5 Reasons to Plan a Migration to SAP S/4HANA in 2024

By keeping SAP up to date, companies guarantee access to innovations that boost efficiency and competitiveness

São Paulo, March 2024 – With the beginning of the new year, companies around the world are reevaluating their management strategies. The migration to SAP S/4HANA stands out as a strategic priority. Guilherme Joventino, COO of Mignow, pioneering software specialized in SAP automation, lists five crucial reasons to start migration planning in 2024.

1. End of Enterprise Support and Labor Challenges: SAP support, known as Enterprise Support, will be discontinued in 2027. Companies that do not migrate by then will face the loss of this vital support, potentially leading to a shortage of qualified professionals and the increased costs, with a fine of 2% of the value of the contract with SAP, and operational risks. Postponing the decision will result in additional costs and system obsolescence, warns Joventino.

2. Increased Efficiency and Competitiveness: Upgrading to SAP S/4HANA provides access to new features that boost operational efficiency and market competitiveness. S/4HANA's intuitive interface facilitates quick decision-making, optimizes processes and increases productivity, providing a competitive advantage in the market, in addition to compatibility with other devices, such as mobile, which allow information and decision-making in real time. Industries that migrate to S/4HANA experience up to 5x faster operational speed compared to their competitors. This results in significantly greater employee productivity, operating in a faster and more efficient system. In addition, S/4HANA helps in making quick decisions, for example, rural producers can obtain vital information about soil PH directly on their cell phone, allowing immediate adjustments in soil treatment, minimizing losses and waste. These scenarios demonstrate the versatility and transformative impact of S/4HANA in various sectors.

3. Reduction of Operational and Energy Costs: Migrating to S/4HANA helps reduce operational and energy costs. The Carrefour Group, for example, observed a reduction of 30% in operating costs and 45% in energy consumption after adopting SAP BTP.

4. Improved Security: Constantly updating SAP is essential for data security. New features and security measures are continually incorporated into the system, protecting companies against emerging threats. Guilherme Joventino highlights the growing importance of Artificial Intelligence (AI) in the current technological scenario. “With AI becoming increasingly present, SAP offers a compatible and secure system against possible vulnerabilities associated with this technology. A system not integrated with AI can be vulnerable to unauthorized access attempts, while an updated SAP offers robust protection against such risks”, explains the COO. This example highlights the importance of keeping your SAP system up to date, not only to improve functionality but also to ensure security against emerging technologies like AI.

5. Preparation for the Future and Continuous Integration: SAP, aligned with the latest technological trends, ensures that companies that keep their systems up to date have the advantage of always being equipped with the latest innovations. Each system update, such as the mobile integration introduced by S/4HANA, adds new functionalities that reinforce the competitiveness of organizations in the market. Guilherme Joventino emphasizes the importance of keeping SAP up to date, highlighting that each update introduces innovative features, essential to keep the company competitive both in the present and in the future.

It is important to recognize that SAP is constantly evolving, with frequent updates that discontinue old models and introduce new ones, so ECC is not the last model to be discontinued. These updates, whether small changes throughout the year or major annual updates, bring constant innovation. In this context, having a partner like Mignow, which offers a subscription service for automatic system updates, is vital. This ensures that organizations are always operating with the latest version of SAP, maximizing their efficiency and competitive advantage.

About Mignow

Mignow is a software company specialized in automating migration and update processes between SAP ECC and SAP S/4HANA. Its pioneering solution enables companies' Digital Transformation journey, contributing to the reduction of failures, efforts and costs, automating around 80% of migration processes.

With a portfolio of renowned clients such as Nike, GPA, Pague Menos, XP, Carrefour, among others, Mignow is recognized as a leader in the sector and has a proven track record of successful conversions, as well as major awards such as the SAP Innovation Awards in “Digital Transformation on Rise with SAP” category due to its success in migrating Carrefour in just three months, significantly exceeding the market average, which is around one year.