I once visited a company whose CIO was quite outspoken: "𝘸𝘦’𝘳𝘦 𝘴𝘵𝘪𝘭𝘭 𝘰𝘯 𝘚𝘈𝘗 𝘌𝘊𝘊 𝘣𝘦𝘤𝘢𝘶𝘴𝘦 𝘸𝘦 𝘩𝘢𝘷𝘦𝘯’𝘵 𝘧𝘰𝘶𝘯𝘥 𝘢 𝘤𝘰𝘯𝘷𝘪𝘯𝘤𝘪𝘯𝘨 𝘳𝘦𝘢𝘴𝘰𝘯 𝘵𝘰 𝘮𝘰𝘷𝘦 𝘵𝘰 𝘚𝘈𝘗 𝘚/4𝘏𝘈𝘕𝘈". Their to-go SAP partner shared this view and continued to earn money selling ECC consultants for keep-the-lights-on activities. The CIO even mentioned that if SAP didn't come up with something significantly better, 𝘩𝘦 𝘮𝘪𝘨𝘩𝘵 𝘤𝘰𝘯𝘴𝘪𝘥𝘦𝘳 𝘭𝘦𝘵𝘵𝘪𝘯𝘨 𝘙𝘪𝘮𝘪𝘯𝘪 𝘚𝘵𝘳𝘦𝘦𝘵 𝘵𝘢𝘬𝘦 𝘰𝘷𝘦𝘳 𝘩𝘪𝘴 𝘌𝘊𝘊 𝘶𝘴𝘢𝘨𝘦 𝘣𝘦𝘺𝘰𝘯𝘥 2030. Meanwhile, the IT department and 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘂𝘀𝗲𝗿𝘀 𝘄𝗲𝗿𝗲 𝘂𝗻𝗱𝗲𝗿 𝘀𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝗽𝗿𝗲𝘀𝘀𝘂𝗿𝗲. One glaring example was their MRP run: Back in 2003, when they first implemented SAP, the MRP ran twice daily. Over the years, however, complexity and data volumes skyrocketed, blowing up the runtime so much that now it only ran once a week—over the weekend. Despite massive investments in tuning (including disabling valuable features like alerts), the runtime stretched beyond the overnight window, so the customer IT had to switch to a once a week on weekend format. Consequently, planners came in on Monday to a “clean” dataset—only for it to grow stale already by Tuesday (no MRP!), making quick reactions to demand and supply changes impossible because: it was still 4 days till the next MRP run! SAP S/4HANA’s MRP Live would have instantly solved this problem and restored operational agility etc. And during a more thorough review, we discovered another dozen similar issues. 𝗕𝘂𝘁 𝘁𝗵𝗲 𝗖𝗜𝗢 𝘀𝘁𝗶𝗹𝗹 𝗱𝗶𝗱 𝗻𝗼𝘁 𝘀𝗲𝗲 𝗮 𝗰𝗮𝘀𝗲 𝗳𝗼𝗿 𝗦𝗔𝗣 𝗦/𝟰𝗛𝗔𝗡𝗔... This situation was like a Simpsons episode from the 90s in which Homer sits on the couch, complains about a dull show on TV, but then decides he’s not willing to reach for the remote, concluding, “𝗪𝗲𝗹𝗹, 𝗺𝗮𝘆𝗯𝗲 𝗶𝘁’𝘀 𝗻𝗼𝘁 𝘁𝗵𝗮𝘁 𝗯𝗮𝗱.” All too often, the claim of “not finding a business case” 𝘀𝘁𝗲𝗺𝘀 𝗳𝗿𝗼𝗺 𝗮 𝗹𝗮𝗰𝗸 𝗼𝗳 𝗸𝗻𝗼𝘄𝗹𝗲𝗱𝗴𝗲 𝗼𝗿 𝗺𝗼𝘁𝗶𝘃𝗮𝘁𝗶𝗼𝗻. SAP and its partners often fail to engage in the necessary deep-dive of a customer’s situation to demonstrate how new capabilities can solve real challenges. This lack of hands-on motivation from all sides kills innovation and competitiveness across the board. 𝗦𝗔𝗣 𝗮𝗻𝗱 𝗶𝘁𝘀 𝗽𝗮𝗿𝘁𝗻𝗲𝗿𝘀 𝗵𝗮𝘃𝗲 𝘁𝗼 𝗶𝗱𝗲𝗻𝘁𝗶𝗳𝘆 𝘁𝗵𝗲𝗺𝘀𝗲𝗹𝘃𝗲𝘀 𝗮𝘀 𝘁𝗵𝗲 𝗽𝗿𝗲𝗺𝗶𝗲𝗿 𝗽𝗿𝗼𝗯𝗹𝗲𝗺-𝘀𝗼𝗹𝘃𝗲𝗿𝘀 𝗼𝗳 𝘁𝗵𝗲𝗶𝗿 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 (𝗮𝗴𝗮𝗶𝗻). By rolling up their sleeves and working collaboratively with clients to uncover genuine pain points, they can showcase how solutions like S/4HANA directly address these issues. Once the tangible benefits are made clear, the “no business case” argument typically falls away—often quite quickly. Fun fact: The successor of aforementioned CIO started a SAP S/4HANA initiative immediately after taking over... 😎 𝐃𝐎𝐇!
Current state of SAP customer strategy
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Summary
The current state of SAP customer strategy refers to how companies are approaching SAP’s evolving suite of business software, especially with the shift to cloud-based solutions, AI-driven innovations, and new migration pathways from legacy systems. This concept covers the challenges and opportunities businesses face when deciding if and how to upgrade from older SAP platforms to newer versions like SAP S/4HANA, while balancing costs, complexity, and real business value.
- Focus on real challenges: Make sure business and IT teams work together to identify practical pain points that newer SAP solutions, such as S/4HANA and cloud ERP, can solve.
- Clarify migration costs: Take time to understand the upfront and ongoing costs involved in switching to SAP’s latest offerings, and review licensing with trusted partners to avoid surprises.
- Prioritize AI skills: Encourage your teams to build confidence in using SAP’s AI tools like Joule, which are central to process improvements and will reshape how your organization operates with SAP.
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Between 63% and 70% of ECC Customers still haven’t made the move to S/4HANA. In 2024, SAP strengthened its position with key partnerships, collaborating with tech leaders like Meta, Microsoft, Amazon, Google Cloud, and Nvidia. These partnerships introduced new integrations: → Meta’s Llama 3 integrated into SAP’s generative AI hub. → Microsoft Copilot combined with SAP Joule for advanced task management. So why are ECC to S/4HANA migrations still slow? Despite innovation, 63-70% of ECC customers have yet to migrate. 2 key challenges: 1️⃣ 68% of ECC Customers are concerned about high migration costs. 2️⃣ 73% of ECC Customers find SAP’s licensing structure unclear. #SAPpartners are helping… Partners offer: → Tailored solutions to reduce costs. → Simplified licensing guidance. → Better returns on SAP investments. With the right Partnerships, companies can navigate migration more effectively ahead of 2027. #CloudERP #sap #s4hana #data #erp #digitaltransformation #AI #GenAI
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SAP’s key message at Sapphire 2025 was clear ERP transformation doesn’t need to be disruptive, nor is it one-size-fits-all SAP is reshaping ERP with AI, making it more accessible and impactful for businesses of all sizes. SAP is integrating AI to meet ERP customers where they are, enhancing flexibility and productivity. 𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀: 🔹 AI Integration: SAP's Joule AI co-pilot is embedded across its software suites, including ERP, finance, and supply chain management. 🔹 Cloud Compatibility: Joule operates seamlessly across various cloud environments, including SAP's own cloud, Microsoft Azure, AWS, and Google Cloud. 🔹 Cross-Platform Collaboration: Joule can interact with other AI tools like Microsoft Copilot and Google Gemini, enhancing flexibility for businesses using multiple software sources. 🔹 Data Utilization: SAP leverages anonymized data from over 30,000 customers to fine-tune AI models, improving accuracy and relevance. 🔹 Productivity Gains: SAP engineers have experienced a 30% to 40% increase in productivity through AI tools. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗠𝗼𝘃𝗲𝘀: 🔹 Acquisitions: SAP acquired WalkMe for $1.5 billion to enhance user guidance and adoption. 🔹 Partnerships: Collaborations with tech giants like Apple, Amazon, Nvidia, IBM, and Accenture to advance generative AI capabilities. 🔹 Ethical Commitment: SAP has committed to adopting UNESCO's 10 guiding principles in artificial intelligence ethics. 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀: 🔹 Small to Medium Enterprises (SMEs): SAP's initiatives focus on AI-driven enhancements across finance, supply chain management, and other enterprise functions, promising significant productivity gains. 🔹 Consulting Ecosystem: SAP's developer tools are being tested by firms like Accenture, Deloitte, and PwC, aiming to save 600 million working hours per year in productivity gains. SAP's approach to integrating AI into ERP systems is setting a new standard for enterprise software, making advanced capabilities more accessible and impactful for businesses worldwide. 𝗣.𝗦. 𝗜𝗳 𝘆𝗼𝘂'𝗿𝗲 𝗹𝗼𝗼𝗸𝗶𝗻𝗴 𝘁𝗼 𝗹𝗲𝘃𝗲𝗿𝗮𝗴𝗲 𝗦𝗔𝗣'𝘀 𝗔𝗜 𝗰𝗮𝗽𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀, 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿 𝗲𝘅𝗽𝗹𝗼𝗿𝗶𝗻𝗴 𝘁𝗵𝗲𝗶𝗿 𝗰𝗹𝗼𝘂𝗱 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗔𝗜 𝘁𝗼𝗼𝗹𝘀 𝘁𝗼 𝗲𝗻𝗵𝗮𝗻𝗰𝗲 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗽𝗿𝗼𝗰𝗲𝘀𝘀𝗲𝘀. Save 💾 ➞ React 👍 ➞ Share ♻️ Follow Alok Kumar for insights on SAP and AI in enterprise solutions.
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🌟 This week SAP Sapphire 2024 has reaffirmed SAP's strategy, with significant announcements that show SAP's commitment to AI, Cloud ERP, and faster S/4HANA migrations. 👇 🔄 These developments align with strategic shifts that will define the future SAP services industry. 🤖 SAP highlighted the expansion of Joule for managing 80% of the most-used tasks, promising a 20% productivity boost for 300 million end-users by year-end. 🚀 SAP aims to double AI use cases, embedding pre-trained AI capabilities into business processes. 📊 Joule is also set to become an analytical engine, providing recommendations and generating insights for various business sectors. 🔗 Integration of Joule with Copilot introduces a unique two-way collaboration. 👨💻 SAP introduced Joule versions for consultants and developers to accelerate projects and custom code development, and the integration of Joule with Apple Vision Pro for spatial computing. 🔍 SAP also promoted the expanded Gen AI Hub, with significant advancements in its AI partnerships with NVIDIA, Google’s Gemini, Meta’s Llama 3, and Amazon Bedrock for generative AI application development. 📈 Rise with SAP continues to evolve, with SAP assigning Enterprise Architects to guide customer transformations, and providing access to LeanIX, Signavio, and Cloud Application Lifecycle Management, as well as the newly acquired WalkMe platform. 🌱 Grow with SAP has also been expanded with access to more SAP services. ☁️ These announcements support SAP’s cloud-first strategy, and the importance of cloud for agility and continuous innovation. For a closer look at what has been announced in each solution area, check out SAP’s Sapphire 2024 News Guide. Its a very long list! 💼 SAP’s move to a cloud service provider requires consultants to adopt a service-oriented mindset, focusing on delivering continuous value through cloud-based solutions. 🛠️ The integration of AI into consulting capabilities, such as Joule's ability to provide natural language insights from SAP documentation, and building customer code, will simplify consulting tasks and improve service delivery. 📚 With AI now central to SAP’s offerings, consultants must prioritize acquiring skills in AI. Understanding how to leverage AI tools like Joule for automation, predictive analytics, and process optimization will be crucial for delivering advanced consulting services. 🔍 As SAP focuses on transforming business processes, consultants must holistically merge technology solutions with business strategy. This involves understanding clients' operational challenges and using SAP’s tools to drive business transformations. 🚀 SAP Sapphire 2024 has set a clear direction on AI, cloud ERP, and S/4HANA migrations. For consultants, it is now vital to use AI and emerging technologies for their clients, as the SAP services industry continues to migrate to the cloud. Share your Sapphire insights in the comments below ⬇️ #IgniteSAP #SAPSapphire2024 #SAPStrategy