3 Reasons to Move to SAP S/4HANA Now
(3 min read)
SAP’s 2027 deadline, as just announced by SAP, for supporting legacy software may seem a long way off, it doesn’t mean you should wait to make the move to SAP S/4HANA. There are plenty of good reasons why migrating now might be the best choice – let’s start with three of them.
Making the decision to move to SAP S/4HANA is not taken lightly. Not only is the overall cost a consideration; you will also need to consider the impact of the transition on the organization. When you consider things like the allocation of internal resources and training colleagues on new software, it’s not surprising that many companies are procrastinating on the decision. Besides, since SAP will support legacy ERP solutions until 2027, what’s the rush?
Although it might be easy to wait until the last minute, waiting too long is sure to intensify the process even further. Here are three reasons why you should consider migrating to SAP S/4HANA now.
1. SAP S/4HANA is Fully Mature
Most people are hesitant to transition too early to any new product. This is very understandable. It is prudent to consider whether the product is too buggy, or if there are enough trained experts available if you need additional help. But I can assure you that those concerns are no longer barriers when migrating to SAP S/4HANA.
SAP S/4HANA achieved a high level of product maturity in 2018, and now has a library of best practices. That ensures that everyone in the SAP ecosystem – including SAP support and SAP Partners like NTT DATA Business Solutions – are well trained and ready to help customers.
2. Avoid the Time Crunch
Let’s take a step back and consider a few simple facts. First, we know that SAP will stop supporting old ERP systems in 2027. Second, the number of knowledgeable consultants able to guide companies to a successful SAP S/4HANA migration is limited. Third, there are currently a lot of companies that are procrastinating on the decision to move from their existing SAP software to the “new” ERP platform.
These considerations bring us to a simple realization. Every month that a company waits to move to SAP S/4HANA increases the likelihood that there will be a large wave of companies that want to transition starting in 2021 – and that leads to a bottleneck of available SAP Partners to support the transition.
Although it may sound impossible, the fact is that we are already facing a time crunch if we want to be ready for 2027.
3. Your Move Doesn’t Need to be Disruptive
We know that humans are creatures of habit, and not everyone likes change. The good news is that transitioning to SAP S/4HANA now still gives you the flexibility to continue using “old” ERP functionality after the migration. As an example, the SAP Human Capital Management (HCM) module, a tool for HR professionals, can be carried over from your older ERP solution, since it is not yet planned on SAP S/4HANA.
Now is the Time to Move!
There are generally three different scenarios that you can use to move to SAP S/4HANA. A New Implementation approach – also called Greenfield – uses an initial or historical data load. If your company wants to convert from an existing SAP Business Suite, you may want to consider a System Conversion, also called a Brownfield approach. For those that wish to consolidate an existing system landscape into one central SAP S/4HANA system, the Selective Data Transition may be the right approach.
Since each of these approaches must be adapted for each customer, modifications are possible. For example, for a system conversion, NTT DATA Business Solutions has developed the Conversion Factory, a unique approach that makes it possible to manage a conversion with both a fixed timeline and budget.
To sum it up: The decision to make the move to SAP S/4HANA is not easy. I’ve provided three reasons why it would be a clever and forward-thinking decision to move now. But in reality, moving to SAP S/4HANA is not a question of IF, but of WHEN – and the only answer should be NOW.
NTT DATA Business Solutions has the experience to back this up – we have already completed 150+ successful SAP S/4HANA transitions, and, as an SAP Partner for more than 30 years, we have gained the necessary experience to identify the best solutions for your company.
Why making the move now will be beneficial for you:
- SAP S/4HANA is a mature product
- Taking action now will remove time pressure
- Stability of your daily operations is ensured
Interested in knowing more about SAP S/4HANA?
Have we convinced you to move to SAP S/4HANA now, or do you need more information for making this decision? Whether you want to know more about the transition scenarios or about the product itself, you can find that information on our detailed S/4HANA migration page.