Technical Upgrades: Most customers do these to attain a technology platform which provides them the opportunity...
to do more and gain additional stabilization (eg. NetWeaver) or to quickly get to the current release supported by SAP (case mentioned).
Functional Upgrades: Customers do to gain access to functionality that assists their organization to gain additional process strengths and a competitive advantage.
The thing with functional upgrades is that it requires a better understanding of your current environment and functionality being utilized in the existing solution. As a starting point I usually refer organizations to review the "Release notes" for the solution. SRM 4.0/EBP 5.0 has release notes available that can provide you the information on what's new. If you don't have access to one, let me know and I can send you a copy. Another resource would be the ASUG presentations.
Usually I recommend organizations to hold a half day to one day workshop to understand the functionalities available in the new release and more so co-relating the improvements with your current environment.
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