Tens of thousands of SAP customers face a decision in the next six years. As the end-of-support deadline for SAP ECC approaches in 2027, implementation labor costs for SAP’s next-generation S/4HANA ERP system are expected to skyrocket due to a lack of skilled resources. As a result, about 30% of service providers’ investments over the next 12 months are aimed at certifying their employees for S/4HANA. They’ll do this by leveraging SAP learning platforms, developing in-house learning programs, and establishing S/4HANA training programs in partnership with universities for their students.
That is one of the top findings of Avasant’s new report, SAP S/4HANA Services 2020 RadarView™ , a comprehensive study on the SAP S/4HANA services marketplace, packed with industry-first insights, analysis, and a close look at the leaders, disruptors, innovators, and challengers in this market.
The report is aimed at helping enterprises transition from legacy systems to S/4HANA and provides a granular understanding of key service providers that can assist them. It highlights the top trends in the S/4HANA services market and Avasant’s viewpoint on the direction of the industry over the next 12 to 18 months.
Avasant evaluated 32 providers using three dimensions: practice maturity, partnership ecosystem, and investments and innovation. Of the 32 providers, we recognize 18 as having brought the most value to the market over the last 12 months.
The RadarView methodology recognizes service providers in four categories:
- Leaders: Accenture, Capgemini, Deloitte, HCL, IBM, and Infosys.
- Innovators: NTT DATA, TCS, and Tech Mahindra.
- Disruptors: Cognizant, DXC, LTI, and Wipro.
- Challengers: Atos, Delaware, LSI Consulting, UST Global, and Zensar.
These four categories are illustrated in Figure 1 from the full report:
“Many enterprises have demonstrated that SAP S/4HANA has transformed their critical functions,” said Naresh Lachmandas, Principal and Senior Fellow with Avasant “They were successful in their journey, because they were able to engage with service providers who excelled in their S4/HANA execution. They demonstrated a level of maturity within the framework, standardized repetitive tasks, and invested in capabilities and creative solutions to drive efficiencies in the delivery process.”
The report includes the following recommendations:
- View S/4HANA as a pillar for fundamental transformation and not just for quick-hit enhancements:
- S/4HANA for immediate enhancements may deliver quick ROI and cost benefits; however, it will not be the best approach to redefine processes and improve the user experience.
- Focus on building an intelligent and connected enterprise for business continuity and digital transformation.
- Prepare for a robust change management program to tackle inefficiencies:
- Enterprises should include S/4HANA change management activities early in the implementation, as a few days of training before go-live is not enough.
- Establish a change enablement team at the start of the S/4HANA project to develop a change management program aimed at role-specific changes, process changes, system and process optimization, and day-in-life scenarios.
- Use SAP partners across the entire S/4HANA implementation cycle:
- Bring in the expertise of implementation partners, starting with the strategy discussion to implementation.
- Build a business case and a road map by identifying the impact of S/4HANA on business processes, using impact-assessment tools.
- Choose an implementation partner that leverages automation for repetitive tasks, allowing it to focus on customization and innovation.
The report also features highly detailed, comprehensive RadarView profiles of the top 18 service providers, along with their solutions and experience in assisting enterprises in their S/4HANA transformation journey. This report also highlights how the service provider landscape has evolved, not only in terms of categorization but also in the way they are investing in developing talent, enhancing their solution portfolio, expanding geographic focus, and strengthening their partner networks.