Keeping Control: How Modern SAP S/4HANA Authorization Concepts Balance Costs and Security Risks

As businesses move from SAP ECC systems to SAP S/4HANA, authorization concepts become central to both application security and cost savings. While many organizations still view authorizations as a “black box,” cbs Consulting states that proper visibility and management can significantly lower licensing costs and reduce risk.

Authorization management has traditionally been a complex area for SAP administrators. Outdated concepts and poorly maintained user roles often result in excessive authorizations, which increases both risk exposure and the total cost of ownership (TCO). cbs Consulting stresses that refining authorization concepts around the principle of “least privilege” not only enhances security but also ensures that licensing metrics more accurately reflect actual business needs.

“Most companies underestimate the financial impact of poorly managed authorizations,” said Olalla Fernández Barrio, SAP security expert at cbs Consulting. “State-of-the-art authorization management knowledge is the foundation for a good, safe, and cost-efficient administrator management.”

A key part of the cbs Consulting approach is to first rely on SAP’s standard administration tools before considering third-party software. SAP S/4HANA offers more advanced features than many organizations realize, allowing internal teams to gain better visibility into authorization structures. This strategy can help companies avoid costly external solutions that may not be necessary if native SAP tools are fully utilized.

Overcoming Complexity with Training and Best Practices

cbs Consulting acknowledges that there are challenges. Measuring license consumption based on authorization assignments can give false results if not managed carefully. Administrators often find that small misconfigurations can inflate reported license usage, leading to unnecessary costs during audits. To help prevent this, cbs Consulting recommends targeted training for in-house staff and, in some cases, specialized advisory services to interpret SAP’s complex authorization data.

Training plays a vital role in dispelling the “black box” perception of authorization management. cbs Consulting emphasizes that when administrators understand the logic behind SAP’s tools, they can design and sustain authorization structures that are secure and cost-effective. With SAP S/4HANA migration deadlines approaching for many companies, the firm highlights that now is the time to re-evaluate authorization strategies instead of simply transferring legacy setups.

Ultimately, cbs Consulting considers authorization management both a risk reduction tactic and a way to optimize costs. By limiting unnecessary access, companies not only adhere to the principle of least privilege but also enhance control over license usage. This pair of benefits makes authorization modernization a key focus for organizations using or transitioning to SAP S/4HANA.

A forthcoming resource in this field is Practical Guide to Authorizations in SAP by Olalla Fernández and Franziska Schlauch, set to be published in Q4 2025. The book aims to offer practical advice for administrators looking to modernize their methods and implement industry best practices.

What This Means for SAPinsiders

The market is moving toward standard tools with selective enhancements. As SAP S/4HANA adoption speeds up, companies discover that SAP’s built-in tools often suffice for effective authorization management. Competitors and third-party solutions still serve a purpose, especially for organizations with complex hybrid setups. Technology leaders should assess if their needs can be met with native solutions before investing in expensive external platforms, aligning spending with actual business complexity.

Practical execution requires both strategy and training. One of the most common challenges is the lack of administrator expertise, which can turn even the best concepts into costly liabilities. Best practices include engaging expert advisory services during migrations, conducting regular internal audits of license consumption, and investing in targeted role management training. Executives should see authorization modernization as an ongoing discipline rather than a one-time project, as it safeguards both security and IT budgets.

Common challenges can be overcome with clear governance. Many companies struggle with the complexity of role design, particularly when managing global user bases with varied compliance requirements. Organizations that implemented clear governance models—such as role libraries, automated provisioning workflows, and periodic user recertifications—have seen significant reductions in audit findings. For executives, this underscores the importance of embedding authorization management within broader risk management and compliance frameworks.