Never change a running system

The SAP ERP version S/4 was presented on February 3, 2015, at the New York Stock Exchange by then-CEO Bill McDermott, ex-CTO Bernd Leukert, and Professor Hasso Plattner. More than five years later, about 15,100 SAP customers have purchased an S/4 Hana license, but only 8100 of them have a running and productive S/4 system. This transformation within five years for an upcoming ERP version change is worrying.

In a press release, the DSAG association writes: "The change itself is a considerable feat for many companies, which is accompanied by a number of other changes.

"Because", so the DSAG technology executive committee Steffen Pietsch, ".an S/4 Hana migration is not a minimally invasive intervention, but an extensive change project on a process, organizational and technical level."

In many cases, changes not only affect the ERP system itself, but also lead to adjustments in integrated peripheral systems or the introduction of new software solutions.

Anyone who has not yet dealt with hybrid or cloud-based software and its integration into an SAP landscape faces major challenges. Ultimately, it is then a technical version change without business process benefits. It is more than understandable that only half of the proud S/4 license owners also dared to customize: never change a running system.

Technically and organizationally, SAP CEO Christian Klein has done almost everything right. However, transformation processes take time. The probability of a further maintenance extension beyond 2030 is therefore high, because an S/4 migration is not a minimally invasive intervention, but an extensive change project.

SAP's Supervisory Board, Executive Board, and partner community show a prosperous future with Hana and S/4. But they forget to mention the reasons why existing SAP customers should scrap their existing Business Suite 7 with AnyDB. The new may be better, but the old is not bad either, is it?

There are many proofs of concept in the SAP community regarding Hana and S/4, but little confidence in sustainable added value. A DSAG survey shows that many existing SAP customers are on their way to Hana and S/4, but SAP refuses to provide answers regarding transformation and to take confidence-building measures:

What will happen after 2025 with AnyDB in the direction of Hana and later on S/4? The answer to this question was announced by SAP Executive Board member Jürgen Müller at the DSAG Technology Days at the beginning of this year. To date, there are no SAP answers.

DSAG Chief Technology Officer Steffen Pietsch demands suitable solutions and assistance from SAP, such as a clear classification for information security and DSGVO-compliant processing of personal data, suitable qualification programs, more planning certainty regarding required components and licenses for hybrid scenarios, and integration capability as a core requirement. This is an essential prerequisite for mastering the path to S/4 and a hybrid future.

"SAP is on a good path and has also already reached important milestones, but there are still some hurdles to overcome"says Pietsch.