SAP S/4HANA Migration 2023

The 2027 deadline is real. And it won't move.

SAP has confirmed that the end-of-maintenance deadline for core SAP ERP releases will not be extended beyond 2027. That makes now the time to act. This SAPinsider benchmark report, based on a survey of 161 SAP community members conducted in early 2023, shows that end-of-maintenance concerns have once again become the number one driver of SAP S/4HANA migration planning, ahead of digital transformation goals and process re-engineering.

Who is moving, and why some are still waiting

About two-thirds of the 22,000 organizations that have licensed SAP S/4HANA have completed a deployment. Larger organizations (those with revenues over $1 billion) are further along, with 31% already running the solution compared to just 11% of smaller organizations. For those still on the fence, the biggest barriers are implementation complexity (47%), project length, and uncertainty about the value of making the move.

What organizations are doing to get ready

The top strategies respondents are using to prepare include modernizing or eliminating custom processes, implementing new systems to meet changing business needs, and updating reporting and business intelligence capabilities. Larger organizations with complex, multi-instance ERP environments are especially focused on streamlining custom code so future updates become easier and less disruptive.

What the research says about requirements and technology

Minimal disruption during migration is the most important requirement, cited by 76% of respondents. Close behind are integration between core ERP and line-of-business applications (72%) and a fully compliant ERP system that supports both global and local regulations (72%). Finding a partner with a proven track record in SAP S/4HANA implementations ranks nearly as high. On the technology side, SAP Readiness Check leads current adoption, followed by change management solutions and ETL tools.

Four steps to move forward with confidence

The report closes with clear guidance for any organization still planning its path forward. Start ERP planning now: the longer you wait, the more complex the project becomes. Dedicate real resources to the project, since respondents cite finding time as the biggest challenge. Take time to understand all deployment and licensing options, including the differences between public and private cloud. And choose your implementation partner early, because partner availability may become constrained as more organizations kick off projects before 2027.

Whether you are building a business case, evaluating cloud technology options, or already mid-implementation, the data in this report gives you a clear picture of where the SAP community stands and what actions set successful migrations apart.