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

For SAP S/4HANA, steps may possibly speak louder than words.

In a new study of SAP users jointly conducted by the two greatest SAP consumer teams globally, ASUG (Americas’ SAP Users’ Group) and DSAG (the German-talking SAP User Group), SAP shoppers noted beneficial impressions of  SAP S/4HANA. But the selection of SAP shoppers that have long gone stay on the next-era ERP process nonetheless remains reduced.

The study marks the first time the two consumer teams have blended analysis. It incorporated responses from seven hundred consumer team customers, 483 from ASUG and 217 from DSAG, from corporations around the world that have a wide range of SAP methods put in.

The study seemed at SAP purchasing conclusions and solution use, attitudes on SAP and S/4HANA, S/4HANA implementations and the impacts of S/4HANA on organizations.

Optimistic impressions of S/4HANA

Attitudes towards SAP S/4HANA have been beneficial, according to the study. Of the ASUG customers, 17% rated their impressions of S/4HANA as “exceptionally beneficial,” and forty one% rated them “fairly beneficial.” The impressions between European users have been similar, with 11% of DSAG customers ranking impressions of S/4HANA as “exceptionally beneficial” and 40% as “fairly beneficial.”

At the other finish of the scale, only one% of both of those ASUG and DSAG customers rated their impressions of S/4HANA as “exceptionally unfavorable,” though six% of ASUG customers and thirteen% of DSAG customers reported they regard the next-gen ERP in a “fairly unfavorable” mild. Moreover, the study noted that % of respondents who have been stay on S/4HANA rated their impressions as “exceptionally unfavorable.”

Despite the fact that there are some smaller distinctions in impressions, Geoff Scott, ASUG CEO, reported he observed it surprising that both of those consumer teams have been aligned on a lot of troubles.

“The details tells us that these who have occur out the other aspect of their migration are mostly sensation beneficial about their encounter,” Scott reported in a webinar that discussed the study benefits. “Commonly talking, we are listening to common themes [from ASUG and DSAG] across the industry globally. There are some unique nuances that we attribute to cultural distinctions and unique techniques to strategy, but by and substantial, we are remarkably aligned on the large-photo objects these impressions of S/4HANA.”

SAP user survey

S/4HANA nonetheless not commonly utilised

For all the beneficial talk, the study also indicated that S/4HANA is nonetheless not commonly utilised by SAP shoppers.

Currently, just sixteen% of ASUG customers and twelve% of DSAG customers noted that they are stay on S/4HANA 22% of ASUG customers and 23% of DSAG customers are in the course of action of relocating to S/4HANA and 33% of ASUG customers and 47% of DSAG customers are scheduling an S/4HANA go but haven’t started the course of action nonetheless.

Just six% of respondents from both of those ASUG and DSAG responded that they have no plans to go to S/4HANA. For ASUG respondents, the leading explanations for the lack of S/4HANA desire incorporated higher prices and lack of a business enterprise situation. For DSAG respondents, the leading explanations have been the lack of an rapid want and uncertainty about performance in S/4HANA.

All those scheduling to migrate will not start off appropriate away, for the most portion, even so. The study indicated that a extensive the vast majority of ASUG respondents will just take everywhere from a single to 5 a long time to go to S/4HANA — 37% within just a single to two a long time and 35% within just 3 to 5 a long time. For DSAG study takers, 47% prepare to go to S/4HANA within just the next 3 a long time, while 38% will just take far more than 3 a long time.

Complexity delays S/4HANA implementations

Delays in an S/4HANA migration can be attributed generally to the complexity of the go as nicely as variations in every organization’s strategy due to their have business enterprise ailments, Scott reported. This is specially genuine now because of the COVID-19 crisis.

“The size and complexity [of a migration] is a significant portion of this,” Scott reported. “The far more people today you get concerned in this … [and as] the migration course of action and details clear-up processes … start off to layer a single on leading of the other, the far more hard it will become and the far more the timeline suffers,” Scott reported.

An S/4HANA migration is far more than just a specialized undertaking, but a single that involves a serious transformation of business enterprise processes, according to Scott. Organizations have to just take the time to do this cautiously or possibility implementation failure.

The previous matter that shoppers want to do is hurry an implementation and then uncover out that it’s not precisely reflecting their business enterprise processes.
Geoff ScottCEO, ASUG

“The previous matter that shoppers want to do is hurry an implementation and then uncover out that it’s not precisely reflecting their business enterprise processes, and then have to back that up to get the business enterprise processes back up and working,” he reported. “It usually takes time to imagine by way of business enterprise processes in a unique way in get to modernize them.”

The S/4HANA capabilities go over and above what existing legacy methods offer, so organizations should modify business enterprise processes right before they can just take whole gain of the new capabilities, reported DSAG board member Otto Schell.

“You have to break down the wall amongst [practical spots like finance and controlling],” Schell reported. “If you want to appear into items like machine studying prospects, you want to go back to the organization and they have to apply adjustments to the organization. But to get to this level, you have to go much further into business enterprise processes, and that’s why it may possibly just take longer to get to S/4HANA.”