This is a very common question that is brought up by people from the industry. There is no easy answer to this question. There are very limited case studies of migrations that have gone smoothly. Hence, if someone has recommended that you make the move to SAP S/4 HANA, they’re either cocky or have personal experience.  The available speed of the HANA platform and the integration of various emergent technologies provide a competitive edge to its users. There’s no denying that. There is also a reason to push to the latest ERP for SAP. However, the risks involved are just too numerous to ignore.

Successful Examples of SAP S/4 HANA Upgrades

As mentioned earlier, some case studies show that migration to SAP S/4 HANA has gone smoothly. Given that SAP is one of the most widely used ERP platforms in the world, the migrations should be much more numerous. The fact that there aren’t more should be a point of concern to most people. The number of organizations that are currently using the platform number in the early 2000s. The total number of people using the upgraded SAP platform is lower than those using Oracle Cloud (6000).

The Typical Customer of SAP S/4 HANA

Since you don’t have much to draw from, you can at least look at the kinds of companies that made the upgrade. That can help you decide if the migration is for you in the future, if not immediately. SAP is traditionally used by vary large organizations and thus it’s considered cumbersome for them to move everything from one platform to the next. SAP isn’t alone in facing the difficulties when it comes to moving apps. It’s one of the most cumbersome things to do for any organization. Any ERP vendor or CRM which isn’t native to the cloud is doing the same.

Another concern with the migration is the non-availability of certified experts that can carry it out. The SAP S/4 HANA platform isn’t exactly a spring chicken, but it’s not exactly mature either. A new upgrade always takes time for organizations to implement. The numbers are growing and the developers and integrations experts are increasing by the day, but trusting them is hard. The chance of them messing up is quite high right now as evidenced by the reluctance of switching to 4HANA. This has led to the upgrades that have taken place being costly or lengthier than average upgrades.

SAP S/4 HANA Functionality

SAP S/4 HANA is a new platform. Hence, its functionality hasn’t had time to mature as much as its elder brother. The migration to S/4 HANA from ECC hasn’t been smoothed out and there are still many bugs to work out. The companies that are considering the upgrade will have to have their instance of SAP S/4 HANA developed and tweaked and customized. This could result in delays and additional expenses for bolt-on technology (tacked on upgrades). Hence, this is why much of the larger companies that are running ECC haven’t made the jump as of yet.

It’s important to note here that the problem exists with most ERP systems like Oracle Cloud and Microsoft Dynamics 365. The lack of maturity is a concern when switching to any of these systems. While the new flagship products from these cloud vendors are all impressive, they all have fundamental faults.

Benefits of the SAP S/4 HANA Upgrade

Now let’s turn our attention to the potential benefits of the SAP S/4 HANA upgrade. While SAP S/4 HANA is undoubtedly new and immature, it’s proving its worth by day. It’s the solution to choose if you’re upgrading to a new ERP. The benefits are quite endless and the possibilities haven’t even all been explored yet. However, here are 5 of the best things about getting the software upgrade to SAP S/4 HANA.

Innovation

SAP S/4 HANA will allow your company to run multiple programs from different vendors together. With all those improvements, you will be able to innovate like never before. You will gain access to a lot of programs that will work in tandem with each other to accomplish more.

Agility

SAP S/4 HANA is one of the most user-friendly programs out there. Companies will gain the ability to create understandable business insights that are based on real-time data. That’s a great advantage when it comes to making business decisions.

Performance

SAP S/4 HANA runs on SAP HANA exclusively, which means that it will take full advantage of transaction processing ad reporting speeds. The native platform that it will run on will afford it much more improved functionality than any other ERP.

The difference between running a different program on SAP and the native program SAP S/4 HANA is night and day. For instance, functions that usually run through in minutes will be done in seconds. This will not only improve performance but save time and money.

Cost Savings

This is what it’s all about in the end. For corporations and organizations, saving money and making money are the prime goal. With SAP S/4 HANA, that’s a given. After successful migration and implementation, you’ll begin to see how much better the new is over the old.

Not only will this provide you with a greater value for money, but also a reduced cost of ownership. The cost-efficiency of this solution is without question. For one, businesses will be able to combine the analytical and transactional capabilities of multiple systems into a single solution. What that means is you’ll essentially have a single holistic system through which you can conduct business. Hence, the different depts. won’t have the trouble they usually do in sending files, converting different documents, etc.

Staving Off Obsolescence

SAP S/4 HANA migration ensures that you’ve staved off obsolescence for a very long time. This platform won’t become outdated in 2025. It’s here to stay for a long time.

With all these benefits and caveats outlined before you, you can make an informed decision on the SAP S/4 HANA migration. Just makes sure that whatever you do, you go into 100%.