Migrating to SAP S/4HANA is a major milestone in any enterprise’s digital transformation journey. As organizations move from legacy systems like SAP ECC to the intelligent ERP core of SAP S/4HANA, they gain access to real-time analytics, simplified processes, and improved agility. However, the process is not without its pitfalls. Several SAP S/4HANA migration risks can arise, potentially derailing the project if not proactively addressed.
In this article, we outline the top 7 challenges that businesses face during migration—and more importantly, how to fix them to ensure a seamless transition.
1. Undefined Migration Strategy
The Risk:
One of the most critical SAP S/4HANA migration risks is the absence of a well-defined strategy. Rushing into the migration without assessing the business objectives, technical scope, and resource availability often results in fragmented execution.
The Solution:
Start with a comprehensive S/4HANA readiness assessment. Define your migration path—Greenfield, Brownfield, or Hybrid—based on your organization’s needs. Develop a step-by-step roadmap aligned with your IT and business goals. Involve stakeholders early to gain alignment and avoid later conflicts.
2. Poor Data Quality
The Risk:
Data is the backbone of every ERP system. Migrating outdated, duplicate, or inaccurate data can cause major disruptions post go-live, such as erroneous reports, failed transactions, and compliance issues.
The Solution:
Conduct a pre-migration data audit to clean, de-duplicate, and harmonize your data. Use advanced tools like SAP Data Services or McKinsol’s proprietary iDMX platform to automate data cleansing and transformation. Ensuring high data quality is one of the most important strategies for mitigating SAP S/4HANA migration risks.
3. Incompatible Custom Code
The Risk:
Legacy SAP systems often contain extensive custom code tailored to unique business processes. These customizations may not be compatible with the simplified data model of SAP S/4HANA, leading to technical failures during migration.
The Solution:
Use the SAP Custom Code Migration Worklist to analyze and optimize custom code. Eliminate obsolete modifications and migrate critical enhancements to the SAP Business Technology Platform (BTP), ensuring a clean core. This not only resolves compatibility issues but also simplifies future upgrades.
4. Integration Failures with Third-Party Systems
The Risk:
Many businesses rely on a complex network of third-party tools, legacy platforms, and external applications. Integrating these systems with S/4HANA can introduce unexpected technical challenges and operational risks.
The Solution:
Plan your integration landscape during the early stages. Use SAP Integration Suite to create seamless, scalable connections between systems. Test all integration points thoroughly before go-live. Preventing integration breakdowns is vital for addressing SAP S/4HANA migration risks that can affect business continuity.
5. Inadequate User Training and Change Management
The Risk:
Technology is only as effective as the people using it. A major risk in S/4HANA migration is user resistance or lack of familiarity with new interfaces and workflows, which can hinder productivity and lead to errors.
The Solution:
Implement a structured change management plan and provide comprehensive user training well before the go-live date. Focus on role-based training using SAP Fiori apps and offer continuous support. Encouraging early user involvement helps increase adoption and reduces training-related SAP S/4HANA migration risks.
6. Downtime During Cutover and Go-Live
The Risk:
System downtime during the cutover phase can disrupt daily operations, cause financial loss, and erode customer trust—especially for businesses that run on tight schedules or offer 24/7 services.
The Solution:
Mitigate this risk by employing SAP’s Near-Zero Downtime (nZDM) or Downtime Optimized Conversion (DMO) tools. Perform multiple dry runs, finalize a detailed cutover plan, and establish a rollback strategy in case of unforeseen issues. Minimizing downtime is crucial in controlling one of the most business-critical SAP S/4HANA migration risks.
7. Budget Overruns and Timeline Delays
The Risk:
SAP S/4HANA migration projects are often affected by underestimation of resources, scope creep, and misaligned expectations. This leads to increased costs and missed deadlines—two significant risks that threaten the entire project’s ROI.
The Solution:
Establish a realistic budget and timeline from the start. Implement a Project Management Office (PMO) to monitor progress and manage risks. Use an agile approach with milestone-based reviews. Partnering with an experienced SAP consulting firm like McKinsol ensures better control and governance.
How McKinsol Mitigates SAP S/4HANA Migration Risks
At McKinsol Consulting Inc., we specialize in helping enterprises navigate their digital transformation by minimizing SAP S/4HANA migration risks. Here’s how we support your success:
-
Readiness Assessments to identify gaps early
-
Data Management Solutions (iDMX) for clean, reliable data
-
Custom Code Analysis to enable a clean core strategy
-
Integration Architecture Planning to reduce technical disruptions
-
Cutover and Go-Live Support for minimal downtime
-
Training and Change Management Programs for faster adoption
-
Governance Models for cost and timeline control
With our end-to-end SAP migration services, we help organizations across industries migrate with confidence, speed, and agility.
Conclusion
Migrating to SAP S/4HANA is a strategic move toward operational excellence and future-ready business models. But success depends on how well you manage the journey. Each of the issues discussed above represents real SAP S/4HANA migration risks, which can escalate into costly roadblocks if not handled with care.
By identifying these risks early and deploying tailored solutions, businesses can ensure a smoother, more efficient migration. Partnering with a knowledgeable consultant like McKinsol ensures you’re not just avoiding failure—you’re optimizing for success.