Prague, 31 May 2023 – Czech companies are increasingly exploring the transition to the latest generation of the SAP S/4HANA business information system. This shift is driven by the impending end of official support for the current SAP ERP solutions, rising consultancy costs, a shortage of experienced professionals, and a growing need to enhance business operations and decision-making.
Preparing for the Transition
SAP announced in 2020 that support for SAP Business Suite 7, the most widely deployed system among its customers, will end by 2027 (with extended support available at additional cost until 2030).
“Now is the time for companies to start preparing for the transition,” says Tomáš Foltýn, Senior Local Sales Manager at Ness Czech, a leading SAP partner in the Czech market. “Based on our experience, implementing SAP S/4HANA can take over a year. One way to reduce deployment time by up to 50% is by converting to a cloud environment, a solution Ness offers to its customers.”
Despite the urgency, many organizations remain uncertain about where to begin.
“To address this, we offer a service designed to guide customers through the transition process, helping them maximize SAP’s potential while establishing a strong foundation for implementation,” explains Markéta Eggerthová, SAP Division Director at Ness Czech. “Given that companies typically invest in ERP systems for 15 years or more, it’s essential to approach this transition responsibly.”
Key Drivers for Transition
The primary motivation for most companies to adopt SAP S/4HANA is the opportunity to unlock business benefits faster than their legacy systems can allow. Legacy ERP systems often fail to meet evolving business needs, and rising labor costs, particularly for SAP consultants, are another consideration.
“The cost of SAP consultants is rising by approximately 10% year-on-year due to inflation and increasing demand,” notes Foltýn. According to Grafton Recruitment, SAP consultants in Prague earn CZK 75,000–150,000 gross per month, while regional salaries typically range from CZK 70,000–100,000.
In addition, the growing complexity of IT systems and the demand for digital transformation are fueling interest in SAP S/4HANA. “Depending on the complexity of the existing system, implementing SAP S/4HANA may require up to 20 consultants and take more than a year,” adds Foltýn. “This is why companies often rely on certified SAP partners with the necessary expertise and resources.”
Choosing the Right SAP Partner
Experts at Ness Czech emphasize the importance of selecting an SAP partner with comprehensive methodologies for transitioning to SAP S/4HANA.
“The transition to SAP S/4HANA is complex. Only a sophisticated methodology can ensure that companies fully capitalize on the capabilities of the new system,” explains Foltýn. “SAP’s Best Practices for various industries, included in their implementation methodology, make projects more efficient and simplify ongoing maintenance.”
Key Benefits of SAP S/4HANA
SAP S/4HANA offers a range of advantages that make it an attractive choice for businesses:
- Faster Data Processing: The optimized data model enables real-time insights into business performance.
- Improved Decision-Making: The advanced analytics capabilities and streamlined data model facilitate quicker and more informed decisions.
- Modern User Interface: The SAP Fiori interface provides a user-friendly experience, including mobile device access.
- Efficient Data Model: While it requires higher hardware infrastructure, the optimized data architecture significantly boosts efficiency.
About Ness Czech and Ness Digital Engineering
Ness Czech, part of the international Ness Digital Engineering group, is one of the largest IT service providers in the Czech Republic. Established in 1993, the company has been a pioneer in introducing new technologies and software solutions. Key customers include O2 Czech Republic, Komerční Banka, and ČÚZK. Ness Czech operates offices in Prague, Brno, and Ostrava, employing over 260 people with an annual turnover exceeding CZK 835 million.
Ness Digital Engineering is a global IT solutions provider with operations in North America, Europe, the Middle East, and Asia. The group employs over 4,500 professionals across 11 innovation centers worldwide.
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