Energy transition for your IT: The path from SAP IS-U to SAP S/4HANA Utilities

For SAP IS-U users, the end of support by 2030[1] is approaching and with it the need to replace outdated systems. For decades, SAP IS-U formed a stable backbone of energy industry processes. However, what was once considered forward-looking has become a legacy in many places: poorly maintained structures, selectively adapted functions and rarely strategically developed further. This transitional period is over. The digital reality poses new technological, economic and regulatory challenges. Systems that just “keep on running” are increasingly becoming a risk.

With the discontinuation of the classic SAP IS-U, SAP has initiated a profound upheaval. New requirements such as MaKo 2022 or Redispatch 2.0 require real-time data and integrated processes. Traditional batch processing is reaching its limits here. At the same time, fragmented data structures prevent smart solutions such as intelligent metering.

With in-memory technology and integrated data storage, SAP S/4HANA Utilities offers exactly what is needed today - not as an option, but as a technological necessity. If you wait too long, you pay twice: through resource bottlenecks, security risks, system failures or missed opportunities for innovation.

The question is no longer “whether” the migration will take place, but “how quickly” and “how effectively”. After all, the switch to S/4HANA Utilities is not just an IT project, but a comprehensive transformation that redefines processes, roles, data structures and the entire IT architecture of a company.[2]

Between legacy systems and future technologies

Digital change does not stop at the utilities industry: companies are faced with the task of replacing complex and historically evolved SAP IS-U structures with modern, cloud-capable architectures. This requires more than just technical progress; it is about the ability not only to meet regulatory requirements and market dynamics, but also to actively drive innovation.

The pressure to act is growing: the market for SAP S/4HANA consulting is tight and specialists are scarce. If you act too late, you risk a rushed project or bottlenecks during implementation. One thing is clear: digitalization is not an end in itself, but the basis for stable, adaptable processes. Only a modern IT architecture makes it possible to react to new requirements flexibly and in compliance with regulations - a clear competitive advantage.

Three steps are crucial for a successful transformation:

1. System Analysis & Consolidation

In the first step, the existing SAP system landscape is analyzed holistically with a focus on simplification and consolidation. Redundant processes, duplicates in master data management and outdated interfaces are identified and extensive custom code is evaluated. The aim is a streamlined, transparent system basis that meets both regulatory requirements and strategic objectives. Analyses are fact-based and are directly translated into robust recommendations for action.

2. Standardization & Automation

The next step involves a comparison with best practices and the development of a target process model. Standardization here means targeted standardization and reusability, not standardization. Template-based approaches help to harmonize configurations, shorten test cycles and make migration plannable. This also involves the conscious evaluation of deviations: Which special cases make sense? Where is there potential for harmonization?

3. Implementation & Change Management

Technical conversion alone is not enough; the change must be anchored in the company. Training, communication concepts and clear governance structures ensure that employees are involved and empowered. Interactive visualizations and end-to-end transparency create trust, including at management level. Selective data extraction means that only what is relevant to the company is processed.

Consolidation as a strategic lever

The SAP system landscape of municipal utilities and energy suppliers in particular has often grown historically. Usually with several IS-U instances that have been further complicated by regulatory requirements. Consolidating these structures is therefore much more than a technical project: it is a strategic step towards greater efficiency, transparency and future viability.

The aim is to define internal best practices and harmonize processes in such a way that they not only meet current requirements, but can also react flexibly to future developments. Standardization creates synergies, reduces complexity and strengthens cooperation within the organization.

This is where IBIS Prof. Thome AG comes in. Together with our long-standing partner PriceWaterhouseCoopers, we have developed a fact-based approach that can be used to analyze both the current situation and the desired target picture, both technically and professionally. Our many years of experience in the transformation of SAP systems enable us to identify relevant functions and structures in a targeted manner and design them with a view to the future.

Particularly in the energy industry, where compliance and regulatory pressure are high, we not only consider technical details, but also external influencing factors and adjacent modules. Our guiding principle: “YOUR DATA ALREADY KNOWS”. Because the right answers are usually already in the existing data, they just need to be recognized and made usable based on context.

A central component of our approach is the analysis of the degree of standardization: we uncover efficiency potentials and help to systematically leverage these through harmonized processes as a solid foundation for a powerful and future-proof IT architecture.

Ready for the future?

Numerous transformation projects show: Especially in fragmented IS-U environments, significant efficiency gains can be realized through a changeover.

The focus is on four key added values:[3]

1. Higher Productivity

Automated process chains, integrated data models and the elimination of media disruptions significantly increase operational efficiency, on average by 20% according to cross-industry analyses.

2. Cost Reduction

The consolidation of outdated instances and the elimination of unnecessary licenses reduce maintenance costs and IT expenditure. Companies have been able to achieve savings of up to USD 500,000 as part of S/4HANA projects, with a measurable impact on the total cost of ownership.

3. Faster Implementation

S/4HANA Utilities enables responsive processes, a clear advantage over classic IS-U systems with batch processing. Regulatory requirements such as Redispatch 2.0 or MaKo 2022 can be mapped more efficiently and project cycles are significantly shortened.

4. Better Decisions

Real-time analyses create transparency about customer behaviour and consumption patterns, an important basis for data-based decisions and targeted service optimization.

With a well-founded analysis, clear target images and a structured migration plan, you create the basis for a lean, harmonized IT architecture and optimally position your company for regulatory requirements, digital business models and new market opportunities.

[1] https://www.uniserv.com/wissen/magazin/article/abloesung-is-u-migration-sap-s4hana/

[2] https://www.cobicon.de/migration-von-sap-is-u-zu-sap-s-4hana-utilities/

[3] Die genannten Zahlen stammen aus einer branchenübergreifenden Analyse („Cost-Benefit Analysis of SAP S/4HANA Migration“, Fingent, 2023) und sind auf IS-U-Kontexte übertragbar, sofern systemübergreifende Strukturen, Medienbrüche oder veraltete Datenmodelle vorliegen. (https://www.fingent.com/blog/cost-benefit-analysis-of-sap-s-4hana-migration/)
[4] https://www.uniserv.com/wissen/magazin/article/abloesung-is-u-migration-sap-s4hana/

[5]https://www.cobicon.de/migration-von-sap-is-u-zu-sap-s-4hana-utilities/

[6] The figures cited are taken from a cross-industry analysis (“Cost-Benefit Analysis of SAP S/4HANA Migration,” Fingent, 2023) and are transferable to IS-U contexts, provided that cross-system structures, media breaks, or outdated data models are present. (https://www.fingent.com/blog/cost-benefit-analysis-of-sap-s-4hana-migration/)