The French market pushes ahead with S/4HANA
Despite the challenges of time and cost, businesses in France are continuing with S/4HANA implementation as planned.
According to the 2021 ISG Provider Lens SAP Hana Ecosystem Services* report for France, the cost of an SAP implementation can cost millions of euros. We know from speaking to our French clients that French companies generally prefer customisation over standard SAP. Therefore, migrating to S/4HANA can take years to complete. Coupled with a high cost, and a talent and skills gap, S4 in France is a complex undertaking.
Although the 2020 pandemic originally slowed S/4HANA projects in France, the business changes brought on by the crisis ushered in a compelling need for digital transformation.
ISG reports that the need for remote working and digital customer channels gave companies the push to develop digital services, pursue digital transformations and migrate to S/4HANA. Therefore, despite the complexity and the cost and time pressures of an SAP S/4HANA migration, French enterprises are pushing ahead with S/4HANA in the cloud.
With the cost of French SAP implementations reaching over several million euros, it is no surprise that SAP solutions are mostly adopted by companies with high revenues. The ISG report states that IT costs for the same amount would account for a 1-5 percent of turnover. Therefore, the SAP market in France is still quite small. Although, in 2020, SAP France, with more than 1,400 employees, generated €1billion. This is 8.3% of the total EMEA revenue of €12billion.
Those companies that do choose SAP solutions are doing so with a customisation of 50-80 percent of standard functions, according to ISG.
Companies in France don’t mind change, if they aren’t too disruptive. They must also be customised to the businesses processes. SAP migration therefore requires strong change management initiatives, ensuring engagement from employees who will need to adapt to this change.
In the report, ISG identifies viable tools and frameworks for large SAP transformations and greenfield SAP S/4HANA implementations that are delivered in record time for midmarket clients. Because of these tools and automations, the French market are pushing ahead with their S/4HANA migrations.
Are you preparing for the shift to S/4HANA.The key to a successful implementation is hiring the right team. Reach out to RED Global today for an informal chat about your S/4HANA strategy.
*The 2021 ISG Provider Lens™ SAP HANA Ecosystem Services report for France is available to subscribers or for one-time purchase on this webpage.
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