ERP systems are at the heart of many companies. It is, therefore, not surprising if changes to these very core elements are embraced rather cautiously. Such a reaction can also be seen in the rather prolonged transition to the new S/4HANA SAP software. However, the ‘SAP S/4HANA 2022’ study also shows that a majority of companies are willing to overcome this hesitation and implement the new software.
How the new generation of software is driving digital change
SAP S/4HANA Study 2022 by CIO, CSO and Computerwoche
Companies rely on new functions and more efficient processes
Implementing new ERP software is costly, time consuming and comes with a range of uncertainties. However, delaying the changeover indefinitely is impossible. It makes sense, therefore, to approach the migration process proactively, before the imminent pressure to act due to circumstances, the changed market or expiring maintenance cycles becomes too great for your company. The old, monolithic systems will inevitably become obsolete at some point. Digital transformation is all about flexibility, after all. This flexibility is precisely what S/4HANA offers, which is why the companies surveyed in the study are hoping for the possibilities of process optimization and the added value of new SAP functions. The path to S/4HANA transformation can vary and depends on the deployment model, the budget, the individual challenges and many other factors.
This study shows what options are available and how decision-makers are assessing the current situation.
The study contains:
- An overview of the implementation criteria, opportunities and challenges associated with migrating to SAP S/4HANA, as well as business value assessments
- Insights into the pressure to act that companies are facing regarding this topic
- Respondents’ assessments of how difficult it is to integrate SAP S/4HANA into the IT landscape
- Information on and assessments of the RISE with SAP product range
- Greenfield and brownfield method assessments
- An overview of how much time companies anticipate it will take to convert to SAP S/4HANA
- Assessments of the role of SAP BTP in the SAP S/4HANA environment
Learn everything about the challenges and opportunities presented by transitioning to SAP S/4HANA.
The study was carried out by CIO, CSO and Computerwoche in March/April 2022. 340 C-level decision-makers and IT specialists from companies in Germany, Austria and Switzerland were surveyed.
The full results, as well as further assessments by and interviews with various experts, can be read in the study carried out by CIO, CSO and Computerwoche. The study is available to you free of charge. The following is a brief summary of some of the important findings and figures.
The hope for optimized processes
The changeover to SAP S/4HANA is often associated with great uncertainty, and, of course, with additional costs. But what opportunities and benefits await companies using the new generation of software? 25% of the companies surveyed see process optimization and digital transformation as the greatest incentives. 23% are looking to benefit from the new functions and 17% are reacting to the phasing out of support for their existing systems.
The pressure is increasing – and migration isn’t getting any easier
Many companies have been hesitant to tackle switching to SAP S/4HANA. The results of the study show that this is now putting companies under pressure. 41% of the companies that have already completed the migration or are currently in the process of doing so say they felt under ‘great’ or ‘very great’ pressure to act. This is also clear here – those who approach and implement new technologies proactively find themselves ahead of the market instead of chasing after it.
Almost all expect noticeable added value
Overall, 87% of the companies surveyed expect a ‘very great’, ‘great’ or ‘rather great’ business value as a result of implementing SAP S/4HANA.
But what is the predicted added value? Most companies (57%) expect faster and more flexible adaptability to new business challenges. Almost as many companies hope for simpler and more efficient processes (49%) and cost savings (47%). Greater sustainability plays a role for the fewest respondents (17%).
Specialist knowledge and expertise remain the decisive issues
The added value provided by the new generation of software is evident. Nevertheless, there are various challenges that companies face that have prevented them from embracing the changeover more quickly in the past.
40% of the respondents say that they see technical and IT knowledge as a decisive obstacle when it comes to the migration. 32% are also concerned about the lack of knowledge of how to operate the new software and 31% are worried about a lack of expertise within the business departments concerning the new functions. Surprisingly, only 17% complain about the lack of resources available for the migration.
Further study results on this and other topics can be found in the 2022 ‘SAP S/4HANA’ study. This can be downloaded free of charge, in PDF format here.