Avoiding the pitfalls of a Lift-and-Shift from APO to IBP

As SAP Advanced Planning and Optimization (APO) is approaching its end of life in 2027, organizations face a pivotal choice: evolve their supply chain planning capabilities or risk falling behind. For many, the first instinct is to replicate existing APO functionality in SAP Integrated Business Planning (IBP) through a simple "lift-and-shift" approach.

In theory, this seems efficient. In reality, it is one of the most common missteps companies make when transitioning to IBP. APO and IBP were built for fundamentally different planning environments. Treating IBP as a newer version of APO, rather than a fresh, integrated planning platform, can lead to increased costs, lower adoption, and missed strategic value.

To make the most of your move to IBP, it is critical to rethink, not just replicate, your supply chain planning strategy.

Why lift-and-shift falls short

SAP APO was built for an era defined by batch processing, long planning horizons, and isolated business functions. IBP, in contrast, was designed for today’s dynamic and interconnected world, where planners need speed, visibility, and flexibility to make fast, data-driven decisions.

Attempting to transfer APO configurations directly into IBP often creates more friction than value. Here is why:

• Different system architecture: APO is tightly coupled with ECC and hosted on-premises. IBP is a cloud-native platform, built for scalability, ease of integration, and continuous innovation.
• Different capabilities: IBP is modular and requires a tailored approach based on specific business needs. It is not a feature-for-feature replica of APO.
• Fundamentally different user experience: While APO was IT-controlled and rigid, IBP empowers planners with real-time visibility and intuitive interfaces.

Treating IBP like a technical upgrade rather than a transformational opportunity limits its impact. Instead of copying outdated processes, the shift to IBP should be used to redesign planning workflows for the future.

To avoid the lift-and-shift trap, organizations must change their focus from system configuration to strategic transformation. The goal is not to bring existing challenges into a new platform but to modernize how your business plans, collaborates, and executes. Here is how to lay the foundation for success:

Reevaluate existing processes

Do not assume what worked in APO will work in IBP. Use the transition as a chance to challenge legacy structures, identify inefficiencies, and align planning processes with your current business model. With IBP, businesses have the opportunity to streamline operations, reduce complexity, and better align with their overall digital strategy.

Involve planners early

Planners are the people closest to daily operations, and their insights are invaluable. Engaging them early helps identify pain points in the current setup and ensures the new system is aligned with how they actually work.

Because IBP gives end users more control, early involvement also supports efficient resource utilization. This leads to quicker realization of value and smoother transitions post-implementation.

Planners should also be equipped with training programs that reflect real-world use cases. A well-trained team will not only feel more confident using the tool, but will also drive innovation and process improvement from within

Balance flexibility with structure

IBP gives planners more control over how they work, allowing for easier adjustments and personalized planning views. To use this effectively, teams need clearly defined responsibilities, reliable data, and agreed ways of working. With the right balance, planners can make faster decisions while staying aligned with overall business goals.

The hidden risk of staying on APO

Staying on APO, even without attempting a migration, comes with increasing risk. Maintaining and patching the legacy system adds cost and complexity. Technical debt increases over time, limiting your ability to adapt and scale. APO also lacks native integration with S/4HANA and other SAP tools, which reduces your ability to connect planning with execution. The longer you delay the move, the harder it becomes to keep pace with evolving business needs and technology advancements.

By delaying the move to IBP, organizations not only fall behind in capability but risk losing valuable lead time to prepare, train, and optimize before APO support ends. Additionally, the longer a company remains on APO, the more difficult it becomes to retain the specialized talent required to maintain it. As more professionals upskill in cloud-native solutions like IBP, talent for legacy systems will become increasingly scarce and expensive.

IBP: A launchpad for smarter, integrated planning

Rather than viewing IBP as the end point of a technical migration, consider it a launchpad for a more agile and resilient planning function. It offers a number of capabilities that go far beyond what APO was ever designed to handle:

• Integrated planning across functions: Demand, supply, inventory, and finance work together on a unified platform.
• Scenario modeling in real time: Evaluate the impact of changes quickly and with greater precision.
• Dual-interface planning: Empower users to work in the application or online, depending on preference and task.
• Quarterly innovation cycles: Regular feature updates and improvements allow organizations to achieve supply chain excellence.

This shift not only modernizes planning but also enhances collaboration across business units. Teams are better equipped to make informed decisions, respond quickly to disruptions, and drive long-term business value.

IBP also supports modular adoption, allowing organizations to focus on high-impact areas first, such as demand or inventory planning, before expanding into end-to-end planning.

Avoiding missteps and maximizing the move

Success with IBP depends on making the transition intentionally. This means looking beyond technical fit and considering:

• Are we ready for a more collaborative, planner-driven model?
• Are our data structures, roles, and processes mature enough to support flexible planning?
• Do we have a roadmap that prioritizes business value, not just system replication?

The answers to these questions form the basis of a migration strategy that avoids common pitfalls and unlocks long-term value. With the right partner and planning approach, IBP can help you align strategy with execution, enable faster decisions, and improve performance across your supply chain.

To gain even greater visibility and performance, many organizations are also investing in integrated business planning capabilities that allow for more unified processes across global operations. These capabilities not only support better forecasting but also foster innovation across product lines and regions.

The shift from APO to IBP is not just about meeting a deadline. It is about building a smarter, more connected supply chain. Done right, this transition positions your business to navigate uncertainty with confidence, react faster to market shifts, and continuously improve performance.

Avoid the temptation of a lift-and-shift. Instead, rethink your approach, involve your planners, modernize your processes, and prioritize business outcomes. With IBP, you are not just upgrading a tool. You are investing in a more resilient, agile future.

If you are considering the move or want a clearer path forward, connect with us to assess your current environment and define a migration strategy tailored to your goals.