Why SAP S/4HANA Migration is the Perfect Time to Rethink Your Pricing Strategy

As companies transition to SAP S/4HANA, they are faced with a unique opportunity—not just to modernize their ERP systems, but to rethink and optimize their pricing strategy. The shift to S/4HANA isn’t just a technical upgrade; it’s a chance to adopt more modern, agile pricing models that drive revenue growth and improve profitability. In this blog, we’ll explore the key drivers of an S/4HANA migration, the importance of prioritizing pricing during the transition, and how Zilliant enables smarter, more profitable pricing.

Key Drivers of S/4HANA Migration

Migrating to SAP S/4HANA is top of mind for many organizations due to technological advancements and business need. This urgency is driven by:

1. End of support for SAP ECC: ERP Central Component, SAP's legacy ERP system, will reach its end-of-life support in 2027. SAP will no longer provide regular updates, patches, or critical security fixes and, as a result, companies still using SAP ECC will be operating with outdated, unsupported software, leaving them vulnerable to compliance issues and security threats. 
2. Enhanced Performance, Scalability, and Usability: As an upgrade from ECC, S/4HANA is an upgrade that can handle larger data volumes, high-speed transactions, and complex analytics in real time. S/4HANA also offers a modern, intuitive user experience that simplifies day-to-day tasks and improves productivity, with support for mobile use and role-based profiles. 
3. Staying Ahead of the Competition: Many businesses are undergoing digital transformations to stay relevant and agile in their space. S/4HANA offers the performance capabilities that manufacturers need to help optimize their production processes, reduce costs, and respond faster to market demands. 

Why Companies Must Prioritize Pricing During Transition

While technology migrations can feel like a hassle, companies should embrace this new landscape to maximize profit. Organizations are always iterating on how to capture additional revenue and optimizing prices is a key avenue to do so.

The cloud transition to S/4HANA is an ideal time to re-imagine and modernize your pricing processes. Traditional ERP systems once managed pricing models, but they can no longer handle the complexity of price condition records that enterprises require—often numbering in the hundreds of thousands or even millions.

Many of these pricing conditions are outdated, representing pricing decisions made under vastly different market conditions. Transferring stale data not only bogs down a company's cloud migration but doesn't take into account the immense financial upside that can come from embracing a modern pricing engine. 

How Precision Pricing with Zilliant Ensures Agility and Drives Growth

Instead of simply migrating these price condition records into cloud-based systems like SAP S/4HANA, organizations should consider rethinking their pricing strategy. Zilliant's AI-powered pricing engine enables businesses to leave behind the legacy pricing approach and adopt a competitive, dynamic pricing model.

Zilliant empowers organizations to adopt more agile pricing strategies, focusing on real-time integration with critical data sources and responsive pricing adjustments. This approach allows businesses the flexibility to adapt to market changes, customer behavior, and competitive pressures in real-time—surpassing the limitations of legacy pricing models, like spreadsheets.

Why Zilliant? 

1. Dynamic Pricing Capabilities: Zilliant's AI-powered pricing engine enables companies to automatically adjust prices based on data, such as customer behavior, competitor pricing, and supply chain fluctuations. This provides agility that traditional ERP-bound models simply cannot match.
2. Omnichannel Delivery: Centralizing pricing with Zilliant ensures alignment across all sales channels, including eCommerce, CPQ, CRM, and ERP. This eliminates pricing mismatches and ensures that pricing is consistent, regardless of where or how the customer interacts with the business.
3. Operational Efficiency: With Zilliant, businesses can automate the validation, approval, and sales execution of pricing, reducing manual intervention and speeding up order fulfillment. This leads to improved operational efficiency and a reduction in pricing errors.
4. Strategic Insights: Zilliant provides powerful simulation tools that enable organizations to model pricing scenarios, assess KPI impact, and make data-driven decisions. These tools deliver optimized prices to sales in a consumable, dynamic format—without disrupting daily pricing operations.

The New Standard for Smarter, More Profitable Pricing

As pricing operations become increasingly complex, especially with large volumes of data, Zilliant offers a vital advantage. By centralizing pricing logic and automating key processes across the pricing lifecycle, businesses can achieve unprecedented speed, consistency, and flexibility.

As organizations continue to transition to cloud environments, it’s imperative to move away from legacy pricing models. Zilliant’s pricing and selling solutions offer the scalability that organizations need to stay competitive in an increasingly fast-paced and data-driven world.

Positioning Businesses for Sustained Success

By eliminating outdated price records and integrating AI-powered pricing across all key systems, Zilliant helps companies modernize their pricing approach, improve decision-making, and dynamically respond to market shifts. Zilliant’s pricing solutions don’t just help businesses keep up—they position them to lead.

Zilliant customers have experienced transformational benefits by leveraging our pricing solutions, including:

• 42% revenue growth from improved price management   
• 150 bps average margin growth 
• 85% reduction in suboptimal pricing 
• 650K prices automated in near-real-time annually 

The Path Forward: Pricing as a Strategic Advantage

In the journey to S/4HANA, traditional ERP-bound pricing logic simply doesn’t cut it. To stay ahead, businesses need to capitalize this transition and rethink their pricing strategy. Zilliant offers the technology, insights, and agility that companies need to succeed in today’s fast-moving market. 

By centralizing pricing process, leveraging data to optimize pricing, and ensuring the seamless delivery of that pricing to customer facing teams, Zilliant transforms pricing into a strategic advantage that fuels growth and profitability.

Contact us today to unlock the power of pricing in your transition to SAP S/4HANA.