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Embracing the Future: A Strategic Shift to Cloud ERP Solutions

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Imagine running a marathon in an old pair of sneakers. Sure, they’ve served you well, but as the terrain changes you need something more advanced to keep pace. This is the situation many businesses face as the end of mainstream maintenance for the latest three enhancement packages of SAP Business Suite 7 looms at end of 2027, or 2030 for the extended maintenance option. Now is the time to act to ensure operations continue uninterrupted and remain efficient, competitive, and secure.

So, why not lace up a new pair of sneakers in the form of a transformative RISE with SAP endeavor powered by AI-enabled cloud ERP? It can offer a comprehensive pathway for businesses to transition from SAP Business Suite 7 and can help tackle business challenges of today and the decades ahead.

The End of an Era: SAP Business Suite 7 and SAP ECC Mainstream Maintenance

For years, SAP Business Suite 7 and SAP ERP Central Component (SAP ECC) have been the backbone of countless enterprises, adding significant value in the form of ever-increasing process efficiencies. But as the market landscape and business needs evolve, so must your ERP. Staying with legacy systems is like trying to navigate a modern city with a paper map from 20 years ago. This is not only because SAP is innovating, but also because its technology partners are.

Accordingly, SAP’s announcement to end maintenance for the latest three enhancement packages of core applications of SAP Business Suite 7 software by 2027 and 2030 signals a necessary shift to the next level of modern solutions. SAP also announced a commitment to SAP S/4HANA until 2040. This isn’t just a required adjustment; it’s an opportunity to shift from a paper map and compass to a digital map with GPS – SAP S/4HANA Cloud – that helps guide businesses to stay ahead of the curve.

Rather than viewing SAP’s end of maintenance for SAP Business Suite 7 by 2027 and 2030 as a mere necessity, consider it a strategic opportunity to help tackle the challenges your business is facing and embrace market opportunities that lay ahead.

RISE with SAP: A Pathway to the Future

In aligning our strategy more closely with our customers’ realities, the conversation is no longer about just transforming your IT landscape. It is about how we can support businesses with ERP and help close the gap between a need for transformation and immediate requirements. This is where RISE with SAP comes in.

Think of RISE with SAP as a personal coach who doesn’t just suggest a new pair of sneakers, but a comprehensive training program. It’s a solution designed to transform businesses, process by process. Imagine an AI-enabled cloud ERP, meticulously managed and optimized by SAP, guiding the journey with the help of services and tools built by SAP, so businesses can move from on-premise systems to the cloud and process diagnostics that let you understand where you are today and how tomorrow can look like.

The Momentum of RISE with SAP

Modernize your legacy ERP from SAP with an AI-enabled cloud ERP to thrive in the cloud

Since its launch, RISE with SAP has seen significant adoption, continually evolving to meet customer needs. Recently, SAP integrated AI capabilities with Joule into RISE with SAP, aiming to spearhead the innovation curve and emphasize the role of artificial intelligence in driving business efficiency and innovation.

As part of its ongoing commitment to support businesses on their digital transformation journeys, SAP has launched the RISE with SAP Methodology – a structured approach to help guide customers’ transformation journeys with RISE with SAP. The methodology comprises detailed and strategic planning, execution, critical resource management, and continuous support phases, leveraging SAP’s extensive expertise and tools. This approach honors the existing investments companies have made and helps customers mitigate risks, reduce downtime, and achieve faster time-to-value, helping to make the transition process efficient and effective. In order to address customer budget constraints and the operational mindset of IT departments, we also offer attractive financial incentives to help ease the cost burden associated with migration.

Transforming with Confidence

The RISE with SAP Methodology encompasses best practices and a structured approach to transition from SAP Business Suite to SAP S/4HANA Cloud, something akin to having a detailed road map and a pit crew ready at every turn. This includes a detailed success plan with quality checkpoints to help ensure compliance and a clean core approach, all while keeping existing customizations in mind. The clean core approach involves migrating only the necessary data and configurations to the new system, working to reduce complexity and ensure a smooth transition.

Case Study: Mahindra Group’s Transformation

A compelling example of a successful transition is the story of the Mahindra Group. By leveraging RISE with SAP, Mahindra embarked on a transformative journey to modernize its ERP landscape. The dedicated support from SAP advisors and the structured methodology enabled Mahindra to seamlessly migrate to SAP S/4HANA, optimizing its operations with a 35% increase in developer efficiency.

A future-ready foundation has also helped Mahindra support business growth. For example, when the launch of a new SUV saw 100,000 bookings in 30 minutes through digital channels, the sales transactions went smoothly thanks to a range of solutions running on a high-performance IT infrastructure. In addition, optimized processes in logistics and supply chain management have resulted in a reduction of 20% in back order processing times. As Rucha Nanavati, chief information officer of Mahindra Group, says, “RISE with SAP and SAP Business Technology Platform have helped us become future-ready, using technology in the best possible way to enable business growth while going to market faster and supporting agile operations.”

Ensuring Success with Proven Methodologies

Every potential customer scenario can be addressed within the RISE with SAP offering, boosted by tailored incentives and proven methodologies. These tailored incentives, such as additional support for complex transitions, are designed to help make the transition process more cost-effective and less disruptive for businesses. The structured approach, combined with the dedicated support of SAP advisors, helps ensure that businesses are well-prepared for their transformation journey.

For example, when SAP supported Fresenius with a complex business transformation agenda using RISE with SAP, the company saved 50% of time spent on SAP system administration and experienced a clear cut 20% reduction in their IT footprint. Together with our partners, we enabled the rapid transfer of 130 systems to the cloud within 15 months, without significant business disruption, and achieved a 20% improvement in system response time, thereby enhancing overall performance.

SAP’s continued investment in its tools and methodologies, such as the clean core success plan, highlights the importance of compliance and best practices. This focus on providing a robust and reliable transition pathway instills confidence in customers, reinforcing SAP’s commitment to their success. Transitioning to a cloud ERP environment offers numerous advantages, including enhanced scalability, flexibility, real-time data access, and the ability to leverage advanced technologies like AI and machine learning, along with agility – the shift from SAP ECC to a flexible, cloud-based ERP as a service that can adjust as quickly as businesses need to adjust.

Looking Ahead: The Competitive Landscape

SAP’s unique approach to supporting on-premise customers with a flexible transition timeline sets us apart: the business vision of our customers is backed by our strong experience, competence, and clear decision-making. SAP’s commitment to its customer base showcases the dedication to ensuring a smooth, gradual, pragmatic, and successful transition for all our customers.

As businesses prepare for the end of mainstream maintenance for SAP Business Suite 7 in 2027 and 2030, the transition to SAP S/4HANA and the cloud with RISE with SAP can offer a comprehensive and reliable pathway to future-proof operations. We encourage our customers to embrace the opportunity to transform their business operations with confidence and gain a competitive edge in the evolving business landscape.

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Jan Gilg is president and chief product officer for Cloud ERP at SAP.

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