CFO- Why Should I Invest In Yet Another SAP Upgrade?

 


Introduction

I have seen too many SAP upgrades end up as just technical IT upgrades with no exploitation of the newly introduced functionality to create business value. If there is one message that must be emphasized, it’s this:

Don’t make your upgrade to S/4HANA about IT! Seek out the business value that can be realized from the new solution and hold your CIO and IT organization accountable for delivering it!

S/4HANA is your ticket to lower ERP total cost of ownership, improved operational efficiency, and data enlightenment. Make it happen!

In my previous blog titled ‘Why are you, the CFO, struggling with Digital Transformation journey?’, I stressed the value of making an ERP modernization program central to your Digital Transformation Roadmap. Today 60% of fortune 500 companies are running their businesses on SAP’s previous ERP version released in 2005, called ECC6.0 (enterprise core controlling release 6.0). In 2014, SAP released their latest ERP solution called S/4HANA, and if you are among that 60%, you have until 2027 to upgrade. Failure to do so will increase your support costs, create compliance risks, and diminish your ability to compete in an increasingly IT-driven commercial world.

The chances are high that your CIO is on to it, and this significant upgrade is high on his agenda. After all, his job is to push technology innovation into your organization and create a secure IT infrastructure which supports your organization’s growth. It’s worth saying again — don’t make your upgrade to S/4HANA about IT!

Unlike ECC6.0, S/4HANA is a cloud-compatible solution. If deployed, it will significantly reduce your infrastructure and upgrade costs while enabling you to scale your ERP solution with the needs of your growing business. The two alternative approaches to cloud deployment are private and public cloud, but I will get into this in another blog. The table below is a comparison of companies with cloud-based ERP vs. on-premise ERP. Sited from Aberdeen Strategy & Research 2022.

Read more https://www.applexus.com/blogs/sap-ecc-to-s4hana-finance-migration

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