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

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

In a new survey of SAP buyers jointly done by the two premier SAP user teams globally, ASUG (Americas’ SAP Users’ Team) and DSAG (the German-speaking SAP User Team), SAP clients described favourable impressions of  SAP S/4HANA. But the variety of SAP clients that have absent stay on the up coming-technology ERP procedure continue to stays lower.

The survey marks the very first time the two user teams have merged study. It integrated responses from seven-hundred user team associates, 483 from ASUG and 217 from DSAG, from companies all-around the world that have a range of SAP techniques set up.

The survey appeared at SAP acquiring choices and solution use, attitudes on SAP and S/4HANA, S/4HANA implementations and the impacts of S/4HANA on organizations.

Favourable impressions of S/4HANA

Attitudes towards SAP S/4HANA ended up favourable, according to the survey. Of the ASUG associates, seventeen% rated their impressions of S/4HANA as “particularly favourable,” and forty one% rated them “fairly favourable.” The impressions amongst European buyers ended up related, with eleven% of DSAG associates score impressions of S/4HANA as “particularly favourable” and forty% as “fairly favourable.”

At the other finish of the scale, only 1% of both equally ASUG and DSAG associates rated their impressions of S/4HANA as “particularly damaging,” although six% of ASUG associates and thirteen% of DSAG associates claimed they regard the up coming-gen ERP in a “fairly damaging” gentle. Additionally, the survey described that % of respondents who ended up stay on S/4HANA rated their impressions as “particularly damaging.”

Even though there are some small discrepancies in impressions, Geoff Scott, ASUG CEO, claimed he identified it stunning that both equally user teams ended up aligned on lots of challenges.

“The facts tells us that all those who have appear out the other facet of their migration are largely emotion favourable about their practical experience,” Scott claimed in a webinar that mentioned the survey benefits. “Commonly speaking, we’re hearing common themes [from ASUG and DSAG] across the sector globally. There are some distinct nuances that we attribute to cultural discrepancies and distinct means to approach, but by and substantial, we are remarkably aligned on the significant-photograph goods this kind of impressions of S/4HANA.”

SAP user survey

S/4HANA continue to not commonly used

For all the favourable talk, the survey also indicated that S/4HANA is continue to not commonly used by SAP clients.

At this time, just 16% of ASUG associates and 12% of DSAG associates described that they are stay on S/4HANA 22% of ASUG associates and 23% of DSAG associates are in the course of action of relocating to S/4HANA and 33% of ASUG associates and forty seven% of DSAG associates are scheduling an S/4HANA shift but haven’t begun the course of action however.

Just six% of respondents from both equally ASUG and DSAG responded that they have no strategies to shift to S/4HANA. For ASUG respondents, the leading good reasons for the deficiency of S/4HANA interest integrated higher costs and deficiency of a enterprise case. For DSAG respondents, the leading good reasons ended up the deficiency of an speedy want and uncertainty about features in S/4HANA.

All those scheduling to migrate will not start off suitable absent, for the most component, on the other hand. The survey indicated that a extensive the greater part of ASUG respondents will just take any where from a person to five a long time to shift to S/4HANA — 37% within just a person to two a long time and 35% within just a few to five a long time. For DSAG survey takers, forty seven% program to shift to S/4HANA within just the up coming a few a long time, while 38% will just take extra than a few a long time.

Complexity delays S/4HANA implementations

Delays in an S/4HANA migration can be attributed generally to the complexity of the shift as well as versions in each individual organization’s approach due to their possess enterprise problems, Scott claimed. This is in particular true now for the reason that of the COVID-19 disaster.

“The sizing and complexity [of a migration] is a significant component of this,” Scott claimed. “The extra people you get included in this … [and as] the migration course of action and facts clean up-up procedures … start off to layer a person on leading of the other, the extra challenging it gets and the extra the timeline suffers,” Scott claimed.

An S/4HANA migration is extra than just a specialized challenge, but a person that will involve a actual transformation of enterprise procedures, according to Scott. Corporations have to just take the time to do this carefully or danger implementation failure.

The last matter that clients want to do is rush an implementation and then find out that it really is not precisely reflecting their enterprise procedures.
Geoff ScottCEO, ASUG

“The last matter that clients want to do is rush an implementation and then find out that it really is not precisely reflecting their enterprise procedures, and then have to back that up to get the enterprise procedures back up and working,” he claimed. “It will take time to assume through enterprise procedures in a distinct way in order to modernize them.”

The S/4HANA abilities go past what present legacy techniques offer, so organizations must modify enterprise procedures right before they can just take whole advantage of the new abilities, claimed DSAG board member Otto Schell.

“You have to break down the wall between [useful locations like finance and controlling],” Schell claimed. “If you want to appear into things like device understanding chances, you want to go back to the organization and they have to implement alterations to the organization. But to get to this place, you have to go significantly deeper into enterprise procedures, and that’s why it may perhaps just take for a longer period to get to S/4HANA.”