CFOs and CIOs at Odds as SAP S/4HANA Migration Deadline Approaches

The Tension Between CFOs and CIOs Amid SAP Migration

As companies worldwide rush to meet the impending SAP S/4HANA migration deadline in 2027, a significant conflict has emerged between Chief Financial Officers (CFOs) and Chief Information Officers (CIOs). A new analysis from Basware reveals that CFOs are under increasing pressure to make critical financial decisions while CIOs are striving to ensure technical compliance and system effectiveness in the face of a shifting economic landscape.

The Financial Landscape and Migration Urgency

Recent data indicates that about 61% of SAP users still utilize older versions of their Enterprise Resource Planning (ERP) systems and have not yet transitioned to S/4HANA. With more than 22,000 companies affected, the demand for migration has peaked as a compliance measure that can make or break a business. Those failing to adhere to the timeline will not only lose SAP support but also miss out on innovations that could enhance operations, further complicating their financial and technical strategies.

The stakes are high, with the SAP S/4HANA migration market representing a $100 billion opportunity for companies to modernize systems and streamline operations. However, amidst the ongoing global economic uncertainty, organizations face a dilemma. Every dollar spent needs to be meticulously accounted for, which is causing friction between CFOs, who prioritize budget management, and CIOs, who advocate for necessary technological investments.

SAP Migration: More Than Just a Technical Upgrade

Mark McCarthy, Chief Revenue Officer at Basware, comments, "For many, this migration is viewed purely as an upgrade in technology. However, forward-thinking organizations see it as a pivotal opportunity to transform processes and achieve returns on investment. This requires alignment in finance and IT focusing on essential outcomes."

The financial implications of these migrations are immense—upgrades can cost between $100 million and $500 million, determined by the organization's size and complexity. Managing these projects requires significant resources, including software, implementation, training, and ongoing support. For CFOs, this means navigating financial holes that arise from uncertain ROI projections, business disruption risks, and steep implementation fees. The challenges are compounded by talent shortages in SAP fields and the need for precise control over financial operations, especially invoicing.

CIOs are grappling with their challenges. They're often stuck with outdated systems and poor data quality that leads to inefficiencies and errors. However, there is room for synergy. Interestingly, 75% of CFOs are now advocating for increased investment in AI solutions to automate essential financial processes such as e-invoicing compliance—integral to a successful SAP S/4HANA migration framework.

The Rise of Innovative Solutions in ERP Migrations

Delays in migration could lead to increased compliance risks and costs. It's critical for forward-thinking companies to act decisively. Organizations like Empire Portfolio Group, KION, and Imerys are setting examples by incorporating innovative digital processes to support their SAP S/4HANA journeys. Christophe Boden from Imerys states, "We required a state-of-the-art process to complement our Shared Services Centres rollout and effectively implement SAP S/4HANA. Basware was an ideal partner for digitizing our accounts payable operations."

Moreover, Mauser—a North American manufacturing giant—successfully integrated Basware's solutions into their existing SAP ERP systems, thereby enhancing their invoice processing capabilities and minimizing complexity. This integration enabled them to decrease the time required for non-Purchase Order invoice approvals from 3.6 to just 1.6 days. By employing Invoice Lifecycle Management solutions that automate accounts payable, they reduced manual matching processes substantially, showcasing the efficiency achievable through strategic partnerships.

To better assist organizations navigating these challenges, Basware and Deloitte have expanded their collaboration, forming a Center of Excellence aimed at expediting digital finance transformations. This initiative highlights rising demand for expertise in managing SAP S/4HANA migrations effectively.

Conclusion

Basware is committed to providing companies with comprehensive control over their invoice transactions, ensuring not just compliance and efficiency but also leaving room for innovation in finance operations. With their platform utilizing sophisticated AI developed from handling over 2 billion invoices, Basware is well-positioned to guide enterprises through the complexities of ERP migrations. As global businesses face this monumental transformation, aligning goals across financial and IT perspectives will be critical to turning challenges into opportunities as the SAP migration deadline approaches.