SAP S/4HANA Cloud Public Edition: Top Migration Challenges and Solutions

November 12, 2024

Your organization has decided to make the leap to SAP S/4HANA Cloud Public Edition, a strategic choice that offers improved performance, advanced analytics, and more efficient support for your business operations.

While this cloud ERP offers streamlined processes and improved scalability, it also limits the level of customization that finance teams have come to rely on for tailored, actionable insights. The result post-migration? Many finance professionals find themselves hampered by reporting limitations and heightened IT dependencies, which slows down decision-making and limits the value of their SAP data.

Recently, insightsoftware surveyed 325 SAP-driven finance leaders to understand their challenges and priorities, resulting in our 2024 SAP Finance Team Trends Report. The findings paint a clear picture of the challenges facing SAP-powered finance teams migrating to the cloud.

Below, we’ll explore the obstacles finance teams face when migrating to SAP S/4HANA Cloud Public Edition based on our research, and how the right tools can address these challenges to expedite their SAP migration journey.

SAP S/4HANA Cloud, Public Edition Migration Challenges

Transitioning to SAP S/4HANA Cloud Public Edition is an advantageous choice to tap into all the benefits of a cloud system. However, it also brings unique challenges, especially for finance teams accustomed to customized reporting and high flexibility in data handling, including:

Limited Customization

Despite the robustness and scalability S/4HANA offers, finance teams may find themselves challenged with SAP’s complexity and limited customization options for reporting. This version of SAP encourages standardized processes to maintain performance but comes with the cost of easily being able to generate custom and ad hoc reports. This shift means finance professionals who previously had direct control over their reporting processes now face delays, having to rely on IT support to adapt standard reports or create entirely new ones. In fact, according to our recent study of SAP users, 76% of SAP-based finance teams felt over-reliant upon IT.

Integration Challenges

Data integration also poses a significant challenge for finance teams using SAP S/4HANA Cloud. With SAP’s move toward real-time reporting, the need for seamless data access across financial and operational modules—such as FI (Finance), CO (Controlling), and MM (Materials Management)—becomes crucial. However, S/4HANA’s rigid data structures and limited reporting flexibility can make it challenging to access consolidated data across modules in real time, limiting finance teams’ ability to run live, drillable reports for fast decision-making. This dependency not only strains IT resources but also slows down financial processes, particularly month-end closing and ad hoc analysis, leaving finance professionals with outdated data and limited visibility.

The data landscape in which finance teams work is becoming increasingly complex with the integration of ERPs and other systems. According to our research, 99% of SAP-based finance teams utilize non-ERP data sources, including HRIS, EAM, and CRM systems, to gain a holistic view of their finances.

At the same time, 96% of SAP-driven finance teams use multiple software tools from different vendors, resulting in a fragmented data environment that hampers efficiency and performance. Integrating data from these sources is fraught with challenges that can lead to data silos, inconsistencies, and difficulties in accessing real-time information for reporting. A whopping 82% of SAP users agree that poor data management and integration represent the biggest challenges to financial reporting, forecasting, and compliance.

Hybrid ERP Complexity

Many organizations will choose to maintain a hybrid ERP instance during the migration to SAP S/4HANA Cloud, Public Edition, which adds another layer of complexity for finance teams. Our research found that only 26% of SAP-driven finance teams have fully moved to a cloud environment.

The majority, 62%, operate in a hybrid setting, which balances on-premises systems with cloud applications, making data integration even more convoluted.  This dual setup can lead to inconsistencies in data quality and accessibility, making it difficult for finance teams to generate accurate reports that reflect a unified view of their operations. Additionally, the need to synchronize data between legacy systems and the cloud ERP often results in increased manual processes and greater chances for errors.

Our research revealed a striking contrast between the expected challenges of SAP cloud migration for hybrid and on-premises organizations and the actual experiences reported by those who have fully transitioned to the cloud.

While security (38%) and cost management (38%) are commonly perceived as the primary barriers to cloud migration, our research reveals that skill gaps within the IT team (47%) and integration challenges (49%) are the actual culprits. These skills gaps significantly hinder an organization’s ability to progress from cloud migration planning to implementation. Without the necessary technical expertise, the cloud transition is a long and complicated process.

Concerns about cost and security often overshadow the true challenges of cloud migration–data alignment and technical skills shortages. To overcome these obstacles, SAP-powered finance teams need a platform that addresses both skill gaps and integration challenges. While building in-house IT expertise is essential, it’s time-consuming. Investing in user-friendly tools with data warehousing capabilities can bridge this gap, enabling seamless access to legacy and cloud data, accelerating decision-making, and improving overall efficiency.

Make the Most of Your S/4HANA Cloud Public Edition Investment

Don’t let SAP’s complex structure and cloud migration challenges slow down your period-end and custom reporting with insightsoftware’s Wands for SAP S/4HANA Public Cloud. Wands offers a live connection that leverages our open business data fabric, offering business views tailored for use with our existing Wands for SAP offering. This innovative product not only provides an upgrade path for current Wands for SAP users but also serves as an effective solution for new customers adopting SAP Public Cloud. Migrate with us–wherever you are in your cloud migration process, we’ll meet you there.

Existing on-premises SAP users using ECC and S/4HANA looking to transition to SAP S/4HANA Public Cloud will benefit from a ready-to-run cloud ERP that incorporates the latest industry best practices and ongoing innovations. Wands for SAP S/4HANA Public Cloud enables robust financial reporting capabilities from SAP Public Cloud ERP instances, with initial support focused on the GL Wand.

You can also remove your IT dependency with Wands. With Wands, users can create their own refreshable and drillable reports, with flexible layouts, against SAP Business Suite (ECC) and S/4HANA including S/4HANA Public Cloud.

With Wands for SAP in your corner you’ll gain:

• Real-Time Data Access: Overcome integration challenges from hybrid environments with a direct live connection to SAP S/4HANA, ensuring timely access to critical financial and operational data.
• Automation and Efficiency: Address the complexities of data consolidation by automating mundane reporting tasks, allowing your finance team to concentrate on high-impact analysis and strategic decision-making.
• Familiar Excel Integration: Leverage existing Excel skills to simplify data access and reporting, helping finance professionals quickly adapt during the transition to cloud-based systems.
• Comprehensive Interactive Views: Mitigate the risk of data silos by utilizing a library of pre-built, interactive business views tailored specifically for SAP S/4HANA Cloud, ensuring a holistic view of your organization’s financial health.
• User Empowerment: Empower finance professionals to generate their own reports and dashboards, reducing dependency on IT amid migration challenges and enhancing reporting agility.
• Quick Installation: Experience a lightweight installation process that takes less than a day, alleviating the need for lengthy BI projects and extensive IT resources during the transition to the cloud.
• Enhanced Insights: Easily drill down to transaction details to gain deeper insights and improve analysis accuracy, enabling faster resolution of issues arising from the complexities of cloud migration.

Ready to learn more? Read how hospitality chain Tsogo Sun eliminates reporting challenges with Wands for SAP.