For SAP S/4HANA, steps could communicate louder than terms.

In a new study of SAP end users jointly done by the two most significant SAP person groups globally, ASUG (Americas’ SAP Users’ Group) and DSAG (the German-speaking SAP Person Group), SAP shoppers documented positive impressions of  SAP S/4HANA. But the range of SAP shoppers that have long gone dwell on the future-era ERP technique however stays very low.

The study marks the initially time the two person groups have combined research. It provided responses from seven hundred person group users, 483 from ASUG and 217 from DSAG, from providers around the globe that have a range of SAP programs mounted.

The study seemed at SAP buying decisions and product or service use, attitudes on SAP and S/4HANA, S/4HANA implementations and the impacts of S/4HANA on businesses.

Optimistic impressions of S/4HANA

Attitudes towards SAP S/4HANA had been positive, according to the study. Of the ASUG users, seventeen% rated their impressions of S/4HANA as “extremely positive,” and 41% rated them “rather positive.” The impressions among the European end users had been similar, with eleven% of DSAG users ranking impressions of S/4HANA as “extremely positive” and forty% as “rather positive.”

At the other conclusion of the scale, only 1% of each ASUG and DSAG users rated their impressions of S/4HANA as “extremely adverse,” even though six% of ASUG users and thirteen% of DSAG users mentioned they regard the future-gen ERP in a “rather adverse” light-weight. Moreover, the study documented that % of respondents who had been dwell on S/4HANA rated their impressions as “extremely adverse.”

Despite the fact that there are some tiny variances in impressions, Geoff Scott, ASUG CEO, mentioned he uncovered it shocking that each person groups had been aligned on numerous problems.

“The facts tells us that individuals who have appear out the other aspect of their migration are mainly emotion positive about their working experience,” Scott mentioned in a webinar that mentioned the study benefits. “Commonly speaking, we are hearing frequent themes [from ASUG and DSAG] across the market place globally. There are some various nuances that we attribute to cultural variances and various strategies to strategy, but by and significant, we are surprisingly aligned on the big-photograph items these impressions of S/4HANA.”

S/4HANA however not extensively utilised

For all the positive converse, the study also indicated that S/4HANA is however not extensively utilised by SAP shoppers.

At present, just 16% of ASUG users and twelve% of DSAG users documented that they are dwell on S/4HANA 22% of ASUG users and 23% of DSAG users are in the course of action of transferring to S/4HANA and 33% of ASUG users and forty seven% of DSAG users are organizing an S/4HANA transfer but have not begun the course of action still.

Just six% of respondents from each ASUG and DSAG responded that they have no designs to transfer to S/4HANA. For ASUG respondents, the prime motives for the lack of S/4HANA interest provided large expenditures and lack of a business enterprise scenario. For DSAG respondents, the prime motives had been the lack of an fast want and uncertainty about operation in S/4HANA.

All those organizing to migrate will not commence correct absent, for the most aspect, nonetheless. The study indicated that a huge greater part of ASUG respondents will consider any where from just one to five years to transfer to S/4HANA — 37% inside just one to two years and 35% inside three to five years. For DSAG study takers, forty seven% prepare to transfer to S/4HANA inside the future three years, whereas 38% will consider much more than three years.

Complexity delays S/4HANA implementations

Delays in an S/4HANA migration can be attributed largely to the complexity of the transfer as perfectly as variations in just about every organization’s strategy owing to their personal business enterprise circumstances, Scott mentioned. This is in particular accurate now mainly because of the COVID-19 crisis.

“The size and complexity [of a migration] is a major aspect of this,” Scott mentioned. “The much more people today you get associated in this … [and as] the migration course of action and facts cleanse-up procedures … commence to layer just one on prime of the other, the much more hard it will become and the much more the timeline suffers,” Scott mentioned.

An S/4HANA migration is much more than just a technical challenge, but just one that entails a authentic transformation of business enterprise procedures, according to Scott. Organizations have to consider the time to do this meticulously or danger implementation failure.

The previous detail that shoppers want to do is hurry an implementation and then discover out that it can be not precisely reflecting their business enterprise procedures.
Geoff ScottCEO, ASUG

“The previous detail that shoppers want to do is hurry an implementation and then discover out that it can be not precisely reflecting their business enterprise procedures, and then have to back that up to get the business enterprise procedures back up and managing,” he mentioned. “It usually takes time to feel through business enterprise procedures in a various way in order to modernize them.”

The S/4HANA capabilities go past what present-day legacy programs give, so businesses have to alter business enterprise procedures right before they can consider complete gain of the new capabilities, mentioned DSAG board member Otto Schell.

“You have to split down the wall involving [functional regions like finance and managing],” Schell mentioned. “If you want to look into issues like equipment studying alternatives, you want to go back to the corporation and they have to implement changes to the corporation. But to get to this position, you have to go a lot further into business enterprise procedures, and that is why it could consider lengthier to get to S/4HANA.”