the clock is ticking: why finance leaders must prioritize S4/HANA migration now.

For years, SAP S/4HANA migration might have seemed like a distant point on the IT roadmap. However, the horizon is rapidly approaching. SAP has firmly set 2027 as the year it will end mainstream maintenance support for its long-standing Business Suite 7 core applications, including the widely used ERP Central Component (ECC 6.0). This isn't just a suggestion; it's a hard deadline with profound implications, especially for the finance function. Finance leaders can no longer afford to view this as merely an IT project delegated to the technical teams. The migration to S4HANA is a strategic imperative demanding executive attention, significant resource allocation, and meticulous planning now.

understanding the urgency: beyond the calendar date

What does the end of mainstream support truly mean? It signifies the cessation of regular updates, patches (including crucial security fixes), and new functionalities for SAP ECC. While extended maintenance options might be available for a limited time at a premium cost, relying on an unsupported ERP system exposes an organization to substantial risks:

• security vulnerabilities: Without regular security patches, ECC systems become increasingly vulnerable to cyber threats, potentially compromising sensitive financial data.
• compliance issues: Evolving regulatory landscapes often require system updates. An unsupported system may fail to meet new compliance mandates, leading to penalties and reputational damage.
• operational inefficiencies: Lack of updates means no access to performance improvements or compatibility with newer technologies, potentially hindering operational efficiency.
• integration challenges: Integrating an aging ECC system with modern cloud applications, platforms, or partner systems becomes increasingly difficult and costly.
• innovation stagnation: Companies remaining on ECC will be cut off from SAP's innovation path, which is now firmly centered around S4HANA and its intelligent technologies (AI, ML, advanced analytics). This creates a significant competitive disadvantage.
• talent drain: Attracting and retaining top finance and IT talent becomes harder when working with outdated technology.

Estimates suggest that a staggering 60-70% of organizations currently running SAP ECC have yet to even begin their S4HANA migration journey. With complex migrations often taking 18-24 months or longer, factoring in planning, testing, and potential delays, the window for a well-managed, strategic transition before the 2027 deadline is closing much faster than many realize. Waiting passively is no longer a viable strategy; it's an invitation to disruption.

more than an upgrade: a fundamental finance shift

The move from ECC to S4HANA is not a simple version upgrade. It represents a fundamental shift in architecture, data structure, and user experience, bringing both immense opportunities and significant challenges specifically for finance. While the potential benefits – streamlined processes, real-time insights, enhanced reporting – are compelling, the path requires navigating several critical hurdles identified by finance leaders already undertaking the journey:

• disruptions to existing workflows: Decades of customizations and established financial processes built within ECC may not directly translate to S4HANA's standardized, simplified structure. Finance teams must anticipate and plan for changes in how financial close, reconciliations, reporting, and other core tasks are performed.
• new data structures (The Universal Journal): S4HANA introduces the Universal Journal (table ACDOCA), a revolutionary "single source of truth" that consolidates data previously spread across numerous FI and CO tables (like COEP, ANEP). While this simplifies reporting and eliminates reconciliation needs long-term, finance teams must adapt to this new data model and understand its implications for data access, analysis, and reporting methods.
• compliance and audit adjustments: S4HANA offers new features for compliance and reporting. However, existing compliance frameworks and internal controls must be carefully reviewed and potentially redesigned to align with the new system. Early engagement with internal audit and risk teams is crucial to prevent compliance gaps post-migration.
• integration complexity: Finance functions rarely operate in isolation. Interfaces with third-party applications (e.g., treasury management, tax software, banking portals) and custom solutions built around ECC must be thoroughly assessed. These integrations often need reconfiguration, replacement, or retirement, adding significant complexity and cost to the migration project.
• change management and talent: Perhaps the most underestimated challenge is the human element. The shift to S4HANA necessitates upskilling finance teams to effectively utilize the new environment, its embedded analytics, Fiori user interface, and automated features. A robust change management strategy, encompassing clear communication, targeted training, and ongoing support, is vital to mitigate productivity dips and ensure user adoption. Many organizations lack the necessary business and data skills internally to fully leverage the power of their data, even before considering a major system shift.

the finance leader's role: steering the ship

Given these complexities, finance leaders cannot afford to be passive observers. Active involvement is non-negotiable. This includes championing the project, securing necessary budget and resources, participating actively in system design decisions (especially regarding financial structures and reporting hierarchies), driving data cleansing initiatives, overseeing rigorous testing phases (including parallel financial closings), and ensuring comprehensive change management and training programs are in place.

The S4HANA migration is undoubtedly a high-stakes transformation. Failing to adequately prepare can lead to severe cost overruns, missed deadlines, compliance failures, and significant operational disruptions that directly impact the bottom line. The 2027 deadline isn't just a date; it's a catalyst forcing organizations to modernize their core systems. Proactive, strategic planning led by finance is the only way to ensure this mandatory transition becomes an opportunity for growth and efficiency, rather than a source of chaos.

​leverage expert support to maximize ROI

​SAP S/4HANA migration is a high-stakes​ transformation that requires strategic planning,​ financial expertise, and execution discipline. Rather​ than navigating this complex transition alone,​ finance leaders can benefit from expert advisory​ and interim support to ensure a​ seamless migration.

​Tatum’s Financial Projects Practice provides on-demand finance professionals with deep expertise​ in ERP implementations, financial controls,​ compliance, and process optimization.​ Our​ experienced consultants help organizations mitigate​ risk, accelerate transformation, and maximize the​ ROI of their SAP S/4HANA investment.