Setting the Foundation for a Successful SAP S/4HANA Migration
Migrating to SAP S/4HANA is a transformative journey that promises significant benefits in terms of operational efficiency, real-time insights, and streamlined business processes. However, a successful migration begins with a critical step that often sets the tone for the entire project: the Licensing Workshop. At SC Silver Consultancy, we recognize the importance of addressing licensing complexities early in the process, aligning with the Discover phase of the SAP Activate methodology.
In collaboration with our trusted partner, Prolona, we organize and deliver a comprehensive Licensing Workshop designed to demystify SAP S/4HANA licensing. This workshop is a vital foundation for ensuring that your organization selects the optimal licensing model, aligns project goals with business priorities, and effectively manages costs throughout the migration.
Why Licensing Matters
Licensing is one of the most strategic and potentially complex aspects of migrating to SAP S/4HANA. It is also one of the areas where organizations can achieve significant cost savings if addressed early. Here are several key reasons why licensing is critical:
- Cost Optimization: SAP S/4HANA offers several licensing models, including subscription-based and perpetual models. Choosing the right model can have a lasting financial impact on your organization. A careful evaluation during the Discover phase can help avoid unnecessary costs, optimize investments, and ensure long-term scalability.
- Strategic Planning: Licensing decisions directly affect your project scope and resource allocation. By addressing licensing early, you can set clear expectations regarding system functionality, user requirements, and long-term IT strategy.
- Compliance and Risk Management: Incorrect or incomplete licensing decisions can lead to compliance risks and potential penalties. By establishing a clear understanding of SAP licensing rules, your organization minimizes the risk of non-compliance.
- Alignment with Business Goals: Licensing is not just a technical or contractual consideration; it is a strategic decision that must align with your business objectives. A well-thought-out licensing approach ensures that your SAP S/4HANA solution is designed to meet your specific needs, both now and in the future.
- Early Migration Discounts: SAP offers discounts on licensing for organizations that migrate to S/4HANA earlier. Taking advantage of these discounts can result in significant cost savings and further incentivizes a proactive approach to migration planning.
The Licensing Workshop: A Collaborative Approach
The Licensing Workshop is designed to provide clarity and structure, helping your organization make informed decisions about SAP S/4HANA licensing. Here is an overview of what the workshop entails:
1. Exploring Licensing Models
During the workshop, we conduct an in-depth analysis of the available licensing options for SAP S/4HANA. These include:
- Perpetual Licensing: A one-time purchase with ongoing maintenance fees.
- Subscription Licensing: A flexible, pay-as-you-go model based on user access and system usage.
- Hybrid Models: Combining elements of both perpetual and subscription licensing.
We work with your team to evaluate the pros and cons of each model, taking into account your organization’s size, industry, and long-term goals.
2. Understanding Current Usage
An essential step in the workshop is assessing your current SAP system usage. This involves analyzing:
- Active users and roles
- Existing licenses and contracts
- System functionalities and integrations
This assessment ensures that your licensing decisions are based on accurate and up-to-date information, avoiding unnecessary purchases and over-provisioning.
3. Tailoring Recommendations
Based on the findings, we provide tailored recommendations on the licensing model that best fits your organization’s requirements. These recommendations include:
- A detailed cost analysis
- Licensing adjustments to match future needs
- A roadmap for transitioning to SAP S/4HANA
4. Deliverable: Management Presentation
As a key output of the workshop, we deliver a comprehensive management presentation. This document serves as a strategic guide for your organization, outlining:
- The recommended licensing model
- Cost implications and savings opportunities
- Actionable steps for the pre-migration and migration phases
This presentation is designed to facilitate decision-making at the executive level, ensuring alignment across all stakeholders.
Key Benefits of Early Licensing Decisions
By addressing licensing during the Discover phase, your organization can achieve several advantages:
- Cost Savings: Early evaluation helps identify the most cost-effective licensing options, avoiding unnecessary expenditures later in the project.
- Risk Mitigation: A clear licensing strategy minimizes the risk of compliance issues and ensures alignment with SAP’s licensing policies.
- Project Alignment: Licensing decisions provide a solid baseline for defining the project scope and managing expectations.
- Streamlined Migration: With licensing clarified early, the subsequent pre-migration and migration steps proceed more smoothly, reducing delays and uncertainties.
Why Choose SC Silver Consultancy and Prolona?
Our expertise in SAP S/4HANA migrations, combined with Prolona’s in-depth knowledge of SAP licensing, makes us uniquely positioned to guide your organization through this critical phase. Our collaborative approach ensures that you receive not only expert advice but also actionable insights that drive results.
Conclusion
The Licensing Workshop is more than just a preliminary step in your SAP S/4HANA migration journey; it is a foundational element that sets the stage for success. By engaging in this workshop during the Discover phase, your organization gains clarity, aligns resources effectively, and positions itself for a smooth and cost-efficient migration.
Contact SC Silver Consultancy today to schedule your Licensing Workshop and take the first step toward a successful SAP S/4HANA migration.
