Struggling with outdated SAP ECC systems that stifle growth and limit visibility? Many businesses find themselves burdened by heavy customizations and ineffective processes. We’re here to provide insights from the iT2 DX Talks podcast with industry expert Rob Ianni, exploring how modern SAP solutions can revolutionize your operations.
Rob Ianni is an experienced professional with over 20 years of experience in technology sales and sales leadership. His career has spanned a number of prominent roles at leading companies such as IBM, Oracle, and SAP, as well as several startups.
Ianni’s expertise lies in guiding enterprises through complex technology decisions, particularly in the realm of SAP solutions. Known for his insightful and strategic approach, Ianni has consistently helped companies navigate the intricacies of digital transformation. His extensive background and leadership in technology sales make him a respected voice in the industry.
In this blog post, we’ll go into perspectives on upgrading from SAP ECC to modern SAP solutions, navigating change management, and embracing the power of SAP’s Business Technology Platform (BTP).
Why You Need to Upgrade from an ECC to SAP
Many companies today still rely on SAP ECC, even though its support ends in 2027. This outdated technology often hinders businesses because of its need for heavy customizations and lack of modern automations.
The industry has evolved from needing to customize software to fit business processes to developing automated business processes within the software itself. Modern ERP systems now offer turnkey solutions that streamline operations and enhance efficiency right out of the box.
Another common issue with ECC systems is the lack of visibility across departments. This limited visibility can impede achieving business objectives, growth, and improving operating margins. Engaging with C-suite executives, particularly CFOs, CEOs, and COOs, often reveals the critical areas where enhanced visibility could drive better outcomes.
When companies recognize the need for better visibility, they often realize the necessity of upgrading their aging ERP systems. Modern SAP solutions offer quick deployment, greater flexibility, and immediate benefits, far surpassing the capabilities of older systems.
In the past, ERP implementations were lengthy and complicated, often resulting in underutilized systems. Today’s ERP solutions are designed for ease of use and scalability, ensuring businesses can fully leverage their ERP investments.
Upgrading from ECC to modern SAP solutions is about more than transforming your business processes, improving efficiency, and achieving your strategic objectives. It’s also about staying competitive. Don’t let outdated systems hold you back.
The Shift Towards Out-of-the-Box Solutions in the SAP Ecosystem
The industry has significantly shifted with the advent of cloud-based approaches, whether public or private.
Unlike in the past, vendors like SAP now handle system upgrades, rather than leave upgrades to the client. This helps make sure that businesses don’t operate on outdated systems 5, 10, or 15 years from now. This ongoing support helps companies grow with the system, reflecting a major change in the industry.
Today, businesses are more open to adopting out-of-the-box implementations from SAP. These implementations are less rigorous and quicker.
Unlike the 1990s, when everything was heavily customized to fit specific business needs, modern companies are more willing to align with SAP’s design. However, there’s still a need for proof and education to show that these pre-configured solutions can indeed meet what they need to do.
Once businesses understand and see the benefits of out-of-the-box solutions, they are very willing to adopt them. This approach allows them to continually leverage new innovations that SAP introduces each year. The key is getting them over the initial education hurdle to demonstrate the practicality and advantages of these modern solutions.
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Navigating Change Management in ERP Implementations
Change management is a significant challenge for many companies, especially during ERP implementations. Misalignment between C-level executives and other stakeholders often stems from misinformation or lack of education.
Two critical factors for successful ERP projects are:
- Committed management involvement
- Effective change management
Even when transitioning from one SAP system to another, such as from ECC to a cloud-based solution, the change is substantial and must be managed meticulously. Companies that succeed in this transition prioritize change management and choose partners who can guide them through the process. This approach ensures a smoother, more effective implementation.
Failed or delayed implementations often result from scope creep, where additional features are added mid-project. This issue can derail timelines and budgets, causing frustration and perceived failure.
A recent example involved a company that continuously added to the project scope, delaying the go-live date by several months. Had they adhered to the original plan, they could have been operational much sooner.
To avoid such pitfalls, it’s essential to stick to the initial project scope and manage change requests carefully. Educating clients about the importance of focusing on core objectives and following a phased approach can prevent delays and ensure timely realization of benefits.
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The Three-Pillar Approach to Successful Customer Solutions
When looking at the matter of digital transformation, a successful customer solution often hinges on understanding their needs and desires through a structured approach.
The three-pillar method involves asking customers:
- What they like and want to keep
- What they dislike and wish to change
- What they don’t have but desire in a perfect world
This simple yet effective questioning framework helps you understand what they need.
By documenting these responses, you can present a tailored solution that aligns with their current preferences, addresses their issues, and incorporates their aspirational goals. This approach not only clarifies their requirements but also fosters a collaborative relationship, pushing them to envision their ideal outcomes.
While it’s essential to set realistic expectations, encouraging customers to think beyond immediate deliverables can pave the way for future improvements. As a service provider or technology partner, you can help develop a strategic roadmap, guiding customers towards long-term success and innovation.
By helping customers articulate their needs and visualize potential solutions, you can build a strong business bond, driving them towards achievements they may have never considered possible.
Why Mid-Sized Companies Should Look to a Future With SAP
When considering solutions for a mid-sized company, GROW with SAP is a particularly advantageous option. The platform’s unique capability allows a $50 million company to scale seamlessly to a $2 billion enterprise without needing to change platforms.
This scalability is a significant differentiator from competitors that often require businesses to switch systems as they outgrow initial solutions.
With SAP, you start on a robust platform that evolves with your business. As your company grows, you can gradually add more modules and functionalities to address increasing complexity. This way, you never encounter the visibility and business process challenges common with other solutions.
Competitors often place companies on small- to mid-market solutions that eventually become inadequate—forcing a costly and disruptive switch to a more advanced system. SAP’s strategy eliminates this issue by providing a single platform that supports continuous growth and development.
Historically, early SAP adopters faced frequent upgrades and new service packs, resulting in frustration and constant adjustments. Today’s SAP environment, particularly with innovations like SAP, offers a more stable and long-term solution. This stability is imperative for the health and growth of your company, providing reliable support through all stages of expansion.
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Embracing the Power of BTP: Integration and Security for SAP Customers
BTP is a critical component in the modern enterprise landscape. While it promotes out-of-the-box best practices, it also supports necessary integrations.
Unlike the past, where customizations complicated upgrades, BTP offers a best-in-class platform for the final 20% of customization needs. This supports smooth upgrades without redoing customizations, helping businesses grow efficiently.
When advising customers on transitioning from ECC to the cloud, the primary concern often revolves around data security. Many companies fear losing control over their data.
However, comparing cloud security with on-premises setups usually reveals that cloud environments are more secure. Mid-market companies, in particular, lack the extensive security resources of larger enterprises.
Furthermore, transitioning to the cloud does not mean losing control. Companies can still manage role-based security and maintain who sees what within their organization. Many businesses are already using AWS, Azure, or Google, which are essentially cloud-based data centers. Educating customers about this continuity helps alleviate their concerns.
Resistance to move off ECC often stems from a lack of understanding of the new platform’s benefits. Companies need to demonstrate how the new system can positively impact their top and bottom lines. Without this clarity, they hesitate to transition.
By addressing these concerns and providing clear benefits, businesses like yours can confidently move to a more modern, efficient platform.
The Case for SAP Transformation
For businesses contemplating a move to SAP’s rising growth solutions but feeling hesitant, the best advice is to perform a thorough value analysis. If you’re on the fence, it’s likely because you haven’t fully grasped the potential benefits. Sit down and assess what this transition means for your business.
Many companies hesitate because they feel compelled to move rather than seeing it as a value-driven choice. Take the time to analyze how this shift can impact your operations.
For example, a company moving from ECC to SAP S/4HANA in the cloud might see significant improvements, such as a two-point increase in operating margins. This kind of business analysis can turn uncertainty into confidence.
Imagine a CFO presenting to the CEO the prospect of a substantial improvement in margins. Such tangible benefits make a compelling case for the transition. If SAP and its partners can demonstrate and deliver this value, the move becomes a strategic decision rather than a necessity.
Ultimately, if the potential value isn’t evident, then perhaps the move isn’t warranted. However, in the vast majority of cases, the value is there. It’s about being open to education and willing to explore the possibilities. If you’re on the fence, let the numbers guide you.
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