Dodoma, Tanzania's administrative capital, has become home to a booming business centre and governmental hub. The acceleration of digital transformation in numerous industries (namely banking, agriculture, and government services) requires organisations to begin modernising their enterprise systems at a faster pace. One of the biggest contributors to this shift is the urgent migration to SAP S/4HANA Migration.

However, what creates the urgency for businesses in Dodoma to upgrade to SAP S/4HANA before 2027? The overall answer lies in global SAP deadlines combined with local digital growth, along with the overall need for ERP systems to be ready for the future. Learn more about transformation approaches like SAP On-Premise to Cloud Migration.

^{The 2027 Deadline: A Turning Point for ERP Systems}

SAP has stated that all its legacy ERP systems (SAP ECC) will stop being supported by 2027; this includes no regular updates for security or compliance-related issues, but will also see an increase in risk to operational continuity. As a result of using these older systems, businesses could face greater risk of being attacked through cybercrime; face greater fines than if they were current on compliance issues; and experience higher costs to maintain these older systems due to the lack of availability of parts, services, or software updates (support). Therefore, from a technical perspective, the deadline will be a non-issue; however, for businesses in Dodoma, the impacts of this deadline are very real, as they can prevent an organization from continuing to conduct business after the year 2027. Explore transition insights in ECC to S/4HANA.

^{The Need for a Legacy System Upgrade}

There are still a lot of companies in Tanzania that use outdated ERPs; they used to help your business grow, but now they are having difficulty meeting the needs of today's businesses.

Upgrading Legacy Systems is no longer an optional thing to do - it is imperative to upgrade your system.

The typical issues associated with older Legacy Systems are:

• Data collection is slow and inefficient.
• You cannot expand beyond the current limits of your organization.
• You pay too much in total cost of ownership (TCO).
• Your older systems are not designed to integrate with today's technology.

HwSAP S/4HANA addresses these problems by providing a next-generation ERP solution that features real-time data capture, streamlined data structures, and improved automation features.

With the Upgrade to Legacy System Upgrade, companies in Dodoma will be able to convert their decision-making from being reactive to being proactive and driven by data.

^{ECC to S/4HANA: More Than Just a Technical Migration}

Upgrading from ECC to S/4HANA is more than simply an upgrade; it is also a transformation of your business, enabling you to experience:
• Real-time analytics to support a faster pace of decision-making
• Enhanced financial transparency
• Optimized supply chain processes
• Improved user experience via SAP Fiori

Organizations that migrate early will have a competitive edge over those that wait because they can use more modern ERP solutions than their competitors. Learn more about ECC to S/4HANA.

^{Rising Costs and Risks of Waiting}

The potential consequences of delaying the SAP S/4HANA Migration include significant increases in both financial and operational risks.

1. Increased Migration Costs will occur as demand increases for SAP resources as we approach the 2027 deadline. This will result in:
   Higher consultant fees
   Fewer skilled professional resources will be available
   Longer project timelines

In fact, migration costs may increase by 30-50% as we approach the 2027 deadline.

2. Operational Disruptions caused by not migrating on time will cause rushed implementations, resulting in:
   Increased risk of data inconsistencies
   Increased risk of system downtime
   Increased risk of business interruptions
3. Technical Debt created through maintaining outdated systems creates increased complexity and expense over time for future upgrades.

^{Innovation Gap: Why Businesses Can’t Afford to Wait}

At the forefront of the need to migrate early is access to new technologies, with SAP focusing all future innovation (artificial intelligence, machine learning, and predictive analytics) solely on S/4HANA.

Companies using a legacy system will not get access to many things like;

• Intelligent Automation,
• Advanced Analytics,
• Cloud Integration, and
• Industry-Specific Innovations.

In a growing city such as Dodoma, where the industries are becoming increasingly competitive, being up-to-date in technology will be very important for long-term success. Explore related transformation via SAP On-Premise to Cloud Migration.

^{The Role of SAP S/4HANA Migration Strategy}

A proper plan for migrating to SAP S/4HANA Migration Strategy is essential for successfully transforming your business.

In Dodoma, businesses are taking different approaches to migrate from their current systems according to their specific requirements:

• Greenfield - A new implementation
• Brownfield - A system conversion
• Bluefield - A selective data migration

Choosing the appropriate method will help ensure:

• Less disruption,
• A faster implementation, and
• Better ROI

By planning ahead of the migration, businesses can align the migration process with other key business objectives instead of considering it an afterthought of an IT project.

^{Simplifying Migration with SAP S/4HANA Migration Cockpit}

The SAP S/4HANA migration cockpit is an important resource for facilitating a smooth transition to your new system. It will assist you in:

• Moving data seamlessly from existing applications
• Validating the data integrity and quality
• Minimizing manual effort and mistake-prone tasks
• Introducing efficiencies into the timeline of your migration

Using these tools can help Tanzanian businesses create a more formalized and less risky transition to SAP S/4HANA.

^{Dodoma’s Digital Growth and ERP Transformation}

Dodoma is continuing to grow rapidly and is becoming Tanzania's new political and administrative centre. This growth has driven significant business expansion and increased digital uptake across numerous industries in Dodoma.

Industry analysis reflects the evolving landscape and the move of Tanzanian businesses into the digital space as companies develop and modernise to enhance their operational efficiency and compliance.

In addition to the growing local market, businesses are now making significant investments in their SAP S/4HANA Migration due to:

• Expansion within the Financial Services sector
• Growth within the Agriculture and Manufacturing sectors.

Modern ERP systems are critical in supporting the growth of these sectors and allowing businesses to scale their operations efficiently.

^{Why Acting Now Makes Strategic Sense}

Companies in Dodoma are not only responding to an upcoming deadline but also taking an approach toward their planning and decision-making processes.

By moving forward soon after receiving their notice, businesses can:

1. Allocate their expenditures over time
2. Decrease their time constraints to meet the deadline
3. Improve their business operations
4. Provide proper training for employees
5. Be more agile and flexible when developing new technologies or adapting old technologies in an increasingly digital business world

Learn strategic planning approaches with SAP S/4HANA Migration Strategy.

Conclusion

Many factors have come together to create an environment where companies need to migrate their existing ERP systems to the new SAP S/4HANA system by 2027. These factors include the cost of maintaining legacy systems, increasing risks associated with using them, and the need for innovations in order to stay competitive.

For businesses operating in Tanzania's rapidly developing capital city of Dodoma, migrating to SAP S/4HANA is more than just moving to a different software package; it will determine whether they survive as businesses in today's global economy and remain competitive into the future.

Companies that take action quickly will be prepared to lead their sector within their region, whereas companies that delay will likely find it difficult to remain relevant and competitive within an increasingly digitalized global marketplace.