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Businesses are choose SAP S/4HANA to modernize their IT landscapes.
SNP’s recent meta study* sheds light on the migration from a technical, operational and strategic perspective, showing that while companies are still facing challenges, they also see opportunities.
Only a fifth of SAP customers worldwide have migrated to S/4HANA. Data migration effort is cited as the biggest challenge by 39% of organizations, closely followed by the complex adaptation of the existing system landscape or IT architecture (37%) and a lack of resources in the relevant specialist departments (36%).
RISE with SAP is a subscription-based service aimed at making the migration easier by bundling together customized ERP solutions, transformative services and business analytics. Almost two thirds of companies believe that the program is the best and most efficient way to implement SAP S/4HANA Cloud. Accordingly, its popularity is growing too: Among organizations surveyed that are already running SAP S/4HANA, the proportion considering switching to RISE with SAP rose from 23% in 2022 to 30% in 2024.
The key benefit of SAP S/4HANA is the potential for improvement in terms of business development and innovation. Specifically, 55% of companies place value on sales growth through the development of new business models, markets and customer groups, followed by fast and flexible adaptability to new challenges (44%), and a higher pace of innovation (35%).
Choosing the right data migration approach is critical to ensure a successful SAP S/4HANA migration. Brownfield continues to be the approach of choice, with 39% of companies opting for this method compared with greenfield at 26%. The BLUEFIELD approach, which combines elements of both brownfield and greenfield, is chosen by 27% of companies. The advantage of this selective approach is that organizations only migrate what they need to SAP S/4HANA and have it operating alongside their existing systems.
To manage time, cost and resources more effectively, companies rely on support from partners. Foundry found that 9 out of 10 respondents are using one or more SAP service providers, with 55% using them for the duration of their migration, and 35% on a permanent basis. On the other hand, PAC’s CxO survey showed that when choosing a migration partner, 84% prioritize providers who offer tools and templates to streamline the implementation.
Are you currently looking for an experienced partner to help you move to SAP S/4HANA? Contact us today at info@snpgroup.com.
*Summarized findings from studies and customer surveys by PAC, Foundry, SAPinsider, the Americas’ SAP Users’ Group (ASUG), the UK & Ireland SAP User Group (UKISUG), IT-Onlinemagazin, Scheer and the German-speaking SAP User Group (DSAG).