SAP S/4HANA Migration Business Case: Costs, ROI and Benefits

A practical guide to building the business case for SAP S/4HANA migration, covering costs, ROI, benefits, risks, and strategic value for UK businesses.

For a UK enterprise, the case for moving to SAP S/4HANA should not be built around a technology upgrade alone.

An S/4HANA programme can require significant investment in software, implementation, data, integrations, testing, change management, infrastructure, and internal resources. The business case therefore needs to demonstrate something more important than technical readiness:

Why should the organisation invest in changing its ERP platform now, and what measurable business value will the investment create?

This is particularly important for organisations still running SAP ERP 6.0. SAP states that mainstream maintenance for the latest three enhancement packages of SAP ERP 6.0 runs through 31 December 2027, followed by optional extended maintenance through 31 December 2030. SAP also maintains its innovation commitment for S/4HANA through 2040, with at least one S/4HANA release in maintenance at any given time.

The maintenance timeline can be an important business driver, but it should not be the entire business case.

A well-structured business case connects:

Business Strategy + Current-State Costs + Transformation Benefits + Migration Investment + Risk + Future Value

The objective is to demonstrate not only that the organisation needs to change, but that the proposed S/4HANA transformation is the right investment compared with the realistic alternatives.

What Makes a Strong S/4HANA Business Case?

A weak business case often looks like:

Legacy SAP → S/4HANA → Modern Technology

That is not enough to secure a major enterprise investment.

A stronger business case answers six questions:

  1. Why does the organisation need to change?
  2. What does the current SAP environment cost today?
  3. What business problems will S/4HANA solve?
  4. What will the transformation cost?
  5. What are the risks and alternatives?
  6. How will value be measured after go-live?

This means the analysis should start before the S/4HANA solution is selected. The organisation should first understand its current position, define what it needs from the future ERP environment, and then compare the available options.

The main scenarios may include:

Stay on Current SAP

vs.

Optimise the Existing Environment

vs.

Transform to S/4HANA

This approach makes the business case a decision-making framework rather than a justification for a decision that has already been made.

1. Start With the Business Drivers, Not the Technology

The business case should begin with the organisation's strategy and operational priorities.

Typical drivers for a UK enterprise may include:

  • international expansion;
  • acquisitions and ERP consolidation;
  • supply-chain transformation;
  • finance transformation;
  • manufacturing modernisation;
  • cloud strategy;
  • reduction of technical debt;
  • process standardisation;
  • improved data visibility;
  • automation and AI;
  • changing regulatory requirements;
  • difficulty maintaining the current SAP environment.

For example, a UK manufacturer may not need S/4HANA simply because its ERP is approaching the end of mainstream maintenance.

The underlying business problems may be that:

  • five business units operate different processes;
  • acquisitions have created multiple ERP instances;
  • production planning relies on spreadsheets;
  • finance reporting requires substantial manual reconciliation;
  • warehouse and transport systems are poorly integrated;
  • the current SAP landscape limits further automation.

The business case should connect the ERP problem to the business problem.

Better framing

Instead of:

“We need S/4HANA because SAP ERP is approaching the end of mainstream maintenance.”

A stronger business framing is:

“We need to modernise our ERP platform to support the business strategy, reduce operational and technical risk, standardise critical processes, and establish a sustainable platform for future growth.”

The maintenance timeline can then be presented as an additional factor that affects the timing of the decision.

2. Establish the Current-State Baseline

Once the business drivers are clear, the next step is to establish what the organisation is spending today and where the current environment creates operational constraints.

The baseline should cover four areas.

Technology

Measure:

  • SAP infrastructure costs;
  • hosting;
  • database;
  • licences;
  • support;
  • third-party tools;
  • monitoring;
  • backup and disaster recovery;
  • specialist contractors.

Application Management

Measure:

  • support tickets;
  • P1/P2 incidents;
  • recurring incidents;
  • support hours;
  • emergency changes;
  • backlog;
  • custom development effort;
  • maintenance effort.

Business Processes

Measure:

  • process cycle times;
  • manual activities;
  • approval times;
  • reconciliation effort;
  • order processing;
  • procurement;
  • financial close;
  • warehouse processing;
  • production planning.

Data and Integration

Measure:

  • duplicate master data;
  • manual data corrections;
  • failed interfaces;
  • integration support effort;
  • reporting delays;
  • data reconciliation effort.

This baseline provides the reference point for the rest of the business case. Without it, statements such as “S/4HANA will reduce costs” are difficult to validate.

3. Calculate the Cost of Staying Where You Are

Once the current state is understood, the organisation should assess what happens if it does not transform.

The alternative to migration is not zero cost.

A legacy SAP environment may continue to generate:

  • maintenance;
  • infrastructure;
  • support;
  • custom-code remediation;
  • security work;
  • specialist skills;
  • integration maintenance;
  • manual processes;
  • technical debt;
  • upgrade projects;
  • operational risk.

For SAP ERP 6.0 EHP6–8, mainstream maintenance ends on 31 December 2027, followed by an optional extended-maintenance phase through 31 December 2030.

This means the business case should model several scenarios.

Scenario A — Stay on Current SAP

Include:

  • current operating costs;
  • expected maintenance costs;
  • support;
  • security and compliance;
  • infrastructure;
  • technical debt;
  • specialist resource requirements.

Scenario B — Extend the Current Environment

Include:

  • extended maintenance where applicable;
  • additional technical work;
  • temporary remediation;
  • delayed transformation;
  • eventual migration costs.

Scenario C — Move to S/4HANA

Include:

  • transformation cost;
  • implementation;
  • data;
  • testing;
  • change;
  • new operating model;
  • future support.

The purpose is not to make one option appear preferable. It is to understand the economic consequences of each realistic path.

4. Separate the Business Case Into Value Categories

The next step is to identify what the organisation expects to gain from the transformation.

Not every benefit should be placed into a single ROI calculation. Separating value into categories makes assumptions easier to validate.

Direct Cost Reduction

Examples:

  • lower infrastructure costs;
  • reduced legacy support effort;
  • fewer manual activities;
  • reduced custom-code maintenance;
  • lower integration maintenance effort.

Operational Efficiency

Examples:

  • shorter financial close;
  • faster order processing;
  • reduced procurement effort;
  • faster warehouse processes;
  • fewer manual reconciliations.

Risk Reduction

Examples:

  • reduced dependence on obsolete technology;
  • lower technical debt;
  • better security and supportability;
  • reduced key-person dependency;
  • improved business continuity.

Revenue and Growth Enablement

Examples:

  • faster launch of new products;
  • faster entry into new markets;
  • easier acquisition integration;
  • improved customer fulfilment;
  • improved supply-chain responsiveness.

Strategic Value

Examples:

  • enterprise-wide process standardisation;
  • cloud transformation;
  • stronger data foundation;
  • SAP BTP adoption;
  • automation;
  • AI-enabled processes.

These categories should remain connected to the business drivers identified earlier. If a benefit cannot be linked to a meaningful business requirement, its place in the business case should be questioned.

5. Quantify Business-Process Benefits

This is where the business case moves from general benefits to measurable outcomes.

Instead of saying:

“S/4HANA improves efficiency.”

identify the specific process, establish the current baseline, and define how improvement will be measured.

Finance

Current:

Financial close = 10 business days

Target:

Financial close = 7 business days

Potential value:

  • finance effort released;
  • faster management reporting;
  • earlier visibility of variances.

Accounts Receivable

Current:

40% of incoming payments require manual intervention

Target:

25%

Potential value:

  • lower manual processing;
  • faster clearing;
  • lower unapplied cash;
  • better AR productivity.

Procurement

Current:

Manual purchase-order processing = 30 minutes per transaction

Target:

20 minutes

Potential value:

10 minutes × annual transaction volume × loaded labour cost

Warehouse

Current:

Manual exception handling = 1,500 hours annually

Target:

900 hours

Potential value:

600 hours × loaded labour cost

The important point is that the value should come from the organisation's own processes and data, not from generic S/4HANA benchmarks.

6. Build the S/4HANA Migration Cost Model

Once the expected value is understood, the organisation can build the investment model.

The cost model should be broader than the implementation partner's proposal because the programme creates costs across technology, business operations, and internal resources.

A comprehensive model should include:

Cost Category Examples
Assessment Readiness, discovery, architecture
Software SAP subscriptions / licences where applicable
Implementation Functional and technical delivery
Data Cleansing, mapping, migration, reconciliation
Custom Code Analysis, remediation, redevelopment
Integration Interface redesign and testing
Infrastructure Cloud, hosting, environments
Testing Functional, integration, regression, performance
Change Management Training, communications, adoption
Internal Resources Business SMEs and IT staff
Programme Management PMO, governance, architecture
Cutover Migration rehearsals, downtime, go-live
Hypercare Additional support after go-live
Decommissioning Legacy SAP and related systems
Ongoing Operations AMS, cloud, support, monitoring

The organisation should also include contingency for material risks rather than assuming the initial implementation estimate is the final investment.

7. Do Not Confuse Migration Cost With Total Cost of Ownership

The initial transformation investment is only one part of the financial picture.

The organisation should compare the cost of operating the current environment with the expected cost of operating the target environment.

Current-State TCO

Infrastructure + Support + Development + Interfaces + Security + Contractors + Operational Inefficiency

with:

S/4HANA TCO

Subscription / Licensing + Cloud + Support + AMS + Enhancements + Internal Team + Governance

The planning horizon might be five or seven years, depending on the organisation's investment strategy.

A migration can have a high initial cost while producing a different cost profile over time. Similarly, moving to cloud ERP may shift expenditure from capital investment to recurring operating costs without automatically reducing total cost.

The business case should therefore compare total economic value over the agreed planning period, rather than focusing on the initial migration cost alone.

8. Build a Realistic ROI Model

With investment and benefits defined, the organisation can model the financial return.

A basic ROI calculation is:

ROI = (Total Benefits − Total Investment) ÷ Total Investment × 100

However, enterprise ERP programmes should not be assessed using a single percentage.

The financial model may also include:

Net Benefit

Total Quantified Benefits − Total Transformation Cost

Payback Period

How long does it take for cumulative benefits to recover the initial investment?

NPV

For larger programmes, calculate Net Present Value over the agreed investment horizon.

IRR

For more sophisticated investment cases, calculate the Internal Rate of Return.

TCO

Compare the total cost of the current environment with the target S/4HANA environment.

Together, these measures provide finance and executive stakeholders with a more complete view of the investment.

9. Separate Hard Benefits From Soft Benefits

Not every benefit should be treated as guaranteed savings.

Hard Benefits

These can usually be measured directly.

Examples:

  • infrastructure reduction;
  • licence reduction;
  • contractor reduction;
  • support effort reduction;
  • lower manual processing cost;
  • avoided system replacement cost.

Soft or Strategic Benefits

These may create substantial value without appearing as direct P&L savings.

Examples:

  • faster decision-making;
  • better customer experience;
  • improved employee experience;
  • faster acquisition integration;
  • better visibility;
  • improved agility;
  • stronger data governance.

Rather than converting every strategic benefit into a speculative cash figure, define its value, measurement method, and confidence level.

Benefit Measurement Confidence
Reduced support effort Support hours / month High
Faster close Days to close High
Better planning Forecast accuracy Medium
Faster market entry Days to launch Medium
Better decision-making Management reporting cycle Medium

This keeps the financial model disciplined while ensuring that strategic value is not ignored.

10. Model S/4HANA Benefits Conservatively

ERP business cases become less credible when they rely on generic improvement percentages such as:

  • “30% productivity improvement”;
  • “50% lower IT costs”;
  • “20% faster close”.

Published customer examples can be useful benchmarks, but they should not automatically become forecast results for another organisation.

SAP publishes customer and solution material showing benefits from S/4HANA and cloud ERP, but outcomes depend heavily on the implementation, scope, operating model, adoption, and starting point.

For an internal business case, use:

Current Baseline → Target → Measurement Method

This makes assumptions easier to validate and benefits easier to track after go-live.

11. Include the Value of SAP Standardisation

One of the less obvious S/4HANA benefits can come from process standardisation.

A UK enterprise may have:

  • different purchasing processes;
  • different approval rules;
  • different master-data definitions;
  • different financial procedures;
  • different reporting structures.

The migration creates an opportunity to establish:

Global Process Standard

with:

Approved Local Variations

This can reduce:

  • process complexity;
  • support effort;
  • training requirements;
  • integration variations;
  • reporting inconsistencies;
  • technical debt.

For organisations with acquisitions or multiple business units, this can be one of the most important strategic benefits.

12. Include Data and Integration Benefits

A stronger business case also quantifies improvements that sit outside the ERP core.

Data

Measure:

  • duplicate master records;
  • manual corrections;
  • data quality incidents;
  • reporting reconciliation;
  • time spent resolving data issues.

Integration

Measure:

  • interface failures;
  • support hours;
  • number of redundant interfaces;
  • manual reconciliations;
  • integration latency.

S/4HANA transformation may provide an opportunity to rationalise and redesign these areas.

The value should be attributed to specific changes rather than automatically attributed to “S/4HANA”.

13. Build the Risk-Adjusted Business Case

Every major SAP transformation carries risk.

The business case should therefore model:

Base Case + Downside Case + Upside Case

Base Case

Assumes expected implementation cost and benefit levels.

Downside Case

Assumes:

  • cost overruns;
  • delayed benefits;
  • additional custom-code remediation;
  • longer parallel running;
  • lower adoption;
  • integration problems.

Upside Case

Assumes:

  • successful process standardisation;
  • higher automation;
  • faster adoption;
  • stronger benefits realisation.

This gives executives a much better understanding of the investment range.

14. Include the Cost of Delay

One of the most commonly missed elements is the cost of waiting.

Delaying an S/4HANA programme can have both positive and negative effects.

Potential benefits of delay:

  • more time to prepare;
  • better technology maturity;
  • more time to fund the programme;
  • opportunity to consolidate acquisitions.

Potential costs:

  • continued legacy maintenance;
  • additional technical debt;
  • higher support effort;
  • postponed business benefits;
  • increased migration pressure;
  • reduced availability of legacy expertise;
  • additional interim projects.

For UK organisations on SAP ERP 6.0 EHP6–8, maintenance timing is another factor to incorporate into this analysis. SAP's current strategy provides mainstream maintenance through 2027 and optional extended maintenance through 2030. 

The relevant comparison is therefore not simply migrate versus do not migrate, but how the economics change when the transformation takes place at different points in time.

15. Build the Business Case Around Alternatives

Executives are more likely to trust a business case when they can see the alternatives.

Consider at least four scenarios.

Option A — Maintain Current SAP

Minimal transformation.

Pros:

  • lowest immediate investment;
  • limited disruption.

Cons:

  • technical debt continues;
  • benefits are deferred;
  • future transformation pressure remains.

Option B — Optimise Existing SAP

Targeted technical and process improvements.

Pros:

  • lower transformation risk;
  • faster improvements;
  • preserves existing investments.

Cons:

  • may not resolve fundamental architecture constraints;
  • some legacy complexity remains.

Option C — System Conversion to S/4HANA

Modernise while retaining significant existing configuration.

Pros:

  • greater continuity;
  • preserves relevant business investment;
  • establishes the S/4HANA platform.

Cons:

  • legacy complexity may remain;
  • custom-code and simplification work still required.

Option D — New S/4HANA Implementation

Build a new target architecture.

Pros:

  • maximum opportunity for standardisation;
  • cleaner target environment;
  • easier to redesign processes.

Cons:

  • greater transformation effort;
  • greater organisational change;
  • larger data and process migration challenge.

The right comparison depends on the organisation's starting point, business requirements, technical landscape, and transformation objectives.

16. Define Business KPIs Before Migration

The business case should provide the baseline for measuring value after implementation.

Choose KPIs from several relevant categories.

Financial

  • TCO;
  • cost per transaction;
  • support cost;
  • working-capital measures;
  • financial close cost.

Operational

  • order-to-cash cycle;
  • procure-to-pay cycle;
  • production planning cycle;
  • warehouse throughput;
  • inventory accuracy.

IT

  • incident volume;
  • support hours;
  • technical debt;
  • interface failures;
  • custom-code footprint.

Data

  • duplicate master data;
  • data-quality errors;
  • reporting reconciliation;
  • report generation time.

User Adoption

  • training completion;
  • active usage;
  • Fiori adoption;
  • user satisfaction;
  • process compliance.

Transformation

  • automation rate;
  • new-process deployment time;
  • acquisition integration time;
  • number of standardised processes.

The KPI set should remain focused on the outcomes defined in the business case rather than becoming a generic reporting dashboard.

17. Establish a Benefits-Realisation Model

The business case should continue to guide the programme after approval and go-live.

Each expected benefit should have:

  • an owner;
  • a baseline;
  • a target;
  • a measurement method;
  • a target date.

For example:

Benefit Owner Baseline Target Measurement
Financial close CFO / Finance 10 days 7 days Close calendar
Manual AP effort Finance Ops 100% baseline -25% FTE / hours
Interface incidents IT 200 / quarter <100 Service management
Duplicate vendors Procurement 4,500 <500 Master-data report
Support cost CIO £X £Y Annual operating cost
User adoption Business 0% >90% Usage data

This turns the business case from an approval document into a framework for measuring whether the expected value is actually being delivered.

18. Include Transition Costs and the Temporary "Two-World" Operating Model

One of the costs most often underestimated is the period when the organisation is running the existing SAP environment while building and deploying S/4HANA.

For large UK enterprises, the transition can create temporary costs such as:

  • dual environments;
  • duplicated support effort;
  • additional infrastructure;
  • parallel testing;
  • temporary interfaces;
  • business backfill for project SMEs;
  • training before go-live;
  • extended hypercare;
  • legacy-system support during phased rollout.

These costs can be material even when the target S/4HANA operating model is expected to be more efficient.

The business case should therefore distinguish between:

Current-State Operations + Transformation and Transition Costs + Target-State Operations

rather than comparing only current and future run costs.

Example

Suppose a business normally spends £4m per year operating SAP.

During a two-year transformation, it may additionally require:

£1.2m annual transformation and transition costs

while still paying most of the existing operating cost.

Those costs do not necessarily indicate that the programme is inefficient.

They are part of the economic reality of the transition.

How to Model It

Create a detailed transition cost curve showing:

  • current operating cost;
  • programme investment by year;
  • temporary duplicated costs;
  • expected benefits by phase;
  • target-state run cost.

This gives decision-makers a clearer view of cash requirements and the timing of payback.

19. What Should a UK S/4HANA Business Case Include?

Once the analysis is complete, the board-ready business case should bring the findings together in a concise decision document.

Executive Summary

  • business problem;
  • recommendation;
  • investment;
  • expected value;
  • key risks;
  • decision required.

Strategic Case

  • business strategy;
  • SAP roadmap;
  • transformation drivers;
  • maintenance considerations.

Current-State Assessment

  • ERP landscape;
  • costs;
  • performance;
  • technical debt;
  • process issues.

Options Analysis

  • stay;
  • optimise;
  • convert;
  • reimplement.

Target State

  • S/4HANA deployment model;
  • architecture;
  • business-process model;
  • data;
  • integrations;
  • operating model.

Financial Case

  • investment;
  • TCO;
  • benefits;
  • ROI;
  • NPV;
  • payback;
  • sensitivity analysis;
  • transition cost curve.

Risk Case

  • delivery;
  • data;
  • integration;
  • adoption;
  • operational continuity.

Implementation Roadmap

  • assessment;
  • preparation;
  • migration;
  • testing;
  • cutover;
  • stabilisation.

Benefits Realisation

  • KPIs;
  • owners;
  • targets;
  • reporting cadence.

The earlier sections provide the analysis; this section should bring it together into a format that supports an investment decision.

20. A Practical S/4HANA Business Case Roadmap

The business-case process can be summarised as:

Assess → Quantify → Compare → Model → Validate → Approve → Measure

Assess

Understand the current SAP and business environment.

Quantify

Measure costs, inefficiencies, technical debt, and business impact.

Compare

Evaluate realistic alternatives.

Model

Build financial scenarios and benefits.

Validate

Test assumptions with finance, business, IT, SAP specialists, and implementation partners.

Approve

Present the investment case to the appropriate governance body.

Measure

Track benefits against the baseline after implementation.

The important point is that these stages build on one another. The assessment establishes the baseline, the baseline supports the financial model, and the approved business case becomes the basis for benefits realisation.

What UK Businesses Should Do in 2026

For UK organisations still operating SAP ERP 6.0, the timing of business-case development should reflect the actual system release and maintenance position.

SAP's current strategy provides mainstream maintenance for EHP6–8 of SAP ERP 6.0 through 31 December 2027, followed by optional extended maintenance through 31 December 2030. SAP's S/4HANA innovation commitment runs through 2040.

For a UK enterprise, the practical sequence is:

Confirm the Current State

Document:

  • SAP release;
  • enhancement package;
  • custom code;
  • interfaces;
  • data;
  • operating costs.

Define the Future State

Establish:

  • S/4HANA target;
  • cloud strategy;
  • business-process objectives;
  • integration architecture;
  • data strategy;
  • Clean Core principles.

Build Three Scenarios

Compare:

Stay → Optimise → Transform

Quantify the Value

Establish:

  • hard savings;
  • efficiency;
  • risk reduction;
  • strategic benefits.

Calculate the Economics

Model:

  • investment;
  • TCO;
  • ROI;
  • payback;
  • NPV;
  • sensitivity;
  • transition costs.

Establish the Roadmap

Connect the investment decision to:

  • readiness;
  • migration strategy;
  • implementation;
  • cutover;
  • benefits realisation.

This creates a decision framework that connects the current ERP position with the future transformation, rather than treating the business case as simply an implementation budget.

Common S/4HANA Business Case Mistakes

Using SAP Product Benefits as the Business Case

“Real-time analytics”, “AI”, and “cloud” are capabilities.

They are not automatically business benefits. The business case should explain what measurable business outcome each capability is expected to support.

Assuming ROI Without a Baseline

Without current-state data, projected savings are difficult to validate.

Ignoring the Cost of the Current System

Legacy support and technical debt are real costs.

Treating All Benefits as Hard Savings

Strategic benefits should be clearly distinguished from direct financial savings.

Ignoring the Cost of Change

Training, business participation, testing, and organisational change require real investment.

Ignoring Transition Costs

Dual running, backfill, temporary infrastructure, and hypercare can materially affect the financial model.

Comparing Only Two Options

A credible case should also consider optimising the existing SAP landscape where appropriate.

Using Generic Industry Benchmarks as Forecasts

Published customer results are not guarantees.

Stopping at Go-Live

Business value needs to be tracked after the system is operational.

Making the Business Case Only About Maintenance

Maintenance deadlines matter, but the investment should be connected to the organisation's broader strategy.

S/4HANA Business Case Checklist

Before seeking final approval, confirm:

  • Current SAP landscape documented
  • Current operating costs measured
  • Business-process baseline established
  • Technical debt assessed
  • Data quality assessed
  • Integration landscape documented
  • SAP maintenance position confirmed
  • Target operating model defined
  • Migration options compared
  • Investment cost model completed
  • Hard benefits quantified
  • Strategic benefits documented
  • Risk-adjusted scenarios modelled
  • Cost-of-delay analysis completed
  • Transition costs modelled
  • TCO calculated
  • ROI / NPV / payback assessed
  • Benefits owners assigned
  • KPIs and targets defined
  • Implementation roadmap established
  • Post-go-live value tracking defined

How LeverX Can Help Build the Business Case

The quality of an SAP S/4HANA business case depends on how accurately the organisation understands its current landscape, transformation requirements, costs, and expected benefits.

LeverX can support UK enterprises across the assessment and planning stage and, where required, continue through S/4HANA implementation and optimisation.

Business case area

How LeverX can support

Current-State Assessment

Review the existing SAP landscape, processes, customisations, integrations, data, and key pain points

S/4HANA Readiness

Assess technical, functional, data, integration, and organisational readiness for S/4HANA

Business-Case Development

Define transformation scenarios, investment requirements, expected outcomes, risks, and key assumptions

Target Architecture

Develop the target SAP architecture, application landscape, integration model, and deployment approach

Migration Strategy

Evaluate Brownfield, Greenfield, and Selective Data Transition options based on the current landscape and transformation objectives

Process Analysis

Identify process inefficiencies, standardisation opportunities, and areas for business-process redesign

Data & Integration Assessment

Evaluate data quality, migration requirements, interfaces, dependencies, and legacy-system complexity

Cost & TCO Modelling

Estimate implementation, migration, integration, licensing, support, and longer-term operating costs

Benefits & KPI Definition

Establish measurable business outcomes and KPIs for the transformation programme

Implementation Planning

Define scope, phases, dependencies, resources, governance, timeline, and initial roadmap

S/4HANA Transformation

Support the programme through implementation, migration, integration, testing, go-live, and optimisation

Post-Go-Live Optimisation

Continue improving processes, integrations, data quality, performance, and SAP capabilities after deployment

The objective is to build a business case around the organisation's actual SAP landscape, costs, priorities, transition requirements, and transformation goals, rather than relying on generic ERP assumptions.

Conclusion

Building a business case for SAP S/4HANA migration is not about proving that S/4HANA has more capabilities than the current ERP.

It is about demonstrating that changing the ERP creates enough strategic, operational, financial, and risk-adjusted value to justify the investment.

For UK enterprises, this means bringing together the current-state baseline, cost of staying, future business requirements, migration options, investment, quantified benefits, transition costs, risks, and benefits realisation.

The maintenance timeline can create urgency for organisations still running relevant SAP ERP 6.0 releases, with mainstream maintenance for EHP6–8 ending on 31 December 2027 and optional extended maintenance available through 31 December 2030. But urgency should support the business case rather than replace it.

The key question is not simply:

“Do we need S/4HANA?”

It is:

“What are our realistic options, what will each option cost, what value can each create, and how should we manage the associated risks and timing?”

Answering these questions gives decision-makers a clearer basis for evaluating the transformation and creates a framework for measuring whether the expected value is delivered after go-live.

Frequently Asked Questions

Why do I need a business case for SAP S/4HANA migration?

Because an S/4HANA transformation requires significant investment and organisational change. The business case provides a structured way to evaluate strategic benefits, costs, risks, alternatives, and expected returns.

What should be included in an S/4HANA business case?

At minimum: current-state assessment, strategic objectives, migration options, target state, investment costs, benefits, TCO, financial analysis, risks, implementation roadmap, transition costs, and benefits-realisation KPIs.

How do I calculate the ROI of S/4HANA migration?

A basic formula is:

ROI = (Total Benefits − Total Investment) ÷ Total Investment × 100

For larger programmes, also consider NPV, payback period, IRR, TCO, and sensitivity analysis.

What benefits should I include?

Separate benefits into:

Cost Reduction + Operational Efficiency + Risk Reduction + Growth Enablement + Strategic Value

This prevents strategic benefits from being incorrectly presented as guaranteed financial savings.

How do I calculate the cost of staying on SAP ERP?

Include current infrastructure, support, maintenance, custom development, integrations, security, specialist resources, technical debt, and any applicable future maintenance costs.

For SAP ERP 6.0 EHP6–8, SAP currently states that mainstream maintenance ends on 31 December 2027, with optional extended maintenance through 31 December 2030. 

Should I include SAP maintenance deadlines in the business case?

Yes, where they apply to the organisation's actual SAP release and commercial situation. However, maintenance should be treated as one business driver rather than the sole reason for transformation.

What is the cost of an S/4HANA migration?

There is no universal figure. Cost depends on the source system, migration approach, custom code, data, integrations, business-process scope, deployment model, testing, and organisational change.

Should transition and dual-running costs be included?

Yes. If the organisation will operate the existing environment while building or rolling out S/4HANA, the business case should include temporary support, infrastructure, project backfill, parallel testing, hypercare, and other transition costs.

How long does it take to see ROI from S/4HANA?

There is no universal payback period. It should be calculated from the organisation's actual investment, benefits, implementation timing, and ramp-up assumptions rather than using a generic benchmark.

Should strategic benefits be included in ROI?

They should be included in the overall business case, but not necessarily converted into artificial financial savings. Strategic benefits can be tracked using operational or business KPIs.

What alternatives should be compared with an S/4HANA migration?

At minimum:

Stay on Current SAP + Optimise Existing SAP + S/4HANA Transformation

Where realistic, also compare different S/4HANA transition approaches such as system conversion, selective data transition, and new implementation.

How should benefits be measured after go-live?

Each benefit should have an owner, baseline, target, measurement method, and target date. This turns the business case into a benefits-realisation framework rather than a document used only to obtain approval.

 

 

 

Disclaimer: SAP product capabilities, maintenance timelines, deployment options, licensing, migration approaches, and technical requirements may change by product edition, release, configuration, and customer scenario. Any financial models, ROI calculations, benefit assumptions, or business outcomes should be based on the organisation's own baseline and validated assumptions. This article provides general information and should not be treated as a financial, procurement, or migration recommendation.

https://leverx.com/en-gb/blog/sap-s4hana-migration-business-case-uk