As businesses continue to navigate digital transformation, many are faced with the challenge of migrating their enterprise resource planning (ERP) systems to SAP S/4HANA.
This transition promises enhanced performance, scalability, and innovation through technologies like artificial intelligence (AI) and machine learning, but it also brings complexity, particularly for organizations with heavily customized legacy systems.
In this episode of our iT2 DX Talks podcast, we had the privilege of speaking with Jeff Word—an SAP industry veteran with over 25 years of experience in the SAP ecosystem—to discuss deeper insights into this transformative journey.
About Jeff Word Word’s journey began in the mid-1990s on the hardware side of ERP systems during the R/3 era, and he transitioned to SAP in 2000, where he spent 17 years in senior executive roles, primarily in product development. Word played a pivotal role in the conceptualization and execution of SAP’s shift to a new database and architecture, a vision that ultimately became SAP S/4HANA. |
In this blog post, we explore his unique insights on SAP’s journey from the early days of R/3 to the powerful, cloud-enabled platform that SAP S/4HANA is today. Having been with SAP during some of its most critical transitions, Jeff offers a behind-the-scenes look at the thought process and strategic decisions that led to the creation of a simplified, future-ready ERP platform.
Simplifying the Core for Future Innovation
The 2015 roll out of SAP S/4HANA marked a pivotal transformation in enterprise resource planning (ERP) systems that was driven by the need to simplify complex custom code that had accumulated in legacy systems over time.
This shift was aimed at clearing the “code mess” that had built up, enabling businesses to operate on a more agile, efficient platform that was also prepared for future innovations like AI, machine learning, and advanced analytics.
Transitioning to SAP S/4HANA, especially for organizations with a history of customization, focuses on addressing technical debt. This “debt”, as we established earlier, is the culmination of layers of customizations that serve to bog down a system, rather than streamline it.
A key challenge for companies is deciding which customizations should be carried forward, which can be left behind, and how to best utilize new out-of-the-box capabilities.
This transition isn’t merely about data migration—it’s about optimizing systems to fully leverage SAP’s modern capabilities and focus on a “clean core” to ensure that legacy customizations don’t slow down progress.
Overcoming Technical Debt and Maximizing Value in the Transition to SAP S/4HANA
In the early days of SAP, offering the ability to customize the system was a key factor in its growth. However, over time, this flexibility has led to significant challenges. The accumulation of custom code has created what many now refer to as “technical debt,” making it difficult for companies to upgrade and innovate.
Transitioning to SAP S/4HANA is the opportunity for businesses to address this problem, leaving behind outdated customizations and moving toward a clean, standardized platform.
The move to S/4HANA is also a shift in business model. SAP is transitioning customers from the traditional perpetual licensing model to a cloud-based operational expense model. This change provides significant opportunities, such as improved customer support and faster innovation cycles, but it requires careful change management to ensure success.
Companies must assess the custom code in their legacy systems, determining what can be left behind, what needs to be carried forward, and where new standard capabilities can be leveraged. This process is crucial in realizing the full value of SAP S/4HANA, as poor change management and lack of end-user adoption can undermine the return on investment (ROI).
The real value of SAP S/4HANA becomes evident when businesses embrace the new tools and methodologies SAP offers.
For example, features like real-time reporting and the Fiori user interface can significantly improve efficiency and decision-making. However, without proper training and a unified approach from all levels of the organization, the migration can fall short of its potential.

Source: SAP Community
User Engagement: The True Key to Successful SAP Migrations
One of the key factors for a successful SAP migration is user engagement. When end users are excited about new capabilities and actively asking for them, the process of transitioning becomes much smoother.
Engaging users early in the process—whether through discovery workshops or hands-on testing—creates a sense of ownership. This involvement ensures the project gains momentum and crosses the finish line faster.
Engaging users early offers a unique opportunity to showcase the potential benefits of SAP S/4HANA. For instance, finance teams tend to see immediate value from the platform’s powerful new features. SAP S/4HANA provides capabilities like real-time reporting, which drastically improves efficiency.
Instead of waiting until a specific time to run reports, users can generate them whenever needed, optimizing workflows and saving hours of manual effort each week. These seemingly small improvements can lead to significant time savings, ultimately boosting productivity and satisfaction across the organization.
User engagement also reveals areas where business processes can be digitally transformed. During discovery sessions, users often highlight aspects of their current workflows that can be improved or automated in the new system.
This input allows the IT department to tailor the SAP S/4HANA environment to meet specific user needs, driving a higher ROI and ensuring the system delivers on its promise of transformation. In many cases, end users themselves point out inefficiencies in the legacy system, creating opportunities for faster and more effective business processes in the new environment.
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Potential Security Risks and How SAP Helps Organizations Respond
However, despite the clear benefits, organizations often experience apprehension, especially regarding the scale of the migration and the security risks associated with moving to the cloud.
Security remains a top concern for many businesses, particularly those in industries with strict regulatory requirements, like finance and healthcare. Cloud security worries can act as a barrier to adoption, with some companies fearing potential vulnerabilities in storing sensitive data on third-party servers.
It’s important to address these concerns head-on. SAP’s cloud offerings are backed by partnerships with industry-leading cloud providers, including Amazon Web Services (AWS), Google Cloud, and Microsoft Azure.
These providers, alongside SAP’s own robust security infrastructure, offer top-tier security protocols designed to protect client data. SAP’s multi-layered approach to security includes built-in safeguards across the infrastructure, operating system, and application levels, ensuring that sensitive business information is protected against both internal and external threats.
One of the key advantages of SAP’s cloud solutions is their ability to standardize and automate security updates. In a cloud environment, SAP can roll out security patches and system updates quickly and uniformly across all customers, reducing the risk of vulnerabilities going unaddressed.
This real-time approach contrasts with traditional on-premise systems, where security updates can be delayed, creating potential entry points for bad actors. As a result, SAP customers benefit from an agile, secure system that continuously evolves to meet emerging threats.
Moreover, for organizations concerned about internal security risks, SAP’s advanced access control systems offer a solution. The majority of security incidents in SAP environments arise not from external threats but from internal mismanagement of access rights.
SAP addresses this by offering sophisticated access control and monitoring tools, ensuring that only authorized personnel can access sensitive data. Additionally, SAP’s cloud solutions make it easier to track and audit system access, providing full visibility into user activity and helping to prevent unauthorized access.
As SAP moves toward making S/4HANA the standard for ERP, companies that hesitate to migrate risk falling behind. While the move may feel daunting, it’s essential to recognize that the advantages of migrating to SAP S/4HANA—improved performance, enhanced user experience, and future-proofed business processes—outweigh the challenges.
With built-in security features, scalable infrastructure, and a growing list of success stories, SAP’s cloud solutions have proven they can meet the most demanding business needs.
The message is clear: early user engagement, combined with a proactive approach to addressing security concerns, is the key to a smooth and successful SAP S/4HANA migration.
By bringing users into the process from the start and addressing potential roadblocks, companies can make the transition seamlessly while positioning themselves for long-term growth and innovation.
Simplify Your SAP S/4HANA Migration
Unlock the full potential of your business with SAP S/4HANA. With 16 years of experience, 948 successful client engagements, and a database of 30,000 US-based SAP consultants, iT Services 2 is your trusted partner for navigating migrations.
Whether you’re addressing technical debt or optimizing cloud security, we’re here to ensure a smooth, efficient transition that drives ROI and future innovation.
Contact us today to schedule a consultation or to talk with us about our S/4HANA Kick Starter workshop.