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Why SAP S/4HANA Migration Should Be Driven By Digital Transformation

Digital transformation remains one of the most used buzzwords in enterprise development. As most business owners will attest, it’s more than just an empty term. Digital transformation is the only way for businesses to keep pace with industry trends. SAP S/4HANA migration forms a core part of that digital transformation process. The company will become more responsive and able to adapt to changing demands. Amidst all of this, a robust backend system needs to take the brunt of that transformation. SAP S/4HANA provides that backend support. Companies are about competition. Process efficiency will see significant upgrades when moved into a digital system.

A Part of the Transformation Journey

A company looking at digital transformation can’t see it in isolation. It’s not a process that can be done without input from other areas of the company. Yet, so many companies seem to think that digital transformation can happen on a departmental basis. Different types of business shifts may be done this way. A digital transformation requires buy-in from all departments and needs to happen gradually. Processes in particular need to be phased in while obsolete and dated systems are phased out. Unfortunately, businesses with legacy systems and on-premise SAP installations have digital artifacts that require special consideration. Some enterprises have software acquired alongside their business interests that have never been fully integrated into the SAP system. Digital transformation alongside SAP helps a business bring all its data under one overarching idea. Transformation also helps businesses shed old, unnecessary data from their databases. Data artifacts are dealt with efficiently, speeding up the database performance and offering better efficiency in process completion.

Examining Data With an Analytics Engines

SAP’s most exciting feature to date is upgraded analytics engines. S/4HANA keeps data and transactions available on the same platform, making querying fast and straightforward. Not only are reports easy to set up, but they can be delivered at a rapid pace. The central selling point for SAP is its ability to incorporate real-time analytics into its system. Never before have businesses had a tool that gives them analytics with such a low delay window. If a company wants to adapt to challenges on the fly, these tools are invaluable. However, these analytics don’t just give insight into the business. By tracking the right Key Performance Indicators, a company can find where it’s most efficient to spend its resources, saving the business time and money while still offering efficiency upgrades in specific departments.

Bringing Systems Over to S/4HANA

Complexity in legacy systems tends to compound the longer the system has been around. Even with on-premise SAP installs, upgrading from one version to another doesn’t streamline the data. All the extra ballast goes along for the ride. If a business runs a technical translation service for example, they might have dictionaries dating back to the past that is redundant given current information. By migrating their systems over to S/4HANA, they mitigate this excess data and keep the system more performant. Analytics keeps management in the loop regarding process efficiency and offers them ways to improve their processes over time. Digital transformation without SAP is possible, but it will be a far slower process prone to errors and not clear about the areas that need to be improved. In this sense, S/4HANA is a priceless tool to help businesses speed up their digital transformation timeline.

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