With the support for SAP ECC ending in 2027, a sizable number of organizations have started to, or already made their shift to SAP S4/HANA. Besides the urgency, there are several other reasons for the migration – and around 45% of these point towards reengineering or fixing past inefficiencies.
At PanditView, we use our expertise and experience to guide you through different stages of the migration – from process mapping and planning, to deployment and adoption management. A simple approach can significantly mitigate your risks and help you navigate the migration with minimal disruptions. Learn more about SAP S4/HANA migration and how we can help you stay ahead.
SAP S4/HANA boasts a simplified data structure, faster data processing, and several modern technologies embedded into the system. The new platform brings in real-time analytics, streamlined processes, and improved user experiences for long-term business advantage.
But these benefits do come with their challenges. There’s a risk of failure, ballooning costs, and the pressure of stakeholder buy-in — along with several technical challenges. Thus, it’s no surprise that the SAP S4/HANA migrations of the likes of Haribo or Revlon fell short.
To save you the trouble of a failed migration, we’ve used our industry experiences to list the top challenges you might face during your migration — with tips on how you can navigate through them all.
5 Challenges Businesses Face In SAP S4/HANA Migration + How to Avoid Them
When migrating from ECC to S/4HANA, you’ll also need to decide on your primary approach — do you want to rip off your old systems and start from scratch (greenfield), shift your existing configurations to a new system (brownfield), or, would you rather go for a mix of the two (bluefield)?
No matter the approach you pick, you’ll still likely face a few challenges during your migration journey. Let’s address the most common ones.
Handling Complex Legacy Landscape
Before the system migration, you need to take a deep look into your existing process landscape. It can contain a collection of ERP systems with different customizations and region-specific configurations. Multiple interdependencies and pre-existing manual workflows can also hamper visibility into the IT assets. A poor understanding of the legacy system, or undocumented processes can affect SAP S4 HANA data migration.
Solution: Here, businesses need a clear understanding of what custom applications are vital to their organization, and what they can let go of. Get a clear picture of your IT system to pick out the obsolete technologies, and keep what’s important. For a streamlined migration that fits your organization’s processes, you’ll also need a granular knowledge of your business requirements along with insights from a fit-gap analysis.
Inefficient Change Management
Transitioning to SAP S/4HANA isn’t just a technical change — it’s a significant organizational shift. Your complete way of operations is changing. In this case, insufficient change management is an invitation to resistance from employees and misalignment with business goals. Almost 70% of change programs fail due to a lack of leadership support and employee resistance.
Solution: Proper planning, conceptualization, and definition of business objectives are cornerstones of a successful change implementation. Developing a robust training program and detailed business case can ensure stakeholder buy-in and minimize disruptions. Establish regular check-ins and a clear communication channel to address concerns, manage expectations, and ensure a smooth transition.
Data Complexities
The SAP S4/HANA migration is only as good as your data. Legacy data stored in different formats, duplicate or outdated records, and inconsistent data quality can impact accuracy levels in the new system. Moreover, a lack of standardization and improper data cleansing can result in multiple errors during the system migration.
Solution: Conducting a comprehensive data assessment and cleansing process is key for an effective migration. This involves archiving unnecessary obsolete data, removing inconsistencies, and standardizing formats at the source. While it does require some investment, the data cleansing process does wonders in de-risking your migration process and helps you get the most out of the S4/HANA system.
Security & Compliance Concerns
The transfer of sensitive information across systems during a migration raises several security concerns and puts data at risk. From data breaches to unauthorized access, your data is exposed to vulnerabilities, compromising its integrity and confidentiality. Moreover, improper handling of data can lead to compliance violations involving severe penalties.
Solution: Prioritizing security and compliance from the outset of your migration project helps mitigate these risks. Perform a comprehensive risk assessment to recognize the probable vulnerabilities and compliance gaps. Implementing robust security measures such as data encryption, role-based access controls, and regular security audits helps de-risk every stage of your data migration in SAP S4/HANA.
Improper Implementation Strategy
Moving too fast can hamper your productivity. While moving too slowly can cause operational disruptions. Organizations often overlook critical aspects such as data mapping and user training, resulting in a higher risk of errors and rework later in the implementation cycle.
Solution: A clear roadmap with defined milestones, realistic timelines, and measurable objectives is vital for a successful migration. Consider starting with a proof of concept or pilot phase to validate the migration approach, test functionalities, and gather feedback from stakeholders. This incremental approach allows you to address challenges and refine strategies before full-scale deployment.
Key Takeaway
With our discussion above, it’s clear that the SAP S4/HANA migrationwill bring its fair share of challenges. Which makes it clear why around 77% of organizationsseek help from external professionals for this project.