The Most Important SAP S/4HANA Trends That You Need to Know [Grow, RISE, AI, 2027 Deadline, etc.]

Summary

In this insightful discussion, Eric Kimberling, CEO of Third Stage Consulting, outlines key trends in the SAP ecosystem, particularly focusing on the S4/HANA implementation. He introduces SAP's 'Grow' and 'RISE' initiatives targeting small to large enterprises for easier S4/HANA adoption. Kimberling also highlights SAP's AI advancements, the importance of integration in their expanding tech stack, and the challenges of tech talent shortages. He raises questions about the future of big system integrators and the realistic approach to SAP's 2027 migration deadline, offering a comprehensive guide for successful S4/HANA implementations and inviting viewers to engage for further insights.

Takeaways

• 😀 Eric Kimberling is the CEO of Third Stage Consulting, an independent consulting firm specializing in digital transformation.
• 🌟 Third Stage Consulting is technology-agnostic and helps clients with digital strategy, software evaluation, and implementation.
• 📈 SAP is focusing on two major initiatives, 'Grow' and 'Rise', to encourage adoption of S4/HANA among small to large enterprises.
• 🛠️ 'Grow' is a program aimed at small and mid-market companies, offering pre-configured technologies to implement S4/HANA with lower cost and risk.
• 🚀 'Rise' targets existing SAP customers, encouraging them to migrate from legacy systems to S4/HANA, especially moving from on-premise to the cloud.
• 🧠 SAP is emphasizing AI with the creation of a Chief AI Officer role, leveraging vast customer data for AI advantages in their product suite.
• 💡 Innovation at SAP includes acquisitions of third-party ERP and enterprise technology providers, expanding their capabilities and offerings.
• 🔄 Integration and interoperability are key as SAP's strategy includes both in-house developed and acquired technologies, requiring seamless system collaboration.
• 🔑 There is a notable skills shortage in the SAP space, particularly for S4/HANA expertise, impacting the implementation capacity and quality.
• 🤔 The role of big system integrators in the S4/HANA ecosystem may be challenged by skills shortage, AI advancements, and customer distrust due to forced migrations.
• ⏰ The 2027 deadline for SAP customers to migrate from ECC/R3 to S4/HANA is unlikely to be met by many, raising questions about SAP's support strategy post-deadline.

Q & A

Who is Eric Kimberling and what is his role in the SAP ecosystem?

Eric Kimberling is the CEO of Third Stage Consulting, an independent consulting firm that assists clients globally in achieving digital transformation success. His company is not affiliated with SAP but frequently helps clients with their SAP implementations, including S/4 HANA.

What is the purpose of Third Stage Consulting's guide to successful S/4 HANA implementations?

The guide is designed to provide best practices, lessons, and tips to enhance the success of an S/4 HANA implementation. It includes insights and advice from clients who have recently undergone the implementation process.

What are the two major initiatives SAP has introduced to encourage the adoption of S/4 HANA?

SAP has introduced 'Grow' and 'Rise'. 'Grow' targets small to mid-sized companies, offering preconfigured technologies tailored to different industries to implement S/4 HANA at a lower cost, risk, and time. 'Rise' is aimed at existing SAP customers, encouraging larger organizations to migrate to S/4 HANA and move from on-premise to the cloud.

How is SAP leveraging artificial intelligence in its strategy?

SAP is focusing on AI as a spearhead of its innovation efforts. They have created a new position, Chief AI Officer, and are integrating AI capabilities into S/4 HANA and their product suite. SAP's large customer base and the data they generate provide an AI advantage for the company.

What role do SAP's acquisitions play in their innovation strategy?

SAP's acquisitions of companies like Ariba, SuccessFactors, Concur, and Business Objects have broadened their technological competencies and driven innovation. These acquisitions have allowed SAP to offer a more comprehensive suite of enterprise technologies.

Why is integration and interoperability becoming a key focus in the SAP space?

With the shift in strategy to acquire external software vendors, SAP and its customers now need to focus on how to effectively integrate these systems. This is crucial for the successful implementation of S/4 HANA alongside other SAP-acquired systems.

What is the impact of the tech talent shortage on SAP projects?

The tech talent shortage, especially for SAP consultants well-versed in S/4 HANA, can lead to challenges in resourcing and finding skilled professionals for implementation projects. This shortage may affect project timelines and the quality of implementation.

What challenges might large system integrators face in the S/4 HANA ecosystem?

Large system integrators may face challenges due to the tech talent shortage, the potential impact of AI on their revenue streams by automating software development and customization, and distrust from customers due to the forced migration to S/4 HANA.

What is the significance of the 2027 deadline for SAP customers migrating from ECC or R/3 to S/4 HANA?

The 2027 deadline is significant as it marks the point by which SAP expects customers to migrate to S/4 HANA. However, it is acknowledged that many organizations may not meet this deadline due to various constraints, potentially leading to a large subset of SAP customers missing it.

What could be the implications for SAP customers who miss the 2027 migration deadline?

The implications for customers missing the 2027 deadline are uncertain. SAP may extend the timeline, cut off support and maintenance for legacy products, or find other solutions to encourage or facilitate the migration to S/4 HANA.

How can interested parties access more information about Third Stage Consulting and its resources?

Interested parties can access more information about Third Stage Consulting and its resources by scanning the provided QR code, which leads to a video describing the company in detail, or by visiting the links included in the video description.