Involvement of

Enterprise Architects
in SAP S/4HANA
Transformation

SURVEY 202 1
LeanIX Survey 2021 Involvement of Enterprise Architects in SAP S/4HANA Transformation

47%
A recent survey conducted by global IT company LeanIX revealed
that enterprise architects (EAs) are involved in the planning and
conceptualizing of SAP S/4HANA transformations. The survey also
uncovered the range of challenges faced by EAs during these
transformation activities. Still, only 47% of EAs see a sufficient
involvement of EA in SAP S/4HANA transformation projects and
processes. Results instead suggest there is untapped potential in
Less than half of companies to use EA for more streamlined transformations.

enterprise architects
As an introduction, SAP recently extended its commitment to support SAP
consider themselves Enterprise Core Components (ECC). The company will provide standard
support until 2027 and extended support until 2030. This decision, however,
sufficiently involved is only a postponement. For the approximately 35,000 relevant ERP
customers of SAP1 worldwide, it’s not a question of whether to migrate
in SAP S/4HANA
to S/4HANA – but when and how. EAs are experts for complex enterprise
transformations IT landscapes and therefore in a perfect position to support such
transformation projects.

In 2015, analysts described the first release of SAP S/4HANA as a

technological leap forward. SAP’s updated Enterprise Resource Planning
(ERP) solution nonetheless raised questions regarding functionality,
availability, pricing, and migration2 . Unsurprisingly, initial studies
conducted by Bearingpoint 3 and others found major acceptance issues
and a division of SAP users – those who immediately recognized S/4HANA’s
strategic potential and those who perceived the solution as a new release

1 ERP customers, S/4, ECC and R3, see https://www.gartner.com/en/

documents/3999987/5-things-you-need-to-know-about-sap-
s-4hana-presentation
2 https://www.gartner.com/en/documents/2991820
3 https://www.bearingpoint.com/de-de/unser-erfolg/insights/s4hana/
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LeanIX Survey 2021 Involvement of Enterprise Architects in SAP S/4HANA Transformation

only.
SAP S/4HANA’s advantages are clear. S/4HANA is the digital core of
organizations and offers improved integrations with innovative cloud
applications, enhanced access to real-time data, an intelligent data
model with a user-friendly interface, and integrations to modern
technologies. SAP itself describes the solution as a “real-time ERP suite for
4
digital business” which adapts to business requirements, customer needs,
and technological innovation in a flexible manner.
Despite these offerings, the implementation of S/4HANA in companies
worldwide is occurring slowly. Although SAP recorded 16,000 licensed
customers in Q4 20205, Gartner6 estimates that this figure includes many
new customers and only 9,100 of existing ERP customers (of which only half
are already live). This means that 14% of the 35,000 existing SAP customers
worldwide have completed the S/4HANA transformation, meaning that
the transformation still lies ahead for most. Considering that many IT
managers expect the project to take an average of three to five years7,
2027 and the end of standard support for SAP ECC suddenly seem
very close.
Examining the role of EA in SAP S/4HANA progress in
international companies
LeanIX surveyed its cross-industry customer base to better understand
the role of enterprise architects in S/4HANA transformations. Questions
aimed to determine which transformation stage customers had reached
and the corresponding activities of EA teams in this journey. This included
questions related to specific project phases and what EAs consider to be
their biggest challenges.
In total, 91 companies from part of the global LeanIX customer portfolio
participated in the April 2021 online survey. More than 50 EAs who were
or still are involved in S/4HANA transformations shared information and
insights into their everyday working life.

4 https://news.sap.com/germany/2017/01/10-fragen-zu-sap-s4hana/
5 https://www.gartner.com/en/documents/3999987/5-things-you-need-to-know-about-sap-s-4hana-presentation
6 https://www.sap.com/documents/2017/04/4666ecdd-b67c-0010-82c7-eda71af511fa.html
7 https://www.pwc.de/de/digitale-transformation/sap-s-4-hana-erfahrungen-von-unternehmen-in-der-dach-region.html

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LeanIX Survey 2021 Involvement of Enterprise Architects in SAP S/4HANA Transformation

Almost every company is dealing with

SAP S/4HANA transformation

80% of companies who participated in the survey rely on SAP for ERP Compared with studies on the subject from other groups, the
purposes. Further, nearly all SAP customers are planning or have already proportion of LeanIX customers engaged in S/4HANA transformations
completed their transformation to S/4HANA. Only 6% of respondents say is significantly high. For example, though the 2020 DSAG (German-
they are not planning on migrating to S/4HANA. speaking SAP User Group) investment report remarked that the
“changing of the guards [was] complete” and “S/4HANA finally arrived
FIGURE 1 FIGURE 2 in the market”8, their 2021 follow-up survey showed that the proportion
Choice of ERP vendor SAP S/4 HANA of companies indecisive or rejecting the transformation remained
tranformation plan almost unchanged at 18%9. Additionally, in the 2021 Q1 SAPinsider State

SAP as ERP Vendor S/4HANA transformation of the Market Benchmark Report10, as many as 27% of respondents
Different ERP Vendor No transformation planned said that they have not yet planned the transformation.

Findings like these suggest LeanIX customers recognize the great

6% potential of SAP’s new suite. What’s also important is knowing whether
21%
LeanIX customers are not only more open towards the S/4HANA
transformation in general but also further advanced in the process
than companies surveyed in other studies.

79% 94%

8 https://www.dsag.de/pressreleases/wachabloesung-zu-s4hana-vollzogen
9 https://www.dsag.de/pressreleases/dsag-investitionsreport-2021-mit-steigenden-it-investitionen-
LeanIX SAP S/4HANA Survey (April 2021), LeanIX SAP S/4HANA Survey (April 2021) der-krise-trotzen
N=91 Respondents with SAP as ERP vendor, N=72 10 https://www.sapinsideronline.com/state-of-the-market-benchmark-report/

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LeanIX Survey 2021 Involvement of Enterprise Architects in SAP S/4HANA Transformation

FIGURE 3

Current phase in the SAP S/4HANA transformation process Nearly two-thirds of LeanIX customers
remain in first stages of transformation
Planning phase

Project ongoing – preparation and concept phase
Project ongoing – implementation and test phase
Project ongoing – roll-out and cut-over phase
Transformation finished
32% of the companies that participated in the 2021 LeanIX SAP
S/4HANA Survey state that they are in the planning phase of their
transformation project. Just as many are currently in the preparation
and concept phase. Or, in short, most companies are still at the very
beginning of their S/4HANA transformation.

Few LeanIX survey respondents have completed their S/4HANA

12% transformation. Most are instead in the same situation as those
surveyed in other studies – the proportion of which who are live

32% ranging between 12-16% depending on the study11 . A 2018 joint survey
10% conducted by LeanIX and PricewaterhouseCoopers had even predicted
that 70% of the companies would have completed their S/4HANA
transformation in 202012 . This is clearly not the case – but what are the

13%

32%

LeanIX SAP S/4HANA Survey (April 2021) 11 https://www.dsag.de/pressreleases/s4hana-gaining-momentum-across-atlantic

Respondents with transformation project, N=68 https://www.dsag.de/pressreleases/dsag-investitionsreport-2021-mit-steigenden-it-investitionen-

der-krise-trotzen
12 https://www.leanix.net/hubfs/2570476/Downloads/Download%20files/leaniX_PwC-and-LeanIX-Study-
2018-The-state-of-SAP-S4HANA-Transformation.pdf

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LeanIX Survey 2021 Involvement of Enterprise Architects in SAP S/4HANA Transformation

reasons for that?

Complexity of SAP landscape
tops the list of challenges
When asked to specify their challenges across the entire S/4HANA
transformation process, EAs most often referred to the following:
Identifying interdependencies within complex and highly integrated
ERP landscapes (80%); and the creation of a clear roadmap and target
architecture of the future SAP S/4HANA landscape (67%). Housekeeping
SAP legacy applications (59%) and unclear ownership/accountabilities
(41%) were also cited as major obstacles.
These challenges stem from complex ERP landscapes which have often
grown over many years – be it due to country-specific configurations,
user-defined modules, interface dependencies, or manual workflows.

FIGURE 4

Enterprise Architects: Challenges in SAP S/4HANA transformation

Identifying interdependencies 80%

Creating roadmap/target architecture 67%

Housekeeping of legacy landscapes 59%

Lacking transparency: ownership/accountabilities 41%

Insufficient change management 35%

Creating business case 35%

Lacking senior management buy-in 22%

Increased security/compliance threads 16%

Volatility in vendor product roadmap 16%

Others 2%

LeanIX SAP S/4HANA Survey (April 2021). Respondents with involvement in transformation process, N=51

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LeanIX Survey 2021 Involvement of Enterprise Architects in SAP S/4HANA Transformation

Companies have invested large amounts of resources in order to

customize their SAP landscapes in such ways. Also, following mergers &
acquisitions or changes in business activities, ERP systems have often
been taken over rather than consolidated. One architect surveyed said
they have dealt with a total of 59 ERP systems during their S/4HANA
transformation. Others pointed out problems such as SAP projects running
in parallel and the need to reconcile the strategic migration with the
operational requirements of the business.
Enterprise Architects pave the way for
S/4HANA transformation
Nearly all EA experts surveyed are or were involved in planning
and preparing the SAP S/4HANA transformation. Only a third of
these architects, however, continue their involvement beyond the
transformation’s early stages and onwards to the implementation and

Following these results, it is clear that the complexity of SAP landscapes FIGURE 5

is the reason why many companies are hesitant about the S/4HANA EA involvement in phases of the
transformation. SAP’s new ERP suite is much more than a mere technical SAP S/4HANA transformation process
release. To capitalize on the platform’s underlying in-memory database
and intelligent data model, companies must modify their SAP core and
be willing to simplify the central S/4 system. Customizations need to be 96% 90%
refined, processes must be redesigned, and tailor-made Z programs need Planning phase Preparation/
concept phase
to be replaced. Even when opting for a brownfield approach with a step-
by-step transformation and shorter project duration, companies still need
high-quality master data and visibility over their application landscape.
46%
With the help of modern EA tools, EAs can map such complex landscapes Implementation/
test phase
34%
and provide comprehensive visibility across all levels of the IT architecture. Roll-out/cut-over
But in which phases and in what ways are EAs currently involved in their phase

companies’ S/4HANA transformation?

LeanIX SAP S/4HANA Survey (April 2021)

Respondents with involvement in transformation process, N=50

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LeanIX Survey 2021 Involvement of Enterprise Architects in SAP S/4HANA Transformation

final roll-out stage. FIGURE 6

At the beginning of an S/4HANA transformation, companies must make Intensity of EA involvement:

a multitude of strategic decisions regarding the existing IT system Activities in the SAP S/4HANA transformation process
landscape. Key early decisions include deciding whether the ERP suite
Highly involved Somewhat involved Not at all involved
should be operated in the cloud or on-premises. But without a sound
understanding of the interdependencies between IT assets, it is difficult to
develop a business case for stakeholders and win their support throughout
a transformation. Creating transparency Developing different Identifying overlapping/
over IT infrastructure migration strategies interdependent projects

EAs can provide the necessary high-quality data to map SAP 2%

environments in relation to the surrounding IT landscape. Aided by 13% 13%
33%
platforms like LeanIX, EAs can even leverage various SAP integrations for
these tasks (e.g., SAP Solution Manager, SAP PO/PI, and other SAP solutions 42% 45%
ike Signavio's SAP BPI). Platforms like these make it easier for EAs to chart
dependencies across the entire IT landscape with the lifecycle statuses
of underlying technologies. They also simplify efforts when creating 65%
migration roadmaps, migration scenarios, and simulating the impacts of
transformations on applications and the underlying technology.
45%
42%
Creating transparency, developing migration scenarios, and identifying
overlaps and interdependencies – these three activities are both highly
relevant for a successful SAP S/4HANA transformation and common EA
management use cases. But how intensively do companies involve their
EAs in these activities?

Almost two-thirds of EAs claim to be highly involved in creating

transparency over existing IT infrastructures. Less than half, however, LeanIX SAP S/4HANA Survey (April 2021).
Respondents with involvement in transformation process.
are closely involved in developing different migration strategies and
Case numbers from left to right: N=48/N=47/N=45

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LeanIX Survey 2021 Involvement of Enterprise Architects in SAP S/4HANA Transformation

identifying overlapping or interdependent projects. transformation projects.

Improving Enterprise Architecture involvement in CONCLUSION:

SAP S/4HANA transformation Companies should make

The survey revealed that many EAs are not particularly involved even
greater use of internal expertise
in traditional EA use cases. It is therefore not surprising that less than
half of the EA experts feel sufficiently involved in their companies' It cannot be denied that there is a lack of external consultants for
SAP S/4HANA transformation – more than a third even describe their SAP S/4HANA transformation. Once standard support for SAP ECC
involvement as "too low" or "much too low". Apparently, EAs still see a ends and companies find themselves under enormous time pressure,
lot of potential of how their know-how could contribute to successful outside services will be in even greater demand. However, based on
the results of this survey, it's clear that companies aren't making the
FIGURE 7 most out of their own resources.
Enterprise Architects: Evaluation of EA involvement
in SAP S/4HANA Transformation EAs are equipped to influence the success of an SAP S/4HANA
project – especially during its initial phases. The findings in this
survey point largely to the role of EAs in creating transparency,
34% 47% identifying interdependencies, and establishing the vary basis for
"Involvement (far) "Involvement (absolutely)
too low" sufficient" the development of migration scenarios. Equally important is the
potential of EAs to connect business and IT with a common language
linking business capabilities to existing IT landscapes. Given that SAP
S/4HANA migrations entail much more than technological updates,
1 = far too low a shared language is essential for seeing activities in the context of
2
a holistic business transformation. Collaboration plays a key role in
3
order to realize the full potential of S/4HANA – or, as one of the EAs
4
8% 26% 19% 34% 13% 5 = absolutely sufficient described their task: “It’s about feeling the pulse of a 200-person
program.”

LeanIX SAP S/4HANA Survey (April 2021)

Respondents with involvement in transformation process, N=47

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LeanIX Survey 2021 Involvement of Enterprise Architects in SAP S/4HANA Transformation

Further information on LeanIX's 2021 SAP S/4HANA Study

In April 2021, a total of 91 EA experts participated in an online survey

on SAP S/4HANA transformation conducted by LeanIX. More than
50 respondents provided further information to specific challenges
and the involvement of the EA teams in the whole transformation
process. The respondents work in the field of enterprise architecture
in companies that form part of the LeanIX customer portfolio. For
this survey, LeanIX contacted a total of 367 companies from various
industries – the response rate of the participants is thus over one third.
The varying case figures shown in the charts stem from respondents
who could not/would not provide information to individual questions.

www.leanix.net

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