Why a CRM strategy is essential for S/4HANA transformation

CRM Laptop

The transition to SAP S/4HANA is widely regarded as one of the most significant IT transformations of our time. Companies must act by 2030 at the latest, as the end of SAP ECC support creates real risks to security, compliance and stability. However, one area that often receives too little attention affects far more than just systems and interfaces: Customer Relationship Management (CRM).

While most legacy CRM systems such as SAP CRM On-Premise or SAP Cloud for Customer are being phased out and have no direct successor, the question of how to map modern sales and service processes in the future also arises.

CRM in transition: Why a strategic approach is needed now

As SAP CRM On-Premise and SAP Cloud for Customer are being phased out, many companies are being forced to make fundamental decisions. While integrated S/4 Customer Management covers basic requirements, it is often not sufficient for modern sales and service processes. At the same time, modular SAP CX solutions or third-party systems require additional selection and integration effort.

In short:
The question of the ‘right’ CRM is therefore a central success factor in the entire S/4HANA transformation.

The real challenge of the S/4 transformation

Essentially, companies have three basic options:

  • Integrated S/4 Customer Management, which, however, only covers basic functions for sales and service
  • SAP Customer Experience (CX), consisting of several modules, each with its own cost and system structure
  • Third-party solutions such as itmX crm as a seamlessly integrated and feature-rich alternative to SAP CRM

Regardless of the choice, practice shows:
Companies that look at CRM issues strategically too late or not at all end up paying the highest price.

Why ignoring CRM is risky

Companies that address CRM issues too late often face the same challenges:

  • Inconsistent customer processes because ERP and CRM do not work together properly
  • Rising project costs, for example due to subsequent integrations or lack of data harmonization
  • Low user adoption if workflows are not adapted to modern requirements

This means that, while the S/4 transformation may be technically successful, it will not realise its business potential.

The opportunity: Rethinking customer processes holistically

Taking CRM into account at an early stage creates the opportunity to modernise customer processes in the long term. Companies can therefore lay the grounds for:

  • Lean, end-to-end sales and service processes
  • better data quality and real-time information
  • A modern customer experience through automation and AI support

This creates momentum in the S/4 transformation that many companies only experience once, enabling them to harmonise customer processes consistently and future-proof the system landscape in the long term – whether with S/4 Customer Management, SAP CX or an alternative to SAP CRM.

Result

The move to S/4HANA now offers a strategic opportunity to fundamentally redesign customer processes. Companies that neglect CRM topics risk inefficient processes, unnecessary additional costs and forego decisive improvements in the customer experience.

It is therefore important to develop a well-thought-out CRM strategy that combines technological possibilities with central business requirements, forming the basis for successful projects and sustainable competitiveness.

 

About the author

Michael Stump
Michael StumpManaging Director itmX
Michael is part of the management trio of itmX and, with his many years of project experience, always knows where the customer’s shoe pinches. He has been working in the SAP business since the mid-90s and has distinguished himself as an expert in the areas of marketing, sales and e-commerce. With his expertise, he supports our customers in the implementation of their digitalization strategies.