The deadline is approaching: regular maintenance for SAP ECC ends in 2027. Yet many companies have not yet completed their migration to SAP S/4HANA—and a great many have not even started. What seemed like a standard IT upgrade just a few years ago has since evolved into a strategic business decision.
Because today, the question is no longer just: How do we technically migrate to S/4HANA?
Rather: How do we design and secure our future enterprise architecture, processes, and capacity for innovation?
As a result, companies find themselves caught between time pressure, technological change, and strategic uncertainty. At the same time, requirements continue to rise—not only technologically, but also organizationally.
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Why many companies are still hesitant
Although SAP S/4HANA has been on the market for years, uncertainty still prevails in many companies. This is not because the platform’s benefits are unknown. On the contrary: real-time data, modern user interfaces, standardized processes, and the foundation for AI-powered applications are now considered key topics for the future.
The uncertainty stems rather from the fact that companies feel the target architecture is constantly changing, and today they no longer know exactly what their future SAP and enterprise landscape should actually look like.
Many companies operate with SAP landscapes that have evolved over time, featuring customizations and numerous interfaces to third-party systems. At the same time, ongoing business processes must continue to run smoothly. Added to this are economic uncertainties, a shortage of skilled professionals in the SAP field, and predictable costs.
As a result, the actual challenge is increasingly shifting away from purely technical migration—toward a holistic transformation of the enterprise.
Today, transformation is more than just a technical project
Brownfield migration is often the preferred transformation approach, as it technically involves a system migration without any customization. However, the scope has since expanded significantly: processes, data, governance, cloud strategies, and innovation capabilities must all be considered together.
A key term in this context is “Clean Core.” With this, SAP aims to keep ERP systems as close to the standard as possible and reduce custom developments within the S/4HANA core. For companies, this requires a shift in thinking: processes must be more standardized, and existing customizations must be critically evaluated and, if necessary, developed and integrated on the BTP platform.
The advantage is clear: a system that adheres closely to the standard is easier to manage—especially with regard to new technologies such as artificial intelligence or third-party systems.
At the same time, the role of S/4HANA itself is changing. Today, the ERP system is no longer just the digital backbone of the company, but increasingly the foundation for data-driven decisions and AI-supported processes. With initiatives such as SAP Business AI and Joule, SAP is positioning S/4HANA more and more as an innovation platform.
This raises new strategic questions for companies:
- What knowledge is available within the company, and which people do I need?
- How do I ensure that knowledge holders and process owners acquire the necessary new knowledge?
- Which processes, data, and responsibilities need to be defined so that the new technologies can reach their full potential?
- Are my S/4HANA role-based authorization concepts still compliant?
- What data foundation do we need for AI?
- Which processes can be automated?
- What role does the SAP Business Technology Platform (BTP) play?
- Which cloud strategy is right for our company?
We chose CONSILIO as our partner for our S/4HANA trans-formation because their consultants bring not only deep expertise in the SAP SCM environment, but also strong business know-how. This was a key factor in the success of our S/4HANA transformation.
The cloud, security, and the shortage of skilled workers are increasing complexity
The cloud strategy, in particular, is currently a topic of discussion in many companies. Public cloud, private cloud, hybrid scenarios—the range of operating models is vast. At the same time, requirements vary significantly depending on the industry, regulatory environment, and company size. As a result, the S/4HANA transformation is increasingly becoming a strategic architectural decision.
Added to this are rising demands for cybersecurity and compliance. Older ERP landscapes are reaching their limits in many areas—such as security standards, authorization concepts, or regulatory requirements. Companies must therefore not only modernize their systems but also further develop their governance and security structures.
Another critical factor is the shortage of skilled workers. Experienced S/4HANA consultants and internal SAP experts are in high demand. Many companies also underestimate the internal effort required for a transformation—particularly in the areas of process harmonization, master data quality, and change management.
Why Companies Should Finally Take Action Now
Despite all the challenges, this transformation offers enormous opportunities. Companies that acted early laid the groundwork for greater transparency, faster decision-making, and increased innovation.
With new features such as Margin Analysis and Group Reporting, companies gain significantly greater visibility into profitability, financial metrics, and consolidated financial statements—in real time and across various business units. Analyses using embedded analytics in sourcing enable more informed purchasing decisions, while modernized service and returns processes ensure greater efficiency, transparency, and faster workflows in customer service.
Those who wait any longer, however, risk even greater time pressure, higher project costs, and massive bottlenecks involving internal subject matter experts and external consultants.
Why an experienced partner is crucial
For many companies today, the biggest challenge no longer lies in the technology itself, but in developing the right strategy and executing it effectively. S/4HANA projects require equal expertise in business value creation, processes, architecture, data, change management, and SAP technology.
That is why it is crucial to shape the transformation in collaboration with an experienced partner. A partner who not only guides the technical migration but also supports companies in developing a sustainable and future-proof target architecture.
CONSILIO has been supporting companies for many years in complex SAP transformations—from strategic planning to successful implementation. Especially in an environment characterized by new technologies, increasing demands, and growing complexity, experience and an understanding of processes become a decisive factor for success.
The biggest challenge with S/4HANA today is no longer the technical migration, but rather the ability to integrate processes, data, and strategy in a way that enables companies to successfully leverage innovations such as AI, the cloud, and automation over the long term.
