Why do so many SAP S/4HANA transformations projects fail to go as planned—running over budget and schedule and delivering unsatisfactory quality? I’d be interested in other professionals’ views.

likesmart
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Because they are INCREDIBLY complex, require real people to do REAL work (not theoretical / strategy), have a lot of cross-functional dependencies, and lots of dependencies on clients who struggle to keep pace and do not staff adequately.

likesmarthelpful

OP - yes, sometimes.

Also, sometimes we have clients who are moving to SAP and have zero expertise in house.

Also, sometimes we have clients who have been running SAP for decades and don’t have near the experience one might think.

We don’t always beed “senior people to do the work”. Unfortunately, those with more experience tend to be less hands on and that is what I was previously eluding to. Implementation work is an entirely different animal that often times goes under appreciated for those without the experience.

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I think clients under budget and the SIs under bid to win the work, then assume they can CR their way to the right scope. Client procurement orgs drive this behavior. I think IT procurement people should be measured by project outcomes/variability of original bid, not how much they got the SI to discount.

likesmart

This too and those in charge of RFPs in corporations have no idea how complex the work being bid is. Vendors with no history of the corporations generally do not understand the complexities thus under bid and under resource the work.

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Two reasons from my POV: (a) recreating old inefficient processes in the new technology and (b) really, really messy/bad data.

likesmart

I’ll second that and add: SAP is a bloated, over priced and needlessly complex.

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Under budgeting and too much offshoring

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Check the good ol’ project management triangle, the client wants to change one constraint without affecting one of the others, not possible. There are other considerations but I have found that this basic framework still holds water.

https://en.wikipedia.org/wiki/Project_management_triangle

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Sales pressure, competitive pricing pressure, understaffing, skills gap, differentiators like assets/accelerators that don’t really make a difference or only exist on paper, overpromising, lack of buying-in client business stakeholders especially going fit to standard/clean core, design changes well into SIT and some more.

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SI is not the same as BI. Erp enables transformation but the client has to have the right partner to highlight the business implications for posting segment on the transactions vs not. Lots of clients hire a SI but dont bring on a BI and think that they will get the best in class results while the client fights over how to use a specific field or how they want to do Doc splitting and once they go live they are stuck in a laggard position.

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Over customization.

likesmart

I’ve been on a few that went live on time and a few that didn’t. The ones that went live on time were planned for ahead of time with major decisions and foundational design completed ahead of time and had very good support from the client with dedicated client leads and team members.

The ones that didn’t waited until project start to figure out anything and / or had poor buy-in from clients. Often to save money as others have said.

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I’ve had some larger clients succeed this way because they truly had great cultures and people.

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Because erp implementation isn’t transformation, it’s foundational to enable transformation at scale. You either have to have leadership alignment and do the work on the right outcomes/capabilities/ processes upfront or you have to fix those on the back end. Too often we eliminate all that work from scope because of cost and then clients are led to believe they’ll get enough from the tech alone. Leanest staff only knows the functions through how the tech works in the function, not true functional understanding

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