CFOs and CIOs are fighting over finances and key resource allocation amid tariffs and the looming SAP S/4HANA migration deadline fast-approaching in 2027, analysis reveals from Basware. 

With over 22,000 companies worldwide impacted by the upcoming migration, the urgency to act before the deadline grows each day.  

According to Gartner, approximately 61% of SAP customers using older Enterprise Resource Planning (ERP) systems have not yet licensed S/4HANA. As the latest version of SAP’s business management software, S/4HANA represents a significant transformation – one that many enterprises still need to undertake as the 2027 migration deadline approaches.  

Failure to migrate by the cut off will result in the loss of official SAP support, and reduced access to future product innovations – both of which can lead to increased operational costs and technical risk for businesses.  

The SAP S/4HANA migration is being seen as necessary as enterprises look to modernise their systems, streamline operations and enhance compliance. Amid ongoing global economic uncertainty, companies are under pressure to scrutinise spending, from finance operations to new AI investments, causing a rift between CFOs and CIOs who are battling to align on spending priorities. 

“For some, SAP S/4HANA is just a technology migration. But forward-thinking enterprises are taking the opportunity to drive real, wide-scale transformation, focusing on ROI, simplifying their ERP landscape and establishing a clean digital core” said Mark McCarthy, CRO of Basware.

“As the great SAP migration continues, the real opportunity is making the investment count – and that means aligning finance and IT around outcomes that matter.” 

ERP migrations costing hundreds of millions over several years 

ERP systems such as Oracle NetSuite, Microsoft Dynamics 365 and SAP S/4HANA Cloud are used to manage the entire IT process of businesses by tracking all aspects of production, distribution, financials, HR and back office.  

ERP upgrades can cost large enterprises upwards of $100 million, rising to $500 million depending on the complexity and size of the organisation. These projects typically span multiple years, involving significant resources for software, implementation, training and ongoing support.  

For CFOs, this creates financial holes due to uncertain ROI, business disruption risks from potential downtime, and hefty implementation fees for the technology.

Add to that skills gaps for SAP talent, the cost of training, and the lack of financial transparency during migration, it’s more important than ever for CFOs to gain complete control over functions such as invoicing, especially when integrating platforms into ERP environments. 

Meanwhile, CIOs are battling with opposing challenges including outdated systems, poor data quality, which can lead to errors and inefficiencies.  

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Where boardroom alignment can be found is in artificial intelligence, with 75% of CFOs advocating for greater investment in AI to automate critical financial processes such as e-invoicing compliance and regulation – which play a pivotal role in the broader SAP S/4HANA migration strategy.  

McCarthy added: “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.

“Basware is already supporting over 600 enterprises running SAP ERP systems, including over 100 large organizations using Basware alongside SAP S/4HANA. By managing this complexity with Invoice Lifecycle Management platforms, they’re able to achieve full automation, compliance, and visibility in accounts payable.” 

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