A CIO executive roundtable at the SAPinsider Las Vegas 2026 focused on how enterprise leaders are approaching SAP migration and transformation decisions under cost, risk, and operational pressure. The session, “Migration and Transformation with SAP at the Core,” was delivered as part of the SAPinsider CIO Program.
The discussion was led by Steve Birgfeld, VP, Information Technology and Services at Blue Diamond Growers and Advisory Board Member at Wellesley Information Services, and Marty Menard, Advisory Board Member, Pacific Coast Companies and Wellesley Information Services. Both framed the conversation around decision-making, positioning SAP transformation as a broader business and operating model shift.
Post-Go-Live Value Is Redefining How CIOs Measure SAP Success
The discussion shifted quickly from the migration-versus-modernization decision to what happens after deployment. CIOs are increasingly judged on whether SAP investments deliver measurable business outcomes rather than technical completion.
Menard emphasized that transformation must be tied to business value and ownership. “Modernization fails without discipline,” he said. That includes aligning business stakeholders, defining accountability for outcomes, and sustaining focus after go-live rather than treating implementation as an endpoint.
Birgfeld reinforced that foundation, pointing to data and process alignment as prerequisites for value. Organizations are prioritizing targeted data improvements tied to specific business processes instead of attempting large-scale transformation all at once.
Several participants noted that technically successful S/4HANA implementations still struggled to deliver business impact when users were not prepared for process changes or when expectations were not clearly set. In some cases, organizations experienced higher workloads after deployment, particularly where legacy tools or custom processes were removed without sufficient replacement.
Business outcomes such as margin improvement, faster decision-making, and operational resilience are becoming the primary measures of success, alongside technology outcomes such as lower total cost of ownership and simplified architecture. Achieving those outcomes requires sustained involvement from IT and closer coordination with finance and business teams.
The conversation highlighted the need for continuous ownership, with post-go-live optimization, governance, and change management treated as ongoing responsibilities rather than follow-on activities. CIOs described remaining directly engaged beyond implementation to ensure that expected value is realized and that organizations adapt to new processes over time.
SAP Transformation Decisions Are Expanding Beyond Migration
Birgfeld and Menard framed SAP S/4HANA decisions around a central choice between migration and modernization, positioning transformation as a broader business and operating model shift rather than a required or technology-driven upgrade.
Birgfeld described the transition as an opportunity to pause and reset, allowing organizations to establish a foundation for future innovation instead of extending legacy environments. He noted that decisions around timing and approach are closely tied to how leaders define the role of SAP within the broader enterprise architecture.
Menard emphasized the role of discipline in achieving that outcome. He said modernization efforts require organizations to standardize processes and reduce customization, even when those changes are difficult for business teams. The benefits of a simplified architecture depend on whether organizations are willing to change how work is performed, not just where systems are hosted.
Participants indicated that these decisions are often influenced by external pressures. Licensing costs, support timelines, and concerns about system integrator availability were cited as factors that can accelerate migration timelines or limit available options. Some organizations reported moving earlier than planned in response to those constraints.
The discussion also highlighted the importance of sequencing transformation efforts. Data readiness, governance, and process alignment were described as prerequisites for automation and AI initiatives. Participants noted that introducing new capabilities without addressing those foundations can increase complexity and reduce expected value.
Several attendees described ongoing challenges in maintaining that discipline. Legacy customizations, business-specific workflows, and user expectations continue to create tension between standardization goals and operational realities, particularly in large or highly customized environments.
CIOs indicated that the migration-versus-modernization decision is increasingly tied to broader questions about operating models, cost structures, and long-term architecture rather than being treated as an isolated technology project.
What This Means for ERPinsiders
SAP strategy is becoming a capital allocation discipline. CIO decisions are shifting toward long-term capital planning, with S/4HANA tied to multi-year cost structures, operating models, and balance sheet impact. This reframes ERP from IT spend to enterprise investment governance.
Vendor leverage is shaping transformation timing. Licensing structures, support timelines, and partner capacity are influencing when organizations move, reducing CIO control over pacing and introducing external constraints into strategic decisions.
ERP transformation is exposing operating model gaps. S/4HANA programs are surfacing weaknesses in process ownership, cross-functional alignment, and decision accountability that were previously absorbed by legacy systems. Transformation is forcing organizations to formalize how work is governed, not just how systems run.
This article was first published by SAPinsider on March 17, 2027.
