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Why upgrading SAP S/4 HANA is crucial for your business?

Author : Steve Cooper | Published On : 27 May 2024

Intelligent organizations must keep ahead of the technological curve in a world where change is unpredictable. A path ahead involves replacing the outdated lower versions of SAP-centric S/4HANA systems with a new version to a way forward to:

  • Enhancing operational efficiency
  • Elevating user experiences
  • Sustaining relevance in a dynamic SAP landscape
  • Unlocking continuous transformation
  • Seamless integration with evolving SAP ecosystems

The adoption of SAP upgrades by enterprises accelerates the adoption of new capabilities and incremental advancements in cutting-edge technology, thereby reshaping technological growth.

Delays in adopting releases through a timely SAP S/4HANA upgrade can significantly reduce the present application's speed, agility, responsiveness, and operational prowess and expose your SAP-centric ecosystem to several vulnerabilities.

Let's examine the main arguments for adopting the most recent SAP S/4HANA version in more detail so that operations run smoothly. We will also go through the SAP upgrade guide approaches in more detail in the sections below, including the advantages of updating the SAP S/4HANA version and the reasons why we should upgrade SAP.

SAP S/4HANA upgrade

SAP S/4HANA is a shining example of innovation that bridges the functional and technical divides. The SAP S/4HANA upgrade swiftly upgrades current SAP systems that are currently running a lesser version of SAP S/4HANA on-premise, hyperscaler, or private cloud to a higher S/4HANA version to address issues brought about by fragmented systems.

With its various sophisticated ERP suite versions, SAP has opened up new options for progressive enterprises since its founding. However, as technology advances, the necessity of updating to newer versions of SAP S/4HANA becomes more and more apparent.

To many firms, migrating to the newer SAP S/4HANA version from a lower release always feels more than just an IT upgrade.

The SAP upgrade is a calculated strategic step that makes businesses more adaptable and proactive in the face of potential disruptions, such as:

  • End of mainstream maintenance: For each release (e.g., 1909 and 2020), SAP’s S/4HANA release strategy supports five years of mainstream maintenance. After this duration, customers who want to get continued product support have to endure an additional maintenance fee.
  • Enhanced and new functionalities: Each new release of SAP S/4HANA unfolds a comprehensive set of new and improved functionalities. A roadmap to leverage these enhancements goes through a functional SAP upgrade, resulting in significant improvements the operational efficiency.
  • Enhanced user experience: With a higher version of the SAP S/4HANA upgrade release, the benefits of a modern and intuitive user interface get unlocked. It is pivotal in simplifying complex processes and empowers an enterprise with real-time insights, and informed decision-making capabilities.

What does each higher version of S/4HANA offer?

Upgrading to a higher version of SAP S/4HANA can have numerous advantages, depending on the source and target release. These are the main effects:

  • Technology improvements - With every new release of S/4HANA, the traditional ERP capabilities get refined. The significant improvements in Data Management, Security, UI/UX, Database features, Integration features, and Automation possibilities with AI/ML are the key outcomes whenever a SAP-centric company executes the upgrade from lower SAP S/4HANA releases to higher SAP S/4HANA releases. Interestingly, these improvements help an enterprise achieve heightened system performance, improved data governance, and robust cybersecurity measures.
  • Application improvements - To enhance the application capacity, SAP introduces new functionalities and features (with each upgrade) to align the existing application with evolving business requirements. Generally, the application enhancements span industries and business processes to provide tailored solutions catering to specific needs. The new version release primarily focuses on process improvements, enhancements, UX innovations, performance improvements, new functionalities, and additional modules.

The Journey through SAP S/4HANA Upgrade: Unveiling technical versus functional advancements

Up till now, SAP S/4HANA has undergone numerous version releases, with each upgrade building on the framework of the preceding version. These version releases' main goal is to provide incremental functional and technological advancements. To better appreciate the major differentiators of these innovations intended to be unlocked with each higher version of the S/4HANA upgrade, let's take a closer look at the compassion breakdown below.

Journey through SAP S4HANA Upgrade It's interesting to note that any organization upgrading to a higher version of S/4HANA can immediately take advantage of several major improvements in functional areas such as supply chain, finance, procurement, and customer experience. By utilizing these improvements, the business may effectively adapt to the shifting market conditions.

SAP S/4HANA 2023: Key Features Shaping the Future of Intelligent Enterprises

The most recent version of SAP S/4HANA, released in 2023, offers a variety of revolutionary improvements. These characteristics can fundamentally transform intelligent enterprise technology going forward and give ongoing business innovation a top priority. Here's how to do it:

  • SAP S/4HANA 2023 combines Artificial Intelligence (AI) and Machine Learning (ML) capabilities in SAP BTP, simplifying the automation journey of complex business processes. The benefits are enhanced decision-making and access to hidden insights within datasets.
  •  S/4HANA 2023 provides a range of services, best practices, and innovations combined with business process optimizations to help customer businesses achieve higher ROI.
  • The new release provides enhanced end-to-end visibility across the supply chain, which enables enterprises to optimize their inventory levels, respond to demand fluctuations faster, and enhance their supplier collaboration seamlessly.
  • Over 1000+ new and improved functionalities covering APIs, Apps, extensibility features, and functionality improvements across LoBs.
  • UX innovation features like a more responsive home page and new collaboration capabilities facilitate improvements in user productivity.
  • New and improved analytical apps provide more advanced operational and management reporting, which helps enterprises aid quicker and more efficient decision-making.

Navigate the SAP S/4HANA upgrade roadblocks with Kellton

Kellton, as a strategic SAP S/4 HANA Service Provider and partner, plays a pivotal role in streamlining the enterprise's journey toward a higher SAP S/4HANA upgrade version. During the process, our certified SAP experts perform a meticulous assessment, followed by the development of a strategic roadmap to align the SAP upgrade with the company's broader business goals. At Kellton, our commitment extends beyond the immediate SAP S/4 HANA implementation, ensuring enterprises are always future-ready for changing industry dynamics within the SAP ecosystem through our end-to-end, ongoing support post-upgrade.