SAP S/4HANA is widely recognized as a leading enterprise resource planning (ERP) system. It’s used by some of the largest companies in the world and often positioned as the future of enterprise technology. But behind the glossy marketing and enterprise-grade features, many organizations are struggling with serious challenges tied to S/4HANA—challenges that are often only fully understood after implementation.
For many business leaders and IT teams, what starts as an exciting digital transformation quickly turns into a frustrating, expensive, and rigid experience. So why is S/4HANA so polarizing? And what can be done to make it work in a way that actually serves the business?
Let’s take a deeper look.
The Pros—and the Problems
Let’s be clear: S/4HANA isn’t all bad. It brings powerful features to the table, including integrated analytics, real-time processing capabilities, and advanced scalability. But the problems arise when the system’s rigid framework and SAP’s aggressive upgrade strategies collide with the realities of diverse and dynamic organizations.
Below are five of the most common (and often overlooked) issues with S/4HANA—and how companies can still get value from the platform if they proceed with caution.
1. It’s Too Rigid for Most Organizations
S/4HANA was designed to enforce standardized business processes across global enterprises. For some companies, that’s exactly what they need. But for others—particularly those that are decentralized, operate across multiple business models, or depend on unique workflows—this rigidity can quickly become a liability.
Unlike modern, composable architectures or best-of-breed solutions that allow for modular customization, S/4HANA demands that organizations conform to its way of doing things. This might sound efficient, but it often leads to massive operational disruption and internal resistance.
Why this matters:
Organizations that pride themselves on innovation or that rely on flexibility to meet customer demands often find themselves forced to change their operating model to fit S/4HANA, rather than the other way around. That misalignment creates friction—both in implementation and in day-to-day operations.
2. SAP Is Forcing Customers to Upgrade Before They’re Ready
Perhaps one of the most frustrating things about S/4HANA is that SAP is pushing existing customers—many of whom are using ECC or R/3—to upgrade, whether they’re ready or not. With the 2030 support deadline looming, SAP has essentially told customers: migrate to S/4HANA, or lose access to ongoing maintenance and support.
For many companies, this ultimatum feels unfair. Some only implemented ECC within the last 10–15 years and are still paying annual maintenance fees. Forcing another expensive and resource-heavy upgrade without a true business case (other than vendor pressure) adds financial strain and strategic confusion.
Why this matters:
Digital transformation should be a proactive business decision, not a reactive response to a vendor’s timeline. Organizations need time to assess their readiness, allocate budgets, plan for change, and ensure they can extract long-term value from their investment.
3. The Complexity Is Overwhelming—and Sometimes Unnecessary
S/4HANA is incredibly robust—but that comes at a cost. The complexity of the system makes it difficult for many organizations to implement, learn, and use effectively. It requires a deep bench of IT expertise, strong governance, and a significant commitment to training and change management.
And ironically, in some areas, S/4HANA is less capable than the legacy systems it replaces. Functions like advanced demand planning, product lifecycle management, and certain manufacturing capabilities were more refined in ECC or other older SAP solutions. Now, some companies are being asked to give up functionality they depend on—or to bolt on third-party solutions just to fill gaps.
Why this matters:
If the goal of upgrading is to improve efficiency and enable growth, then moving to a system that is both more complex and less functional in key areas defeats the purpose. Organizations need to understand exactly what they’re gaining—and what they might be losing.
4. It’s No Longer a Unified System
One of SAP’s historical strengths was its all-in-one architecture. Everything from finance to supply chain to HR lived in one unified platform, built from the ground up. This integration made SAP stand out in a market full of fragmented, siloed tools.
But with S/4HANA, SAP has shifted to more of a best-of-breed strategy—relying heavily on third-party tools it has acquired, such as Ariba (procurement), Concur (expense management), and SuccessFactors (human capital management). While these tools are technically part of the SAP ecosystem, they often require complex integration efforts and don’t always deliver the seamless experience that organizations expect.
Why this matters:
Just because all the tools are owned by SAP doesn’t mean they work together flawlessly. Many companies find that integrating these tools feels no different than integrating third-party solutions from other vendors—except that they’re paying a premium and were sold a promise of native integration.
5. Vendor Lock-In Through RISE and Other Strategies
SAP’s RISE program was designed to help customers migrate to S/4HANA more easily, with incentives and cloud-based support. But critics argue that RISE is just another way SAP is tightening its grip on customers—locking them into long-term contracts and platforms that are difficult (and expensive) to exit.
RISE bundles infrastructure, software, and services into a single contract that’s hard to untangle later. Combine that with the 2030 upgrade deadline and the high switching costs associated with ERP systems, and what you get is a near-complete dependency on SAP for the next decade or more.
Why this matters:
Vendor lock-in reduces bargaining power, limits flexibility, and often puts companies in a weaker strategic position. If SAP’s roadmap doesn’t align with your business priorities, you’re stuck waiting—or paying more—to make it work.
So… Why Use S/4HANA at All?
Despite these frustrations, S/4HANA remains a powerful platform—especially for large enterprises with global operations, complex supply chains, and a desire to standardize. The key is going in with clear eyes, a defined strategy, and an independent perspective on what it takes to succeed.
How to Make S/4HANA Work for You
If your organization is evaluating—or being pushed toward—an S/4HANA migration, here are three strategic steps you can take to protect your business and ensure the transformation delivers results:
✅ 1. Conduct an Independent, Tech-Agnostic Assessment
Before making any decisions, evaluate whether S/4HANA truly meets your needs. Understand what functionality you’ll gain, what gaps exist, and what resources the implementation will require. This kind of analysis helps you prepare for potential issues and align your investment with actual business goals.
Independent consulting firms that aren’t tied to SAP or any other vendor are uniquely positioned to provide unbiased assessments and risk mitigation strategies.
✅ 2. Define the Migration Timeline on Your Terms
Don’t let SAP’s deadlines dictate your transformation roadmap. If your business case supports going live before 2030, that’s great. But if you’re not ready—financially, operationally, or strategically—consider extending support for your current system and building a phased plan that works for you.
The operational risk of a rushed ERP implementation can easily outweigh the benefits of adhering to SAP’s preferred timeline.
✅ 3. Invest in Change Management and Education
The biggest reason ERP implementations fail isn’t technology—it’s people. Make sure your team is equipped to manage the change. Invest in internal alignment, user training, process mapping, and cultural readiness. A well-executed change management plan can make even a rigid system like S/4HANA work better for your organization.
Final Thoughts
S/4HANA has the potential to be a valuable tool—but only when approached with realistic expectations, thoughtful planning, and a clear strategy. Companies that blindly follow SAP’s upgrade path without asking the hard questions often find themselves over budget, behind schedule, and unsatisfied with the outcome.
If your organization is navigating the S/4HANA conversation, don’t go it alone. Take the time to evaluate your options, challenge the vendor narrative, and build a roadmap that aligns with your business—not just your software provider.
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