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Expectations with S/4 Hana

An S/4 project at the customer's is only successful if the expectations of management and users are met. Therefore, the numerous SAP facts should be critically scrutinized right at the beginning of a project.
John N. Szalachy
January 16, 2023
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This text has been automatically translated from German to English.

Many existing SAP customers are about to embark on an S/4 project, are in the process of doing so, or are reviewing their initial expectations after the project has been completed. My many years of experience from many projects have shown that the customer's initial expectations determine success or failure. If this is disappointed by deviating results, motivation tips over and acceptance is damaged in the long run. The consequences are costly in every respect. I would therefore like to point out a few clues in the S/4 transformations where, as a result of various SAP marketing and product strategies, expectation can become a sensitive issue.

Performance and end of maintenance

After all, seven years have passed since SAP guru Hasso Plattner's big announcement in 2015 regarding the major SAP technology change with the "in-memory database Hana and S/4". The SAP marketing machinery has kept the expectations of the entire SAP community worldwide high with numerous arguments. However, the positive mood was dampened when SAP simultaneously announced the end of maintenance for ERP/ECC 6.0 as of 2025, which was subsequently softened. Many companies and customers felt pressured by the dual strategy. The development of the "in memory" technology, which was extensively accompanied and financed by Plattner personally, brought a significant improvement in performance. Although this triggered great euphoria, it quickly became apparent that the Big Data target group really affected was very small after all. For the vast majority of SAP customers, this argument alone was not a reason for a rather complex and expensive technology change. 

Complexity

The starting point for SAP was R/3, which had been modified over decades, and the numerous additional developments by customers as part of the massive growth in complexity. This statement is interesting in that the possibility for modifications and in-house developments was an important trigger for the SAP success story. Malicious tongues claim that SAP was no longer able to provide appropriate software support due to the many customer changes. Thus, a simplification of data structures and applications was promised, as well as a reduction in complexity with the return to standard software. As a result of functional limitations, however, positive expectations are limited. Many customers also doubt that the integration of cloud solutions in hybrid system landscapes will actually reduce complexity.

Cloud

SAP CEO and brilliant salesman McDermott has joined the global IT trend of cloud solutions with S/4 Hana. The benefits for customers were professionally marketed, but very differently received. The real beneficiary, however, was SAP itself, which was able to secure the necessary growth and finance strategic acquisitions with the new cloud licenses. SAP customers' hopes were not fulfilled, however, because the usual quality of integration of the new solutions was not achieved. In addition, SAP's cloud-only strategy was not adopted because the majority of existing customers prefer hybrid system landscapes (on-prem with cloud solutions). Under pressure from SAP user groups, this was changed to a cloud-first strategy. Existing customers with on-prem systems also expect equal treatment with cloud solutions for all new developments. According to statements made by SAP CEO Christian Klein at the DSAG Annual Congress 2022 in Leipzig, he seems to have at least recognized these demands of the large target group of hybrid system landscapes.

This text is intended to raise awareness of the influence that perspective can have on an S/4 project.

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John N. Szalachy

is an SAP consultant and DSAG working group spokesperson Austria. His company specializes in S/4 project work.


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Working on the SAP basis is crucial for successful S/4 conversion. 

This gives the Competence Center strategic importance for existing SAP customers. Regardless of the S/4 Hana operating model, topics such as Automation, Monitoring, Security, Application Lifecycle Management and Data Management the basis for S/4 operations.

For the second time, E3 magazine is organizing a summit for the SAP community in Salzburg to provide comprehensive information on all aspects of S/4 Hana groundwork. All information about the event can be found here:

SAP Competence Center Summit 2024

Venue

Event Room, FourSide Hotel Salzburg,
At the exhibition center 2,
A-5020 Salzburg

Event date

June 5 and 6, 2024

Regular ticket:

€ 590 excl. VAT

Venue

Event Room, Hotel Hilton Heidelberg,
Kurfürstenanlage 1,
69115 Heidelberg

Event date

28 and 29 February 2024

Tickets

Regular ticket
EUR 590 excl. VAT
The organizer is the E3 magazine of the publishing house B4Bmedia.net AG. The presentations will be accompanied by an exhibition of selected SAP partners. The ticket price includes the attendance of all lectures of the Steampunk and BTP Summit 2024, the visit of the exhibition area, the participation in the evening event as well as the catering during the official program. The lecture program and the list of exhibitors and sponsors (SAP partners) will be published on this website in due time.