SAP S/4HANA

Migration to SAP S/4HANA is inevitable due to the phasing out of earlier SAP versions, such as SAP ECC, by 2027. The transformation is necessary to maintain system functionality and receive technical support, but it is no less important to schedule it when it will bring real benefits to companies using SAP software.

Moving to SAP S/4HANA enables many new functionalities, such as system speed, better analytics, simpler user interfaces, and the ability to leverage new ready-to-use technologies, such as IoT and artificial intelligence. This increases a company's competitive advantage by improving operational efficiency, data management or customer service. However, identifying the actual benefits to the company of implementing SAP S/4HANA is possible during a thorough analysis, which should be a part of the company's strategy.

There are several models for transformation to SAP S/4HANA. You can hire internal resources, use SAP partners services, or use external IT providers. The choice depends on the company's available resources, skills and preferences and, above all, on the difference between the baseline and the target situation after the transformation.

The time it takes to prepare for a transformation depends on a number of factors, such as the size and complexity of the system, the availability of resources and the company's readiness to migrate. It can take from a few months to several years, depending on individual factors.

The cost of a transformation to SAP S/4HANA depends on various factors, such as the size of the company, the complexity of the system, customizations, the amount of integration, data to be converted and the method of transformation itself. When planning the cost of an SAP S/4HANA transformation, consider not only the cost of the project itself, but also the timing (before or after 2027), licenses, etc. It is worth contacting your SAP supplier or partner to get an accurate valuation, so that you can also compare this cost with the expected benefits of using SAP S/4HANA technology.

The transformation to SAP S/4HANA can be done using internal resources, but it is a complex process that requires SAP expertise and experience. Many companies use SAP partners or external consultants to ensure a successful and seamless migration. A frequently used model is a mixed implementation team consisting of the company's business staff, internal IT resources and experienced consultants from the partner company who support the transition process.

Migrating to the cloud can bring many benefits, such as scalability, higher availability and easier management of IT infrastructure. Moving to the cloud can also reduce maintenance costs and provide easier access to new functionalities and system updates. Migrating to the cloud is worth considering, but the decision should be based on individual needs, a costs and benefits analysis and an assessment of the company's readiness for such a step. Cloud solutions, like any other, have their pros and cons, which are worth carefully reviewing when deciding on the target software environment for managing our company.

If you fail to convert to SAP S/4HANA before 2027, you may run the risk of running out of support and system upgrades. It's worth consulting with your SAP supplier or a partner such as BPX to discuss available options and a plan of action, which allow to migrate at the right time or enable to extend support for current versions of the system.

SAP offers various migration methods, including the ability to perform a conversion with only minimal system downtime, known as "system conversion." This method allows to continue work during the migration, keeping operational downtime to a necessary minimum. Planning that conversion, however, is possible with the help of very careful planning, numerous tests, appropriate tools and SAP system migration experience.

Post-implementation support costs may vary depending upon the supplier and contract terms. It is worth to consult directly with our team of S4H experts for information on post-implementation support costs and available support options.

Transitioning to SAP S/4HANA may require adjusting or updating your custom code, as many customizations and extensions may not be compatible with the new version of the system. Analysis of these customizations also depends on the transformation method and the target environment of our system (on-premise/cloud/hybrid). In some cases, you may need to adjust or update your custom code to ensure full compatibility with the new system's version. However, SAP S/4HANA offers a whole range of solutions, so-called 'Best Practices', for different countries and types of business, which are worth considering using to actually reap the benefits of this technology. For many companies, the SAP S/4HANA transition can be a once-in-a-lifetime opportunity to streamline their system and reduce the amount of program's code written over many years.