SAP has announced that starting at the end of 2025, it will suspend maintenance of its business suite applications as clients move to cloud-based SAP S/4 HANA.
Successful organizations will approach this as more than a system upgrade. They will extract maximum value from new technology by first understanding its potential impact on their operating model, processes, and customers. They also will holistically transform end-to-end workstreams to unlock a higher return on investment.
A recent Accenture Strategy diagnostic of 11 critical value chains at a Fortune 50 client revealed only 10-15 percent of the activities were delivering material value to the customer and growth agenda. Accenture has found performing diagnostics over the past five years that this is not uncommon—this is the norm.
Rather than investing resources in activities that keep the lights on, companies must look at the events that contribute to the growth and reallocate resources accordingly. For example, one business found that in its sales process, 15 percent of the activities were driving growth, while 85 percent were focused on either sustaining the core business or were transactional.