SAP introduced it will end assistance of the SAP ERP Central Ingredient, or ECC, in 2025. It wants existing ECC shoppers…
to changeover to the future-era ERP organization suite, S/4HANA.
But providers are not hurrying to begin an S/4HANA migration the way SAP may have hoped. And, certainly, numerous CIOs of enterprises with in excess of $1 billion in once-a-year revenue are using a hold out-and-see strategy.
This is a look at why and three of the clearest hurdles to S/4HANA adoption.
No S/4HANA enterprise case
CIOs are unable to create a persuasive enterprise case for an S/4HANA migration because of to urgent concerns. What are the licensing and infrastructure costs linked with S/4HANA migration? What are the concrete company rewards of using S/4HANA? What are the S/4HANA capabilities in terms of software program selections and features? What expense reductions will a enterprise attain?
Due to the fact S/4HANA is a new ERP suite, there are not a lot of S/4HANA case research that CIOs can use for their study.
Confusion about options
Equally HANA and S/4HANA have to have decisions about deployment. Providers can opt for to have a HANA databases on premises, or in a public cloud or private cloud. Businesses also have to have to determine whether or not the S/4HANA application layer will be operate on premises, or in a community or personal cloud.
Corporations also have to have to make a decision whether they will pick a brand-new S/4HANA implementation, a conversion from an existing ECC to S/4HANA or migrate the present fundamental databases to SAP HANA databases.
Concern of small business disruption
An S/4HANA migration is a big enterprise. Disparate databases must to start with be migrated to SAP HANA to lay the foundation for the S/4HANA conversion. Preliminary get the job done is also required to subsequently convert ECC to S/4HANA.
In addition, ECC and S/4HANA have diverse architectures. Providers will need to have to carry out the necessary groundwork in their current ECC in preparing for an S/4HANA migration to make it compatible with the new procedure and to avoid business enterprise disruptions. For instance, consumer and seller learn information in ECC will require to be grouped as “business companions” in S/4HANA. This usually means that starting to be S/4HANA-completely ready involves remodeling the current purchaser and vendor learn data in ECC to make certain the master records properly migrate into S/4HANA as small business associates.
And that is just 1 case in point of the pre-S/4HANA migration prep get the job done required. Till corporations and their CIOs hear a lot more consumer encounters and gains from transferring to S/4HANA, the hold out-and-see strategy is most likely to keep on.
Nonetheless, some companies aren’t shying absent from embarking on S/4HANA migration, as they comprehend S/4HANA is the digital core they have to have to embark on a digital transformation training journey.