Firms Slow To Transition SAP S/4HANA
August 3, 2022
SAP S/4HANA 2022 surveyt revealed that
organizations need to view the SAP S/4HANA
transformation as more than a technical
upgrade — it is a business imperative. The
report also found that the inherent
complexity of the ERP landscape and its
connection to the broader IT landscape
complicates and slows down the
transformation process. As a result, many
organizations have barely started the
transformation — and time is running out.
When it comes to ERP, companies face a lot of complexity. Over 70% of companies run more than one ERP system and more than half of the companies surveyed use ERP systems from more than one vendor.
About half of the respondents said both identifying interdependencies between ERP and non-ERP landscapes and defining the target architecture as the top challenges faced in in their SAP S/4HANA transformation. These challenges arise in part from the fact that fewer than 20% of respondents can establish an overview of their entire software landscape in under a month.
To complete a successful transformation, collaboration is essential. The biggest obstacle to transformation? Aligning business, project, and IT teams, say two-thirds of those surveyed. Less than half (38%) of EAs describe their involvement in the SAP S/4HANA transformation as sufficient, which represents a drop from the level of involvement reported in last year’s LeanIX SAP S/4HANA survey (47%).
“Time is running out for organizations that plan on moving to SAP S/4HANA,” said André Christ, CEO and Co-Founder of LeanIX. “With only a third of those surveyed saying they will complete their transformation within the planned timeframe, organizations need to focus on actions that will accelerate the process. Enabling effective collaboration between business, project, and IT teams is the critical step they need to take. This will not only speed things up, but will also ensure that the transformation delivers lasting business value.”