Unlocking the Value of SAP S/4HANA Without Breaking the Bank: Why It Doesn't Have to Be a 100M USD Program"

SAP S/4HANA is a leading enterprise resource planning (ERP) software solution that enables businesses to streamline their operations and improve productivity. However, implementing SAP S/4HANA can be a costly and time-consuming process, and it's important to carefully consider the budget and resources needed to achieve a successful implementation.

Here are some reasons why SAP S/4HANA should not necessarily be a 100M USD program and some examples of successful implementations that were achieved at a lower cost:

• The scope of the implementation can vary greatly depending on the size and complexity of the business. A smaller or simpler business may require a much smaller implementation project, while a larger or more complex business may require more resources and a larger budget. It's important to evaluate the scope of the implementation carefully and allocate resources accordingly.

Example: For example, the dairy company successfully implemented SAP S/4HANA in just 12 months with a budget of around 10 million USD. Similarly, the pharmaceutical company implemented SAP S/4HANA for a budget of around 10 million EUR.

• Lack of executive sponsorship and understanding of the benefits of SAP S/4HANA can lead to cost overruns. Non-ERP executives may not fully understand the impact and importance of the project, which can result in insufficient funding or unrealistic expectations.
• Poor vendor selection and system integrator hand can lead to cost overruns. Choosing the wrong system integrator or vendor can result in delays, poor communication, and increased costs.
• A lack of in-house talent or insufficient training can lead to increased costs. Companies may need to invest in hiring or training staff to properly implement and maintain SAP S/4HANA, which can add to the overall cost of the project.
• Prioritize standardization over customization: While SAP S/4HANA is highly customizable, excessive customization can lead to increased costs and complexity. Prioritizing standardization over customization can help to keep costs down and ensure that the implementation process is as efficient as possible.
• Take advantage of cloud-based deployment options: Cloud-based deployment options can help to reduce the costs of an SAP S/4HANA implementation by eliminating the need for expensive hardware and infrastructure. Additionally, cloud-based deployments can be scaled up or down as needed, making them a flexible and cost-effective option for businesses of all sizes.

The value of SAP S/4HANA for businesses is undeniable, but the perception of it being a costly and complex undertaking can be a major deterrent. However, with the right approach and mindset, businesses can unlock the full potential of SAP S/4HANA without breaking the bank. By focusing on standardization, investing in in-house talent, and choosing the right partners, businesses can transform their operations and drive growth. It's time to break free from the idea that SAP S/4HANA has to be a 100M USD program and start realizing its true value.

The benefits of SAP S/4HANA are too great to ignore, and with the right approach and partner, you can unlock the full potential of this powerful solution and drive growth for your business. So why wait?

Disclaimer: The views expressed on this platform are solely my own and do not reflect the views of my employer. I welcome constructive feedback and comments as they assist me in growing and enhancing my perspectives.