Technical Upgrades: Most customers do these to attain a technology platform which provides them the opportunity...
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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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