SAP S/4HANA Migration: A Growing Trend Amid Challenges
As the 2027 S/4HANA migration deadline approaches, research highlights key barriers to SAP modernization including process complexity, data quality challenges, and mixed user interface environments.
BURLINGTON, Mass. — New findings reveal that organizations are accelerating their migration to SAP S/4HANA, even as they encounter increasing complexity with SAP processes and balance competing priorities.
During a recent event, it was revealed that 59% of companies are now either fully or partially live on SAP S/4HANA, marking an increase of 13 percentage points compared to prior years. This urgency stems from the upcoming migration deadline set by SAP.
A senior executive stated, "SAP users are making significant strides toward modernization. However, they are also confronted with complex transformation challenges inherent within the ERP landscape. Companies that successfully navigate these complexities are the ones maintaining their migration timelines while enhancing automation strategies that provide lasting value."
Increased Migration Activity, Yet Issues Remain
Research indicates that nearly two-thirds of organizations are expected to fully migrate or be in the process of migrating by the end of a specified year, demonstrating strong momentum after a prolonged period of gradual progress. However, this migration is not without its difficulties.
Respondents identified several top barriers, including changes in business processes (49%), customizations (44%), and resistance to change within organizations (37%). Many companies are struggling to effectively reshape how their core SAP data creation and management processes operate, align legacy customizations with SAP's Clean Core approach, and drive extensive cultural change.
Moreover, data quality was noted as a critical yet often understated issue, with organizations facing challenges related to accuracy and the transformation of legacy data as they transition into SAP S/4HANA environments.
Challenges in Automation During Migration
While automation continues to be a fundamental aspect of modernization strategies, the growth in its adoption has become sluggish as businesses prioritize migration projects and address ongoing complexities within their SAP systems.
Key barriers to automation include:
- Process complexity (62%) – identified as the leading challenge this year, overshadowing integration obstacles.
- Integration issues (49%) – the struggle to align SAP with various other systems continues to hinder advancement.
- Understanding and defining process requirements (49%) – many organizations find it challenging to map out SAP processes effectively and document intricate business rules.
Despite these hurdles, strong momentum persists, showing a clear trend towards strategic, best-of-breed solutions. Organizations are increasingly adopting no-code/low-code platforms and citizen development initiatives to scale automation effectively without overwhelming their IT departments.
Mixed User Interfaces: A Compounding Factor
As companies transition to modern user experiences, a significant portion (54%) report operating in mixed user interface environments, which feature combinations of SAP GUI, Fiori, and GUI for HTML. While the full adoption of Fiori has shown significant growth, inconsistent UI strategies have become a primary source of friction for users, leading to delays in automation projects.
Organizations are now seeking automation solutions that provide a seamless experience across all SAP interfaces to facilitate smoother transitions from ECC to S/4HANA while keeping end-user productivity intact.
"Automation is most effective when it encompasses all SAP environments – from ECC to S/4HANA, including Fiori, SAP GUI, and GUI for HTML," said a product executive. The aim is to support customers with leading automation and data integrity solutions, helping them simplify migrations, establish a foundation of trustworthy data, and expedite valuable business transformations.
About the Americas SAP Users Group (ASUG)
ASUG stands as the largest SAP user group worldwide. Established in the early 1990s, its mission is to enable organizations to maximize their investment in SAP technology. ASUG connects thousands of businesses, aiding more than 130,000 professionals with networking and educational resources essential for overcoming emerging challenges.
About Precisely
Precisely is recognized globally as a leader in data integrity, working to ensure that data remains accurate, consistent, and contextual. Their diverse portfolio assists in data integration, quality improvement, data governance, geocoding, and data enrichment to support confident business decisions. Over 12,000 organizations across more than 100 countries trust Precisely for their software and strategy consulting needs.
Frequently Asked Questions
What is the significance of the 2027 S/4HANA migration deadline?
The 2027 S/4HANA migration deadline is crucial as it marks the last chance for organizations to transition from older SAP versions to S/4HANA, ensuring they remain supported and can utilize newer features.
What are the main challenges faced during the S/4HANA migration?
Main challenges include process complexity, resistance to change, data quality issues, and aligning legacy systems with new SAP standards, all complicating the migration process.
How is automation impacted during the migration process?
Automation initiatives have slowed down as organizations prioritize migration tasks and address the complexities involved within their current SAP environments, impacting overall automation growth.
What is the role of ASUG in supporting SAP users?
ASUG provides networking opportunities, educational resources, and advocacy to help SAP users maximize their technology investments and adapt to industry changes.
How does Precisely assist organizations with SAP migrations?
Precisely offers data integrity solutions and process automation tools to help organizations navigate the migration process smoothly, ensuring data quality and workflow efficiency.
