If You Haven't Moved Your ERP to SAP S/4HANA, You're Already Late, but There's Still Time to Leapfrog

I often hear this argument: "Our SAP ERP 6.0 is running well, and we don't see a business need to move to S/4HANA." On the surface, this is a fair point. But let’s break it down.

There are two main points in this argument:

1. ERP 6.0 is running well.
2. There’s no pressing business need.

Assuming these two are closely linked, logic dictates that a change is necessary. Business needs are never constant, and neither should your ERP system. SAP ERP 6.0 was released in 2005, and now we're in 2024. If your system is still running well, thank your system integrator and SAP. However, beyond a certain point, your business needs will evolve to a point where neither your SI nor SAP will be able to help you if you continue to rely on ERP 6.0.

Understanding the Business Need:

Let’s talk about business needs. We can analyze this by industry, but for simplicity, let’s consider a cross-industry perspective. What has changed in the last 20 years?

The answer is not straightforward, but some things are clear:

• The needs of end-users (customers or internal users) have changed drastically.
• The entire value chain has evolved.
• The pace of technological change is a force to be reckoned with.

If your SAP ERP 6.0 system is running well today, thank your system integrator and the team managing its maintenance—they are the ones making it happen. However, for the same reason, the evolving business needs, you must consider moving to SAP S/4HANA.

Why Now?

While ERP 6.0 might still be meeting your current needs, the landscape is rapidly changing. Your competitors who have moved to S/4HANA are already leveraging its capabilities for enhanced analytics, streamlined processes, real-time insights, and scalability. These advantages are no longer just 'nice-to-have'; they are necessary to keep pace with market demands and customer expectations.

How to Make the Leap:

If you’re unsure how to start, bring in your system integrator. If you decide to leapfrog and make up for lost time, IBM Rapid Discovery can help you navigate the transition smoothly and efficiently. Contact me if you are in Singapore.

The clock is ticking, and the longer you wait, the harder it becomes to catch up. But there’s still time to leapfrog and position yourself ahead of the curve.