For Australian enterprises looking to modernise their operations, RISE with SAP S4HANA offers a comprehensive path to digital transformation. From streamlining business processes to leveraging intelligent analytics, it can support faster decision-making and improved operational efficiency when implemented with the right strategy.
But like any major transformation, it comes with challenges and risks that need careful consideration.
In this article, we’ll break down the key benefits, potential risks, and real-world use cases of RISE with SAP S/4HANA, helping organisations understand where RISE with SAP can create value, where risks commonly appear, and what to consider before starting the journey.
What is RISE with SAP?
RISE with SAP is a cloud transformation offering that helps existing SAP ERP customers move towards SAP cloud ERP through a managed, subscription-based model. It combines software, cloud infrastructure, and migration tools into a single package, enabling organisations to modernise their ERP environment at their own pace.
With built-in capabilities like analytics, automation, and AI, RISE with SAP S/4HANA empowers companies to streamline core business processes and make smarter, data-driven decisions.
Key Benefits of RISE with SAP for Australian Enterprises
For Australian enterprises, RISE with SAP can support cloud ERP modernisation in several practical ways:
1. Cloud ERP Flexibility and Business Agility
RISE with SAP S/4HANA helps Australian businesses run their SAP ERP system in the cloud so they can adapt quickly to changes such as market volatility, supply chain disruption, regulatory change, business growth, or regional expansion. Depending on the deployment model and commercial agreement, organisations may run SAP cloud ERP on SAP-managed infrastructure or supported hyperscaler environments. This means businesses can easily scale operations up or down, launch new ideas faster, and respond to market and regulatory changes. Compared to older on-premise SAP ECC systems, SAP S/4HANA in the cloud removes the need to manage servers and hardware, making innovation simpler and faster.
2. More Predictable IT Costs
RISE with SAP S4HANA uses a subscription model, so businesses pay a regular fee instead of high upfront costs. This shifts spending from CapEx to OpEx and makes IT costs more predictable. Depending on the selected package and contract scope, the subscription may include software, managed cloud services, technical operations, updates, and selected security or continuity services. For organisations moving from SAP ECC to SAP S4HANA, this can improve cost predictability and reduce the burden of managing infrastructure, although total cost depends on the organisation’s landscape and transformation scope.
3. Managed Updates and Continuous Innovation
With RISE with SAP S/4HANA, SAP automatically handles system updates. There’s no need for time-consuming manual upgrades like in traditional SAP ERP systems. Updates are managed through SAP’s cloud delivery model, but organisations still need proper testing, release planning, and change management to minimise disruption.
4. Access to SAP Innovation, AI, Automation and Analytics
RISE with SAP can be supported by capabilities such as SAP BTP, SAP Signavio, business process intelligence, automation, analytics, and integration services, depending on scope. This gives businesses access to modern tools such as AI, automation, analytics, and industry-specific solutions. These innovations help companies improve processes and make better decisions. For organisations moving from existing SAP ERP landscapes, RISE with SAP provides a transformation path towards modern cloud ERP.
5. Transformation Support Beyond the Technical Migration
RISE with SAP S4HANA includes support across the entire transformation journey. SAP provides the cloud ERP offering and associated services, while experienced partners such as cbs support assessment, migration strategy, implementation, data transition, and ongoing optimisation. Businesses also gain access to SAP BTP and SAP Business Network starter packs, ensuring the move to SAP S/4HANA delivers real business value, not just a technical upgrade.
6. Enhanced User Experience with SAP Fiori
SAP Fiori provides a modern, easy-to-use interface for SAP S/4HANA. Users get personalised dashboards, role-based screens, and real-time data across desktop, tablet, and mobile devices. This improves productivity, user adoption, and decision-making by making SAP simpler and more intuitive to use. This can help reduce training friction and improve adoption when business roles and processes are properly designed.
Potential Risks and Challenges of Associated with RISE with SAP S4HANA
While RISE with SAP S/4HANA brings significant benefits in streamlining operations and enabling digital transformation, the biggest risks usually come from poor preparation, unclear scope, weak integration design, and insufficient change management. Let’s examine them one by one below:
1. Choosing the Wrong Integration Approach
One of the biggest challenges with RISE with SAP S4HANA is selecting the wrong way to connect SAP with other systems. For example, organisations need to decide how APIs, middleware, SAP BTP Integration Suite, legacy interfaces, and third-party systems will work together. If the integration approach is not planned properly, it can lead to rigid setups that are hard to change or scale. This is especially important for businesses moving from SAP ECC to SAP S/4HANA that rely on many third-party applications.
2. Complex System-to-System Connectivity
Many organisations run a mix of legacy systems, third-party tools, and SAP applications. Ensuring smooth communication between these systems in a cloud-based SAP ERP environment can be complex. Without the right integration strategy, data may not flow reliably or consistently, leading to delays, errors, or manual work.
3. Hybrid Landscape Challenges
Some businesses choose a hybrid setup where certain systems remain on-premises while SAP S/4HANA runs in the cloud. Poor planning can result in slow performance and limited flexibility during SAP S/4HANA transformation initiatives.
4. Security and Compliance Risks
Moving SAP ERP systems to the cloud also brings security and compliance considerations. If governance and access controls are not clearly defined, businesses may face higher risks of data breaches or regulatory non-compliance. This is particularly important for Australian enterprises operating under strict data protection and industry regulations such as privacy, financial, healthcare, or industry-specific compliance obligations.
Common Industry Use Cases for RISE with SAP
RISE with SAP S4HANA is not just a concept – it delivers tangible results across industries. By modernising core processes, enhancing data visibility, and enabling cloud-based operations, organisations can achieve greater efficiency, agility, and innovation.
The following real-world use cases highlight how cbs helps companies leverage RISE with SAP S/4HANA to drive business transformation and achieve measurable outcomes:
1. Pharmaceuticals: Stay Compliant and Improve Traceability
Pharmaceutical companies operate under strict regulations and must manage sensitive data with precision. RISE with SAP S4HANA enables them to accurately track batches, expiry dates, formulations, and supply movements, while running SAP ERP in the cloud enhances data accuracy, security, and compliance. Relevant SAP capabilities can support batch traceability, compliance reporting, and product tracking across the supply chain.
2. Manufacturing: Run Production and Supply Chains More Smoothly
RISE with SAP S/4HANA helps manufacturers see what is happening across their factories and supply chains in real time. Instead of tracking everything manually, businesses can use SAP ERP in the cloud to plan production, manage materials, and with the right data model and supporting applications, manufacturers can improve visibility into production issues, supply delays, and maintenance needs. For companies moving from SAP ECC to SAP S/4HANA, this makes daily operations simpler, reduces downtime, and improves productivity using tools available through SAP Business Technology Platform (BTP).
3. Retail: Manage Stores, Inventory, and Online Sales in One System
Retailers using RISE with SAP S4HANA can manage stores, warehouses, and online channels from a single system. Businesses can track inventory in real time, avoid over-stocking or shortages, and respond faster to customer demand. SAP ERP helps retailers support online and in-store shopping, improve delivery, and support more consistent customer experiences across online and in-store channels when ERP, inventory, commerce, and customer data are integrated. This makes SAP cloud ERP a strong option for retailers modernising legacy ERP systems and improving omnichannel operations.
Conclusion
RISE with SAP S4HANA empowers Australian enterprises to simplify operations, improve agility, reduce costs, and drive long-term digital transformation. While adoption comes with challenges, understanding potential risks can reduce risk and support a more controlled transition.
With cbs expertise, organisations can implement RISE with SAP effectively, ensuring compliance, operational efficiency, and faster innovation.
Speak with cbs to assess your SAP landscape, transformation options, and the right path to modern cloud ERP.
