Challenges in SAP S/4HANA Implementation and Modernization

Since its first release, SAP S/4 HANA has undergone continuous development, leading some businesses to adopt a wait-and-see strategy. The reluctance of businesses to adopt cutting-edge technology is also related to the challenges companies are facing in putting SAP S/4HANA into practice. Despite SAP S/4HANA implementation challenges, many companies are moving forward with the rollout. This article explores the main challenges of the implementation of SAP S/4HANA. 

Top 5 SAP S/4HANA Implementation Challenges 

1.Data Migration

While migrating data from an old system to any new platform ensuring that no data is lost and the migrated data is compatible with the source data is important for business purposes. Serious data integration issues can also arise with a high probability of interruption and downtime. Thus, performing ETL and data migration testing becomes important in SAP S/4Hana transformation challenges.

2. Security Vulnerabilities 

Switching from legacy infrastructure to SAP HANA may result in the organization becoming vulnerable to serious security vulnerabilities. Businesses cannot bear such vulnerabilities in their ERP systems as they are the repository for critical data. Hence, a thorough security assessment is essential to effectively pinpoint application vulnerabilities for SAP S/4HANA implementation challenges.

3. Disorganization and Confusion

Although this is not a technical problem in SAP S/4HANA transformation challenges, most conversion problems arise from misunderstandings about the project schedule. The people in charge of creating those plans sometimes underestimate the amount of time and effort required to change the system and neglect to include all the tasks that must be completed in order. 

4. Data Issues

In most legacy systems, corruption and other data validation problems are not uncommon. When your data format in the new system is different from the old system, you have a related problem. Data integrity issues in SAP S/4HANA implementation challenges can be mitigated in several ways. Datasets can be verified through full record-by-record comparisons, subsets, or sampling.

5. Customization

The fact that your legacy system is already tailored to the specific needs of your business presents a significant conversion problem. The extent of customization may make it difficult or impossible to incorporate those capabilities into the new framework. Even if they may seem necessary at first, implementation of SAP S/4HANA cloud strategy going forward may be a nice adjustment that may lead you to rethink your entire strategic orientation and approach.

SAP Implementation Challenges in the Manufacturing & Automotive Industry 

1. Manufacturing Industry

  • Complex BOM Structure Management: The biggest SAP services implementation challenge faced by the manufacturing industry is to come up with creative ways to handle the complex BOM structure. Because industries must maintain all the data that has to be entered into the BOM, including choosing BOM elements based on customer requirements, product updates, attachments to BOM components, etc. 
  • Capacity Calculation: There are significant problems in capacity calculations at the BOM level for many end FG products in most sectors including steel and textiles. Capacity allocation is based on machine capacity and constraints, such as machine setup time, machine clubbing of inferior materials, machine and material mapping, etc.
  • Material Requirement Planning: A significant SAP solution implementation challenge faced by industries, such as pharmaceutical, textile, and food is to determine their short-term and midterm material requirements to minimize shortages and minimize wastage.

2. Automotive Industry 

  • Vibrant Products: Managing different products in the automotive industry requires careful attention, as the final products may vary while sharing common components. This dynamics requires a strong inventory control system and effective master data change management to seamlessly track and implement modifications.
  • Inventory Control: Enhancing the ongoing progress and optimization of the automotive industry, a robust stock control system powered by SAP solutions facilitates seamless communication between the parties involved. This will remove the possibility of human errors in the data flow.
  • Master Data Management: Managing new or changing requests from vendors or customers with design is one of the most important needs of the automotive industry. To handle this, a suitable workflow management system is required with features like material replacement, bill of material change management, etc.


Identifying common SAP S/4HANA implementation challenges will help businesses in preparing for the change initiative and other IT platform modifications. Enterprises that are now using multiple ERP applications can switch to SAP S/4HANA systems as their one-stop solution. Planning for SAP services for this important organizational change can help minimize risks during the conversion process.

Know more about how SAP S/4HANA implementation can revolutionize your manufacturing and automotive business processes. Allow us be your trusted partner on your journey to insurance success with SAP S/4HANA. Uneecops Business Solutions (UBS), member of United VARs, is an SAP Platinum Partner. Being an SAP implementation platinum partner, we offer end-to-end SAP implementation services along with managed services support.


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