Maximizing SAP S/4HANA Cloud Migration Value with NTT DATA Business Solutions’ Zero Cost Move

Moving to SAP S/4HANA involves careful planning and understanding of both financial and organizational aspects.

While the new ERP system offers many benefits, such as enhanced employee experience and improved analytics for better decision-making, the migration process can be complex and costly. Some organizations might opt for a straightforward lift and shift approach, essentially running the same SAP ERP Central Component (ECC) processes on the new system, missing out on the operational advantages of the migration, or even choosing not to migrate at all.

In a conversation with Brandon Evans, Vice President, Customer Transformation and Innovation for NTT DATA Business Solutions, Evans points out that many SAP-powered organizations struggle with identifying the value of migrating from SAP ECC systems to SAP S/4HANA. Organizations must balance risks, business continuity, budgets, and organizational changes during this transition. In addition, and often most importantly, there is a struggle with the cost of such a major project.

NTT DATA Business Solutions recognized an opportunity to accelerate the move to SAP S/4HANA while making the process more accessible through their experience working with clients to drive innovation and operational excellency from advisory to implementation. To address customer concerns on value and financial ROI, NTT DATA is launching its Zero Cost Move program which waives consulting fees associated with the move for companies making the switch from SAP ECC systems to RISE with SAP. The program offers qualified customers the opportunity to move to RISE with SAP with zero consulting fees. This initiative aligns well with SAP’s 2024 RISE with SAP Migration and Modernization program, which can reduce the cost of moving to RISE with SAP by up to 50%.

Finding Opportunities for Increased ROI

The Zero Cost Move program encompasses several essential steps for the SAP S/4HANA Cloud transition process, including data migration, simplification, functional and technical remediation, and verifying data and platform integrations. This approach maximizes the return on investment (ROI) while allocating resources for parallel implementations like test automation, SAP S/4HANA innovations, and developing a business-driven roadmap. NTT DATA emphasizes a personalized approach which considers each customer’s total SAP footprint beyond ERP and facilitates a streamlined transition to the cloud.

Acknowledging that process can be daunting to some teams, NTT DATA also encourages organizations to map and chart their path to SAP S/4HANA Cloud prior to investing in the actual migration itself. NTT DATA’s Wayfinder Program assists customers in conducting technical analyses, strategic planning, capability mapping, and forming financial business cases. By taking an advisory perspective and performing interviews across the business, the NTT DATA team is able to determine which areas of SAP may not be functioning optimally. Such assessments may uncover current pain point and how addressing them aligns with future business requirements. By assessing the current state of their SAP systems, organizations can identify areas for improvement that align with future business needs, optimizing their SAP S/4HANA Cloud transition.

What Does This Mean for SAPinsiders?

• The cost of moving to RISE with SAP S/4HANA Cloud can be reduced enormously. SAP is helping organizations reduce the cost of the move to RISE with SAP with the RISE with SAP Migration and Modernization program with credits that can be used to offset the cost of maintenance, cloud services, or cloud subscription. However, the cost of transitioning from SAP ECC to SAP S/4HANA Cloud is still significant. The Zero Cost Move program from NTT DATA will allow qualifying organizations to waive consulting fees associated with the cost of migration. The implementation will need to occur in 2024 or 2025, so organizations that are already considering the move will be best placed to leverage the offering, but the cost savings will be significant.
• Organizations should start preparing for the move to SAP S/4HANA Cloud today. Despite pressure from customer organizations, SAP has shown no signs of changing course when it comes to cloud ERP. Not only is the software vendor more committed to moving customers to subscription-based offerings, it is becoming increasingly difficult to access non-subscription licenses for any solution. Given these factors, it is vital that organizations start preparing for a future that involves cloud ERP. Not everyone will move there immediately, but to leverage offerings like that being announced by NTT DATA organizations will need to be ready to move quickly or they will miss potential opportunities.
• It is important to understand how offerings like Zero Cost Move can be utilized. A major challenge for organizations moving to SAP S/4HANA is finding experienced partners to assist with the move. Few organizations have the teams to staff an ERP deployment using only internal teams, with more than half looking to leverage consultants with specific skills and another one in five looking to outsource their entire project. This is where the Zero Cost Move project can offer major benefits both in terms of reducing the cost of the project and connecting organizations with an experienced partner. However, it is vital to make sure that internal teams are prepared to embark on these projects as the move to SAP S/4HANA requires a commitment from business teams that is frequently significant. Identifying whether existing processes need to be updated or can be eliminated requires the input of business teams. Zero Cost Move will reduce the consulting costs involved, but that is only part of the project when it comes to a move to SAP S/4HANA.

More information on the program is available here.