The problem facing enterprises that have invested significantly in SAP ERP-enabled transformation is how to approach SAP S/4HANA and what is the best path forward, given years of SAP investments. Should they remain on functioning ECC systems and sweat out their assets until budget can be justified for another large ERP transformation program? Or explore other new digital ERP options – facing the risks of reinvention, business disruption and the same investment challenges?
SAP’s positioning of SAP S/4HANA has certainly done little to alleviate this confusion. SAP has marketed SAP S/4HANA as a brand-new product, requiring existing ECC customers to procure new licenses and the provision of additional costly infrastructure. Unfortunately, SAP’s early decision to focus on end-of-support as a driver to adoption – rather than on the business case for a move to digital ERP – left even loyal SAP customers in a dicult position, trying to build a case to invest in a new system when their current ECC investments could still support most business requirements.