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Leading SAP Customers Leaning Towards New Implementations of SAP S/4HANA

October 15, 2019

BOSTON, Mass., October 15, 2019 – A majority of leading SAP customers have chosen a new implementation approach to deploying SAP S/4HANA thus far. According to the SAP customer membership group and research firm SAPinsider, these SAP S/4HANA deployment leaders include companies that have already seen positive business results from their SAP S/4HANA implementation.

“No matter what deployment option SAP customers choose, they should start by ensuring they have cleansed data, as the leaders do, to minimize their SAP HANA database footprint and evaluating the business effectiveness and use of their custom code,” said Pierce Owen, VP or Research at SAPinsider. “From there, they should research industry standards and best practices for business process and compare them to existing processes. At that point, they can they make an informed assessment of how an SAP S/4HANA deployment should fit into a holistic digital transformation strategy.” 

Essentially, SAP customers have three basic choices when it comes to deploying SAP S/4HANA: a new implementation, a system conversion, or a selective data migration. A new implementation means starting with all new processes and configurations. A system conversion entails moving all the old processes and applications from SAP ECC 6. Selective data transitions balance reengineering and reusing existing ERP processes with a tailored data conversion to SAP S/4HANA excluding unnecessary data to reduce transfer time and cost. 

In September and October 2019, SAPinsider surveyed 217 members of its SAP customer audience to understand the progress SAP customers have made in getting positive business results due to SAP S/4HANA with different deployment approaches. The survey revealed that the majority (90%) have at least started evaluating the business case or running pilot projects, while 34% have already at least started deploying SAP S/4HANA. Of those that have at least started deploying SAP S/4HANA, 50% chose to go with a new implementation, 32% chose a system conversion, and 18% chose a selective data transition. 

“While all SAP customers want to identify opportunities to improve processes and correct sub-optimal processes from previous ERP implementations, a majority (58%) of leaders use SAP S/4HANA to modernize and optimize as many processes as possible versus only 29% of laggards. Every company that deploys SAP S/4HANA should try to identify opportunities to improve processes with the new system and modernize as many processes as possible, including those who choose a system conversion. No matter the deployment strategy, companies should try to make the most of SAP S/4HANA by pursuing these strategies,” concludes Owen. 

These findings are from SAPinsider’s Deploying SAP S/4HANA benchmark report, which SAPinsider has made available to SAP customers and the general public. 

SAP customers that wish to contribute to a future report can participate in the Deploying ERP in the Hyperscale Environment survey.

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