SAP S/4HANA Offers an Opportunity for Contract Conversion

SAP S/4HANA Contract Conversion

Digital transformation is the future of business. SAP S/4HANA is SAP’s next-generation ERP software that automates, simplifies, speeds up and streamlines companies’ business processes. The “Intelligent Enterprise” will enable companies to adapt to the ever-changing digital economy with features like planning and simulation options.

Where are we now?

In the 2019 Q1 Statement of SAP, adoption to S/4HANA grew to more than 10,900 customers.  That is 30% growth year over year with 40% net new customers in this first quarter alone.  It is undeniable that more and more companies realize that the process of digital transformation can be simplified and achieved.

Whether a company is migrating from a non-SAP technology or converting from an existing SAP Business Suite, SAP S/4HANA gives companies the opportunity to redesign their business processes and, consequently, reassess contracts. Cost accompanies any kind of transformation and industry experts are always on the lookout for the next most cost-effective yet success-guaranteed business tools.

It is, therefore, pertinent to evaluate all things encompassing a digital migration such as which products will be valuable to your company in the future, what type of licenses to keep or technology to acquire to be digitally enabled at an equitable price. Then comes the next question, “Where do we begin?”

Future-proof your assets

Choose which suits your business needs. Below are just a few of the kinds of products that have exceptional potential:

•    SAP S/4 Hana: This has two editions: the SAP S/4HANA On-Premise and the SAP S/4HANA Cloud. It is essential to know if your company already operates with an ECC predecessor to ensure that licenses are covered and the transition is seamless.

•    ECC Products:  At this time, some companies may need to continue using existing ECC. This is because S/4HANA is entirely a new product built entirely on the in-memory of SAP HANA.

•    Third-party and SAP Cloud Products: The third-party system will definitely be still around despite some licensing challenges but the next game-changer would be the demand for a cloud-based product which does not fall on traditional licenses.

Secure only the licenses you need.

With SAP S/4HANA, you may choose which license fit your company’s need. Will it be for professional use, functional use or productive use? You may not need all of them. Be sure to be well aware of the License Utilization Information Application (LUI) when considering contract conversion.

SAP S/4HANA offers massive simplification, efficiency, and innovation. In the hectic process of digital transformation, take advantage of the opportunity to consider contract conversion that this SAP software offers. The mere fraction of time it will take reassessing existing licenses and contracts will definitely be worth the long-term reward.

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