August 11, 2020


Connecting People

ASUG/DSAG members like S/4HANA, but implementations still lag

For SAP S/4HANA, actions may speak louder than terms.

In a new study of SAP customers jointly carried out by the two biggest SAP person groups globally, ASUG (Americas’ SAP Users’ Team) and DSAG (the German-speaking SAP Consumer Team), SAP customers described good impressions of  SAP S/4HANA. But the number of SAP customers that have long gone dwell on the subsequent-generation ERP technique however continues to be minimal.

The study marks the 1st time the two person groups have put together investigation. It integrated responses from seven hundred person group users, 483 from ASUG and 217 from DSAG, from firms all around the world that have a range of SAP techniques mounted.

The study looked at SAP obtaining choices and merchandise use, attitudes on SAP and S/4HANA, S/4HANA implementations and the impacts of S/4HANA on corporations.

Good impressions of S/4HANA

Attitudes toward SAP S/4HANA ended up good, according to the study. Of the ASUG users, 17% rated their impressions of S/4HANA as “extremely good,” and 41% rated them “rather good.” The impressions between European customers ended up comparable, with eleven% of DSAG users rating impressions of S/4HANA as “extremely good” and 40% as “rather good.”

At the other end of the scale, only 1% of both equally ASUG and DSAG users rated their impressions of S/4HANA as “extremely unfavorable,” even though 6% of ASUG users and 13% of DSAG users claimed they regard the subsequent-gen ERP in a “rather unfavorable” light-weight. Furthermore, the study described that % of respondents who ended up dwell on S/4HANA rated their impressions as “extremely unfavorable.”

Although there are some modest differences in impressions, Geoff Scott, ASUG CEO, claimed he identified it stunning that both equally person groups ended up aligned on several concerns.

“The information tells us that all those who have occur out the other facet of their migration are mainly emotion good about their expertise,” Scott claimed in a webinar that talked about the study final results. “Normally speaking, we are listening to frequent themes [from ASUG and DSAG] throughout the sector globally. There are some unique nuances that we attribute to cultural differences and unique techniques to strategy, but by and substantial, we are remarkably aligned on the huge-image merchandise these impressions of S/4HANA.”

S/4HANA however not greatly made use of

For all the good communicate, the study also indicated that S/4HANA is however not greatly made use of by SAP customers.

At this time, just sixteen% of ASUG users and 12% of DSAG users described that they are dwell on S/4HANA 22% of ASUG users and 23% of DSAG users are in the method of shifting to S/4HANA and 33% of ASUG users and 47% of DSAG users are planning an S/4HANA move but haven’t began the method nevertheless.

Just 6% of respondents from both equally ASUG and DSAG responded that they have no options to move to S/4HANA. For ASUG respondents, the leading factors for the deficiency of S/4HANA desire integrated substantial expenses and deficiency of a business situation. For DSAG respondents, the leading factors ended up the deficiency of an speedy need and uncertainty about operation in S/4HANA.

People planning to migrate will not start off right away, for the most aspect, nonetheless. The study indicated that a wide the vast majority of ASUG respondents will consider anywhere from a person to 5 many years to move to S/4HANA — 37% inside of a person to two many years and 35% inside of three to 5 many years. For DSAG study takers, 47% strategy to move to S/4HANA inside of the subsequent three many years, while 38% will consider extra than three many years.

Complexity delays S/4HANA implementations

Delays in an S/4HANA migration can be attributed generally to the complexity of the move as nicely as variations in each organization’s strategy due to their own business ailments, Scott claimed. This is in particular accurate now for the reason that of the COVID-19 crisis.

“The size and complexity [of a migration] is a significant aspect of this,” Scott claimed. “The extra individuals you get associated in this … [and as] the migration method and information clean up-up procedures … start off to layer a person on leading of the other, the extra complicated it turns into and the extra the timeline suffers,” Scott claimed.

An S/4HANA migration is extra than just a specialized task, but a person that involves a authentic transformation of business procedures, according to Scott. Companies have to consider the time to do this diligently or danger implementation failure.

The final factor that customers want to do is hurry an implementation and then obtain out that it is really not properly reflecting their business procedures.
Geoff ScottCEO, ASUG

“The final factor that customers want to do is hurry an implementation and then obtain out that it is really not properly reflecting their business procedures, and then have to back that up to get the business procedures back up and operating,” he claimed. “It usually takes time to believe via business procedures in a unique way in get to modernize them.”

The S/4HANA capabilities go outside of what latest legacy techniques supply, so corporations have to change business procedures prior to they can consider total gain of the new capabilities, claimed DSAG board member Otto Schell.

“You have to split down the wall among [practical places like finance and controlling],” Schell claimed. “If you want to search into points like equipment understanding prospects, you need to go back to the business and they have to implement changes to the business. But to get to this stage, you have to go considerably deeper into business procedures, and that is why it may consider for a longer period to get to S/4HANA.”