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

For SAP S/4HANA, actions may possibly speak louder than words. In a new study of

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

In a new study of SAP users jointly conducted by the two greatest SAP user groups globally, ASUG (Americas’ SAP Users’ Group) and DSAG (the German-speaking SAP Person Group), SAP prospects described optimistic impressions of  SAP S/4HANA. But the range of SAP prospects that have gone stay on the up coming-technology ERP process however stays very low.

The study marks the first time the two user groups have mixed study. It integrated responses from seven hundred user team users, 483 from ASUG and 217 from DSAG, from firms all around the world that have a selection of SAP units put in.

The study seemed at SAP acquiring selections and merchandise use, attitudes on SAP and S/4HANA, S/4HANA implementations and the impacts of S/4HANA on companies.

Beneficial impressions of S/4HANA

Attitudes towards SAP S/4HANA had been optimistic, in accordance to the study. Of the ASUG users, seventeen% rated their impressions of S/4HANA as “very optimistic,” and 41% rated them “relatively optimistic.” The impressions amongst European users had been related, with 11% of DSAG users rating impressions of S/4HANA as “very optimistic” and forty% as “relatively optimistic.”

At the other stop of the scale, only 1% of both ASUG and DSAG users rated their impressions of S/4HANA as “very detrimental,” though 6% of ASUG users and thirteen% of DSAG users explained they regard the up coming-gen ERP in a “relatively detrimental” light. On top of that, the study described that % of respondents who had been stay on S/4HANA rated their impressions as “very detrimental.”

While there are some little differences in impressions, Geoff Scott, ASUG CEO, explained he identified it stunning that both user groups had been aligned on a lot of problems.

“The info tells us that these who have appear out the other aspect of their migration are largely feeling optimistic about their encounter,” Scott explained in a webinar that talked about the study success. “Generally speaking, we’re hearing typical themes [from ASUG and DSAG] across the market place globally. There are some diverse nuances that we attribute to cultural differences and diverse means to tactic, but by and significant, we are shockingly aligned on the major-photograph items these kinds of impressions of S/4HANA.”

SAP user survey

S/4HANA however not widely utilized

For all the optimistic speak, the study also indicated that S/4HANA is however not widely utilized by SAP prospects.

Currently, just 16% of ASUG users and 12% of DSAG users described that they are stay on S/4HANA 22% of ASUG users and 23% of DSAG users are in the system of going to S/4HANA and 33% of ASUG users and forty seven% of DSAG users are arranging an S/4HANA go but have not started off the system nonetheless.

Just 6% of respondents from both ASUG and DSAG responded that they have no options to go to S/4HANA. For ASUG respondents, the top good reasons for the deficiency of S/4HANA fascination integrated substantial charges and deficiency of a company case. For DSAG respondents, the top good reasons had been the deficiency of an rapid have to have and uncertainty about functionality in S/4HANA.

Those arranging to migrate will not start out right away, for the most part, on the other hand. The study indicated that a wide the vast majority of ASUG respondents will acquire wherever from one to five many years to go to S/4HANA — 37% inside of one to two many years and 35% inside of three to five many years. For DSAG study takers, forty seven% approach to go to S/4HANA inside of the up coming three many years, whilst 38% will acquire more than three many years.

Complexity delays S/4HANA implementations

Delays in an S/4HANA migration can be attributed predominantly to the complexity of the go as properly as variants in each organization’s tactic because of to their possess company problems, Scott explained. This is primarily real now for the reason that of the COVID-19 disaster.

“The sizing and complexity [of a migration] is a important part of this,” Scott explained. “The more individuals you get associated in this … [and as] the migration system and info thoroughly clean-up procedures … start out to layer one on top of the other, the more difficult it becomes and the more the timeline suffers,” Scott explained.

An S/4HANA migration is more than just a technological task, but one that will involve a actual transformation of company procedures, in accordance to Scott. Corporations have to acquire the time to do this very carefully or possibility implementation failure.

The past matter that prospects want to do is rush an implementation and then find out that it’s not correctly reflecting their company procedures.
Geoff ScottCEO, ASUG

“The past matter that prospects want to do is rush an implementation and then find out that it’s not correctly reflecting their company procedures, and then have to back that up to get the company procedures back up and managing,” he explained. “It usually takes time to think through company procedures in a diverse way in get to modernize them.”

The S/4HANA abilities go past what present-day legacy units present, so companies should improve company procedures right before they can acquire full advantage of the new abilities, explained DSAG board member Otto Schell.

“You have to crack down the wall amongst [practical regions like finance and managing],” Schell explained. “If you want to look into issues like machine understanding possibilities, you have to have to go back to the firm and they have to implement adjustments to the firm. But to get to this point, you have to go significantly further into company procedures, and that is why it may possibly acquire extended to get to S/4HANA.”