Switching to S/4HANA

Exploring some of the 2023 trends in detail.

Onespire Ltd.

Increasing adoption of S/4HANA

Recently one of the most decisive trends in the European manufacturing sector is the increasing adoption of S/4HANA. Many businesses are starting to realize the benefits of moving to this new advanced ERP software and are making the transition.

Another reason behind the increasing adoption is that SAP will end support for its ECC systems by the end of 2027, which is driving the need for businesses to switch to newer systems, and in parallel with this rethink their IT strategy. This decision will impact customers who are still using systems such as SAP ERP Central Component (ECC) and SAP Business Suite 7.0. After December 31, 2027, these customers will only receive software updates, bug fixes, or patches from SAP if they pay additional fees.

The move is part of SAP’s ongoing efforts to shift its customers towards its more modern and cloud-based systems, such as SAP S/4HANA. SAP is encouraging its customers to start planning their migration to newer systems now to ensure a smooth and timely transition before the end of support date.

Migration to cloud-based solutions

Cloud technology is becoming increasingly popular, and this is also true for S/4HANA. Many businesses are choosing to deploy S/4HANA because of the many advantages of using a cloud-based version of the ERP system.

One of the main benefits is scalability, since cloud-based systems can easily and quickly adjust to meet changing business needs, making them ideal for organizations that have a lot of growth potential, or need to quickly adjust to market changes. Another advantage is accessibility – cloud-based systems can be accessed from anywhere, making it easy for employees to work remotely or access information on the go. Additionally, cloud-based ERP systems are generally more cost-effective than on-premises solutions since they eliminate the need for expensive hardware and infrastructure investments.

Finally, cloud-based systems are often more secure and reliable than on-premises solutions, as they are regularly updated with the latest security patches and have built-in disaster recovery features. All these factors make a cloud-based version of S/4HANA an attractive option for businesses looking to streamline their operations and stay competitive in today’s fast-paced market. Additionally, cloud deployments can help to reduce the costs associated with hardware and infrastructure, so this solution offers an attractive option for many companies.

Integration with other systems

Many businesses have complex IT environments with numerous solutions in place. As such, integrating S/4HANA with these other systems is critical to ensure a smooth operation. This is particularly true when it comes to supply chain management applications, which are vital to the manufacturing process.

Integrating SAP S/4HANA with other systems can bring significant benefits to businesses, since there are several ways to perform the integration, including application programming interfaces (APIs), middleware platforms, and direct system-to-system integrations. SAP offers the Business Technology Platform as a standard integration solution. Connecting external applications with BTP can be done with outstanding efficiency.

Integrating S/4HANA with other systems can also improve data accuracy and eliminate the need for manual data entry, reducing errors and improving productivity. Additionally, connecting S/4HANA with other applications can help businesses gain greater visibility into their operations, enabling them to make more informed decisions. For example, integrating S/4HANA with a shopfloor management system (SMS) can provide real-time insights into production activities, enabling businesses to tailor their planning and sales strategies accordingly.

Also, integrating S/4HANA with supply chain management (SCM) systems can help businesses optimize their inventory and production processes, resulting in cost savings and improved efficiency. Ultimately, connecting S/4HANA with external applications can help companies unlock new insights, streamline operations, thus gain a competitive edge in today’s fast-paced market.

Focus on data quality and accuracy

With the move to S/4HANA, there is a renewed focus on data quality and accuracy. This is because the software relies on real-time data to operate efficiently. If the data is inaccurate or of poor quality, it can impact the overall performance of the company. As a result, businesses have to perform data cleansing and migration activities to ensure their data is clean and accurate before making the transition.

Enhanced reporting capabilities

One of the key benefits of S/4HANA is its enhanced reporting capability (e.g.: Embedded Analytics). This software allows businesses to generate real-time reports, which can be used to inform decision-making processes. This is particularly useful, where real-time data can be used to improve efficiency and reduce costs. As such, we are experiencing that businesses are investing in training and development to ensure their employees are equipped with the skills needed to take advantage of these reporting capabilities.

Conclusion

SAP S/4HANA is becoming increasingly popular due to its numerous benefits, including real-time analytics, faster data processing times, and more efficient operation. As we move into 2023, there are several trends emerging in the SAP consulting sector when it comes to S/4HANA conversion, including increased the increasing number of implementations, migration to cloud-based solutions, a focus on data quality and accuracy, integration with other systems, and enhanced reporting capabilities. By keeping up with these trends, businesses can stay ahead of the curve and take advantage of the many benefits S/4HANA has to offer.

Do you have any questions about the conversion to S/4HANA?

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