Maria Boldor (Horváth) on the challenging path to SAP S/4HANA implementation

Over 90% of the companies using SAP have either implemented SAP S/4HANA or are on their way, but during their journey, they typically encounter a number of challenges and delays. A discussion with Maria Boldor from Horváth on the SAP S/4HANA implementation process and key issues and success factors.

A survey of more than 200 executives from companies using SAP released earlier this year confirmed what experts in the ERP domain have known for long: implementing SAP S/4HANA is – just like any other ERP system – a daunting and risky task.

In the case of SAP S/4HANA, the pressure is on – in 2027, SAP will cease support for its legacy ERP systems (ECC and R3), meaning that companies will by then have to have completed their migration to SAP S/4HANA.

SAP S/4HANA is the most advanced ERP solution offered by SAP, the global leader in ERP software. “SAP S/4HANA uses in-memory computing technology, which allows for real-time data analysis and processing. Thus, organizations benefit from instant information, significantly improving the decision-making process and reducing reaction time,” explains Boldor.

The Horváth survey found that more than 90% of companies have started their transformation, of which over half are in the Prepare, Realize or Deploy phases. 3 in 10 have already gone live with SAP S/4HANA, of which 11% are in the Run phase (optimizing performance post go-live). Just 19% have fully completed the transition (meaning SAP S/4HANA has been transferred to the standing organization).

“On average, the implementation of SAP S/4HANA takes about 15 months, from initialization and planning through to implementation, data migration, testing, followed by post-implementation support. But projects are often delayed by up to 30% in their timelines due to unforeseen challenges encountered along the way,” says Maria Boldor, partner at Horváth.

Although most companies have understood the importance of digital transformation, only 30% of them have successfully completed the process – offset against their original timelines and budgets. 65% of companies reported significant deviations from the initial plan. “This is largely due to uncontrolled project expansion, poor team management and quality issues.”

Another issue lies in poor planning in the early stages. “Many companies underestimate the time needed to implement solutions, due to a lack of a clear vision or insufficient collaboration with IT teams,” explains Boldor. “46% of companies would plan a longer implementation time, and 41% would allocate a larger budget, if they were to start the process over again.”

Boldor calls on implementation leaders to study critical success factors and put them into practice. “If organizations become aware of possible problems and seek solutions early, even major difficulties can be overcome and the transformation process can become a success.”

How does consulting help in transformation?

Consulting plays an essential role in the success of a digital transformation project, with Horváth’s study finding that 98% of companies implementing SAP S/4HANA make use of specialized support. “It is crucial that, in addition to technical expertise, there is also close collaboration on the business strategy and processes side. Change management consulting is also essential, because the transition to SAP S/4HANA involves a significant change in the way employees work.”

“Digital transformation is not just about technology, but also about people and changing the mindset within the organization.”