Is Now the Time to Migrate to SAP S/4HANA?

Transformation is not just about technology; it’s about rethinking how we do business in an increasingly digital world

S/4HANA is Mature

SAP introduced S/4HANA to the global market on February 3, 2015. Over the past nine years, S/4HANA has matured significantly and has become widely adopted across various industries and regions. SAP has progressively enhanced S/4HANA with industry-specific functionalities, including Retail capabilities in 2016 and Fashion in 2017, to better meet the unique demands of these sectors.

A recent survey published by the SAP Press Blog found that 72% of businesses cited improved efficiency as the primary benefit of SAP S/4HANA, with 61% also noting enhanced customer and employee satisfaction.

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72%

Improved efficiency

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61%

Enhanced customer and employee satisfaction

According to a 2024 ASUG report, nearly 50% of SAP ECC customers have either completed their migration to S/4HANA or are currently in the process.

Key Benefits of Moving to SAP S/4HANA

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Optimized Database Footprint

through simplified data models, reducing data redundancy and complexity.

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Enhanced Automation Capabilities

that streamline processes, boost productivity, and elevate performance.

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Improved Integration

with other SAP products, providing smoother interoperability.

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Reduced Costs

particularly operational and ownership expenses.

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Accelerated, Smart Decision-making

through embedded AI tools, like SAP CoPilot, enabling more informed insights.

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Greater Profitability

due to enhanced operational and decision-making efficiencies.

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Delaying Your Migration Could Impact Both Your Bottom Line and Top Line

By postponing the transition to SAP S/4HANA, organizations risk missing out on critical opportunities. Below is an outline of the costs, risks, and potential missed opportunities associated with not upgrading:

End of Standard Maintenance for SAP ECC

Support Deadline: SAP has announced that standard maintenance for SAP ECC (the predecessor to S/4HANA) will end by 2027 (extended from 2025), with extended support available until 2030 at an additional cost.
Increased Costs: After this deadline, companies may incur higher support costs, limited updates, and potential vulnerabilities as SAP allocates more resources to S/4HANA

Competitive Disadvantage

Missed Innovations: S/4HANA offers advanced features, including real-time data processing, AI integration, new sustainability capabilities, and an intuitive user experience through Fiori. Not upgrading may leave companies trailing behind competitors who leverage these innovations to improve efficiency and decision-making.
Slow Digital Transformation: In a time of rapid digital transformation, businesses that don’t upgrade risk falling behind in process automation, advanced analytics, and adaptability to market changes.

Talent Retention and Skills Gap

Attracting Top Talent: Many SAP professionals are now focused on S/4HANA due to its growing demand. Businesses that don’t upgrade may struggle to attract and retain top IT talent, as employees prefer working with newer technology.
Training Costs: As fewer professionals specialize in maintaining SAP ECC systems, hiring and training costs for legacy technologies will likely increase.

Regulatory and Compliance Risks

Data Security: As cybersecurity threats evolve, legacy ERP systems can become more vulnerable to breaches. S/4HANA offers robust security features to comply with modern standards and regulations (e.g., GDPR, SOX).
Compliance Gaps: Outdated ERP technology may result in compliance gaps, increasing the risk of fines or sanctions, especially in regulated industries like healthcare and finance.

Scalability Issues

Difficulty Scaling Operations: SAP ECC may struggle to keep up with business growth, particularly in industries with fluctuating demand or rapidly increasing data volumes. S/4HANA’s simplified data model and in-memory database are designed for scalability.
Cloud Adoption Limits: SAP S/4HANA supports cloud deployment, offering greater flexibility and scalability. Sticking with older systems may limit cloud migration options and reduce the ability to adopt agile, cloud-based business models.

Technical Debt

Legacy Systems Complexity: Maintaining older SAP ECC systems can become increasingly costly and inefficient as they demand more customizations and workarounds to meet evolving business needs and industry standards.
Integration Challenges: SAP ECC systems may not integrate as seamlessly with modern applications and cloud services, leading to complex, costly, and error-prone integrations with other systems, such as CRM or supply chain tools.

Limited Access to Advanced Analytics

No Real-Time Insights: S/4HANA enables real-time processing, providing instant insights into business operations. Without it, companies may rely on batch processing and delayed reporting, limiting their ability to make timely decisions.
Inability to Leverage AI/ML: S/4HANA includes built-in artificial intelligence (AI) and machine learning (ML) capabilities. Without these, organizations miss out on opportunities to enhance business intelligence and operational efficiency.

Future Upgrade Complexity

Delayed Migration Challenges: Waiting to upgrade increases the complexity and cost of future migrations. Customizations and legacy dependencies will continue to grow, making the transition even more challenging.
Potential Downtime: Future upgrades may require significant downtime, disrupting operations as the business tries to shift to S/4HANA under more pressured conditions.

Operational Inefficiencies

Outdated Processes: Many ECC systems are based on older architectures that lack the streamlined processes and innovations in S/4HANA, resulting in slower and less efficient operations.
Higher IT Workload: IT teams may spend significant time and resources maintaining and troubleshooting legacy systems, detracting from strategic initiatives and leading to operational inefficiencies

Missed Business Opportunities

Slower Innovation Cycles: With S/4HANA, businesses can adopt new technologies, like IoT, blockchain, and enhanced mobility. Companies using ECC may struggle to adopt these advancements and innovate at the pace required by the market.
Difficulty Competing in New Markets: Without real-time data and optimized processes, expanding into new markets or business lines could be riskier, as decisions may be based on outdated or incomplete information.

Conclusion

The decision to delay upgrading to SAP S/4HANA comes with layered costs and missed opportunities. Sticking with outdated systems can lead to higher operational expenses, increased risks, competitive setbacks, and lost potential for innovation. Although migrating to S/4HANA requires an initial investment, the cost of waiting is likely to grow, presenting even greater long-term challenges and expenses. Embracing S/4HANA now positions your organization to drive efficiency, reduce risk, and stay competitive in an evolving digital landscape.

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How to Determine the Right Time to Start Your Migration

With SAP ending mainstream support for ECC in 2027, organizations on ECC 6.0 or later may qualify for extended support until 2030 if they are on Enhancement Pack 6 (EHP 6) or higher. However, this limited extension underscores the urgency for a comprehensive assessment of your options.

For many businesses, migrating to SAP S/4HANA is a once-in-a-generation shift. A thorough evaluation of your current systems, requirements, and future needs is essential to make a well-informed decision. EverBlue Partners has extensive experience guiding SAP customers through this critical transition. Our team has worked with some of the industry’s most influential organizations, ensuring that each migration is strategically timed, well-planned, and successfully executed.

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Unlock Your SAP Potential

Ready to transform your business operations? Connect with EverBlue Partners for a comprehensive assessment and discover how migrating to S/4HANA can drive your success. Our expertise in SAP solutions ensures a seamless transition tailored to your needs.

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Tom Savoie

Customer Solution Director

“Delaying your move to SAP S/4HANA means missing out on powerful innovations, real-time insights, and operational efficiency—all of which are essential for staying competitive in today’s market. As SAP ECC approaches end-of-life, the costs and risks of staying with legacy systems will only grow. Now is the time to assess, plan, and make the transition to S/4HANA to future-proof your business and harness the power of digital transformation.”