- Majority struggling with resource bottlenecks, conflicting goals and quality compromises
- Many projects lose strategic clarity and stakeholder support as they progress
- Continuous optimization during and after the conversion is crucial
Despite the imminent end of support for SAP R/3 in 2030, the transformation to SAP S/4HANA is running slowly in many companies - often less effectively than expected. According to a recent Horváth study, 46 percent of companies wish they had planned more time for the project, 41 percent wish they had allocated a larger budget, and 30 percent wish they had defined the project scope more clearly. Furthermore, 73% of surveyed managers believe that budget and resources for the transformation are generally too tight.
Another finding is that too many companies overload the S/4HANA transformation with parallel initiatives, such as replacing third-party systems, realigning the management model, and introducing digital tools and AI solutions. The result is conflicting goals, increased complexity, and a lack of focus.
"Many transformation projects lose clarity and consistency halfway through," says Stefan Maus, partner at Horváth. "Only those who regularly review strategic goals, consistently implement governance structures and continuously optimize them - even after go-live - will benefit in the long term."
Loss of strategy and unrealistic expectations
Around 73 percent of respondents note that the expected added value was significantly higher than the actual results. At the same time, the commitment of key stakeholders decreases noticeably over the course of the project (68 percent agree). Another 68 percent of respondents report that the project scope or quality is being reduced to meet the schedule.
Objectives such as optimizing business processes (36 percent), developing digital foundations for AI, and standardizing processes (31 percent each) become less important - or disappear entirely. "The prioritization of measures - for example, categorizing them as 'must-haves' or 'nice-to-haves' - is often neglected," says Maus. Top management and specialist departments often become involved too late or not at all. "Clear strategic direction, stable governance, and continuous success measurement are the keys to a successful project," says Maus. "Companies should regularly check whether their goals are still clearly defined and managed transparently."
Sustainable success requires readjustments, even after the go-live
Nearly all companies (98 percent) seek external support when converting to SAP S/4HANA. IT consultants are the most important source of support, at 61 percent, followed by strategy and process consultants (46 percent). Although change consulting has only been used by 21 percent so far, its early involvement can be crucial for acceptance and success of the transformation.
Even after successful implementation, the work is not done. Companies should continuously check where there is a need for further optimization. There are no standard solutions - a strategically anchored optimization agenda is crucial. "If you want to benefit in the long term, you should actively surf the optimization wave after the changeover and stay on top of things strategically," says Stefan Maus.
About the study
The Horváth study "Business Transformation Unlocked - Maximizing the Benefits of SAP S/4HANA" surveyed 200 companies that use SAP, have an annual turnover of at least 200 million euros, and have at least 200 employees. The sample covers the DACH region, as well as selected countries in Northern and Eastern Europe, and the United States. The surveys were conducted in January 2025.
