The SAP S/4HANA Journey – From Update to Transformation

In this episode of the Horváth Podcast, René Linsner and David Bartela discuss the strategic, financial, and operational aspects of migrating to SAP S/4HANA. Moving to SAP S/4HANA is much more than an IT upgrade—it’s a comprehensive transformation that not only prepares companies technologically for the future but also optimizes business processes, boosts efficiency, and provides long-term competitive advantages.

Why is migrating to SAP S/4HANA so important now?  

• SAP will discontinue support for the previous version of the ERP software, SAP ECC, by 2030, forcing companies to address the transition now.

• Many companies have yet to make the switch due to concerns about the high effort and risks involved.

• The transformation presents an opportunity to fundamentally rethink processes and adapt them to modern business requirements.

Challenges and strategic considerations 

• The transition is not just an IT project but requires an enterprise-wide alignment of financial and business processes.

• Change management and executive engagement are crucial for success—without consistent support from leadership, many projects fail.

• Companies should address the following questions from the outset:
  • What will the future business model look like?
  • Which KPIs are relevant for management?
  • What new market opportunities arise from the transformation?

Best practices for a successful migration 

• Conduct a feasibility study: Companies should perform a 360° analysis of their current state to identify a clear roadmap and quick wins.

• Two options: Greenfield vs. Brownfield approach
  • The Greenfield approach allows for a complete restart and the optimal use of new SAP functionalities.
  • The Brownfield approach, on the other hand, is a gradual migration that builds on existing processes.
  • The Smart Greenfield (Bluefield) approach combines the advantages of both approaches.
• Align technology with corporate strategy: The introduction of SAP S/4HANA should not be seen in isolation, but as an integral part of long-term corporate development, closely interwoven with the overall strategy.

Lessons learned and typical pitfalls  

• A common problem is starting a migration without a strategic concept—this leads to a system that offers little advantage over the old solution.

• Companies that focus too much on customizations make later updates and maintenance more difficult.

• Data quality plays a central role—unclean master data causes issues in the implementation and use of S/4HANA.

Conclusion  

The SAP S/4HANA transformation is inevitable over the next five years, but it presents tremendous opportunities for companies. Those who proactively engage with their S/4HANA strategy now can use the transition as a catalyst for innovation, agility, and sustainable growth. A successful migration requires a clear strategy, support from leadership, and a well-thought-out project approach. Companies should view the migration as a holistic business transformation to fully leverage the potential of the new platform.

For those who continue to delay and postpone the switch, there is a risk of operational uncertainties and missed opportunities for optimizing and digitizing their business processes. Now is the right time to actively shape this change! We hope this episode of the Horváth Podcast has provided you with valuable insights and food for thought on the topic. Thank you for listening!