SAP S/4HANA conversion planning takes an average of 3 years. Delaying the start could make it difficult to hire labor to complete the migration until the end of SAP ECC support in 2025.

MIGNOW software uses Artificial Intelligence to automate 85% work, without needing to know the customer database, resulting in a significant reduction in project time

With the increasing company migration large scale, we saw a new level of data analysis, faster integrations and increased user performance, including integration with cell phones. In this context, the SAP S/4HANA offers benefits essentials for agile business models, such as speed, flexibility, simplicity, faster analytics, lower costs, and the power of HANA's in-memory database.

OS/4HANA is also evolving to integrate with other emerging technologies such as the Internet of Things (IoT), blockchain and Artificial intelligence advanced data analysis. These future trends are shaping the digital transformation of companies, driving innovation, improving customer experience and creating new business models.

However, the migration process to S/4HANA is not simple. The technology sector and the CTO, as a leader, face the barrier of information scarcity. A market survey carried out by Mignow, a software company specialized in automating migration and update processes between SAP ECC and SAP S/4HANA, shows that only 20.6% of respondents claim to be well aware of the gains gained from adopting the S/4HANA, while 44.1% claim to be neutral on the subject and 35.3% do not understand the subject. 

Regarding costs, 20.6% of those interviewed demonstrated that they had good knowledge on the subject, while 38.3% were neutral and 41.1% had little knowledge. Surprisingly, even among the executives responsible for approving the migration, only 33.3% said they were aware of the need to convert from SAP ECC for SAP S/4HANA.

Internal communication is a big challenge for the CTO, as it is essential to fill the information gap and show how the project will benefit everyone. Successful migration cases can lead to the CTO being recognized for the initiative and serve as a case to promote it.

Another challenge is finding qualified labor, as training consultants specialized in migration is complex and time-consuming. Furthermore, migrating to S/4HANA can be costly, have a long implementation time and require the company to keep the system down during the process. End of support for SAP Enterprise Support for the ECC version by 2025 is a concern as several essential functions depend on this tool.

“Migration planning usually takes around 3 years, and delaying the start of migration can result in difficulties in finding available labor within the stipulated deadline. This may lead to a maintenance fee based on the value of the existing contract between the organization and SAP, requiring 2% of the contract to continue using an obsolete system.”, warns Guilherme Joventino, co-founder and COO of Mignow.

One of the concerns of organizations is in relation to “Z” – extensions of the organization that will not use SAP. However, the company Mignow offers a study to assist with the migration, identifying which objects do or do not need to be migrated to S/4HANA, which simplifies the database and includes the “Z’s” objects in the new environment.

“Artificial intelligence (AI), a tool used in the MIGNOW software, is an ally in this migration process, speeding up the operation and saving time and resources through automated processes. Embedded AI and machine learning applications continue to evolve in S/4HANA, improving modeling, predictive outcomes, and forecasting.”, explains Joventino.

The specialist explains that because it is software, Mignow does not rely on human action only in essential stages, with AI-automated processes, reducing the number of errors. Another positive point is being able to run 24 hours a day, 7 days a week, which minimizes working time, risks and costs all at once. Furthermore, the MIGNOW software promises, without knowing the customer's database, 85% automation, as the work is carried out with the help of Artificial Intelligence, which is one of the company's great differentiators and reduces project time.

“A retailer, for example, could use the Universal Data Element Framework to forecast demand based on historical data and extract third-party factors such as weather. The retailer could then develop a model capable of predicting demand for a given product in a given region.”, concludes Guilherme.

In short, migrating to SAP S/4HANA brings benefits to companies, but it also presents challenges, such as lack of information, shortage of qualified labor and costs involved. However, with solid planning, efficient internal communication and the intelligent use of technologies such as AI, it is possible to achieve a successful migration, providing competitive and functional advantages for the organization.

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How to boost the CTO in the conversion to SAP S/4HANA
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Accelerating technology transformation: How MIGNOW powers the CTO in converting to SAP S/4HANA
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How MIGNOW Boosts CTO Conversion to SAP S/4HANA

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Accelerating technology transformation: How MIGNOW powers the CTO in converting to SAP S/4HANA

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Accelerating technology transformation: How MIGNOW powers the CTO in converting to SAP S/4HANA
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Accelerating technology transformation: How MIGNOW powers the CTO in converting to SAP S/4HANA
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