How are SAP ERP customers defining their SAP S/4HANA adoption strategy?
Existing SAP ERP customers are at crossroads. SAP Business Suite on non-HANA database enters maintenance mode in 2019 and SAP ECC enters maintenance mode in 2025. At the same time, the post-modern SAP HANA is providing numerous opportunities for enterprises to change how business is being done. Based on how enterprises approach SAP HANA adoption, they can be classified into the following categories:
The Forward Thinkers
- These enterprises are led by a forward-looking management team who consider ERP as a strategic initiative. They are the first to adopt SAP HANA because they believe in significant business benefits in a short-term. (Kaar Tech has seen high ROIs in firms which have a high-level dependency on finance and logistics functions)
- This group also contains forward thinking R/3 customers who have skipped the ECC upgrade cycle and want to move straight into SAP HANA adoption.
- There is also a sub-category who have made plans to move into SAP HANA as soon as it is practical. (i.e as soon the needed functionality is available out of the box)
The Group which thinks SAP is a Necessary Evil
These enterprises would have made so many modifications to their SAP ERP over the years. This makes it look like a customer developed ERP system with an SAP GUI. These firms see benefits in S/4HANA but do not have a leadership sponsor or a complex landscape which needs further inspection. It’s only a matter of when they will adopt SAP HANA for these enterprises.
The “Good Bye SAP” Group
These firms are not happy with SAP or are unconvinced about the benefits of SAP HANA adoption. They view it as a technology forced on them. They may either put off their decisions for as long as possible, decide to use a third party SAP support, or even move out of SAP forever.
If you are unsure as to what benefits S/4HANA will provide for your organization, you can have a look at this article. Also, keep in mind that a cost-benefit analysis must be done before adopting a HANA system.
You, as a leader within the organization, should have answers to the following questions:
- How strategic is your SAP ERP deployment?
- Would I be comfortable running a solution no longer supported by SAP?
- What is the level of customization in my SAP ERP?
Once you are done with the above, you can reach out to system integrators like Kaar Technologies to discuss how S/4HANA can provide business benefits to your organization or have a free assessment done on your S/4HANA readiness. You can request for either one through this link.
Finally, it is important to remember this. Enterprises can move from one bracket to another depending on the leadership’s vision and potential benefits of S/4HANA. For example, one of our clients specifically created a budget for S/4HANA to forge ahead towards migrating their SAP ECC 6 system to S/4HANA. This happened after they understood the business benefits of S/4HANA after a six-month-long consulting exercise. You can read about the challenges faced while migrating the SAP ECC systems and the business benefits accrued through the link here.