With technology advancing by leaps and bounds in modern corporate environments, SAP updates are essential to avoid direct losses in operational efficiency and for the company as a whole.
It is common for senior management to be quite cautious when it comes to investing in new technologies and the additional costs that this may entail. However, less common is the attention that many of these leaders pay to the additional costs that an outdated (or obsolete) system may bring.
The use of outdated technology significantly impacts a company’s financial results – increasing downtime, reducing productivity, and increasing security risks.
Even though SAP is one of the most widely used ERPs in companies worldwide, it is not immune to the need for continuous updates.
But what happens in practice when SAP is not properly updated? What are the implications for business health?
Let’s explore this issue more deeply.
Compliance Challenges
Regulatory compliance is a central concern for companies in various sectors. Government regulations, industry standards, and internal compliance requirements are constantly evolving.
Companies that neglect SAP updates are at greater risk of not being able to keep up with all these changes and may end up facing a series of compliance-related challenges. Among the main ones, we can highlight:
- Reporting Failures: Outdated versions of SAP may not offer the necessary resources to generate accurate and complete reports to meet current regulatory requirements. This can result in audit issues and non-compliance.
- Data Security Lack: With increasing concerns about cybersecurity, system updates are essential to protect a company’s confidential data. Outdated SAP systems are more vulnerable to security threats, jeopardizing compliance with data privacy regulations such as GDPR.
- Inability to Keep Up with Legislative Changes: Tax and labor regulations are subject to frequent changes. Outdated systems cannot quickly absorb these changes, which can result in non-compliance and possible financial penalties.
The Key Benefits of SAP Updates
The latest versions of the SAP system come with a host of innovative automation and process optimization features.
Equipped with cutting-edge intelligence and capable of enabling real-time decision-making based on data, updated systems that exponentially increase operational efficiency, including optimizing the work of specialized labor, which can focus on more strategic tasks and therefore add more value.
The latest versions of SAP are already developed based on the latest in Artificial Intelligence and Big Data. Being “future-proof,” they ensure that future innovations are seamlessly accommodated, integrating with emerging technologies capable of further leveraging business results.
Customer relations are another critical factor that makes SAP updates essential. With market expectations constantly evolving, companies need flexible and agile systems that can quickly adapt to new demands.
How to Include SAP Updates in Business Dynamics?
We already understand that outdated systems have negative impacts on various fronts for companies. The challenge now is to know how to manage updates and adopt a strategy capable of promoting modernization systematically.
Below are some steps that can help in this task:
1. Recognizing Signs of Technological Obsolescence
To innovate, it is necessary to adopt an analysis methodology that can routinely identify technologies that are no longer capable of keeping the company at the forefront. The focus is to enable this analysis with a global vision, not only focusing on system failures or downtime but also anticipating industry patterns and trends that help improve performance and productivity.
2. Developing a Strategic Update Plan
A comprehensive plan for regularly updating the technological infrastructure is fundamental. This involves periodic reviews to identify areas for improvement and the implementation of proactive measures to ensure that your company remains at the forefront of innovation.
3. Embracing Renewal
After identifying problem areas and technological innovations with greater adherence, it’s time to act decisively. Consider replacing obsolete systems with more modern and efficient solutions, or invest in strategic updates to extend the life of the existing infrastructure.
4. Opt for the Cloud
Migrating to cloud-based platforms, such as SAP S/4HANA, offers a unique opportunity to reduce operating costs, increase flexibility, and ensure simplified access to the latest security updates. In addition, cloud solutions offer scalability to adapt to the demands of the constantly changing market.
5. Partnering with Technology Experts
Often, the easiest way to implement all these actions is to rely on a specialized team. Technological partners with extensive experience in SAP updates offer cutting-edge services, insights, and personalized guidance, helping your company navigate the complexities of technological modernization successfully.
The Deadline for Migrating to SAP S/4HANA is approaching its end.
Rely on Origen Tech!
At Origen Tech, we understand how important the migration process to S/4HANA, the most advanced version of SAP, is. To avoid unnecessary complications, our team of experts is fully prepared to carry out a smooth transition, thoroughly analyzing the specific requirements of each organization.
With this, we create a personalized experience that transforms the reality of the business and easily involves all stakeholders in the migration.
Learn about the SAP S/4HANA Migration Program by Origen Tech.
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