Data Harmonization: The Key to Successful SAP S/4HANA Migrations
Businesses are ramping up their migration efforts to SAP S/4HANA, with a significant shift towards adoption as the 2027 deadline looms.
A recent study reveals that by the end of 2024, 50% of respondents will have migrated or started migration to S/4HANA, with another 30% planning to make the move within the next two years.
This surge in activity reflects the growing awareness among CIOs and C-Suite executives of the platform’s potential to streamline operations and unlock new capabilities.
However, the report also acknowledges the complexities involved in transitioning from legacy SAP ERP systems.
Migrating to S/4HANA, SAP’s Cloud Applications Suite, is a notoriously challenging process.
It often requires businesses to operate both the legacy and new systems concurrently, while tackling significant data management hurdles.
Automation Emerges as a Critical Success Factor
The report, titled “Unlocking Automation in SAP: 2025 Trends and Challenges,” emphasizes the crucial role of automation in overcoming these challenges.
Successful companies are leveraging process automation to accelerate complex SAP business processes.
This allows them to:
- Create new master and transaction data within SAP systems efficiently.
- Manage large-scale data updates across the SAP landscape using tools like Excel.
- Seamlessly migrate data from existing systems to S/4HANA.
This automation not only streamlines the migration process but also lays the groundwork for future success.
Accurate and timely data is critical for maximizing the benefits of SAP S/4HANA.
By automating data management tasks, businesses can ensure data integrity and consistency, leading to more informed decision-making and improved operational efficiency.
Data Harmonization: A Key Driver of Automation
Another factor driving the adoption of automation is the growing emphasis on data harmonization.
The study, by data integrity services provider Precisely, in collaboration with the Americas’ SAP Users Group (ASUG), highlights this trend.
Their findings reveal a significant increase in organizations utilizing data harmonization automation strategies in preparation for migrating to SAP Cloud platforms.
This rise, from 43% in 2023 to 58% in 2024, underscores the growing recognition that clean and consistent data is essential for a successful migration.
The study also identifies the increasing complexity of SAP-centric business processes, particularly related to managing master data, as a key driver of automation.
The majority of respondents (61%) cite integrating automation with existing business processes as the biggest challenge, highlighting the need for a well-defined approach that minimizes disruption.
The South African Landscape: Navigating Skills Shortages and Cloud Adoption
The migration to SAP S/4HANA in South Africa presents a unique set of challenges and opportunities.
While SAP’s extension of maintenance support for SAP Business Suite 7 until 2027 (with optional extended maintenance until 2030) provides local businesses with more time to plan their migrations, strategic planning is still crucial to avoid last-minute rushes and associated costs.
A significant hurdle in the South African context is the shortage of skilled SAP professionals.
As the 2027 deadline draws closer, the demand for these specialized skills is expected to intensify, potentially leading to increased costs for businesses seeking migration expertise.
Furthermore, while IDC research indicates considerable interest in cloud-based ERP modernization in South Africa, with a high percentage of CIOs expressing intent to utilize cloud services, the actual adoption rate has been slower than anticipated.
This is primarily attributed to concerns about high implementation costs and the existing IT skills gap within the country.
Concluding Remarks
The combined trends of accelerating SAP S/4HANA migrations and the rise of data harmonization automation paint a clear picture: Businesses are increasingly prioritizing data quality and streamlined workflows.
By embracing automation, they can navigate the migration process more efficiently and unlock the full potential of SAP’s next-generation ERP solution.
However, South African businesses must also address the specific challenges of skills shortages and cloud adoption to ensure a smooth and successful transition.
