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SAP S/4HANA reached pivotal moment

The 2024 ASUG Pulse of the SAP Customer Research, set to be fully unveiled soon, marks a significant year in the evolution of SAP S/4HANA. Launched nearly a decade ago, SAP S/4HANA has reached a pivotal moment in 2024, with nearly half of ASUG members either currently using or beginning its implementation.

Here are the primary insights from the research:

Widespread Adoption and Implementation

Growing Usage: 47% of ASUG members surveyed are engaging with SAP S/4HANA, with expectations that 69% will have implemented the system within two years.

Priority and Importance: SAP S/4HANA has become a top priority, with 48% of members citing it as the most important focus for their organizations in 2024, increasing from 42% in 2023.

Skills and Resource Allocation

Skill Gaps: A significant skill gap in SAP S/4HANA expertise has been noted as the top deficiency within organizations.

Resource Needs: As the 2027 end of mainstream maintenance deadline approaches, there's a surge in demand for implementation resources, with 41% of members planning future implementations.

Investment Trends

Increased SAP Spending: Over half of the respondents (52%) report increased investment in SAP technologies, particularly in SAP S/4HANA, attributed to business growth and enhanced functionalities.

Expansion and Integration: Investments are not just in implementations but also in consulting, software services, and educational efforts to support SAP S/4HANA transitions.

Cloud Migration and Digital Transformation

Cloud Adoption: 57% of members recognize significant impacts of cloud migration on digital transformation, with the majority of SAP S/4HANA users (62%) moving to various cloud environments, including private, managed, and public clouds.

Challenges: For those still on-premises, cost, security, and compliance remain the primary barriers to cloud migration.

Post-Pandemic Business Landscape

Shifting Challenges: While pandemic-related disruptions recede, budget constraints, integration difficulties, and master data maintenance have emerged as primary challenges for 2024.

Strategic Responses: Organizations are actively addressing these challenges through cost reduction strategies, revenue generation initiatives, and enhancing process efficiencies.

The Great Reskilling

Workforce Development: There's a noticeable shift towards reskilling, with a significant number of ASUG members focusing on aligning talent with technological advancements. Training in SAP S/4HANA skills is highly sought after, alongside competencies in AI and business process management.