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S/4 HANA Transformation – Where do companies stand in 2022?

With the extension of the end of service date for old SAP ERP systems (SAP R/3 or Business Suite 7), originally slated for 2025, through 2027 and in some cases through 2030, SAP has effectively given companies a grace period. But the time to decide is getting closer and time is short if you want to go about things the right way. “Change takes time. Companies that have yet to get started with the transformation run the risk of missing the 2027 time window”, according to Michael Brecht, Solution Architect at Nagarro ES. “A 6-month time frame for migration to SAP S/4HANA will not be sufficient to create real added value for companies and lay a solid foundation for future development. That’s why companies are strongly advised to allow plenty of time for planning.

Where do things stand in 2022?

In what stage of the transformation are companies actually? Nagarro ES conducted a survey of 50 IT decision-makers at the IT online conference, with interesting results.

When is the transformation planned?

35% of all of those surveyed said that a S/4HANA project is already scheduled for 2023, which means that these companies are already very closely involved with the issue. But just over 23% are not planning to change before 2024 at the earliest and a majority (31.25%) are not even planning to change until 2025 at the earliest, or later.

But the great majority of IT decision-makers responded that they are already at the stage of specifically planning a conversion (40% are at the pilot study stage, 34% are developing a roadmap) and just 12% claim they prefer to wait.

Which delivery models are favored?

The majority of decision-makers surveyed said they have opted for an on-premise version (just 36%) or a hybrid model (just 44%). But fewer companies consider an exclusively cloud-based strategy an advantage for them. But regardless of which path is the right one for the particular company, the important thing is to get started plenty of time in advance.

Drivers of the conversion

Whether it’s the time pressure alone that is driving the company towards the change or there are other reasons playing a role, the fact is that the current Coronavirus pandemic has for many companies driven home the reality of where their own weaknesses lie in terms of digitization. This is perhaps yet another reason to get started with the transition early. With the right partner by your side you can find the right path, specifically tailored to each company, and follow it through successfully with acceptance from the entire staff.

It´s time for change! With SAP S/4HANA experts Michael Brecht and our entire team, we are happy to assist you with our consultation. Don’t hesitate to contact us.

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