SAP ERPs have been around for more than 50 years now, as shocking as that may seem. With the constant innovation of technology, not to mention customer expectations increasing, companies still using a legacy SAP ERP system are often losing money.
For those in a stage of constant maintenance and having to deal with non-core customizations that have been building up since the 1970s, they’re unsure of the future and don’t think that they have the time or resources to afford to modernize their legacy systems. Couldn’t it interfere with your business processes already in place? Won’t it cost too much money?
These are all very reasonable questions. But with the right solution, such as EdgeReady Cloud, digitizing your legacy system has never been easier or more affordable. In this blog, we’ll dive into the different fears those who have a legacy SAP environment have about modernizing, why modernizing is essential, and why EdgeReady Cloud is the best solution out there to modernize.
Fears About Modernization
So why are companies reluctant to modernize if it would make their lives easier? There are many fears out there about the process of SAP modernization:
Depletion of the Budget
Amidst the continuation of a global pandemic, corporations are constantly trying to find ways to not only stay within the budget but ways to save money as well. One of the fears that comes along with the thought of SAP modernization is how much money it’s going to cost. While you’re definitely going to have to invest a certain amount into digitizing your legacy systems, it will actually end up saving you money in the long run, while completely automating your business processes. Keeping a legacy system costs you way more money (sometimes millions per year), with all the service and maintenance it requires.
Modernizing Will Add More Work
While modernization is definitely a project in and of itself, the end result will actually help your company modernize your manual tasks. Depleting work for employees helps them focus on their main tasks, allowing them to be more productive and contribute to business success.
A Legacy System Works Better
Another common fear or misconception when it comes to modernization is that your current legacy system will work better than a fancy, modernized one. Your current system is set up to work with your company and has done so for years, so why change it now?
Mainly because your legacy system can’t achieve the same level of efficiency that your legacy system can. Not to mention you’re falling behind your competitors who may have already modernized, which could cause you to lose clientele. With a modernized system, efficiency, automation, and digitization are promised, especially with a solution like EdgeReady Cloud.
So, why is modernization so important?
Reasons Modernization is Crucial
So you’re scratching your head thinking about why modernization is a must, but need some tangible reasons to even consider the modernization process.
Below are some examples of why digitizing your legacy system is so imperative:
- Legacy Code: ABAP code, the coding language that SAP utilizes, was first created in 1972. With a coding language that’s almost 50 years old, it’s no wonder more and more corporations are finding the need to modernize. Furthermore, those who are actually skilled in ABAP coding are older now and it’s generally not being taught in today’s coding courses. Because of this, hiring someone who is an expert is ABAP will definitely cost you.
- Complexity: Because of the nature of when SAP software was actually created, the infrastructure has become highly complex, making it quite difficult to maintain. Because of its complexity, it requires lots of manpower and effort dedicated to maintenance. Manual tasks are necessary because of a legacy system that should instead be automating internal business processes.
- Cost: Cost is, of course, the big kicker. SAP ERP is expensive, to put it mildly. Small to medium-sized companies can find themselves spending around $75,000 to $750,000 for general maintenance and enhancements to their legacy systems. Larger companies will spend anywhere from $1 million to $10 million. For those that actually want to reduce costs, modernizing is your best bet.
- Training: With the current structure of legacy software, new employees need to be trained to learn about the complexity of the tools that have been built and the unique processes that have been implemented. This is time-consuming and takes weeks or months to complete, depending on what part of the tool you’re training for. Along with being tedious, it also adds to the costs associated with SAP ERP for a company as a whole.
Your Ticket to Modernization Bliss: EdgeReady Cloud
Now that you know why modernization is so important, perhaps you’re now wondering what solutions are out there to help you take the leap and modernize.
One such solution is EdgeReady Cloud. EdgeReady Cloud is a low code rapid application development platform that helps you modernize with an increased speed-to-market. With its drag-n-drop interface, native adapters, and ability to be accessed in any connectivity landscape, the #1 rapid application development will automate your once manual or paper-driven processes.
Learn how to reduce costs in legacy systems today and modernize your SAP ERP.