A common set of challenges is plaguing organizations as they migrate to SAP S/4HANA, according to the findings from the ‘State of SAP S/4HANA Transformation’ report published by consultancy firm PwC and LeanIX – a cloud-based provider of Enterprise Architecture Management (EAM) solutions. Complex legacy IT, high-customization and unclean master data are mentioned as the top-3 issues faced by organizations who have already or are in the process of migrating.
Overall, the findings show that although organizations are prioritizing their SAP S/4HANA migration projects, they are largely underestimating the complexity and therefore, the time to implementation. The report, conducted in partnership between LeanIX and PwC, gathered insights from IT leaders across global organizations to assess SAP S/4HANA migration progress, approaches and challenges faced along the digital transformation journey.
The research confirms a common set of challenges that are plaguing organizations as they migrate to SAP S/4HANA. Of those who have already or are in the process of migrating, respondents cited complex legacy IT landscapes (60 percent), high-customization (59 percent) and unclean master data (51 percent) as the top-3 issues they have faced.
Business Capability Mappin
20 percent of respondents reported they have already completed their migrations well ahead of SAP ECC’s end of life in 2025. However, nearly half (49 percent) reported they plan to complete migration by 2020. These aggressive implementation timelines would indicate that IT leaders underestimate the complexity of migration.
According to the LeanIX/PwC report, of those who have not yet migrated, nearly half (44 percent) plan to use a brownfield approach, while 42 percent will go with a selective greenfield approach. Only 14 percent plan to use a full greenfield approach, indicating a mature avoidance of the rip and replace reflex, as IT teams consider the value of existing SAP ERP and BW systems.
“Without the proper visibility into as-is landscape, the complexities of the SAP environment such as instances, clients, add-ons and enhancement packs will get the best of IT, delaying delivery times and impacting the businesses ability to seize the digital opportunity,” said André Christ, Co-CEO and Co-Founder, LeanIX. “As transformation plans continue to evolve ahead of 2025, the survey indicates a healthy reliance on business capability mapping, With nearly three quarters (73 percent) of respondents citing use of business capability mapping to plan transformation efforts, manual collection of application and interface data will be a critical pain point.”
For more details on the LeanIX/PwC ‘State of SAP S/4HANA Transformation’ report, please visit the LeanIX website here.
LeanIX offers a Software-as-a-Service (SaaS) platform for Enterprise Architecture (EA), which enables organizations to make faster, data-driven decisions. Hundreds of global brands such as Adidas, DHL, Merck, Vodafone or Zalando use the LeanIX platform to increase transparency, visibility and drive real-time efficiencies. LeanIX was founded in 2012 by Jörg Beyer and André Christ. The company is headquartered in Bonn, Germany, with additional offices in Boston, Massachusetts and Houston, Texas.