A Journey We Must All Embark On: From SAP ECC to SAP S/4HANA for the Public Sector

The clock is ticking for public sector organisations still relying on SAP ECC. With SAP’s announcement to end standard support for ECC by 2027, the move to SAP S/4HANA is no longer optional; it’s essential.

This blog post is contributed by Jan Hesthaven, Director with responsibility for SAP for the Public Sector in the Nordic at Deloitte Consulting.

SAP S/4HANA is more than just an upgrade—it’s a transformative solution for the public sector, delivering improved operational efficiency, agility, and potential for innovation. Deloitte, with its extensive expertise in public sector transformation, is ready to guide organisations through this critical transition. By leveraging proven methodologies, strong partnerships with SAP and cloud providers, and years of implementation experience, Deloitte ensures a seamless migration tailored to the unique needs of public sector clients. While every new system presents challenges, the opportunities far outweigh the obstacles.

Modernising legacy systems
Public sector organisations often depend on complex, legacy ERP systems to manage vital functions such as finance, procurement, public budgets, and funds management. These systems are frequently customised to cater to the diverse needs of citizens and businesses, exchanging information with public authorities in numerous ways. However, evolving regulatory requirements, constituent expectations, and technological advancements are putting these legacy systems under increasing strain.

SAP S/4HANA sets a new standard for ERP systems, enabling organisations to:

• Operate smarter and faster: With embedded analytics, machine learning, and process automation, S/4HANA provides real-time insights to support informed decision-making.
• Adapt to modern needs: The platform’s scalability and flexibility allow organisations to stay agile in the face of changing demands.
• Drive efficiency: By consolidating and simplifying processes, S/4HANA eliminates operational silos, streamlines workflows, and standardises citizen-related data management.
  

Image description: Areas that SAP is working on modernize and expand for the Public Sector.

Navigating the transition: three approaches

• The journey to SAP S/4HANA varies depending on an organisation's current systems and future goals. Deloitte supports public sector clients across the following pathways:
• Brownfield (1:1 Migration): This approach allows organisations to migrate their current systems as they are, minimising disruption and cost while preserving existing customisations.
• Brownfield+ (Selective Transformation): Combining the best of both worlds, Brownfield+ retains critical elements of current systems while enabling selective adoption of S/4HANA’s advanced features.
• Greenfield (Full Re-implementation): Ideal for organisations seeking to redesign their ERP systems from the ground up, Greenfield allows full adoption of SAP best practices. Though transformative, this approach demands significant time and resources.

Deloitte’s role in empowering the public sector
Deloitte leverages its deep expertise to guide public sector organisations through every step of their SAP transformation journey. From initial assessment to full-scale migration, Deloitte delivers:

• Tailored solutions for the public sector: Addressing the unique regulatory, budgetary, and operational challenges faced by public organisations.
• Proven cloud migration expertise: Through partnerships with hyperscalers and SAP, Deloitte has facilitated over 325 S/4 cloud migrations globally, helping organisations reduce costs, enhance agility, and unlock cloud-based innovations.
• End-to-end project management: Using tools from hyperscalers, the SAP Business Technology Platform (BTP), and other key partners, Deloitte accelerates time-to-value while maintaining a clean core ERP approach.

Preparing for the journey ahead
At Deloitte, we maintain a close collaboration with SAP as a global platinum partner. We actively influence SAP’s roadmap for modules and solutions tailored to public sector needs, working together to expand and enhance these offerings.

Image description: SAP's strategy focuses to meet the needs in the Public Sector.

With Deloitte’s proven methodologies—spanning discovery, assessment, preparation, and execution—we ensure a smooth transition that minimises disruption and maximises ROI.

For public sector organisations, the transition to SAP S/4HANA represents an opportunity to future-proof operations, enhance efficiency and embrace innovation. With Deloitte as your implementation partner, you can navigate this journey confidently and effectively. Together, we’ll build a smarter, more connected public sector that meets the needs of tomorrow.