Why delaying SAP innovation is risky

Risks associated with continuing to use SAP ECC after 2027 Continuing to use SAP ECC after the end of mainstream support in 2027 poses several significant risks: 1. Security Vulnerabilities - Without ongoing security updates and patches, SAP ECC systems will become increasingly vulnerable to cyber threats. - This lack of updates means any new vulnerabilities discovered after 2027 will not be addressed, leaving the system open to potential attacks. 2. Compliance Issues - As regulations evolve, maintaining compliance becomes challenging without the necessary updates. - Companies may struggle to meet new regulatory requirements, which could lead to legal and financial repercussions. 3. Operational Inefficiencies - Unsupported software can lead to operational inefficiencies. - Without official support, troubleshooting and resolving issues will be more difficult, potentially causing significant downtime and disruptions. 4. Lack of Innovation - Staying on SAP ECC means missing out on new features and technological advancements that SAP will develop for S/4HANA. - This can result in a competitive disadvantage as other companies leverage newer technologies for better efficiency and innovation. 5. Increased Costs - While third-party support options exist, they often come at a premium and may not provide the same level of service as SAP. - Additionally, the cost of maintaining an outdated system can increase over time due to the need for custom fixes and workarounds. 6. Technical Debt - Continuing to use an unsupported system accumulates technical debt, making future migrations more complex and costly. - The longer the transition is delayed, the more challenging and expensive it becomes to move to a new system. While it might be tempting to delay the transition to SAP S/4HANA, the risks associated with continuing to use SAP ECC after 2027 are substantial. Companies should plan their migration strategy early to avoid these potential pitfalls. #SAP #SAPmigration #SAP2027Deadline #SAPECC #SAPS4HANA #ZaranTech

🌄 Monday Awakening: The Transformative Leap to SAP S/4HANA for Tomorrow's Success It's Monday morning, a time often associated with a fresh start, an opportunity to set the tone for the week ahead. As we sip our first cup of coffee and scroll through our emails, let's pause for a moment to contemplate a crucial decision looming on the horizon of corporate strategy: the transition to SAP S/4HANA. This isn't just another item on your to-do list; it's a pivotal move that could redefine the future of your organization. ⁉ The Misconception of Waiting for 2027 Many organizations are playing the waiting game, aiming for a 2027 shift to SAP S/4HANA, the deadline set by SAP for ending support for its previous ERP systems. This might seem like a cost-saving tactic, but in reality, it's a ticking time bomb. By delaying, you're not conserving resources; you're potentially squandering them. 💹 The Inflation in SI Partner Costs One of the critical factors often overlooked is the staggering inflation in the costs associated with System Integrator (SI) partners. The demand for high-quality resources essential for S/4HANA implementations and migrations is skyrocketing. This demand surge leads to increased costs, and the longer you wait, the higher these expenses will climb. By postponing your move, you're inadvertently setting up your organization for a financially challenging transition. 🐦 The Early Bird Gets the Better Deal SAP, like any forward-thinking entity, rewards early adopters. Currently, as the RISE with SAP initiative is gaining traction, SAP is more likely to offer attractive deals to organizations that choose to transition early. These deals can include favorable pricing or deals. In contrast, waiting another 3-4 years, when the adoption of RISE with SAP is in full swing, you're likely to encounter different terms and lesser deals. 🚜 A Call to Action Now is the time to act. Think of your organization as a ship navigating through the turbulent seas of technological advancement and market competition. The decision to transition to SAP S/4HANA is akin to changing the course of this ship. Yes, it requires effort, resources, and strategic planning, but the benefits far outweigh the temporary challenges. By making this transition now, you're not just keeping up with technology; you're positioning your organization to be a leader in innovation and efficiency. As we embark on another week, let's not just go through the motions. Let's be proactive and make decisions that will have a lasting positive impact on our organizations. The move to SAP S/4HANA is not just a technical upgrade; it's a strategic investment in the future. The time to act is now. Don't wait until it's too late. Change the course of your ship and sail towards a more efficient, innovative, and prosperous future. #SAP #SAPS4HANA #S4HANA #SAPCommunity #RISEWithSAP #GROWWithSAP #SAPConsulting #SAPConsultant #SAPConsultants

The Costs and risks of Technical Debt The need for a more complete core modernization approach comes from challenges, costs, and risks explained in Deloitte Tech Trends 2024: The costs and risks of technical debt. Companies dealing with older technology, like SAP ECC, face various reasons to invest in a complete modernization strategy: *Direct Costs: These are the expenses directly related to maintaining old hardware and software. This includes costs for support licenses to continue ECC, contracts with 3rd party service providers, and internal workforce dedicated to keeping these systems up and running *Indirect Costs: Expenses rise due to inefficiencies in the old technology, like longer month end closing process in ECC. This includes untracked time and effort spent on executing inefficient processes, moving data between old systems and modern applications and so on *Time-to-Market Impact: Old technology can cause delays and inefficiencies, affecting how quickly businesses can bring initiatives to market or even roll out existing solutions to new markets. This is crucial for companies aiming to stay agile and competitive *Barriers to Innovation: Limitations in old technology can hinder growth initiatives. For example, difficulties in processing customer orders or language and currency restrictions can slow down innovation and market expansion. *Operational Risk: There's a potential for future problems in scalability, reliability, and performance due to limitations in old systems. It's essential to address technical debt for sustained operational excellence. *Security Risk: Older systems may lack advanced security features, making organizations vulnerable to cyber threats. In a time of increased digital risks, it's crucial to take proactive measures. *Talent Risk: The existence of technical debt and outdated tools can make it challenging to attract and keep top technology and business talent. In a competitive environment, having a modernized core is crucial for attracting skilled professionals and fostering innovation. Even internal workforce wants to work on latest trends in SAP by leveraging of SAP BTP or SAP S/4HANA Cloud products for their personal and professional growth. By thoroughly addressing these reasons to invest, companies can navigate the complexities of old technology and position themselves for ongoing success in the changing business landscape. Reach out to me or my colleagues from Deloitte Consulting in Nordics to have a detailed discussion on risks if you continue to live with high technical debt in your landscape. #transformwithdeloitte #techtrends #technicaldebt #sap #s4hana