Switching to SAP can be a serious problem for large companies

By: Trademagazin Date: 2024. 05. 27. 11:34

In the next period, those large companies using the SAP system will also have to switch to the new S/4HANA version of the solution, which would otherwise not necessarily do so themselves, because the manufacturer will no longer support previous editions from 2027. In many cases, however, the new version is a completely different architecture, the transition is in many ways almost like having to introduce a completely new ERP system. This can pose serious challenges to users, and an improperly managed transition can even significantly reduce the company’s effectiveness – warns the head of Helix Consulting.

Switching to SAP’s new S/4HANA system means almost the introduction of a new system for SAP users – pointed out Gábor Gamplett, head of Helix Consulting, one of the most experienced Hungarian consulting companies specializing in the management of system implementations. In addition, the transition is not optional, as the manufacturer will end support for previous versions in 2027 at the latest, so no large company will be able to afford its continued use. This does not mean that all users will have to switch in 2027, but that is the latest date that they will have to do so, but you could do it tomorrow, or you could have done it years ago. It is important that it is not a regular update, but a completely new architecture that completely transforms traditional SAP systems, opening up new possibilities in data management and business intelligence. Switching is not cheap, the costs for medium-sized or large companies can exceed HUF one billion, depending on usage. An important point is that in the coming years there will be a significant demand for the expertise of SAP consulting and introduction companies, so their capacity may also be a bottleneck. You can imagine having to “stand in line” with them, especially for those who postpone switching until the last minute. While waiting, let’s not think of days, but rather of months, since we are specifically talking about the large corporate sector, with strict contracts and even projects planned for years in advance.