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The Journey to SAP S/4HANA: Key lessons from PwC research
A look at the key benefits and challenges of migrating to S/4HANA
SAP S/4HANA is the latest generation of the SAP Business Suite, providing the digital core to propel businesses toward their objectives, helping organisations unlock opportunities, evolve processes and solve their biggest challenges. However, migrating to S/4HANA is hardly a matter of just flipping a switch. It’s a complex undertaking that requires a substantial amount of planning and forethought before the first tactical steps are taken. Organisations must begin by evaluating the health of their current operating model and their readiness to make the move.
To help understand the context of those questions, PwC developed the S/4 Journey Guide, a survey-based assessment that helps clients quickly determine how they can use S/4HANA to reimagine their business's operating model and drive value creation. We polled hundreds of clients to determine and analyse the likely outcomes, barriers and operating model component readiness work involved with the transformation to S/4HANA. Here’s a selection of those findings.
SAP clients are further along in migration than expected
A quarter of SAP clients surveyed are already at the proof of concept stage in their migration to S/4HANA, and another quarter already have the system live and fully deployed. Another 35% of SAP clients say they expect to have S/4HANA live in the next year.
Enterprises have extremely high expectations of the benefits of S/4—and S/4 is delivering
Our survey also asked respondents what they expected to gain from their migration to S/4HANA, and, for those businesses that had completed their migrations, whether those benefits had been realized. The overall results showed exceptionally high expectations across the board. Yet almost all respondents agreed that S/4HANA was actually exceeding those expectations.
But challenges remain
Organisations that have not yet completed their migration to S/4HANA can learn from the lessons of those who have. Nearly all respondents reported some measure of challenges in moving to the new platform. The most common issues: The transition took longer than expected, required a higher level of training, and cost more than originally budgeted.
The bottom line
The road to S/4HANA may appear difficult, but in general those who’ve completed the journey agree that it isn’t as difficult as expected. More importantly, real benefits await those who make the move to the latest generation of SAP—including improved and more modernised processes, better operational control and more streamlined reporting operation. All of this can be put to work in your organisation, too. With a few years left to make the transition before SAP’s 2027 deadline arrives, there’s still plenty of time to begin your S/4HANA journey, even if you haven't taken the first step. However, be aware that many organisations will be waiting until 2023 or 2024 to begin their S/4HANA program and there will likely be a deficit of talent in the Australian market to meet the demand. We therefore advise our clients to start their S/4HANA roadmap soon.
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