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Accelerating SAP S/4HANA Migration Amidst Challenges

Recent insights published by Precisely, in partnership with the Americas SAP Users Group (ASUG), shed light on the growing momentum for organizations migrating to SAP S/4HANA. As the 2027 migration deadline approaches, studies reveal that while many businesses are transitioning rapidly towards this modern ERP solution, they must navigate complex challenges along the way.

Key Findings of the Report

The survey presented during the ASUG Tech Connect event highlights that 59% of companies are either fully or partially operational on SAP S/4HANA, an increase of 13 percentage points from the previous year. This surge underscores a concerted effort by firms to adapt to SAP's impending deadline. However, despite this progress, automation adoption has stagnated at 57%. As firms grapple with the demanding migration requirements, their automation efforts are being adversely impacted.

Ashwin Ramachandran, Senior Vice President of Product Management at Precisely, states, "SAP users are making real progress on modernization, but they're also facing some of the most complex transformation challenges in the ERP landscape." He emphasized the need for organizations to maintain a delicate balance between ongoing migrations and enhancing automation strategies that deliver sustainable long-term benefits.

The Race to Meet the Migration Deadline

A sign of robust momentum, two-thirds of companies (64%) are poised to be fully live or in the migration process to S/4HANA by the close of 2025, signaling a reenergized approach after years of gradual progress. Yet, hurdles persist. The top challenges identified include business process changes (49%), the need for system customizations (44%), and resistance within organizations (37%). Companies are struggling with transforming their initial data creation and management, and aligning their existing customizations with SAP's Clean Core approach, which aims for a streamlined and standard system.

Moreover, data quality emerged as a critical challenge as companies transition their legacy data into SAP S/4HANA. Ensuring data accuracy and resolving transformation issues poses significant obstacles during the migration journey.

Automation Initiatives Under Pressure

While automation plays a pivotal role in the modernization strategies of SAP, the rate of its adoption is slowing down. Firms are focusing their resources primarily on migration projects, attempting to manage the complexities intertwined within their SAP environments.
Key challenges inhibiting automation include:

• - Process Complexity (62%): This is the leading concern, surpassing previous integration issues.
• - Integration Difficulties (49%): Companies continue to face hurdles in aligning SAP systems with other record-keeping platforms.
• - Defining Process Requirements (49%): Organizations are finding it tough to map SAP processes while capturing intricate business rules that govern operations.

Nevertheless, there is an observable shift towards more strategic approaches. Organizations are embracing best-of-breed solutions, particularly no-code and low-code platforms, to promote citizen development and enhance automation without overburdening IT personnel.

User Interface Challenges Add Complexity

As companies strive to enhance user experiences, a staggering 54% of respondents are now navigating mixed user interface (UI) environments, which encompass SAP GUI, Fiori, and GUI for HTML. The adoption of Fiori has jumped year-over-year (from 9% to 18%), yet inconsistent UI strategies continue to present friction for both IT and business users. This inconsistency delays many automation initiatives, compounding existing challenges.

To overcome these issues, organizations are in search of seamless automation solutions that ensure a consistent experience across all SAP interfaces. This consistency is vital for smooth transitions from ECC to S/4HANA while preserving user productivity.

Ramachandran added, "Automation proves most effective when it integrates across all SAP environments—from ECC to S/4HANA, and across Fiori, SAP GUI, and GUI for HTML. We're committed to supporting our customers with leading process automation and data integrity solutions to simplify migrations, establish a foundation of trusted data, and drive impactful business transformations."

For more details and insights, access the complete report, Transforming SAP® Processes Through Automation 2026 Trends and Challenges, or visit the Precisely team during the ASUG Tech Connect event from November 4-6.

Conclusion

These findings illuminate the dual challenge faced by organizations striving to modernize their SAP environments while enhancing automation. As they approach the migration deadline, understanding and addressing the multifaceted barriers will be crucial for a successful transition to SAP S/4HANA.