Based on a study conducted by PwC and LeanIX on the state of SAP S/4HANA transformation, Oliver Klein, Director Technology Consulting at PwC and André Christ, CEO at LeanIX discussed the findings during EA Connect Days 2018 in Bonn.

1. The state of SAP
S/4HANA
Transformation seen
from Enterprise
Architecture perspective
PwC & LeanIX Study 2018
October 2018

2. S/4HANA transformation
will be for many
enterprises the biggest IT
related business
transformation within the
next ten years.
PwC & LeanIX study 2018 - The state of
SAP S/4HANA Transformation
PwC 2

3. PwC’s Digital Services
More and more enterprises are adopting S/4HANA, but we recognize a
variety of different transformation approaches
3
The state of SAP S/4 HANA transformation
PwC & LeanIX Study 2018
 Brownfield migration of entire business by 2020 follow by 5
years continuous structural improvement
 Total investment volume is in range of multi-100s M euros
Major in Chemicals
 Greenfield approach with consolidation of healthcare business
into one S/4 HANA instance
 Germany (biggest country, headquarters) to go live in Apr 2019
Major in Pharma
 Greenfield approach to consolidate ERP landscape into 8 S/4
instances, using mainly S/4 standard processes
 First go-lives in 2019, overall program running until 2026
Major in Manufacturing
 Greenfield approach selected in the service industry, driven
by need for complete solution innovation and redesign
 Significant co-innovation with SAP anticipated
PwC

4. PwC’s Digital Services
SAP is not seen as mere system of record, but as an important piece in
the overall digital strategy
Rather important
29%
Not important
6%
Very important
65%
4
The state of SAP S/4 HANA transformation
PwC & LeanIX Study 2018
SAP importance for digital transformation

5. PwC’s Digital Services
Key drivers of the S/4HANA transformation are business related – not
only a technical conversion
5
The state of SAP S/4 HANA transformation
PwC & LeanIX Study 2018
Key drivers of SAP S4/HANA transformation
65%
55%
43%
41%
39%
34%
20%
16%
Improved business processes
Modernization of ERP landscape
Support innovative business models
Real-time data enablement
End user experience
Rationalization of ERP landscape
No other option due to SAP strategy
Lower cost

6. PwC’s Digital Services
Companies greatest challenges in S/4HANA transformation come from
the complexity of legacy processes, customization and data
6
The state of SAP S/4 HANA transformation
PwC & LeanIX Study 2018
The key challenges around the S/4HANA migration
13%
29%
31%
46%
51%
59%
60%
Lack of functionality
Lack of skills and knowledge
Achieving business stakeholder buy-in
Non-harmonized business process
Unclean master data
High customization
Complex legacy landscape

7. PwC’s Digital Services
There is no one “right” approach to migration – it depends on many
aspects for each company, and is often a blended approach
Greenfield
14%
Mix of Both
42%
Brownfield
44%
7
The state of SAP S/4 HANA transformation
PwC & LeanIX Study 2018
S/4HANA migration approach: Brownfield vs Greenfield

8. PwC’s Digital Services
Companies stay on premise for now, but are prepared to move to the
cloud later
On-premise
26%
Cloud
30%
On-premise, but
Cloud enabled
44%
8
The state of SAP S/4 HANA transformation
PwC & LeanIX Study 2018
Level of cloud adoption

9. PwC’s Digital Services
EA tools help companies manage complexity by providing transparency
on the as-is landscape and visualizing dependencies
9
The state of SAP S/4 HANA transformation
PwC & LeanIX Study 2018
The application of EA tools in the S/4HANA transformation
16%
20%
34%
39%
41%
43%
55%
65%
Standards management
Technology risk management
Business capability mapping
Legacy system retirement planning
Interface and data flow management
Transformation roadmap planning
As-is architecture documentation
Target architecture landscape planning

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PwC 10
There is no doubt, without
EA tools we would not
achieve the transformative
results that we are seeing
– and that every business
strives for with S/4HANA.
Stephan Kerner
PwC Partner, SAP Transformation