Accelerating Technological Transformation: How MIGNOW Empowers CTOs in SAP S/4HANA Conversion

Planning an SAP S/4HANA conversion takes an average of 3 years. Postponing the start can make it difficult to hire labor to complete the migration before SAP ECC support ends.

São Paulo, May 2024 – With the increasing migration of large enterprises, the market is witnessing a new level of data analysis, faster integrations, and improved user performance, including mobile device integration. In this scenario, SAP S/4HANA emerges as an essential solution for more agile business models, offering speed, flexibility, simplicity, real-time analytics, and reduced operational costs.

Furthermore, S/4HANA is evolving to integrate with emerging technologies such as the Internet of Things (IoT), blockchain, and Artificial Intelligence (AI), driving companies' digital transformation, innovation, and new business models.

However, migrating to SAP S/4HANA still presents a significant challenge for companies and technology leaders. According to a market survey conducted by Mignow, a company specializing in automating migration and upgrade processes between SAP ECC and SAP S/4HANA, only 20.6% of respondents claim to be well-aware of the benefits gained from adopting the new system, while 35.3% show little understanding of the topic.

When it comes to migration costs, the scenario is similar: only 20.6% claim to have good knowledge of the process, while 41.1% still have little information. Surprisingly, even among executives responsible for approving the migration, only 33.3% state they are aware of the need to convert from SAP ECC to SAP S/4HANA.

Internal communication also emerges as a major challenge for CTOs and technology leaders. It is necessary to bridge the information gap within organizations and demonstrate how the project can benefit different areas of the company. Successful migration cases can even strengthen the strategic position of these executives within the company.

Another significant obstacle is the shortage of specialized labor. Training experienced SAP migration consultants is a complex and time-consuming process. Furthermore, traditional migration projects often involve high costs, long implementation periods, and potential system downtime.

“Migration planning typically takes about 3 years, and postponing the start of the migration can lead to difficulties in finding available labor within the stipulated timeframe,” warns Guilherme Joventino, co-founder and COO of Mignow.

One of the main concerns for organizations relates to so-called “Z” objects, which are custom extensions developed outside of SAP's standard. To reduce this complexity, Mignow offers a specialized study that identifies which objects truly need to be migrated to the new S/4HANA environment, simplifying the database and reducing operational risks.

In this context, Artificial Intelligence becomes a strategic ally in the migration process. Mignow's software uses AI to automate up to 85% of the work, without requiring prior knowledge of the client's database, significantly accelerating the project and reducing human errors.

“Embedded AI and machine learning applications continue to evolve in S/4HANA, improving modeling, predictive outcomes, and forecasting,” explains Guilherme Joventino.

According to the executive, automation allows the software to operate 24 hours a day, seven days a week, simultaneously reducing execution time, risks, and costs. Among the solution's key differentiators is precisely its ability to automate complex processes without relying on extensive manual analysis of the client's infrastructure.

As a practical example, a retailer could use advanced S/4HANA features to perform demand forecasts based on historical data, consumer behavior, and external factors like weather, creating more intelligent and accurate models for decision-making.

In summary, migrating to SAP S/4HANA offers significant gains in competitiveness, efficiency, and innovation for businesses. Despite challenges related to information, labor, and costs, structured planning combined with the intelligent use of Artificial Intelligence can accelerate digital transformation and ensure a safer and more efficient migration.

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