The transition from SAP R/3 to SAP S/4HANA is a critical step for many companies worldwide, including those in the Netherlands. This migration is necessary because SAP will only provide security support for SAP R/3 until 2027.Below is an overview of migration figures, challenges, and prospects for companies yet to migrate.
Migration Figures 2022-2023
In 2022 and 2023, many companies worldwide made the switch from SAP R/3 to SAP S/4HANA. According to SAP and other industry reports:
2022: Less than 20% of global SAP ECC customers had completed their migration to SAP S/4HANA. This meant a large number of companies had to start migration to be ready for the 2027 deadline.
2023: By the end of 2023, this number had risen to about 28%
The increase in adoption is attributed to the growing pressure to migrate before SAP R/3 support ends. (Basis Technologies)​​ (Basis Technologies)​.
Specific Figures for the Netherlands
While specific figures for the Netherlands are difficult to obtain, we can assume that adoption rates are in line with global trends. Several Dutch companies have already invested in migrating to SAP S/4HANA due to benefits such as improved performance, better integration with cloud solutions, and advanced analytics capabilities. (SAPinsider)​.
Nevertheless, in 2024, 13,730 companies worldwide are still using SAP R/3 (SLN Solutions LLC). There are no specific numbers for the Netherlands, but it is assumed in the market that 70% of Dutch companies with 50 or more employees use SAP (Testing Brain)​.
Companies Yet to Migrate
With an estimated migration rate of 28% in 2023, this means that about 72% of global SAP ECC customers still need to switch to SAP S/4HANA. This translates to a significant number of companies, including a substantial number in the Netherlands, that need to migrate before 2027.
Expectations for the Future
Although the migration rate is increasing annually, it is expected that only 57% of SAP ECC customers will have completed their transformation to S/4HANA by the end of 2027, when the mainstream maintenance period for ECC ends (Basis Technologies)​.
This means that a considerable number of companies, both globally and in the Netherlands, will need to complete their migration process in the coming years to meet SAP’s new standards and support requirements.
Timeline and Challenges
The 2027 deadline is approaching rapidly, and companies that haven’t started their migration must accelerate this process. The main challenges for companies are:
- Complexity of Migration: Migrating to SAP S/4HANA often requires an extensive review of business processes and IT infrastructure.
- Data Quality: A crucial factor often overlooked in the migration process is the time needed to clean up all data. Cleaning and preparing data is crucial, as the quality of the data directly affects the effectiveness of new processes in SAP S/4HANA. This process is time-consuming and often started too late, causing companies to encounter unexpected delays and complications. Poor or unstructured data can lead to new processes not functioning optimally or even needing complete revision. Therefore, it’s vital to start cleaning and structuring data early in the migration process to ensure a smooth transition and prevent new processes from being based on unreliable information.
- Costs: The transition can require significant investments in time and money.
- Resources and Expertise: There is a growing demand for specialized IT professionals experienced in SAP S/4HANA migrations.
Importance of Automation and Strategic Planning
Successful migrations require solid strategic planning and often the use of automation tools to manage the complexity of the transformation. One such tool that facilitates the migration of often underestimated financial (transactional) bookings is:Â TSS.
Tools like ActiveControl DevOps from Basis Technologies can help synchronize changes between landscapes and streamline migration (Basis Technologies)​.
Conclusion
With the 2027 end date rapidly approaching, it’s crucial for companies in the Netherlands to accelerate their migration to SAP S/4HANA. With less than 30% of companies worldwide having completed their migration, the demand for available SAP (migration) specialists will increase in the coming period, while supply will decrease and likely come to a standstill.
Although progress is being made, there is still a long road ahead for many organizations. By using automation tools and thorough strategic planning, companies can minimize risks and maximize the benefits of the new ERP environment.strategic planning, companies can minimize risks and maximize the benefits of the new ERP environment.
Sources:
SAP Insider: SAP S/4HANA Migration 2023
SAP Support Portal: SAP S/4HANA Migration Tools
SAFI: SAP Financial data migration software
Celonis: 5 Facts You Should Know About S/4HANA Migrations
Valantic SAP S/4HANA Study 2023