Factors To Consider Before Moving To SAP S/4 HANA

Constant innovation, undeterred customer focus, and a deep understanding of the changing business paradigm have made SAP solutions the top preference for global organizations. However, with SAP deciding to stop its mainstream support for SAP ERP software (v6.0) by 2027, the existing customers using SAP installed in their systems might face difficulties with adopting SAP S/4HANA. But does that mean they should step back from adopting it? The answer is no.

According to a survey by Americas' SAP Users' Group (ASUG), 90% of the companies that migrated to SAP S/4HANA reported a boost in their productivity and profitability.

Factors To Consider Before Moving To SAP S4 HANA

Hence, this conversion to SAP S/4HANA must be done - but with careful preparation and planning.

Below are some top considerations that should be taken care of before migrating SAP S/4HANA.

Facts to Consider Before SAP S/4 HANA Migration:

Comprehensive Analysis of Business Process

Businesses are required to determine the best migration approach by performing a comprehensive business process analysis. It is critical to identify the areas requiring automation, optimization, or re-engineering.

Suppose a large manufacturing company faces stock shortages, increased costs and delays due to its manual inventory tracking process. But as soon as it migrates to SAP S/4HANA, it unlocks its ability to automate the whole inventory management process, resulting in real-time visibility of inventory levels and improved accuracy.

Fully-updated Infrastructure

SAP S/4HANA requires the latest hardware and infrastructure to run, which means that businesses must focus on the readiness of their infrastructure to support the new platform. This may require additional investment to achieve the essential performance levels.

If a company overlooks this factor before SAP S/4HANA migration, it could result in making their system slow, having limited functionality, and being prone to crashes. On the other hand, upgrading its infrastructure would lead to faster processing and improved performance.

Data Quality and Cleansing

Conducting a thorough data quality and cleansing exercise is crucial before migrating to SAP S/4HANA.

According to a survey by IDC, 87% of organizations witnessed a great improvement in their data analysis capabilities after the migration process.

However, poor data quality could lead to system downtime, errors, and reduced productivity. If a business doesn't pay much importance to data quality exercise, migrating to advanced SAP solutions like S/4HANA could lead to lost sales and reduced customer satisfaction. However, a full-fledged data cleansing would result in increased productivity and data accuracy.

Licensing and Cost

Licensing costs can be significant for a robust platform like SAP S/4HANA. If a business doesn't budget for the licensing costs adequately, it might make the project run over budget and cost-cutting in other areas. Thus, a company must evaluate its licensing needs and build an adequate budget for the transition.

Smart Change Management

It is one of the most critical aspects of the migration process. Developing a comprehensive change management plan helps prepare all stakeholders for the changes.

If a business proceeds with SAP S/4HANA migration without any change management plan, it could result in inadequately trained employees, confusing operations, reduced productivity and eventually increased employee buy-in.

Trust on Industry Experts

If you are considering migrating your existing SAP ERP Software to S/4HANA or want to start fresh without any hassle, Uneecops Business Solutions can be a one stop solution for your such needs.

Our experienced SAP experts have a proven record of helping your business achieve a successful transition. Uneecops is also a member of United VARs, which is an SAP Platinum Partner. So, contact us today to get an exclusive demo and consultation and learn how we can help your business utilize the powerful features of SAP S/4HANA.

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