5 Key Challenges in SAP S/4HANA Migration and How to Overcome Them

Migrating to SAP S/4HANA is an exciting opportunity for businesses looking to modernize their ERP systems and unlock powerful capabilities. However, the journey to this next-generation platform can be complex and filled with challenges. In this blog, we’ll explore the five key challenges that organizations may face during SAP S/4HANA migration and how to overcome them for a smoother transition.

Five Key Challenges During SAP S/4HANA Migration

1. Data Migration Complexity

One of the most significant challenges in an SAP S/4HANA migration is the complexity of data migration. Organizations often face difficulties in extracting, transforming, and loading (ETL) massive amounts of data from legacy systems to S/4HANA, especially when data is stored in various formats or the data quality is poor.

How to overcome it:

• Start Early: Begin the data migration process as early as possible to give ample time for data cleanup, validation, and testing. 

• Leverage SAP Tools: SAP offers tools like the SAP S/4HANA Migration Cockpit to assist with data migration. These tools can simplify the ETL process and help automate many tasks. 

• Data Governance: Ensure proper data governance processes are in place, which will help ensure the accuracy and completeness of the data being migrated. 

2. System Downtime and Business Continuity

Migrating to SAP S/4HANA can cause significant system downtime, disrupting daily operations and potentially affecting business continuity. This is especially challenging for companies that require real-time access to their business systems.

How to overcome it:

• Plan and Test Extensively: Careful planning and thorough testing of the migration process can help minimize downtime. Implementing a phased migration strategy allows you to migrate in stages, reducing system disruptions. 

• Use Hybrid Approaches: Hybrid approaches, such as running both legacy systems and SAP S/4HANA in parallel during the migration, can help ensure business continuity. 

• Implement a Backup and Recovery Plan: Ensure a comprehensive backup and recovery strategy is in place to quickly recover from any potential issues during migration. 

3. Customization and Integration Issues

SAP S/4HANA offers advanced features and functionality, but migrating from a highly customized SAP environment or integrating with third-party applications can be a challenge. Existing custom code may need to be adjusted or rewritten to work with the new system.

How to overcome it:

• Evaluate Customizations: Perform a thorough review of all customizations and third-party integrations before beginning the migration. Identify which custom features can be standardized and which need to be re-architected. 

• Use SAP Fiori and Standardization: SAP Fiori provides modern, user-friendly interfaces, and using standardized S/4HANA applications where possible can reduce the need for custom development. 

• Test Integrations Early: Test integrations between SAP S/4HANA and third-party applications early in the process to identify potential issues and resolve them before the full migration.

   

4. Skills and Change Management

The migration to SAP S/4HANA may require new skills, especially in areas like S/4HANA architecture, new functionalities, and the latest SAP technologies. Additionally, change management is crucial for ensuring that employees are well-prepared for the new system.

How to overcome it:

• Invest in Training: Provide ongoing training programs for your team to equip them with the necessary skills. SAP offers various certification programs and learning paths for users and administrators. 

• Engage Stakeholders Early: Involve key stakeholders early in the migration process to get their input and buy-in. This will help ensure that change management efforts are aligned with business goals. 

• Communication is Key: Regularly communicate with employees about the benefits of the migration and how the change will positively impact their roles. Having clear, open communication channels can reduce resistance to change. 

• Bring in Expert Support: Let’s face it—S/4HANA migrations are complex, but you don’t have to go it alone. With BGSF’s specialized SAP consultants, you gain access to hands-on expertise across every phase of your migration. From stakeholder alignment to upskilling internal teams, BGSF delivers practical solutions that stick. We don’t just recommend best practices—we help you execute them, so your people and systems are fully prepared for what’s next.

  
  

5. Cost and Budget Overruns

The cost of an SAP S/4HANA migration can quickly escalate if not properly planned and managed. This includes both direct costs (such as licensing and consulting fees) and indirect costs (such as business disruption during the migration).

How to overcome it:

• Develop a Detailed Budget: Create a detailed migration budget that includes not only direct costs but also contingencies for unexpected challenges. 

• Monitor Progress: Regularly track the progress of the migration project to ensure it stays within budget. Having a dedicated project manager or steering committee can help maintain focus on cost control. 

• Leverage Cloud Options: Cloud-based deployments (e.g., SAP S/4HANA Cloud) can offer cost savings over traditional on-premise solutions. Consider evaluating cloud options to reduce upfront investment and improve cost predictability. 

Address Key Obstacles for SAP S/4HANA Migration

While migrating to SAP S/4HANA presents challenges, the benefits of enhanced capabilities, scalability, and real-time insights far outweigh the hurdles. By addressing key obstacles such as data migration complexity, system downtime, customization and integration issues, skills gaps, and budget concerns, businesses can set themselves up for a successful transition. With proper planning, strategic use of SAP tools, and expert support, organizations can unlock the full potential of SAP S/4HANA and drive business growth in the digital age.

At BGSF, we specialize in SAP migrations and can provide expert guidance and support throughout the entire process, ensuring that your organization’s journey to SAP S/4HANA is seamless and successful. Reach out to us today for assistance with all your migration needs.