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SAP 2027 Isn’t the Cliff – 4 Moves to Future-Proof Your Migration

With SAP ERP’s end-of-support deadline fast approaching in 2027, many manufacturers are viewing this transition as a necessary evil, costly, disruptive migration they must endure. But what if we flipped the script? Instead of seeing 2027 as a cliff, smart organizations are recognizing it as the greatest modernization opportunity in decades.

The stakes couldn’t be higher. With a full-fledged recession looming, businesses that successfully transform their data management capabilities now will weather economic uncertainty far better than those scrambling at the last minute.

The Compelling Case for S/4HANA Migration

The advantages of migrating to SAP S/4HANA extend far beyond compliance with support deadlines. Organizations that have made the transition report transformational results:

Efficiency and Performance Gains

72% of organizations report increased efficiency as the primary benefit of migration⁽⁵⁾.
61% experience increased satisfaction from users and stakeholders⁽⁵⁾.
Real-time analytics through in-memory database architecture that processes data in RAM rather than disk-based systems
Simplified data structures enable faster processing capabilities and enhanced reporting

Technology and User Experience Advantages

Improved user experience with the modern SAP Fiori interface, offering intuitive design and enhanced personalization
Machine learning capabilities for predictive insights and automated decision-making
Enhanced mobility – access critical business data from any device, anywhere
Forward/backward compatibility ensures seamless integration with existing systems

Business Impact and Cost Benefits

Better integration and flexibility with existing systems through unified database architecture
Scalability with on-demand resource adjustment capabilities
Cost savings through reduced hardware needs and streamlined operations, delivering lower total cost of ownership
Enhanced security with embedded cybersecurity features built into the platform

Why Now? The Business Case for Early Action

The numbers don’t lie. According to Forrester’s Total Economic Impact study, organizations investing in data integration see a 33% return on investment, with $23.3 million in benefits over five years versus $17.4 million in costs⁽¹⁾. More telling: these organizations save over 200,000 hours of manual labor annually by eliminating inefficient data processes.

Yet here’s the troubling reality: while most companies recognize data as crucial for success, a staggering 97% face challenges using it effectively. A Deloitte survey found that 57% of executives cite data quality as their top ESG data challenge, and 88% list it among their top three concerns. Furthermore, 81% report difficulties with key documentation and internal control processes, issues that are well-established in financial reporting but often lacking in sustainability and operational data environments. ⁽²⁾

For manufacturers planning SAP S/4HANA migrations, this data crisis represents both the biggest risk and the greatest opportunity. S/4HANA’s deployment flexibility, offering cloud, on-premises, and hybrid options versus ECC’s on-premises-only limitations, provides the foundation for addressing these data challenges head-on.

What’s Really Blocking Success?

Many organizations assume the biggest barrier to S/4HANA migration is technical. But SAPinsider research shows otherwise.

While high costs and competing priorities top the list, these are only surface-level symptoms. The deeper challenge lies beneath—the part most organizations underestimate.

The challenge goes deeper than technology. While everyone focuses on SAP-side requirements and system specifications, the real bottleneck lies in “connections”, the complex web of data integrations that connect SAP to peripheral systems.⁽⁶⁾

The Integration Complexity Crisis

Most organizations lack specialists who understand data integration deeply. Without these “connection specialists,” projects face three critical hurdles. In fact, rebuilding the “connections” — meaning data integrations — during S/4HANA migration is a key reason many projects face significant delays and budget overruns⁽⁶⁾.

Too many integration destinations: Each system requires different technical expertise, from SQL databases to cloud APIs
Compressed timelines: Data integration work is often relegated to “accompanying work,” starting only after SAP requirements are finalized
Specification changes: When business requirements shift mid-project, integration teams are often understaffed to respond quickly

The Human Factor

Perhaps more challenging is organizational resistance. Business units that have spent years perfecting their processes naturally resist fundamental changes to their workflows. This isn’t mere stubbornness. It reflects legitimate concerns about disrupting operations that keep the business running.

Additional challenges include:

Landscape buildout complexity during phased implementation
Dual maintenance burden of managing both ECC and S/4HANA simultaneously
Skills gap – many teams lack expertise for comprehensive migration
Custom code complexity requiring extensive analysis and potential re-implementation

The Business Transformation Opportunity

Organizations that successfully navigate the S/4HANA migration unlock significant business advantages:

Operational Excellence

Automated processes with RPA, ML, and AI capabilities
Faster decision-making through real-time business intelligence
AI-driven customer insights for competitive advantage
Flexible and scalable operations that adapt to market demands

Financial Performance

Higher overall profits through improved efficiency
Lower operational costs and reduced TCO
Better integration with the broader SAP product suite
Enhanced data integration capabilities with unified database architecture

The Four Strategic Moves Forward

Rather than waiting until 2027 pressures force hasty decisions, manufacturers should adopt these four strategic moves now:

Move 1: Build Your Data Integration Foundation Early

Don’t treat data integration as an afterthought. Forrester’s research shows that organizations establishing data integration capabilities early see process and operational efficiencies totaling over $15 million in savings over five years⁽¹⁾. Start by cataloging your current integrations and identifying which will need rebuilding during migration.

Essential preparation steps include:

Thorough technical analysis of existing ECC system
Comprehensive migration planning covering data, applications, and integration
Data cleansing and validation before migration
Testing in non-production environments first

Move 2: Invest in Integration Specialists and Tools

The biggest barrier isn’t budget or technology, but it’s people. Organizations need either to develop internal “connection specialists” or partner with external experts who understand both SAP and the peripheral systems. Modern data integration tools with GUI-based, low-code approaches can bridge this gap, allowing SAP teams to handle integrations without deep programming expertise.

Move 3: Establish Hybrid Operating Models

Create a dual approach that addresses both System of Record (SoR) stability and System of Engagement (SoE) agility. Use traditional EAI for mission-critical integrations while deploying flexible, cloud-based platforms for business-driven innovations. This prevents the bottlenecks that occur when all integration requests flow through IT.

S/4HANA’s modern technologies, including built-in AI/ML, predictive analytics, and conversational interfaces, enable this hybrid approach more effectively than legacy ECC systems.

Move 4: Implement Change Management as Data Strategy

Address organizational resistance by involving business units in solution design from day one. Establish data literacy programs and create cross-functional teams that understand both current processes and future possibilities. The Databricks State of Data + AI Report shows that organizations with strong data cultures are significantly more successful in their modernization efforts⁽³⁾.

Critical success factors include:

Employee training and comprehensive change management
Partnering with experienced migration specialists
Stakeholder agreement building, particularly for companies with 10+ year old legacy systems

Your Next Steps: From Planning to Action

The 2027 deadline isn’t a cliff. It’s a forcing function that smart manufacturers can use to their advantage. Organizations that start now have time to build capabilities gradually, test approaches, and perfect their integration strategies before the final migration push.

Begin with a comprehensive assessment of your current data integration. Identify which systems will need new connections, which processes can be automated, and where your biggest skills gaps exist. Then, invest in the tools and talent that will make your migration not just successful, but transformational.

The companies that emerge stronger from the SAP 2027 transition won’t be those who simply migrated their systems. But they’ll be those who use the deadline as a catalyst to fundamentally improve how they work with data. The question isn’t whether you’ll migrate by 2027, but whether you’ll be ready to thrive afterward.

Resources:

Forrester, Total Economic Impact of Data Integration for the Public Sector, 2023
https://d1.awsstatic.com/Total%20Economic%20Impact%20Of%20Data%20Integration_%20Full%20Report.pdf
Deloitte, 2024 Sustainability Action Report Survey Findings on ESG Disclosure and Preparedness, 2024
https://www.deloitte.com/content/dam/assets-zone3/us/en/docs/services/audit-assurance/2024/2024-sustainability-action-report.pdf
Databricks, State of Data + AI Report
https://www.asug.com/insights/the-state-of-sap-s-4hana-adoption-trends-successes-and-challenges
Smart Industry, Survey: Almost All Manufacturers Struggle with Making Use of Data
https://www.smartindustry.com/tools-of-transformation/data-analytics/article/33038304/survey-almost-all-manufacturers-struggle-with-making-use-of-data
Cloud4C, Benefits and Challenges of Migrating from SAP ECC to S/4HANA
https://www.cloud4c.com/blogs/benefits-and-challenges-of-migrating-from-sap-ecc-to-s4hana
Saison Technology, “S/4HANA移行プロジェクトに潜む“つなぎ＝データ連携”の落とし穴を回避するためにも”
https://www.saison-technology.com/linkage/column/13/
※ Original content in Japanese
Saison Technology, “SAP 2027年問題をDX推進に向けた基盤構築のチャンスと捉える”
https://www.saison-technology.com/linkage/column/12/
※ Original content in Japanese
SAP insider. “2025 SAP S/4HANA Migration Benchmark Report.” Figure 1 used with reference to adoption trends.
https://19523792.fs1.hubspotusercontent-na1.net/hubfs/19523792/2025%20Research%20Report/SAPinsider%20-%202025-02%20SAP%20S4HANA%20Migration%20-%20Detailed%20Findings.pdf
SAP insider. “2025 SAP S/4HANA Migration Benchmark Report.” Figure 2 used with reference to barriers to SAP S/4HANA transition.
https://19523792.fs1.hubspotusercontent-na1.net/hubfs/19523792/2025%20Research%20Report/SAPinsider%20-%202025-02%20SAP%20S4HANA%20Migration%20-%20Detailed%20Findings.pdf