SAPinsider Benchmark Report SAP S/4HANA Migration .
SAPinsider Benchmark ReportSAP S/4HANA MigrationBenchmark ReportPierce OwenFebruary 2020Research PartnerReport Sponsors
SAP S/4HANA MIGRATIONBENCHMARK REPORTResearch PartnerThe best-run businesses make the world run better. With courage,perseverance, and breakthrough technology, SAP customers tacklesome of the world's biggest challenges. Find out how they work withSAP to make a lasting difference – and learn about the technologysolutions that fuel their innovation.For more information, visit https://www.sap.comi SAPinsider Benchmark Report
SAP S/4HANA MIGRATIONBENCHMARK REPORTTable of ContentsExecutive Summary . 1Required Actions . 2Chapter One: SAP S/4HANA Migration Overview . 4Best Practices Model - DART. 4What are the Business Drivers for SAP S/4HANAMigration? . 5How Do SAP Customers Meet Their Business Drivers? . 7Key Takeaways . 8Chapter Two: How Do SAP Customers ApproachSAP S/4HANA Migration? . 10Top Requirements for SAP S/4HANA Migrations. 10What Tools Do Respondents Use to Support TheirMigration Strategies? . 12Key Takeaways . 13Chapter Three: Required Actions . 15Steps to Success. 16Methodology . 18Appendix A: The DARTTM Methodology . 20Report Sponsors . 21i SAPinsider Benchmark Report
SAP S/4HANA MIGRATIONBENCHMARK REPORTExecutive SummarySAP recently announced that it would extendmainstream maintenance and support for SAPcustomers on SAP ERP 6 and Business Suite 7 until2027, giving SAP customers two more years to migrate toSAP S/4HANA. SAP did this because the migrationrepresents the biggest project of the decade for membersof most IT departments, who must work with almost everysingle line of business (LoB) to build the business case,migrate operations, and re-engineer processes.In Q1 of 2020, SAPinsider surveyed 537 members of ouraudience to understand their current SAP S/4HANAmigration strategy, and how they plan to meet theirstrategic needs and objectives. Over the past year we'vefound a progression in SAP S/4HANA adoption, with 17% ofSAP customers reporting that they've already gone live, upfrom 8% a year ago. Also, last year, 34% of SAP customersdid not yet have any plans for migrating to SAP S/4HANA.Now, that number has dropped to 14.5%, and the other85.5% have at least started evaluating the business case (seeFigure 1).Figure 1. SAP S/4HANA adoption progress40%35%30%25%20%15%10%5%0%No plans yetCurrentlyRunning PoCsCurrentlyAlready usingevaluating theor pilotsimplementing SAP S/4HANAbusiness caseSAP S/4HANA20192020Source: SAPinsider, February 20201 SAPinsider Benchmark ReportAfter running on SAPECC for 15 years, ourbusiness has changed,and SAP has changed.Some of our processeshave been firmlyintegrated in bothinternal and externalsoftware, but SAPS/4HANA is a greatchance to start overagain. For instance, weneed to implement bestpractices for purchasingand approval. Internal SAP Consultant,Danish Oil & EnergyCompany
SAP S/4HANA MIGRATIONBENCHMARK REPORTThe survey results revealed several other trends for SAPcustomers approaching the SAP S/4HANA migration: Of those who have at least started planning theirmigration, 51% of SAP customers plan to migrate atleast 81% of their ERP instances to SAP S/4HANA. Most (61%) respondents who have not yet startedusing SAP S/4HANA currently use SAP ECC. Over one-third (38%) of SAP customers that have notyet started using SAP S/4HANA do not see a clearpath to integrating SAP's current product line andinnovations with their current ERP. Building the business case emerged as the topchallenge in migrating to SAP S/4HANA from thosewho have started implementing or already gone live.The second biggest challenge was learning aboutand educating decision makers about the capabilitiesof SAP S/4HANA.Required ActionsOrganizations planning to migrate to SAP S/4HANA must: 2Align SAP S/4HANA migration strategies with theoverall operating strategy. SAP S/4HANA will affectalmost every part of the business. It comes withcentralized financial applications, the UniversalJournal, global trade services (GTS), material ledger(ML), internationally- compliant SAP RevenueAccounting and Reporting (RAR), and more. SAPcustomers should include these applications andcapabilities in their business case and migrationstrategy.Research and test best practice business processmodels in SAP S/4HANA. Each of the applicationsand capabilities in the previous bullet can affectbusiness processes, and 48% of survey respondentschose adopting best practice business process SAPinsider Benchmark ReportThe primary reason wesee higher adoption ofSAP S/4HANA isbecause releases 1809and 1909 havecompleted the productvision SAP laid out a fewyears ago. A lot ofpromised functionalityis now part of the coreproduct. Our clients arestarting to see the totalbenefit they can getfrom SAP S/4HANAwhether through fastercore systems, additionalfunctionality now partof core SAP S/4HANAsuch as SAP EWM andSAP TM, or innovationsthrough SAP CloudPlatform. Krishnakant (KK) Dave,Principal/Owner, Deloitte
SAP S/4HANA MIGRATIONBENCHMARK REPORTmodels as a top strategy to address SAP S/4HANAmigration. These capabilities need testing by endusers to ensure they will deliver the promised value. Confront custom code issues upfront and with anopen mind. Customization in current ERP systemsemerged as the third most common inhibitor (36%)for implementing SAP S/4HANA. SAP offers severalfree tools such as SAP Readiness Check, CustomCode Lifecycle Management, and Usage ProcedureLogging to manage and test custom code; however,some SAP customers may discover that a newimplementation or selective data transition will suittheir needs better than a system conversion with alltheir old custom code.Make time to learn about and educate decisionmakers about the capabilities of SAP S/4HANA tobuild the business case. Respondents that havealready started implementing SAP S/4HANA rankedbuilding the business case as the biggest challengeand learning about and educating decision makersas the second biggest challenge in migration, andthe two go hand in hand. To build the business case,leaders from both IT and the LoBs must understandthe relevant capabilities of SAP S/4HANA.A lot of customersassume that customcode will get in the way.It’s something thatneeds to be dealt with,but it’s not the biggestissue. Customers needto think about useracceptance and dataquality, especiallycustomers movingmultiple SAP ERPsystems to SAPS/4HANA. The effortneeded to consolidatemultiple systemsdepends on cleansingand harmonizingoperational data. Carl Dubler,SAP S/4HANA AdoptionMarketing,SAP3 SAPinsider Benchmark Report
SAP S/4HANA MIGRATIONBENCHMARK REPORTChapter One:SAP S/4HANA MigrationOverviewSAP S/4HANA can have significant benefits for SAPcustomers with intelligent automation of businessprocesses such as accounts receivable, accounts payableand financial close, embedded analytics, support for newand diverse business models, and more. However, to takeadvantage of all these capabilities, SAP customers must firstgo through an often-complex migration andimplementation process involving almost every LoB.Best Practices Model - DARTSAPinsider grounds all its research insights in its proprietaryDART model. This research model provides practicalinsights that connect business Drivers and Actions tosupporting Requirements and Technologies. Driversrepresent internal and external pressures that shapeorganizational direction. Organizations take Actions toaddress those Drivers. They need certain people, processes,and capabilities as Requirements for those strategies tosucceed. Finally, they need enabling Technologies to fulfilltheir Requirements.In the case of this report, the end of mainstreammaintenance for legacy SAP ERP releases and theopportunity to re-engineer processes to better fitoperational needs or correct poor configurations from aprevious ERP implementation emerged as the key businessdrivers. Respondents adopt best practice businessprocesses, centralize and automate financial operations,modernize reporting and business intelligence (BI), andcleanse, delete, and archive data to prepare for their SAPS/4HANA migrations. To succeed, they need to minimizedisruption to operations during the migration, understandhow it will impact custom code and business processes,clean and harmonize all operational data, find a proven,4 SAPinsider Benchmark Report
SAP S/4HANA MIGRATIONBENCHMARK REPORTexperienced partner, and ensure SAP S/4HANA willintegrate with all LoB applications. Respondents use or planon using a wide range of free and paid SAP and partnertools and platforms to fulfill all the requirements.As such, respondents’ answers to our survey and interviewquestions revealed clear trends, which are summarized inTable 1 and will be examined over the course of the rest ofthe report.Table 1: DART model framework for SAP S/4HANA migrationDrivers End of maintenance andsupport for core SAP ERPreleases (43%) The opportunity to reengineer processes to betterfit operational needs orcorrect poorprocesses/configurationsfrom a previous ERPimplementation (41%)ActionsRequirements Adopting best practice business Minimal disruption tooperations as they migrateprocess models (48%)to SAP S/4HANA (70%) Centralizing and automatingfinancial planning, accounting, Cleansed and harmonizedand reconciliation activities on aoperational data acrossglobal basis (42%)systems (64%) SAP ERP IntegrationPlatform (77%) SAP Business ScenarioRecommendations (77%) Modernizing reporting and Detailed impact analysis onbusiness intelligence strategy toexisting custom code,provide faster access tobusiness processes, andbusiness insights (42%)operations costs (64%) Cleansing, deleting, and/orarchiving data to minimize theSAP HANA footprint andminimize down-time duringmigration (41.5%) Integrations between coreERP and line of businessapplications (62%)What are the Business Drivers for SAPS/4HANA Migration?Drilling into the data, 43% of survey respondents indicated that theend of mainstream maintenance for core SAP ERP releases drovetheir approach to SAP S/4HANA migration, and 41% said theopportunity to re-engineer processes to better fit operational needs SAPinsider Benchmark ReportExtraction, Transformationand Loading (ETL) tools(76%)Process management toolsfor ERP Business ProcessModelling (BPM) (70%) A partner with a proventrack record implementingSAP S/4HANA (63%) Data cleansing tools (70%)Source: SAPinsider, February 20205Technologies SAP Readiness Check (78%) Custom Code LifecycleManagement (68%) SAP TransformationNavigator (64%)
SAP S/4HANA MIGRATIONBENCHMARK REPORTdrove their approach (see Figure 2). The survey launched beforeSAP announced that it had pushed back the end of maintenancedate from 2025 to 2027, but either way, SAP's maintenance andsupport plans have a significant and real effect on how itscustomers approach the migration to SAP S/4HANA.Figure 2. Top drivers for SAP S/4HANA migration50%45%40%35%30%25%20%15%10%5%0%End of maintenance and support forcore SAP ERP releasesThe opportunity to re-engineerprocesses to better fit operationalneeds or correct poorprocesses/configurations from aprevious ERP implementationSource: SAPinsider, February 2020Of course, a significant number of SAP customers clearlysee SAP S/4HANA as an opportunity to improve businessoperations and not simply a necessary IT upgrade. In fact,respondents chose end-user and business satisfaction asthe most popular metric for a successful SAP S/4HANAmigration at a rate of 69%, followed by process efficiencyimprovement at 64%. During interviews, SAP customersthat were already live on SAP S/4HANA shared that theupgrade helped them complete financial close quicker andimproved inventory management.6 SAPinsider Benchmark ReportWe used this migrationfor financial andoperationaltransformation. Wewere able to close ourfinancial month endprocess quicker andmore effectively thanever before. SAPS/4HANA also improvedvisibility into operations,resulting in fewer itemssitting in ourdistribution center. IT Professional,North AmericanManufacturing Company
SAP S/4HANA MIGRATIONBENCHMARK REPORTHow Do SAP Customers Meet TheirBusiness Drivers?About half (48%) of respondents reported adopting bestpractice business processes as a strategic part of their SAPS/4HANA migration (as seen in Figure 3). This strategydirectly addresses the driver to re-engineer processes asSAP customers replace outdated processes with bestpractices.Figure 3. Top strategies prioritized to address the topdrivers of change60%50%40%30%20%10%0%Adopting bestpractice businessprocess modelsModernizingCentralizing and Cleansing, deleting,reporting andautomatingand/or archivingbusinessfinancial planning, data to minimizeintelligenceaccounting, andthe SAP HANAstrategy to provide reconciliationfootprint andfaster access toactivities on aminimize downbusiness insightsglobal basistime duringmigrationSource: SAPinsider, February 2020Additionally, 42% of organizations chose centralizing andautomating financial planning, accounting, andreconciliation activities on a global basis as a top strategy.With SAP Central Finance, SAP customers can connectmultiple ERP instances to SAP S/4HANA Finance. This canhelp with SAP S/4HANA migration as well as use cases suchas mergers and acquisitions, consolidation, andorganizational change. Therefore, it supports the two keydrivers: preparing to migrate before the end ofmaintenance, and re-engineering processes.7 SAPinsider Benchmark Report
SAP S/4HANA MIGRATIONBENCHMARK REPORTAn equal number of respondents (42%) said their topstrategy was modernizing reporting and businessintelligence (BI) strategy to provide faster access to businessinsights. This also addresses the opportunity to re-engineerprocesses as modern reporting, BI, and analytics capturedata from many parts of the enterprise and empower usersto manipulate the data and analyze it from differentperspectives.As the final top strategy, respondents (41.5%) chosecleansing, deleting, and/or archiving data to minimize theSAP HANA footprint and minimize down-time duringmigration. Since a migration to SAP S/4HANA requires tableand data changes such as converting vendors/suppliers andcustomers to business partners, these changes and othertypes of data cleansing represent a critical step in preparingto migrate to SAP S/4HANA.Key TakeawaysBased on our research with respect to SAP S/4HANAmigration strategies, the following takeaways are clear:8 Align migration strategies to take advantage of theopportunity to re-engineer processes to better fitoperational needs before the 2027 end ofmaintenance deadline. SAP customers pursue avariety of strategies to prepare for their migrations toSAP S/4HANA, but to build the business case andtake advantage of all SAP S/4HANA has to offer, theymust re-evaluate and re-engineer all the businessprocesses that SAP S/4HANA touches. To avoidpaying a premium for maintenance, they must alsocomplete all migrations before the end of 2027. Adopt best practice business processes. Ifcompanies have decided that they will re-engineerbusiness processes as part of this migration, theyshould leverage the opportunity to implement bestpractices when doing this. Almost half (48%) ofrespondents chose this as a strategy. SAPinsider Benchmark ReportWe’ve identified thelargest tables and are inthe process of deletingunneeded data andimplementing archivingprocesses to minimizeour SAP HANA footprintand downtime duringmigration. IT Professional,North AmericanGovernment Organization
SAP S/4HANA MIGRATIONBENCHMARK REPORT9 Centralize and automate financial planning,accounting, and reconciliation activities on aglobal basis. This strategy supports both keybusiness drivers of preparing to migrate before theend of maintenance and re-engineering processes.SAP Central Finance can help with mergers andacquisitions, consolidation, and organizationalchange. Cleanse, delete, and/or archive data to minimizethe SAP HANA footprint and minimize down-timeduring migration. SAP S/4HANA requires severaltable and data changes. These changes and othertypes of data cleansing represent an important stepin preparing to migrate to SAP S/4HANA. SAPinsider Benchmark Report
SAP S/4HANA MIGRATIONBENCHMARK REPORTChapter Two:How Do SAP CustomersApproach SAP S/4HANAMigration?Aligning all LoBs impacted by an SAP S/4HANAimplementation around a migration strategy and businesscase can get very complex as deployment and designdecisions can affect many business processes. This sectionexplores how organizations prioritized the differentrequirements and capabilities that respondents indicatedthey needed for a successful migration and the tools theyused to prepare for said migration.Top Requirements for SAP S/4HANAMigrationsRespondents to the survey selected minimal disruption tooperations during migration as the most importantrequirement, with 70% indicating this was very or extremelyimportant to the success of their SAP S/4HANA migration(see Figure 4). Of course, what qualifies as a disruption tooperations differs between industries and organizations.Figure 4. Top requirements for SAP S/4HANA migration80%70%60%50%40%30%20%10%0% Krishnakant (KK) Dave,Principal/Owner, DeloitteMinimalCleansed and Detailed impactdisruption to harmonizedanalysis onoperations as operational existing customthey migrate to data acrosscode andSAP S/4HANAsystemsbusinessprocessesA partner with Integrationsa proven track between corerecordERP and line ofimplementingbusinessSAP S/4HANA applicationsSource: SAPinsider, February 202010Start with the end goalin mind. Proactivelythink about overallvision for the programand associated businesscase benefits. Ensurethat there is businessinvolvement andexecutive levelsponsorship of theprogram. SAP S/4HANAis a powerful platformand it is critical that youpick a partner that hasdone multiple SAPS/4HANAimplementations in thepast. Experience tells usthat business andconsumer needs areever evolving hence youneed to build yoursystem to evolve. SAPinsider Benchmark Report
SAP S/4HANA MIGRATIONBENCHMARK REPORTFor example, companies that operate primarily nine to fivein one time zone, Monday through Friday, might find 72hours of downtime perfectly acceptable. Meanwhile, a 24/7manufacturing firm might see that as a total non-starter.Some companies that need to minimize that downtime useSAP's near zero downtime (nZDT) service, which helpsresolve many of the challenges that cause downtime aheadof the migration. Even as organizations adopt new bestpractice business processes and clean data, those changesmust not disrupt operations. This also aligns with thestrategy to cleanse data to minimize down-time duringmigration.Respondents chose cleansed and harmonized operationaldata across systems as the second most importantrequirement (64%) because the change in table structuresbetween SAP ERP 6.0 and SAP S/4HANA requires significantdata preparation before it can be migrated to the newplatform. This clearly aligns with the strategy to cleansedata for a minimal SAP HANA footprint and minimal downtime during migration. Also, efforts to consolidate andcentralize financial operations depends on cleansed andharmonized financial and operational data.Other top requirements included a detailed impact analysison existing custom code and business processes (64%), aproven partner (63%), and integrations between the coreERP and LoB applications (62%). An impact analysis ofcustom code, business processes, and costs supports thedata cleansing strategy because even as they cleanse codeand data, customers must know how that will impactprocesses.Some of the top ways respondents indicated that they workwith partners and systems integrators (SIs) during an SAPS/4HANA migration included developing a business caseand roadmap (37%), cleansing data (37%), adapting customcode (35%), and optimizing workflows and processes (34%).Therefore, having a proven partner can help support thestrategies of cleansing data and adopting best practicebusiness processes.11 SAPinsider Benchmark ReportWe used SAP ReadinessCheck and then SAPMaxAttention to figureout how many hours wewould need to set updevelopment for ourSAP S/4HANAmigration. Wedetermined that wewould experience threedays of down-time forthe migration ifeverything wentsmoothly. We thereforedecided to go with thenear zero downtime(nZDT) service, whichhelped us work outsome issues to reducethat projecteddowntime to a day. IT Professional,North American SteelProduction Company
SAP S/4HANA MIGRATIONBENCHMARK REPORTAmong respondents not already live on SAP S/4HANA, 38%said they do not see a clear path to integrating their ERPwith SAP’s other current LoB products. A successfulmigration should resolve this issue and result in deepintegrations between all SAP systems and products.What Tools Do Respondents Use toSupport Their Migration Strategies?SAP Readiness Check represents the most popular tool forrespondents as they prepare to migrate to SAP S/4HANA,with 78% saying they've used or plan to use it (Figure 5).SAP Readiness Check, a free self-service tool available toanyone with an SAP maintenance contract, helps SAPcustomers assess how much effort they will need to exert toperform a system conversion, commonly known as abrownfield implementation, from a legacy SAP ERP system.Figure 5. Popular technologies and migration kSAP ERPintegrationplatformSAP BSRCurrently using or have usedETL toolsProcessDatamanagement cleansingtools fortoolsBPMImplementingEvaluatingSource: SAPinsider, February 2020Most (77%) of SAP customers also plan to use SAP ERPintegration platforms. These products create deepintegrations and connections between front-end systemsand LoB applications to the SAP ERP. This directly addressesthe requirement for integrations between the core ERP and12 SAPinsider Benchmark ReportWe found SAPReadiness Checkvaluable and useful. Itwas a good processwith a comprehensivereport. I would highlyrecommend thatanyone looking at asystem conversion workwith their SAP S/4HANARegionalImplementation Group(RIG). SAP assigns you aperson to help youthrough the conversionfree of charge. It’ssomeone with whomyou have a call onceevery few weeks totrack your pilot andnavigate through theecosystem to help withproblems. Head of ITCAustralian Mining Company
SAP S/4HANA MIGRATIONBENCHMARK REPORTLoB applications and can help harmonize operational dataas organizations prepare to migrate to SAP S/4HANA.Respondents also use or plan to use SAP Business ScenarioRecommendations (BSR) (77%). This tool (free for those withSAP maintenance contracts) analyzes SAP customers'current ERP setup and provides custom insights on howbusiness processes and system usage could improve withSAP S/4HANA and makes recommendations for each LoB tohelp build the business case, which emerged as the topmigration challenge for SAP customers that have alreadystarted implementing SAP S/4HANA. It also serves as thefirst step in analyzing the impact SAP S/4HANA can have onbusiness processes.SAP customers also have plans to use extract, transform,and load (ETL) tools (76%), process management tools forERP Business Process Modelling (BPM) (70%), and datacleansing tools (70%). Respondents use ETL tools tointegrate systems and move data to SAP S/4HANA and BPMtools to model, automate, and optimize business processes.ETL tools and data cleansing tools can help minimizedisruption to operations during migrations, harmonize dataacross systems, and integrate the core ERP with LoBapplications. BPM tools also help perform detailed impactanalyses on business processes.Key TakeawaysWhen it comes to equipping organizations with thecapabilities and technology enablers required for an SAPS/4HANA migration strategy:13 Do not allow the migration to disrupt operations.Respondents selected minimized disruption tooperations as their most important requirement, with70% choosing this as very or extremely important to asuccessful migration to SAP S/4HANA. Leverage tools and technologies to cleanse andharmonize operational data across systems. SAPinsider Benchmark ReportNormally, customersstart with SAP BusinessScenarioRecommendationsfollowed by SAPReadiness Check. SAPBusiness ScenarioRecommendationshelps customersunderstand thepotential value of SAPS/4HANA, but I wouldimagine a lot ofcustomers look at SAPReadiness Checkbecause they alreadyknow they want to do asystem conversion toSAP S/4HANA. Carl Dubler,SAP S/4HANA AdoptionMarketing,SAP
SAP S/4HANA MIGRATIONBENCHMARK REPORTRespondents chose cleansed and harmonizedoperational data across systems as the second mostimportant requirement (64%). To fulfill thisrequirement, SAP customers can leverage SAP ERPintegration platforms, ETL tools, and data cleansingtools.14 Support strategies for adopting best practicebusiness processes with detailed impact analyses,a proven partner, and integrations between thecore ERP and LoB applications. Respondents chosedetailed impact analysis of custom code and businessprocesses (64%), a proven partner (63%), andintegrations between ERP and LoB applications (62%)as very or extremely important requirements.Companies must fulfill these requirements to adoptbest practice business processes as part of theirmigration to SAP S/4HANA. Use or plan to use free SAP tools to prepare formigrations to SAP S/4HANA. SAP Readiness Checkrepresents the most popular migration tool amongrespondents (78%), while SAP Business ScenarioRecommendations emerged as the third mostpopular (77%). Business Scenario Recommendationshelps SAP customers analyze the potential businessimpact of SAP S/4HANA while SAP Readiness Checkhelps them assess the effort needed for a systemconversion. SAPinsider Benchmark Report
SAP S/4HANA MIGRATIONBENCHMARK REPORTChapter Three:Required ActionsThe previous chapters clearly show how SAP customerscurrently align business drivers and actions with supportingrequirements and technologies.Most (85.5%) respondents have at least started evaluatingthe business case for SAP S/4HANA, and the rate ofcompanies that have gone live has increased from 8% in2019 to 17% in 2020. Competing priorities, the top inhibitor(52%), have slowed down adoption and will continue to slowdown many organizations until they get closer to the 2027deadline for end of mainstream maintenance on legacy SAPERP systems, which drives the migration strategies of 43%of respondents. On the other hand, 41% of companies nowrecognize SAP S/4HANA as an opportunity to re-engineerprocesses to better fit operational needs and chose that as akey business driver for their migration strategy.Respondents demonstrated a proclivity towards the freeSAP solutions SAP Readiness Check and SAP BusinessScenario Recommendations. These tools support therequirements of minimizing disruption to operations andprovide detailed impact analyses of custom code andbusiness processes. Respondents also use or plan to useSAP ERP integration platforms to support the requirementof integrating core ERP with LoB applications.Almost half (48%) of SAP customers prioritize adopting bestpractice business models as part of their migration to SAPS/4HANA to take advantage of the opportunity that thismigration presents to re-engineer processes before the2027 end of mainstream maintenance deadline, whichrepresent the top key business drivers for SAP S/4HANAmigration.15 SAPinsider Benchmark Report
SAP S/4HANA MIGRATIONBENCHMARK REPORTSteps to SuccessOur research reveals that SAP customers should apply thefollowing key steps to execute their SAP S/4HANA migrationstrategies:16 Take the opportunity to adopt best practicebusiness processes. SAP customers havedemonstrated that they plan to use this migration toadopt and implement best practice businessprocesses to take advantage of all that SAP S/4HANAhas to offer and they intend to do so before the 2027end of mainstream maintenance deadline. SAPS/4HANA offers significant improved functionalityfrom SAP ECC, but customers must adapt theirprocesses to take advantage of this functionality. Build the business case around re-engineeredbusiness processes and integrations with LoBapplications. A significant portion of respondents(41%) chose the opportunity to re-engineer businessprocesses as a key driver of their SAP S/4HANAmigration, and 62% designated integrations betweenthe core ERP and LoB applications as very orextremely important. Among respondents not yet liveon SAP S/4HANA, 38% said they saw no clear path tointegrating SAP's current product line andinnovations with their current ERP system, whichpartially explains why 77% use or plan to use an SAPERP integration platform. This directly addresses therequirement for integrations between the core ERPand LoB applications a
SAP S/4HANA MIGRATION BENCHMARK REPORT 4 Chapter One: SAP S/4HANA Migration Overview SAP S/4HANA can have significant benefits for SAP customers with intelligent automation of business processes such as accounts receivable, accounts payable and financial close, embedded analytic
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