Increased Automation Adoption Amidst SAP S/4HANA Migration Growth

Increased Automation Adoption Amidst SAP S/4HANA Migration Growth

Organizations around the world are recognizing the need for greater efficiency in their operations, especially as they approach the 2027 deadline for migrating to SAP S/4HANA. Recent insights indicate that automation is becoming a vital component in this transition, helping streamline complex business processes.

Survey Insights on Automation Usage

According to a recent study, 58% of organizations are now leveraging automation for their SAP migrations and digital transformation initiatives, a considerable rise from the previous year where only 43% reported similar practices. This drastic shift reflects a growing understanding of the importance of automating core processes for overall efficiency.

Understanding Automation Maturity

Interestingly, the research indicates a notable decrease in the number of organizations classified as having low automation maturity — from 13% last year to merely 4% this year. While this demonstrates progress, the majority of businesses (56%) report having a medium level of automation, highlighting that they still rely on a mix of manual and automated operations.

Challenges In Automation Implementation

Despite the benefits, many organizations still face obstacles in achieving full automation maturity. A significant portion, about 50%, adopt automation on a case-by-case basis rather than integrating it throughout the organization. The complexity of SAP-centric processes and integration with existing systems remains a primary hindrance, with 61% of respondents recognizing it as their biggest challenge.

Momentum in SAP S/4HANA Migrations

As companies increasingly focus on automation, there is a concurrent surge in SAP S/4HANA migrations. Projections suggest that by the end of this year, half of the participating organizations will have either completed or initiated their migration to S/4HANA, with an additional 30% planning to migrate within the next two years.

Acceleration Through Automation

This trend marks a substantial turnaround from earlier reports that indicated sluggish migration rates. The journey from legacy SAP ERP systems to S/4HANA often involves complex processes, including the need for parallel operation of both old and new systems, all while managing substantial data-related challenges. Organizations that successfully embrace automation can significantly reduce these complexities, enhancing their capacity for creating and managing master data effectively.

Expert Insights

Chris Hall, Chief Product Officer at Precisely, articulated that as automation initiatives expand, organizations face challenges related to business complexities and integration. Precisely's innovative automation solutions, paired with robust data integrity capabilities, equip businesses to navigate these difficulties, ensuring they can maintain pace and competitiveness in the market.

Final Thoughts on SAP Automation and Migrations

It is evident that the future of SAP-focused businesses hinges on adaptability through automation. The growing trend emphasizes the necessity of implementing effective data strategies for migration and integration processes. As organizations plan for an efficient transition to S/4HANA, they must prioritize advanced automation solutions to alleviate the demands of their existing business frameworks.

About Americas SAP Users Group (ASUG)

ASUG operates as the largest SAP user group globally. Founded in 1991, it aims to maximize the value derived from SAP technologies for its members. Serving thousands of businesses and connecting over 130,000 professionals, ASUG provides essential networking and educational resources to address new challenges faced by SAP customers.

About Precisely

Precisely leads the way in ensuring data integrity, enabling organizations to rely on the accuracy and consistency of their data. Through a comprehensive portfolio, including the Precisely Data Integrity Suite, the company assists businesses in enhancing data quality, integrating information, and making well-informed decisions. Trust is the cornerstone of Precisely's relationships, with over 12,000 organizations globally utilizing their software and services.

Frequently Asked Questions

What is the recent trend in SAP automation?

The trend shows an increase in automation adoption for SAP migrations, with 58% of organizations leveraging it for digital transformation.

Why are businesses migrating to SAP S/4HANA?

Businesses are migrating to SAP S/4HANA to meet the 2027 deadline and increase efficiency through advanced automation solutions.

What challenges do companies face in automation?

Key challenges include integration with existing processes and the complexity of managing SAP-centric business operations.

How does automation impact business processes?

Automation improves efficiency by streamlining workflows, reducing manual interventions, and enhancing data management capabilities.

What role does Precisely play in SAP automation?

Precisely offers solutions that help organizations overcome challenges in automation and data integrity, allowing greater speed and reliability in SAP environments.

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