Source URL: https://www.theregister.com/2024/12/10/sap_says_genai_will_help/
Source: The Register
Title: SAP says GenAI will help solve legacy migration skills shortage
Feedly Summary: As 2027 support deadline looms, German vendor puts faith in on-trend tech to help SIs do more with less
SAP has claimed that its systems integrator partners will avoid a skills crunch in the looming 2027 support deadline by using GenAI to get to grips with legacy software.…
AI Summary and Description: Yes
Summary: The text discusses how SAP is leveraging Generative AI (GenAI) capabilities to assist systems integrators in managing the looming support deadline for its legacy ERP platform, ECC. By using GenAI, these integrators can potentially reduce the time and costs associated with the migration to SAP’s newer S/4HANA ERP, which is crucial as mainstream support for ECC expires in 2027.
Detailed Description:
The content outlines a significant intersection between AI technologies and enterprise resource planning (ERP) systems, specifically regarding the migration process from outdated platforms to new ones. Here are the key points addressed in the text:
– **Support Deadline and Migration Pressure**:
– Mainstream support for SAP’s legacy ERP platform, ECC, ends on December 31, 2027.
– This deadline creates a pressing need for organizations to migrate to S/4HANA, SAP’s recommended ERP solution launched in 2015. However, as of the second quarter of 2024, only 37% of ECC customers have made the switch.
– **Utilization of Generative AI (GenAI)**:
– David Robinson, SAP’s president and chief revenue officer for cloud ERP, emphasized that generative AI tools can help systems integrators (SIs) alleviate a skills shortage that may arise during a mass migration of ECC users.
– GenAI can play a dual role in enhancing both business process expertise and technical knowledge necessary for the migration process, potentially reducing the time and cost of documentation and planning by 50-80%.
– **Business Process Improvement**:
– The use of GenAI allows for a better understanding of existing business processes and how they can be adapted to future needs, enabling organizations to document current states efficiently and manage customizations effectively.
– **SaaS and Infrastructure Management**:
– Robinson noted that SaaS tools can simplify application migration and resource allocation issues, decreasing IT resources required for such projects.
– SAP’s own architecture has become more abstracted, minimizing the technical complexities related to infrastructure management for clients, which supports their cloud migration efforts.
– **User Concerns and Recommendations**:
– There’s a divergence between SAP’s recommendations and user preferences regarding migration strategy. Users often prefer to upgrade their systems before moving to the cloud, while SAP advocates for simultaneous upgrades and cloud migration.
– Despite user hesitance related to customizing processes over decades, new tools are providing better insights into existing environments, helping users make informed decisions.
– **Future Implications**:
– These GenAI applications will be tested as the migration waves begin. The effectiveness of these technologies in aiding large-scale migrations could shape how ERP systems evolve and are supported in the future.
This analysis illustrates the importance of AI applications in enterprise architecture and ERP migrations, highlighting practical implications for professionals in cloud computing, security, and change management within organizations.