Strategic System Migrations: The C-Suite’s Guide to SAP Basis Consulting
Oct 8, 2024
As a C-suite executive, you’re likely aware that your SAP systems are critical to your organization’s operations. What you might not be as familiar with is SAP Basis — the foundational layer that keeps these systems running smoothly and securely. Think of SAP Basis as the engine room of your SAP environment: it’s not always visible, but its performance directly impacts your business operations, data security, and ability to adapt to changing market demands.
When it comes to major system migrations — whether you’re moving to S/4HANA, transitioning to the cloud, or upgrading your existing systems — the expertise of SAP Basis consultants becomes invaluable. These specialists ensure that your migration not only succeeds technically but also aligns with and supports your broader business objectives.
Why should this matter to you as a C-suite executive? Because successful system migrations can drive significant business value:
- Improved Operational Efficiency: Streamlined systems lead to faster processes and reduced operational costs.
- Enhanced Decision-Making: Up-to-date systems provide real-time data, enabling more informed strategic decisions.
- Increased Agility: Modern SAP environments allow your business to adapt more quickly to market changes and opportunities.
- Reduced Risk: Proper migration management mitigates the risks of data loss, system downtime, and security breaches.
This guide will explore how leveraging SAP Basis consulting during system migrations can help you achieve these outcomes, positioning your organization for future success.
The Growing Importance of SAP Migrations
Market conditions change, consumer preferences fluctuate, supply chain disruptions can have global business impact — and your SAP systems need to keep pace, whether by choice or by necessity (as when mainstream support ends for SAP ECC in 2027). But the path forward isn’t always as straightforward as simply “moving to the cloud.” Consider these insights:
- According to SAP’s Q2 2024 Quarterly Statement, Cloud ERP Suite revenue (which includes S/4HANA, SAP Business Technology Platform, and more) grew by 33%. This significant growth indicates a strong trend towards cloud-based SAP solutions. During this quarter, another round of major companies like BMI Group Holdings, UBE Corporations, and Wegmans went live on SAP S/4HANA Cloud.
- Part of this revenue increase comes from the growing adoption of RISE with SAP, a comprehensive offering that bundles services and products to facilitate businesses’ move to the cloud and support their digital transformation.
- However, the deployment landscape remains diverse. Gartner predicts that through 2027, 50% of critical enterprise applications will reside outside of centralized public cloud locations. This suggests a continued preference for on-premises, hybrid, or distributed cloud solutions for many organizations, a trend that aligns with SAP’s flexible deployment options for S/4HANA.
These insights underscore the importance of a thoughtful, strategic approach to SAP migrations. It’s not just about moving to the latest system or the cloud but choosing the right deployment model that aligns with your business strategy and operational needs.
Key Considerations for C-Suite Executives
When approaching system migrations, consider these critical factors:
- Strategic Alignment: Ensure the migration supports your long-term business goals. This includes not just updating your systems, but also selecting the right deployment model (on-premises, cloud, or hybrid) that best serves your business needs.
- Risk Management: Migrations can be complex. The 2024 SAPinsider Benchmark report found that 39% of organizations cited “complexity of the existing implementation” as a top reason that prevents them from migrating to S/4HANA while 37% had concerns about the potential length of the project. Proper risk assessment and mitigation strategies are crucial, regardless of the chosen deployment model.
- Flexibility and Scalability: Consider how different deployment options (on-premises, private cloud, public cloud, or hybrid) align with your need for flexibility, scalability, and control over your SAP environment.
- Data Governance and Compliance: With critical applications potentially distributed across different environments, ensure your migration strategy accounts for data governance, security, and compliance requirements.
- Resource Planning: Determine whether your in-house team has the necessary skills for your chosen deployment model, or if you need external expertise. A recent International Data Corporation (IDC) survey of North American IT leaders, revealed nearly two thirds said the lack of skills has led to a series of problems, including missed revenue growth objectives. With the number of migrations expected to rise as the maintenance deadline approaches, demand for talent will create intensified competition for scarce resources, cautions CIO Dive.
- Business Continuity: Plan for minimal disruption, regardless of the deployment model. Remember, a 2023 ITIC survey showed that for 91% of organizations, just one hour of downtime that takes mission-critical hardware and applications offline costs over $300,000 on average.
The Strategic Value of SAP Basis Consulting
SAP Basis consulting goes far beyond just technical support; the goal is to drive business value:
- Risk Mitigation: Consultants anticipate and address potential issues before they become costly problems.
- Performance Optimization: Post-migration, your systems should run more efficiently, supporting faster business processes.
- Security Enhancement: With cyber threats on the rise, consultants ensure your migrated systems meet the highest security standards.
- Business Continuity: Experienced consultants minimize downtime during migrations, protecting your bottom line.
- ROI: SAP transformations can deliver significant benefits. Boston Consulting Group (BCG) notes that although the degree of complexity is high, ERP transformations that hit the mark deliver benefits that are “worth multiples of the investment.”
Basis Consulting: Positioning for Growth
SAP system migrations mark a crucial juncture in your organization’s evolution. They open doors to operational excellence, sharper decision-making, and accelerated innovation. Yet, without proper management, they can also introduce significant disruptions.
As you determine your course, consider these key insights:
- Migration success hinges on specialized knowledge that transcends routine IT skills.
- Preserving business continuity throughout the transition is non-negotiable—every minute of downtime carries a hefty price tag.
- When executed effectively, migrations can deliver substantial returns, as recent industry studies have shown.
- SAP Basis consulting bridges the gap between technical implementation and your strategic business goals.
The decisions you make regarding your system migration will echo through your company’s operations, shaping its adaptability, efficiency, and market position for the foreseeable future. By leveraging expert guidance, you can transform this technical undertaking into a springboard for business growth.
As you weigh your options, reflect on how specialized expertise could influence not just your technological infrastructure, but your entire business trajectory. The right partnership has the potential to convert the complexities of system migration into concrete business advantages.
Take the Next Step with oXya
At oXya, we translate technical SAP expertise into tangible business outcomes. Our SAP Basis consulting services are designed to optimize your SAP environment, regardless of whether we’re managing your cloud services or not. Here’s how we can help:
- Strategic Assessment: We evaluate your SAP landscape in the context of your business goals, identifying opportunities for improvement and innovation.
- Risk Mitigation: Our experts anticipate and address potential issues, safeguarding your operations during migrations.
- Performance Optimization: We ensure your migrated systems deliver peak performance, supporting your business processes effectively.
- Knowledge Transfer: We work closely with your team, enhancing your organization’s long-term SAP capabilities.
- Flexible Support: Whether you need comprehensive migration support or specialized expertise for specific challenges, we tailor our services to your needs.
Don’t let the complexities of SAP systems hold your business back. Contact oXya today to discover how our SAP Basis consulting services can turn your next migration into a launchpad for business transformation.
Read More:
- Modernizing Your Data Platform: The Benefit of Expert-Led SAP and Data Lake Integration
- The Roadblocks of SAP Integration: What’s the Best Path?
- Choosing the Right ERP Consultant: What to Look For
Meta: SAP Basis is the engine room of your SAP environment. That’s why SAP Basis consulting is so crucial to the success of your system migrations. Learn more now.
Other articles
SAP Clean Core: Why It’s Your Blueprint for Enterprise Transformation
Suharsh Anand, Solutions Architect
Read moreFrom Bare Metal to Cloud: Optimize Your Databases on Cloud SQL
Hendrick Labranche, Loïc Moerman, Mehdi Shojaei
Read more