If your business is still running an older version of SAP, the clock is ticking. With SAP officially cutting off support for legacy versions in 2027, businesses using these systems are at risk of being left high and dry. More than half of these organisations are set to miss the deadline, and the consequences could be severe. As a recruitment consultant specialising in Finance Transformation at Stanton House, I’ve seen first hand the impact this could have on businesses, and why acting now is crucial for safeguarding your operations.

The looming SAP S4 HANA migration deadline doesn’t just represent a technical upgrade. For most companies, it’s a strategic imperative. The transition affects your finance operations, talent strategy, and overall business resilience. It’s not something you want to push to the last minute.

As we approach SAP’s 2027 deadline for ending support, businesses using SAP are under increasing pressure to upgrade to SAP S/4HANA. Yet, over half of organisations are at risk of missing this critical milestone and some opting to choose to. For finance leaders, this presents both a challenge and an opportunity to ensure their Finance Transformation teams are equipped to handle the complexities of the transition and secure long-term business success.

Why the 2027 Deadline Matters to Your Business

So, what happens if you miss the 2027 deadline? SAP has made it clear that older ERP systems will lose all support, meaning no security updates, no patches, and no customer service. Running an unsupported ERP system could put your entire business at risk.

The Costs of Delaying:

1. Financial Consequences: SAP is offering extended support for businesses that fail to upgrade on time, but it comes at a high cost. You’ll be facing hefty financial penalties for failing to migrate, with no added value for your business. Extending support for older systems or reacting to unexpected system failures post-2027 will lead to increased costs, both in terms of direct financial outlays and lost opportunities.
2. Talent Shortages: The longer you wait to upgrade, the more competition you’ll face when trying to secure top-tier SAP S4 HANA talent. As the deadline approaches, the demand for SAP S/4HANA expertise will outstrip supply, driving up recruitment and retention costs. Securing the right talent now will help mitigate these challenges – (There’s already a shortage of highly skilled professionals in this space, and it’s only going to get worse!)
3. Cybersecurity Risks: Outdated systems without regular security patches become vulnerable to hacking, malware, and data breaches. Your business could be exposed to massive legal and financial repercussions if sensitive data is compromised.
4. Operational Failures: Unsupported systems will likely face performance issues, leading to disruptions in your critical business operations. The last thing any business wants is to deal with system downtime that could easily have been avoided.
5. Competitive disadvantage: Delaying migration could mean missing out on the enhanced data analytics, financial forecasting capabilities, and scalability that SAP S/4HANA provides, leaving businesses lagging behind their competitors. SAP S4 HANA isn’t just about replacing your old system. It offers a more streamlined, modern approach to ERP, allowing your business to adopt automation, AI, and advanced analytics. Early adopters of SAP S4 HANA will see improvements in operational efficiency, giving them a competitive edge in their industry.

Don’t Underestimate the Scale of an SAP S4 HANA Implementation

An SAP S4 HANA implementation isn’t something you can complete overnight. It’s a complex process that involves evaluating your current systems, planning new workflows, training staff, and ensuring everything is integrated seamlessly. Many businesses find the migration takes months, even years, depending on their size and complexity.

I work with a number of clients from small to medium size enterprises in their scale-up mode and growing quickly, through to your major FTSE 100 blue chip organisations. At all scales and sizes of businesses, ERP transformations are difficult to get right and are often more successful when they aren’t rushed and an appropriate amount of time is taken to deliver (often years).

The People Element: Identifying the Right Leadership & Skills for Success

For finance leaders, the success of any SAP S/4HANA migration depends heavily on having the right skills and expertise in place. Equally important is finding the right leadership to guide the process. The person leading this migration should not only have deep SAP knowledge but also a clear vision of how the transition aligns with overall business goals and someone who is able to bring the people along for the journey.

At Stanton House, we work closely with number of businesses delivering major Finance Transformation initiatives and not one of them has found it simple. ERP transformations are complex and often the biggest pitfall isn’t the technical delivery, it’s the people side of change. Brining the people and the business along for the journey has never been more critical, so finding the right talent needed to make these transitions successful is important. Whether you’re in the initial planning stages or halfway through your implementation, having the right team in place is critical to ensuring a smooth, cost-effective migration.

What Finance Leaders Must Focus On:

·       Early Action: Starting the process now is critical. As the deadline approaches, demand for SAP S/4HANA expertise will skyrocket, driving up talent acquisition costs. Acting early ensures you can secure top Finance Transformation professionals before competition intensifies.

·       Leadership with Proven Change Management Skills: The individual leading your S/4HANA migration should have a track record of managing large-scale transformations. This isn’t just about technical expertise—it’s about having the strategic foresight to ensure the migration delivers real value to the business. Leaders experienced in ERP transformations bring valuable insight into navigating the complexities of such initiatives.

·       Specialised Skills: Finance transformation professionals with both technical SAP S/4HANA knowledge and strategic finance expertise are crucial. These individuals must not only implement the system but also leverage it to drive business outcomes, ensuring seamless integration with other business processes.

·       Cross-functional Collaboration: A successful SAP S/4HANA implementation requires collaboration across multiple departments. Finance Transformation professionals must work closely with IT, HR, and operations teams to ensure that the system integrates smoothly into the wider business strategy.

·       Training & Upskilling: Current teams will require training to adapt to the new system. Forward-thinking finance leaders should invest in upskilling their existing workforce, preparing them for the post-migration landscape. The right leader will prioritise team development to ensure long-term success.

Partnering with Stanton House to Hire the Right Talent

At Stanton House, we understand that the key to a successful SAP S4 HANA implementation is having the right talent in place. As a specialist in Finance Transformation recruitment, I’ve helped businesses find the best SAP S4 HANA talent to lead and drive their transition efforts.

When you partner with me, you get access to an extensive network of transformation professionals who have the expertise to manage complex ERP migrations. Whether you need a full project team or specific expertise, I’m here to help you find the right people to meet your business needs.

Final Thoughts

The 2027 deadline might sound far away, but it is fast approaching, and finance leaders must act now to ensure their businesses remain competitive. Identifying the right leader—one who can navigate the complexities of ERP transformations while driving strategic value—is critical to a successful migration. Securing the right Finance Transformation talent early will not only mitigate risks but also position your organisation in the best  for growth.

If you’re ready to start your SAP S4 HANA journey or need help securing the right talent, contact me today to discuss in more detail.