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

Keeping SAP updated ensures companies access innovations that drive efficiency and competitiveness

Date:

May 2, 2024

Reading time:

minutes

Keeping SAP updated ensures companies access innovations that drive efficiency and competitiveness

São Paulo, March 2024 – As the new year begins, companies worldwide are re-evaluating their management strategies. Migration to SAP S/4HANA stands out as a strategic priority. Guilherme Joventino, COO of Mignow, a pioneering software specialized in SAP automation, lists five crucial reasons to start migration planning in 2024.

1. End of Enterprise Support and Workforce Challenges: SAP's 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, increased costs, including a 2% penalty on the SAP contract value, 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, offering a competitive advantage in the market, in addition to compatibility with other devices, such as mobile, which allow for real-time information and decision-making. Industries that migrate to S/4HANA experience up to 5x faster operational speed compared to their competitors. This results in significantly higher employee productivity, operating on a faster and more efficient system. Furthermore, S/4HANA aids in rapid decision-making; for example, a farmer can obtain vital information about soil pH directly on their mobile phone, allowing for immediate adjustments in soil treatment, minimizing losses and waste. These scenarios demonstrate the versatility and transformative impact of S/4HANA across various sectors.

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

4. Enhanced Security: Constant SAP updates are crucial for data security. New functionalities and security measures are continuously integrated into the system, protecting companies against emerging threats. Guilherme Joventino highlights the growing importance of Artificial Intelligence (AI) in the current technological landscape. "With AI becoming increasingly prevalent, SAP offers a compatible and secure system against potential vulnerabilities associated with this technology. A system not integrated with AI can be vulnerable to unauthorized access attempts, whereas an updated SAP provides robust protection against such risks," explains the COO. This example underscores the importance of keeping the SAP system updated, not only to improve functionality but also to ensure security against emerging technologies like AI.

5. Future-Proofing and Continuous Integration: SAP, aligned with the latest technological trends, ensures that companies keeping their systems updated benefit from always being equipped with the newest innovations. Each system update, such as the mobile integration introduced by S/4HANA, adds new functionalities that strengthen organizations' market competitiveness. Guilherme Joventino emphasizes the importance of keeping SAP up-to-date, highlighting that each update introduces innovative features essential for maintaining a company's competitiveness both now and in the future.

It's important to recognize that SAP is constantly evolving, with frequent updates that discontinue older models and introduce new ones; therefore, ECC is not the last model to be discontinued. These updates, whether small changes throughout the year or major annual updates, bring constant innovations. 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 specializing 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 errors, effort, and costs by automating approximately 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 like the SAP Innovation Awards in the "Digital Transformation on Rise with SAP" category due to its success in migrating Carrefour in just three months, significantly surpassing the market average of about one year.