SAP S/4HANA is a real-time ERP solution based on the powerful in-memory database technology SAP HANA. This technology enables companies to process and analyze large volumes of data at lightning speed. This leads to faster and more informed decisions and overall more efficient business management. With SAP S/4HANA, companies can seamlessly integrate and manage all their core business processes in real-time – from financial accounting and human resources to logistics.

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More Than Just a Technical Upgrade

‍Starting at the end of 2027, customers using key solutions from the SAP Business Suite such as SAP ERP 6.0, SAP CRM, SAP IDM, and others will no longer receive regular support from SAP. Extended support will be available until the end of 2030 for an additional fee. However, from 2028 onwards, this support will not only be more expensive, but customers will also need to ensure they do not fall behind technologically by continuing to use older products. A migration to SAP S/4HANA, whether on-premise or in the cloud, is therefore inevitable. However, to fully leverage the potential of SAP S/4HANA, the transition should consider not only technical but also business aspects.

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Benefits of SAP S/4HANA

• Real-Time Data Processing: With SAP S/4HANA, companies can analyze and process data in real-time. This enables immediate responses to market changes and informed decision-making.
• User-Friendly Interface: The modern and intuitive SAP Fiori user interface makes the software easy and efficient to use. This leads to higher user acceptance and increased productivity. Additionally, applications can be accessed via smartphones or tablets on any device, ensuring that users always have access to real-time data and can quickly complete processes.
• Support for New Business Models: SAP S/4HANA offers the ability to develop and implement innovative business models. By integrating IoT, machine learning, and other modern technologies, companies can find new ways to create value for their customers and differentiate themselves from the competition.
• Flexibility and Scalability: SAP S/4HANA can be operated both in the cloud and on-premises. This provides companies with the flexibility to tailor the solution to their specific needs and growth plans.
• Integration and Automation: The platform enables seamless integration of various business processes and systems. It also offers comprehensive automation features that reduce manual tasks and increase efficiency.
• Future-Proof: SAP S/4HANA is designed to incorporate future technological developments, ensuring that the software remains current and powerful in the long term.
• Cost Reduction: By optimizing business processes and automating routine tasks, companies can reduce their operating costs with SAP S/4HANA. Real-time monitoring and analysis also help identify and improve inefficient processes, leading to further savings.

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Challenges and Disadvantages of SAP S/4HANA

• High Implementation Costs: Implementing SAP S/4HANA can involve significant costs, including not only licensing fees but also expenses for implementation, customization, and employee training. For many companies, especially small and medium-sized enterprises, these costs can represent a substantial financial burden.
• Complexity of Migration: Migrating from an existing SAP system to S/4HANA is a complex process that requires thorough planning and careful execution. Companies need to analyze, clean, and adapt their existing data and processes to ensure a smooth migration. This can be time-consuming and resource-intensive.
• Change Management: Implementing S/4HANA brings significant changes to business processes and corporate culture. Effective change management is crucial to ensure that employees accept and effectively use the new systems and processes. Without adequate change management, resistance and acceptance issues may arise.
• Dependence on SAP: Implementing S/4HANA increases a company's reliance on SAP as a provider, which can lead to dependency, making it more challenging to switch to alternative systems or integrate other solutions in the future. Additionally, there is a risk that price adjustments or changes in SAP's business terms could impact operating costs.
• Technical Challenges: Utilizing SAP S/4HANA requires a modern IT infrastructure and can bring technical challenges. Companies must ensure that their hardware and networks meet the requirements of S/4HANA. Additionally, integration with existing systems and applications can be complicated.

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Conclusion

‍Despite the mentioned disadvantages, SAP S/4HANA offers many opportunities to improve business processes and promote digital transformation. Companies should carefully weigh whether the benefits outweigh the potential challenges and high investment costs, and develop a well-thought-out migration strategy (keywords: readiness check & roadmap) to minimize risks.

If you want to learn more about how to proceed with a transition to SAP S/4HANA and what benefits it can bring to your company, do not hesitate to contact us. Our experts are available to answer your questions and provide you with valuable insights to support your transformation with practical knowledge.

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