In yet another of a number of recent studies highlighting the lack of adoption of S/4HANA, a new independent study by Nucleus Research finds that 9 out of 10 existing SAP ERP customers expressed no interest in moving to S/4HANA. This correlates with recent research from the Americas SAP User Group (ASUG) and German SAP User Group (DSAG)1,2. In fact, 86% of the users DSAG surveyed said they’re making little or no investment in S/4 HANA3. According to the Nucleus Research study, most customers do not find SAP’s roadmap compelling enough to consider a future investment and customers fear a complex and painful transition away from their existing SAP ERP implementations. Rather than undergo a disruptive and risky migration, we find many SAP customers prefer a smarter “Innovation around the Edges” strategy. As stated in the Nucleus study, companies choose best of breed solutions that offer a higher degree of functionality or usability from other vendors. For example, of the last 80 CRM deals Nucleus has reviewed, only two companies considered SAP as a contender. Given the disconnect between SAP’s marketing messages and customer reality, read this report to understand why SAP’s strategy to migrate their existing ERP customers to S/4HANA may not be so simple after all. 1 http://diginomica.com/2015/10/02/dsag-users-want-a-new-deal-with-sap-uses-s4-hana-survey-to-telegraph-intent/ 2 http://diginomica.com/2016/06/02/two-major-sap-user-groups-take-landmark-position-on-digital-transformation-an-inside-look/ 3 https://www.dsag.de/sites/default/files/dsag-investment_survey_priorities.png
Many organizations follow an ERP vendor-dictated IT roadmap — implementing patches, upgrades, and transitions to the cloud as their vendors recommend — usually at a significant cost and sometimes with no business benefits at all. It’s a problem; fortunately there’s a solution. Nucleus Research, an independent IT research firm specializing in investigative research and ROI investment analysis, has authored this paper on embracing a Business-Driven IT Roadmap, citing Rimini Street as an enabler of a best-in-class, agile, transformative route. Switching from a vendor-dictated roadmap to a Business-Driven IT roadmap — where all IT spending and activities support the business goals of the organization — will enable you to: regain control of your IT strategy reduce vendor dependency and support costs maximize the value and extend the life of existing hardware and systems future-proof your application strategy increase staff productivity and retention free up funding for business-critical IT initiatives free up funding for innovation Discover the 5 key benefits of a Business-Driven Roadmap and how it can enable you to maintain control of your company’s IT direction — and drive IT success.
According to Gartner1, “…an array of on-premises customers will move to third-party support as a safe haven while evaluating their long-term plans.” Over 500 SAP customers have already moved to Rimini Street and have received award-winning support, cut their total support costs for their SAP platforms by up to 90%, and redirected significant budget and bandwidth to high-impact projects. Many SAP customers have questions around how third-party support for SAP software works, key differences between SAP support and how third-party support will help them meet their technical, functional and service level objectives to keep their mission-critical SAP systems running smoothly and in compliance. Request this OnDemand webinar to hear Jennifer Perry, VP, Global SAP Service Delivery, Rimini Street, share answers to key questions including: What are the main differences between SAP support and Rimini Street support? What is the scope of Rimini Street support services and software covered? What does the onboarding process and experience look like? How does the Rimini Street model and expertise provide responsive, tailored support globally? How can third-party support ensure ongoing compliance with respect to tax, legal and regulatory updates? Most SAP customers must notify SAP by September 30, 2020 in order to switch support provider. Get the answers you need to make an informed decision before you get locked-in for another year. Watch the OnDemand webinar! 1Gartner, Predicts 2020: Negotiate Software and Cloud Contracts to Manage Marketplace Growth and Reduce Legacy Costs, 18 December 2019
A recent survey by ProcureCon found “the state of collaboration between the CIO and CPO has continued to evolve in response to developing external pressure…today’s business conditions call for a strategic alliance between them.” That is easier said than done, especially when IT stakeholders may be reluctant to inspect pockets of spend that haven’t been touched for years. One such area is software vendor support. In our experience, most IT teams admit that the cost-to-value ratio of software vendor support is terrible, particularly when it comes to vendor support of ERP systems, but they don’t feel they have options. The responsibility falls on the shoulders of the CPO and their teams to ask the tough questions: Do we renew software maintenance contracts despite receiving what we feel is sub-par support or low-value updates from ERP vendors? Are we paying vendors each year without understanding the fully-loaded cost of software support and maintenance? Does our software support budget rob us of dollars we could apply to more strategic parts of our business? Do we make decisions based on fear of potential adverse responses or consequences from the vendor? If you answered “yes” to any of those, find out how GE Software and IT Sourcing Leader Aashish Talwar, and Head of Indirect Procurement for Ace Hardware, Fraz Baig build strategic alliances between the CPO and IT by asking the questions that may help to unlock funding to power their business-driven ERP roadmaps.
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