As the 2027 deadline for SAP S/4HANA migration approaches, tensions are rising between CFOs and CIOs. With over 22,000 companies impacted by the change, CFOs are grappling with budget constraints and uncertain ROI, while CIOs struggle with outdated systems and poor data quality.
As the deadline for SAP’s S/4HANA migration looms in 2027, businesses worldwide are grappling with a critical challenge: ensuring seamless transitions while managing mounting costs, resource allocation, and compliance risks.
For CFOs and CIOs, this transformation is no longer just a tech upgrade but a battleground over budgeting, priorities, and how to navigate the complex migration landscape without compromising on efficiency or financial transparency.
The push to modernize enterprise resource planning (ERP) systems is being driven by SAP’s $100 billion opportunity, but according to a recent report by Basware, tensions between finance and IT departments are intensifying.
CFOs, who are focused on financial optimization, and CIOs, dealing with outdated systems and poor data quality, must find a common ground to ensure successful migrations.
SAP’s S/4HANA represents a major leap in business management software, yet a staggering 61% of SAP customers have yet to license it.
As the deadline for migration draws closer, organizations face the threat of losing SAP’s official support, which could result in increased operational risks and limited access to future product innovations.
A transition to S/4HANA comes with a hefty price tag, with large enterprises potentially investing anywhere from $100 million to $500 million over several years.
These costs include software, implementation, training, and ongoing support. For CFOs, the uncertainty surrounding ROI, business disruption risks, and the high price of SAP talent and training is a daunting prospect.
However, McCarthy emphasizes that this is an opportunity for companies to align finance and IT priorities, “the real opportunity is making the investment count – and that means aligning finance and IT around outcomes that matter.”
Amidst these challenges, AI has become a focal point for CFOs, with 75% advocating for greater investment in AI to streamline financial processes such as e-invoicing compliance and regulation.
AI’s role in simplifying financial operations while ensuring compliance is seen as a key enabler in the SAP migration process.
By automating critical finance functions, CFOs aim to alleviate the burden of manual tasks and drive greater visibility across financial operations.
Mark McCarthy, CRO of Basware, notes, “Every month of delay brings greater compliance risk, uncertainty, and escalating costs.
Forward-thinking enterprises are acting now—extending their ERP strategy with specialist solutions that align to SAP’s clean core principles.”
Many enterprises are already taking steps to streamline their migration by incorporating automation into their ERP systems.
Companies like Mauser and Imerys have adopted Basware’s Invoice Lifecycle Management platforms, enabling them to automate invoice processing, reduce manual touchpoints, and significantly cut down processing times.
For Mauser, a North American manufacturing giant, the integration of Basware with their SAP ERP system allowed them to reduce approval time for non-PO invoices from 3.6 days to 1.6 days and cut the time spent on matching purchase orders and invoices by 90%.
This approach has enabled Mauser to simplify their ERP setup while achieving greater automation, visibility, and faster approvals.
To further ease the migration process, Basware and Deloitte have expanded their partnership to create a Center of Excellence designed to accelerate digital finance transformation and ensure ERP projects are completed before the 2027 deadline.
The collaboration combines Deloitte’s expertise in finance and compliance with Basware’s platform, aiming to provide businesses with the necessary tools to navigate the complexities of SAP S/4HANA migration and meet the impending deadline.
As businesses prepare for the SAP migration, the need for alignment between CFOs and CIOs is more critical than ever.
With the right investments in AI, automation, and strategic partnerships, enterprises can successfully navigate the challenges of the migration and unlock greater efficiency and compliance in their financial operations.