S/4: A complex undertaking with added value

P recisely, a global provider of data integrity solutions, has published the latest findings from a survey conducted in collaboration with the Americas’ SAP Users’ Group (ASUG). These findings show that most companies are now accelerating their migration to SAP S/4 Hana—even though they are faced with increasing complexity in SAP processes and challenges posed by competing priorities.

The report „Transforming SAP Processes Through Automation: 2026 Trends and Challenges,“ presented during the ASUG Tech Connect event, finds that 59 percent of companies are fully or partially set up for SAP S/4 Hana, an increase of 13 percentage points from 2024, as organizations rush to meet the 2027 SAP deadline. However, automation adoption has stagnated at 57 percent after strong growth in previous years, as migration requirements divert resources and teams continue to grapple with complex SAP environments.

S/4: Boom with challenges

„SAP users are making real progress in modernization, but they also face some of the most complex transformation challenges in the ERP landscape,“ said Ashwin Ramachandran, senior vice president of product management at Precisely. „Organizations that successfully manage this complexity are those that strike the right balance—keeping ongoing migrations on track while advancing automation strategies that deliver long-term value.“

According to the study, nearly two-thirds of companies (64 percent) will have completely migrated to S/4 Hana or will be in the process of migrating by the end of 2025—a sign of strong momentum after years of slower progress. Nevertheless, the migration is anything but straightforward.

Respondents cited changes to business processes (49 percent), adjustments (44 percent), and organizational resistance (37 percent) as the biggest obstacles. Many companies are struggling to transform the structure of core SAP data creation and management processes, align SAP ECC customizations with SAP's Clean Core approach, and manage the complexity of large-scale cultural change.

Data quality also proved to be a critical but often overlooked challenge, with organizations identifying issues with both accuracy and data transformation when moving legacy data to SAP S/4Hana environments. Although automation remains a key pillar of SAP modernization strategies, adoption growth has slowed as companies focus resources on migration projects and grapple with the ongoing complexity of their SAP environments.

S/4: Key obstacles

Process complexity (62 percent) – the most frequently cited challenge, surpassing integration as the primary obstacle this year. Integration (49 percent) – ongoing difficulties in coordinating SAP with other leading systems. Understanding and defining process requirements (49 percent) – organizations struggle to map SAP processes and capture complex business rules.

Despite these challenges, the underlying momentum remains strong. Adoption patterns show a clear shift toward more strategic best-of-breed approaches, with organizations increasingly leveraging no-code/low-code platforms and citizen development to scale automation without overburdening IT teams.

ASUG

The Americas’ SAP Users’ Group is the largest SAP user group in the world. Founded in 1991 by a group of visionary SAP customers, its mission is to help people and organizations get the most out of their investment in SAP technology. ASUG currently serves thousands of companies through enterprise-wide memberships and connects more than 130,000 professionals with networks and educational resources to help them meet new challenges. Through in-person and virtual events, digital on-demand resources, and ongoing member support, ASUG helps SAP customers achieve more.

Source: Precisely