My last blog discussed the need for the Intelligent Enterprise. In this post, I’ll discuss the follow-up question: how can your company embark upon this digital transformation journey? From an SAP viewpoint, there are three important starting points.
If you are an existing SAP ECC user, prepare for the upcoming end of service in 2025 (https://support.sap.com/en/offerings-programs/strategy.html#section_1610563356). Although 2025 is still a few years away, we know from years of strategy and implementation experience that customers need time to transform – from allocating funds for PoCs and assessments on S/4HANA options to finalizing the implementation of the solution. Can companies really afford a two-to-three-year journey if they start late? It’s important to consider that development on ECC has already stopped. Remember, the bigger the gap between the current version of your system and the target version of the new system, the more likely it is that a conversion approach isn’t feasible and that you need to start preparing for a greenfield implementation. My advice to clients – start preparing for your journey as early as January 2019.
It makes sense to combine your research with an innovation journey. After all, the intelligent enterprise is all about preparing to become an agile and deeply connected company of the future. It is about better understanding and better meeting your customers’ needs. SAP S/4HANA has poised itself to give you a stable and up-to-date digital core. The SAP Cloud and Leonardo platforms are opening up previously unattainable possibilities. In my experience, you can start exploring this right away. An innovation day, based on Design Thinking can bring a well-chosen foundation to an ambitious roadmap.
We see a spiked interest in the move to the cloud; a SaaS solution, such as S/4HANA Cloud, or deploying S/4 HANA on cloud infrastructures such as Microsoft Azure and AWS. S/4HANA Cloud is SAP’s preferred S/4HANA deployment option. It can be used in a two-tier scenario, wherein a large company has subsidiaries that are better helped with a simple, out-of-the-box ERP core than a complicated and expensive rollout of an SAP kernel. We also see the benefits of this deployment option in M&A and divestment scenarios. SAP offers sufficient capabilities to migrate to the cloud and Capgemini is one of the first three certified global partners for such deployments.
Companies would be well advised not to defer their digital transformation journeys any longer and this blog provided just a few guidelines on how to go about it. Whichever option and starting point you choose, Capgemini is well-equipped to help you. To learn more, email me, Hugo Wasser, or visit us at our SAP Innovation Center in Utrecht.