5 critical questions to ask before embarking on your S/4HANA migration

It’s the end of the road for SAP ECC, with the deadline for migration to the new destination of S/4HANA set for 2027.

And, according to Senior SAP Programme Manager, David McNamee at Expleo, organisations are increasingly jumping on board. “Adoption this side of the Atlantic had been lagging. But this is now changing,” he says. “The 31 December 2027 deadline is critical for most customers still on ECC.”

So the shift is non-negotiable but choosing the right route isn’t that straightforward.

“For larger organisations, if you’ve not yet started, it’s already too late to get a full Greenfield implementation,” warns David. “So the alternatives are Brownfield, or Bluefield, possibly in addition to extended maintenance contracts.”

So how can you set the course that’s right for your business? David advises you to start by asking yourself these five critical questions.

1. What direction is the business heading in overall?

A successful migration hinges on alignment with your business goals, not just your IT upgrade requirements. So understanding your business direction is key.

Get a strong handle on where you want to be and what kind of migration will be necessary to get you there. That’s far from straightforward for organisations that only completed their rollout of SAP ECC in the last decade. 

Their solution may still be fit for purpose and they may feel they haven’t yet fully capitalised on that investment – particularly with complex custom developments. These are often seen as differentiators for their business and may not have a natural home in S/4HANA.

To be sure you set the right level of customisation, know your key business drivers. Are you looking to expand into new markets, diversify your product offering, or do you want greater customer engagement?

2. What are the big risks and opportunities?

The risk/benefit question makes many businesses reluctant to move, but being clear on the trade-off for your business will ensure you set off in the right direction. 

Remaining on legacy systems poses significant risks. All SAP ECC customers should be planning to fully retire their ECC systems before the deadline. Otherwise, how do you explain to your shareholders that your core ERP is out of support? Or why it hasn’t got official updates to ensure alignment with the latest security or statutory changes?

Despite the risks, the opportunities are immense. Yet many organisations are unclear about the potential benefits beyond it being an IT upgrade. In ASUG’s 2023 survey, over 600 SAP customers cited ‘Retirement of current software’ as the top reason for moving to S/4HANA.  

Other drivers such as enhanced functionality/performance, standardisation of processes and integration of new technology ranked lower down, but should be seen as compelling opportunities for growth and innovation.

Meanwhile ASUG’s latest survey reveals 48% of organisations are missing or lacking the skillset needed for the migration. While this highlights the inherent risks, such as data complexities and change management hurdles, these can be mitigated with expert guidance from an independent partner like Expleo.

And while the migration itself carries inherent risks, such as data complexities and change management hurdles, these can be mitigated with expert guidance from an independent partner like Expleo.

3. What's our broader cloud strategy?

During SAP’s recent update, they introduced two new packages within RISE: 

RISE with SAP Premium: This boosts SAP S/4HANA Cloud Private Edition with tools for better business process management, automating workflows and creating low-code applications.
RISE with SAP Premium Plus: This enriches your cloud ERP with cutting-edge features like generative AI, sustainability tools, an advanced CFO suite, and improved supplier networks.

These upgrades give companies a competitive edge, especially in areas like AI and sustainability.

For organisations still on-premise or hosted by hyperscalers, this raises questions about their deployment strategies. Is it time to shift towards RISE with SAP private cloud offerings for full access to future innovations?

Make sure your long term cloud strategy aligns with your business goals. Evaluate your IT setup, cybersecurity and compliance needs to decide on the best cloud model, be it public, private, or hybrid. 

A partner like Expleo can help demystify this process. We guide organisations to the right product for them – everything you need, nothing you don’t.

4. Is technology holding the business back?

Looking at technology’s role in your growth plans is fundamental to your S/4HANA migration. Once you understand your current IT landscape, you can plot relevant improvements into your strategy. 

Are outdated systems or legacy software hampering productivity? Then prioritise newer, more advanced tech solutions. Is poor data management affecting decision-making or compliance? Then enhance data governance and quality. 

Identifying areas where S/4HANA can address your IT limitations presents a tremendous opportunity. S/4HANA can unlock insights previously beyond reach. Whether that’s in financial reporting, operational analytics, or real-time ‘Digital Boardroom’ dashboards displaying critical KPIs from across your business. Imagine having insights into not just your top 10 customers, but your top 100.

Moreover, amid increasing sustainability regulations like CSRD, S/4HANA can ensure the correct data is captured at source and leveraged through tools like the SAP Sustainability Control Tower.

5. Do we have the skills and capability to define the right path forward?

Getting started can be daunting. Before your S/4HANA project gets off the ground, you’ll need to tackle critical tasks like specifying, budgeting, creating a business case, stakeholder management, licence negotiation and forming governance structures. The decisions made at this early stage will have long-term impacts on your S/4HANA programme and its success.

Engaging the right mix of internal leaders and external experts is crucial to avoid costly mistakes. Many companies lack skills in vital areas such as strategic IT planning, change management and licensing and contract negotiation, which can lead to issues such as scope creep and stakeholder resistance. Misunderstanding of contract terms can also lead to overspending or misuse of SAP resources.

Expleo has extensive experience navigating these challenges. We offer expertise to help organisations plug skill gaps and steer clear of these issues, ensuring the success of your project.

Working out the answers to these important questions should be a collaborative task. Both IT and the business need to work together to help you move forward in the right direction.  

Bringing in a neutral partner like Expleo can foster this collaboration, helping you gain clarity and make informed decisions. With an expert guide at your side, your migration journey can be a smooth and successful one.

Let's talk

If you’d like help with this or any other part of your journey to S/4HANA, please get in touch