There is currently a shortage of SAP S/4HANA and other ERP training consultants, driven by increasing demand for cloud-based ERP systems and a wave of digital transformation efforts.
Many businesses are moving from older SAP ERP systems to S/4HANA, which is causing a surge in demand for professionals with the right expertise to handle migrations, cloud integration, and system optimisation.
Current SAP Timeline
• End of mainstream support for SAP ECC 6.0 is scheduled for December 2027
• For organisations on a lower pack than ECC 6.0, support ends in December 2025
• There is an option to purchase extended maintenance until 2030.
After that point, businesses still using ECC will face heightened risks due to the lack of security patches and updates, making the transition to SAP S/4HANA, or indeed an alternative ERP system, a pressing concern for many organisations.
This timeline highlights the importance of migration planning, as delays might result in costlier transitions due to the growing demand for SAP consultants and system integrators.
User Adoption
Tailored training is crucial for organisations transitioning to SAP S/4HANA due to the significant differences between legacy systems (including ECC 6.0) and the modern capabilities of S/4HANA. Here is why such training is indispensable:
- Bridging the Knowledge Gap
SAP S/4HANA introduces new concepts, such as embedded analytics, Fiori user interfaces, and real-time data processing, which are not present in earlier SAP systems. Employees accustomed to legacy systems must fully understand these new features to leverage them effectively.
- Minimising Resistance to Change
Organisational change often faces employee resistance. Custom training sessions tailored to the company’s business processes and employee roles can ease the transition, fostering acceptance and reducing the fear of new technology. This helps employees feel more confident in adopting the new platform.
- Enhancing Productivity and Reducing Errors
Without proper training, employees are more likely to make mistakes, especially during the initial phases. Tailored training focuses on role-specific modules and hands-on practice, equipping employees with the necessary skills to perform their tasks efficiently from the outset.
- Accelerating ROI and Adoption Rates
Businesses may swiftly realise the advantages of SAP S/4HANA, including automation and improved business processes, with the aid of effective training. By decreasing downtime and increasing operational efficiency, this will result in a quicker return on investment.
- Ensuring Regulatory and Compliance Alignment
Real-time reporting and sophisticated compliance capabilities are integrated into SAP S/4HANA, which is crucial for businesses operating in highly regulated environments. Customised training reduces compliance risks by ensuring that staff members know how to utilise these products properly.
In conclusion, customised training is crucial to facilitating the shift to SAP S/4HANA by giving staff members new competencies, promoting acceptance, and allowing businesses to meet their strategic goals more quickly.
The cost of tailored training
The cost of tailored training to support an S/4HANA rollout training can vary significantly depending on the complexity of the system, the number of users and the level of customisation. On average, training constitutes a notable part of the total ERP implementation budget, typically ranging between 10% and 15% of the overall project cost.
The cost of not investing in tailored training
Failing to invest in tailored ERP training can result in several costly and disruptive failures that undermine the success of the ERP rollout. Here are the key risks:
Low User Adoption and Resistance to Change
- Without proper, role-specific training, employees may resist using the new system due to frustration and unfamiliarity. This limits the system’s intended benefits and forces them to revert to old methods, such as spreadsheets, undermining the investment.
- Employees might not engage effectively with the new tools, especially if they do not understand the relevance to their job, leading to poor adoption across departments.
Operational Disruptions and Productivity Loss
- Inadequate training increases the likelihood of critical errors, such as incorrect data entry or failed workflows, disrupting operations.
- Untrained users take more time to complete tasks, leading to delays in operations, especially during the post-implementation phase when employees are adjusting to the new environment. The system itself can get blamed, when it’s actually down to lack of targeted training.
Data Integrity Issues
- ERP systems require precise data inputs and management. Poorly trained employees may enter incomplete or incorrect data, leading to data inaccuracies, reporting errors, and downstream problems in other business processes, such as financial reporting and supply chain management.
Cost Overruns and Extended Project Timelines
- Inefficiencies caused by untrained employees can lead to delays in project milestones, increasing consulting fees and extending the transition period. Additional training or emergency troubleshooting sessions may also become necessary, driving up costs.
Missed ROI Opportunities
- ERP solutions with robust capabilities like automation and embedded analytics include SAP S/4HANA. Employees may not use these cutting-edge tools if they are not properly trained, losing out on insights and efficiency that could enhance company performance.
In conclusion, skipping customised ERP training can result in financial losses, operational setbacks, and compliance issues, all of which lower the system’s return on investment. Smoother transitions, greater acceptance rates, and long-term advantages are guaranteed with careful preparation and investment in role-specific training.