ORLANDO, Fla. — SAP CEO Christian Klein outlined three main challenges within the SAP Sapphire 2022 opening keynote tackle — and the way SAP know-how can assist overcome them.
The highest problem is the pace of change in enterprise right this moment, adopted by provide chain disruption and, lastly, sustainability, Klein stated at SAP’s customer- and partner-oriented convention, which returned to a dwell format in Orlando, after two years as a digital occasion. Sapphire’s in-person venue hosted about 5,000 attendees, with extra attendees tuning in just about.
SAP additionally unveiled a flurry of product updates and partnership meant to assist tackle these three important enterprise challenges.
Klein stated corporations should essentially remodel the best way they run to take care of business adjustments which are occurring sooner than ever. To achieve success, corporations can even want to remodel the corporate’s DNA and tradition, which is “probably the most tough a part of any transformation, particularly when your current enterprise mannequin remains to be financially profitable and other people are usually risk- and change-averse,” he stated.
SAP’s reply to that is Rise with SAP, the initiative it launched in 2021 and dubbed enterprise transformation as a service. Rise with SAP was designed to allow corporations to maneuver to a cloud infrastructure centered on the digital core of S/4HANA Cloud.
“A real enterprise transformation is not going to occur simply with a technical IT migration to the cloud,” Klein stated. “Rise takes you on a enterprise transformation journey, no matter business or firm dimension, current or new SAP buyer. The transformation journey will probably be tailor-made precisely to clients’ wants.”
Crucial elements of Rise with SAP that allow transformation are SAP Signavio, a course of administration and knowledge mining platform that SAP acquired in 2021, and the SAP Enterprise Expertise Platform (BTP), a growth platform that allows companies to increase and combine SAP purposes.
A yr after it launched, 2,000 clients have chosen Rise with SAP, greater than 60% of them new to SAP, Klein stated. SAP is partnering with corporations together with Microsoft, Accenture, HCL Applied sciences and Wipro to supply Rise with SAP companies, and at Sapphire, SAP introduced that world enterprise administration consulting agency McKinsey will now associate on Rise companies.
Provide chains want transparency, resilience
Provide chains right this moment should be made extra clear, resilient and agile all through all the chain, Klein stated. The SAP Enterprise Community, which integrates the SAP Ariba Community, SAP Logistics Enterprise Community and SAP Asset Intelligence Community offers this for tens of millions of companies in 190 nations.
“We’re constructing the LinkedIn of the B2B world,” he stated. “The SAP Enterprise Community provides end-to-end transparency throughout the provision chain, connecting you with suppliers, producers, logistics suppliers.”
As a way to present extra provide chain visibility in manufacturing operations and logistics, SAP introduced a partnership with Apple to supply provide chain-related apps for iOS gadgets.
Two apps at the moment are obtainable — SAP Warehouse Operator for iOS, which makes use of AI-enhanced barcode scanning and indoor location features connecting with S/4HANA, to allow warehouse pick-and-pack features on iOS gadgets, and SAP Direct Distribution, an app that integrates digital camera and site administration to allow paperless supply for drivers.
“These apps can be found for iOS right this moment, with extra apps in growth,” stated Julia White, SAP chief advertising and options officer.
Sustainability, profitability can go collectively
On sustainability, SAP goals to assist corporations be sure that sustainability and profitability will not be unique, Klein stated.
To allow this, SAP is providing a “inexperienced ledger” performance in S/4HANA that may account for carbon manufacturing in the identical manner corporations account for financials. Different SAP merchandise are integral in serving to corporations measure and report on sustainability enterprise drivers, Klein stated. These embrace SAP Concur for monitoring the carbon footprint of enterprise journey; SAP SuccessFactors for environmental, social and company governance; the SAP Enterprise Community to trace knowledge throughout provide chains; and SAP Sustainability Management Tower to mixture sustainability knowledge from each SAP and non-SAP techniques.
SAP has introduced all of its sustainability purposes right into a single cloud providing, SAP Cloud for Sustainable Enterprises.
“Transparency permits companies to take motion as a result of you’ll be able to solely act on what you’ll be able to measure,” Klein stated.
Clients react to Klein’s message
The challenges Klein highlighted resonated with attendees.
Dan Costar, CIO of Wolfspeed, a producer of silicon carbon merchandise in Durham, N.C., was accumulating a wealth of data on SAP services. Wolfspeed has not too long ago undergone its personal enterprise and technical transformation to SAP S/4HANA Cloud from on-premises Oracle ERP techniques.
These had been extremely personalized, to the purpose the place the techniques turned very inefficient at instances, making the standardization that S/4HANA Cloud offers extra engaging, Costar stated.
Costar can be how the SAP Enterprise Community can assist with Wolfspeed’s provide chain.
“SAP is predominantly the platform of our goal industries and clients, and we consider that over time we’ll profit from being a part of the Enterprise Community, so I appreciated what I heard,” he stated. “There are some things that I am eager to be taught extra about, notably round logistics, warehouse administration, the iOS purposes, in addition to the analytic options that they are coming to market with.”
Nonetheless, Costar stated he’s cautious of any message that enterprise transformation as a service is straightforward. Wolfspeed’s transformation was complicated and required severe efforts on all fronts of the enterprise.
Dan CostarCIO, Wolfspeed
“All the nice speak, the acronyms, the buzzwords and the advertising materials has a shelf-life — what does not have a shelf-life is these within the firm which are truly having to maintain and dwell with the outcomes,” he stated. “Once I hear enterprise transformation as a service, I am not bought but, as a result of enterprise transformation is not led by a service supplier, it is led by the corporate.”
Sustainability was a subject that intrigued Jamie Lee, CIO at Ecobat, a agency in Irving, Texas, that gives recycling for lead acid and different battery sorts.
SAP sustainability merchandise might assist Ecobat allow higher round financial system processes, in line with Lee. Nonetheless, Ecobat should full a metamorphosis from SAP ECC to S/4HANA to make the most of them. Ecobat was the primary firm to signal on as a Rise with SAP buyer and expects to go dwell with S/4HANA quickly.
“I just like the prospect of the sustainability instruments in S/4HANA, however we have now to land the core system then construct on prime of it,” Lee stated. “We’ll want to research BTP and SAP Sustainability Management Tower additional, and we have to get IoT going, particularly whenever you’re monitoring measures that result in sustainability reporting. Our chief sustainability officer will probably be involved in seeing these dashboards and metrics.”
Klein is ‘spot on’
The give attention to sustainability feels extra natural this yr than two years in the past, stated analyst Jon Reed, co-founder of Diginomica, an enterprise computing business evaluation agency.
The battle in Ukraine and provide chain disruptions have made points round fossil gasoline dependence and sustainability extra actual from a sensible perspective, in addition to an moral one, Reed stated.
SAP has made progress with its sustainability merchandise, however the details about how obtainable they’re and who’s utilizing them will not be at all times particular, he stated. For instance, it isn’t clear if the sustainability merchandise can profit SAP’s giant buyer base that continues to be on legacy on-premises techniques.
“What sustainability help does SAP give to clients on older releases that are not operating S/4HANA Cloud,” Reed stated. “Including the inexperienced basic ledger is nice, however I critically doubt that ECC clients are going to see it, so the specifics on a few of this are quick.”
Klein’s message on all three challenges was “spot on,” in line with Mickey North Rizza, group vp for enterprise software program at IDC.
Though it might take some time for a lot of SAP clients to make the enterprise transformation to S/4HANA, most are going to make the journey, she stated.
“Clients know they’re shifting to a digital world, and so they’re utilizing [Rise with SAP] to make the transfer,” Rizza stated. “However they should perceive it a bit extra, in order that they’re taking time to know it. SAP has spent the final three years doing nothing however redesigning enterprise processes, recognizing that it is about altering know-how to cowl the enterprise processes, so the workers have a greater knowledge set to have a look at and make higher selections.”
Nonetheless, SAP’s declare that 60% of Rise clients are net-new says that Rise is about extra than simply transitioning on-premises clients to the cloud.
“Corporations are investing in it as a result of they see the potential,” she stated. “Present on-premises clients could also be a hybrid combine, with some clients staying on ECC till they get the remainder of their digital transformation achieved. Then they will flip [to S/4HANA].”
Jim O’Donnell is a TechTarget information author who covers ERP and different enterprise purposes for SearchSAP and SearchERP.