of SAP transformation.
Modernizing SAP goes beyond a mere IT enhancement; it represents a core business transformation that demands strategic planning, a long-term vision, and organizational adaptation. Companies must go beyond IT performance metrics to maximize ROI and incorporate business-driven KPIs. This ensures that their transition to S/4HANA fosters innovation, enhances flexibility, and improves operational efficiency.
¹ Gartner, What Are My ERP Sourcing Options as Support for SAP ECC Ends?, David Penny, Tom Sieber, 4 December 2023
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