Study: Most SAP migrations fail already in the planning phase

A large portion of SAP S/4HANA migration projects face significant challenges even before actual implementation. This is shown by the study "The State of SAP Migrations" conducted by the technology consulting firm ISG.

The research, which surveyed over 200 business and IT leaders from international companies with more than 1,000 employees, reveals that only 18% of organizations use the migration as an opportunity to implement new SAP processes and technologies. In contrast, 49% retain existing processes and data with minimal or no changes.

Missed Opportunities for Transformation

According to analysts, companies often focus on risk minimization rather than strategic transformation. As a result, they miss the potential of automation, analytics, and AI functionalities that S/4HANA offers.

A common reason for limited changes is the pressure related to the end of support for SAP ERP Central Component (ECC). Many organizations start the migration to meet support deadlines rather than to comprehensively modernize their IT environment.

Delays and Budget Overruns

According to ISG, nearly 60% of SAP migrations fall behind schedule and exceed their budget. The main causes are underestimated complexity, scope expansion, and lack of internal resources.

Analysts emphasize that the problems are rarely purely technical. More often, they stem from weak governance and unclear allocation of responsibilities between system integrators, SAP vendors, and specialized partners.

The absence of clear acceptance criteria, defined roles, and independent oversight of key activities such as data preparation, integration testing, and change management leads to delays and scope expansion.

Governance as a Key Success Factor

ISG recommends that companies treat SAP migration governance as a strategic risk management tool rather than an administrative formality.

This includes:

• Clearly defining the responsibilities of all participants;
• Establishing objective control points during the transition from design to development and testing;
• Independent oversight of critical project phases.

According to analysts, projects that rely on vendors to self-manage often identify problems only when time and financial buffers have already been exhausted.