Playing It Safe Costs More Than You Think
A new ISG report finds that SAP migration is being approached primarily as a risk management exercise rather than a transformation opportunity. Enterprises are prioritizing operational stability, cost predictability and timeline adherence over process and data re-engineering — and fewer than one in five organizations re-implement SAP processes and technology when they migrate. This trade-off is shaping long-term outcomes, often limiting the value organizations can extract from automation, analytics and AI.
Where Programs Go Off Track — Before Execution Begins
ISG’s research identifies a problem that starts earlier than most organizations recognize. Migration programs accumulate risk during planning — in how governance is structured, how scope is defined and how sequencing decisions are made. By the time execution begins, the constraints are already locked in. Understanding where those early decisions go wrong is what separates programs that deliver from those that don’t.
What’s At Stake For Procurement And Supply Chain
For procurement and supply chain leaders, this matters because SAP migration decisions directly influence supply chain visibility, demand planning accuracy and the scalability of procurement operations. When legacy processes and fragmented data structures are preserved, organizations constrain their ability to deploy advanced capabilities such as intelligent forecasting, smart procurement and end-to-end supply chain optimization.
Only 15% Of Migrations Finish On Time And On Budget
Migration outcomes are determined less by technology choices and more by early decisions around governance, sequencing and scope control. Only 15% of SAP migrations are on time and on budget. Overruns are largely driven by underestimated complexity, scope expansion and weak governance models — not technical failure. Hybrid and brownfield approaches, while reducing short-term disruption, often defer the standardization required for long-term value realization.
The Migration Decisions That Determine Your AI Future
AI-enabled procurement and supply chain benefits depend on structured data and standardized processes established during migration. Organizations that fail to address these foundations during transition risk limiting post-migration innovation. SAP migration is a sequence of strategic decisions that compound either risk or value over time.
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FAQs
Enterprises face legacy ERP support deadlines and regulatory constraints, driving decisions toward minimizing disruption, controlling costs and accelerating timelines rather than undertaking complex process and data re-engineering.
Overruns are primarily caused by underestimated complexity, scope expansion and limited internal capacity, with risks often introduced during early planning rather than technical execution. ISG research finds only 15% of programs finish on time and on budget.
Migration decisions affect data quality and process standardization, which determine the effectiveness of forecasting, automation and supply chain visibility after go-live.