Metastudy by SNP Sheds Light on Migrations and on the Whole S/4 Truth
SAP partner SNP, a provider of software for digital transformations, automated data migrations and data management in the SAP environment, has published a meta-study entitled "The current SAP S/4 Hana study situation at a glance: Status quo, drivers, strategy" compiled key findings relating to S/4 migration: it sheds light on the current status of the introduction of S/4 Hana, the reasons for the switch and the migration approaches chosen, and works out new trends and tendencies in terms of an overview. The meta-study is intended to help existing SAP customers plan and implement their own transformation project in the best possible way so that they can ideally benefit from SAP developments and new technologies earlier than the competition.
S/4 cardinal errors
In the SNP meta-study, Steffen Drawert, Partner at PwC, names three cardinal mistakes in S/4 conversion: "The first mistake is that there is often no practicable project methodology based on integrated planning. Many companies are increasingly trying to drive extensive S/4 transformations in agile mode, and the methodology sometimes comes too much to the fore. They work off methodologies such as SAFe or other agile frameworks instead of using them as a means to an end.
The second mistake: a lack of a project framework for close collaboration between the project participants. By this I mean a lack of responsibilities, no clear governance, no integrative view of the transformation journey. Handover points are then not clear and the entire operating model in the project is not coordinated. This is particularly fatal when there is a combination of solution provider, system integrator and business integrator. There are mandatory coordination and handover points in the interaction between the partners along the entire transformation agenda that need to be clarified in advance.
The third mistake I see is the lack of consistent transparency regarding the actual progress of the project. By this I mean progress issues, i.e. risks in relation to solutioning, testing, migration and other areas. Classic 'melon projects' appear green for a while and then turn yellow and red two weeks before the planned go-live. Why is that?"
Even if the expiring SAP support for the previous ECC version is the decisive factor for the changeover, existing SAP customers have other good reasons for the S/4 migration. According to the meta study, modernization, innovation and transformation are becoming increasingly important - and in particular the renewal of existing SAP landscapes and IT infrastructure. With an updated application landscape, companies want to increase cost flexibility and agility and drive digitalization forward. Overall, decision-makers see S/4 Hana as the foundation for innovation, automation and new technologies such as AI, robotics, big data and the Internet of Things.
A good third on S/4
Due to the potential that S/4 unleashes, the changeover is high on the agenda for companies. More than one in three SAP users have already migrated all their key systems to the latest version and more than a third are planning to do so. According to the studies examined, an alternative ERP solution is not an option for user companies - making the transition merely a matter of time. In addition, studies suggest that while on-prem ERP remains the most popular operating model, the public and especially the private cloud are increasingly being chosen.
