Redefining ERP for a Digital World

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Redefining ERP for a Digital World

Mobile devices, cloud computing, the Internet of Things, and machine learning are creating competitive threats and opportunities with unprecedented speed and impact. Yet, many companies are still living with a foundation running ERP systems implemented long before "going digital" became the expectation.

How are companies coping with this challenging environment?

To find out the answer to that question, IDC, on the behalf of SAP, conducted a web-based survey of over 300 SAP customers in 9 countries to explore the views of SAP customers that are considering, planning, or have already deployed SAP S/4HANA®, the next-generation ERP suite ready to deliver the full potential of new digital business models and continuous innovation.

Considerers

SAP customers that have not decided to deploy SAP S/4HANA

Planners

SAP customers that are planning to deploy SAP S/4HANA but are not live yet

Deployed

SAP customers that have deployed SAP S/4HANA

67%
of SAP customers are moving to SAP S/4HANA

Source: All data, customer stories, and quotes appear in the IDC white paper, "Voice of the Customer: 10 Insights, Direct from SAP S/4HANA Pioneers".

or choose a specific topic:

Support of new digital business models

Improved employee productivity

Real-time access to information

Significant cost reduction

Reduction of customized code

Lessened burden of training users

Support of new digital business models

Overview

The evolution of digital business models is proving to be a great driver and one of urgency in the ERP decision.

%

of customers are planning to use SAP S/4HANA as a primary enabler of new digital business models

Source: IDC, 2017

Customer Story

Industry
Life Sciences

Website
neb.com

New England Biolabs built a world-leading biotech manufacturing company based on the notebooks and minds of its scientists, covering everything from ingredients and recipes to enzyme production.

As the risk of losing this collective genius increased with each new retirement announcement, the company transitioned its traditional ERP system to SAP S/4HANA to optimize its medical innovation model.

Results

Capture knowledge with ease to preserve intellectual property beyond the tenure of the subject-matter expert

Drive more seamless, efficient, and accurate business processes with a unified, real-time data structure

Lower costs and modulate pricing by rebalancing production schedules accurately in real time

Next

We'll learn about improved employee productivity that SAP S/4HANA customers experience.

Improved employee productivity

Overview

Automation of a range of tasks with artificial intelligence and machine learning is driving a desirable component of staying competitive now and in the future: a workplace culture of high efficiency and productivity.

%

of customers planning to deploy or already live with SAP S/4HANA cited improved employee productivity as an expected or realized benefit.

Source: IDC, 2017

Customer Story

Industry
Automotive

Website
toyota-indus.com

Indus Motor Company, a Pakistani automobile manufacturer and joint venture between House of Habib, Toyota Tsusho, and Toyota Motors, is digitally tracking materials throughout its manufacturing process. By using the quality management module in SAP S/4HANA, everything an employee does has a direct impact on bottom-line outcomes.

Results

Faster material requirements planning, from 3 hours to 15 minutes

Hourly capture of defects on the plant floor, rather than waiting until the end of the work day

Demand forecasts from dealers and distributors is directly available in SAP S/4HANA, instead of passing around spreadsheets

Next

We'll learn about the real-time access to information that SAP S/4HANA customers enjoy.

Real-time access to information

Overview

By getting the right data in front of the right people at the right time, businesses can improve efficiency, as well as deliver innovations that surpass even the most creative of imaginations.

%

of customers planning to deploy or already live with SAP S/4HANA cited real-time access to information as an expected or realized benefit

Source: IDC, 2017

Customer Story

Industry
Chemicals

Website
sigmapaints.com

Sigma Paints, a leading manufacturer of decorative, marine, and protective paints and coatings market in the Middle East, needed to find a way to address emerging competitive threats that are overpowering its legacy ERP system.

However, as proven by its implementation of SAP S/4HANA, real-time access requires more than in-memory technology — embedded analytics is also essential.

Learn how, with SAP S/4HANA, Sigma Paints’ sales staff can now give customers firm delivery dates, rather than guesses, and instantly access stock information directly from their mobile devices.

Results

Empowered sales people can obtain information on available stock with direct mobile access to information stored in SAP S/4HANA

Greater confidence within the customer base as more reliable delivery dates are given

Transformational catalyst for aligning the entire workforce with on a single source of the truth

Next

We'll learn about the potential for significant cost reductions achieved by SAP S/4HANA customers.

Significant cost reduction

Overview

Real-time access to information has a powerful influence that goes beyond greater efficiency, better decisions, and inspired innovation. Each signal and insight hidden deep in volumes of data can be connected to business action to accelerate responses that lower costs and increase profitability.

%

of customers cite reduced costs as a critical advantage of their planned or live deployment of SAP S/4HANA

Source: IDC, 2017

Customer Story

Industry
Life Sciences

Website
farma-tek.com

Farmatek, a Turkish manufacturer of healthcare goods, is taking advantage of real-time access to data in SAP S/4HANA. The company is experiencing dramatic costs savings through streamlined operations and the elimination of delays in information sharing and business outcomes.

Read how Farma-Tek implemented SAP S/4HANA to enable real-time flow of information and support the company in achieving operational excellence.

Results

Lower safety stock with access to the latest production plan and sales data

Reduction in operations costs with intelligent response to new information

Accurate purchasing of goods to meet future customer demand

Next

We'll learn about the reduction of customized code and how it can benefit SAP S/4HANA customers.

Reduction of customized code

Overview

"Simplify, simplify, simplify" is the new business mantra – and the standardized capabilities of SAP S/4HANA is designed for this purpose. On the scale from heavy customization to no customization, IDC research reveals that surveyed customers are leaning toward zero or near-zero customization.

%

fewer custom objects created, reducing the number of accounts

Source: Sabre

Customer Story

Industry
Travel & Transportation

Website
sabre.com

Sabre, a U.S.-based global technology company, took a greenfield approach to implementing SAP S/4HANA. By starting with an entirely new platform, the company was able to eliminate unnecessary legacy customizations with revised business processes to reflect today's digital world.

See how real-time data is sending Sabre soaring in product and service innovation with SAP S/4HANA.

Results

Fewer custom objects created, reducing the number of accounts

Optimized use of existing technology investments

Better understanding of business requirements, adopted processes, and user behaviors

Next

We'll learn about how SAP S/4HANA customers have a lessened burden of training users.

Lessened burden of training users

Overview

To pioneer an ERP system that does more than just capture transactions, SAP customers are using SAP S/4HANA throughout their business.

While additional skills may be required, the need for training is minimized by the use of the SAP® Fiori® user experience, which leverages universally familiar, consumer-grade digital interactions.

+%

of SAP customers place high value on connecting external partners, customers, and business networks with SAP S/4HANA

Source: IDC, 2017

Customer Story

Industry
Mill Products

Website
vectus.in

Vectus Industries, India's leading and fastest-growing pipe and water storage solution company, is opening access to SAP S/4HANA to its customer advocates, including architects and plumbers who drive sales traffic to a network of dealers.

By pulling all influencers in the next-generation ERP suite, whether in-house or through a managed service, everyone in the ecosystem can monitor market shifts and respond effectively.

Results

Innovation of new digital models and identification of new competitors without traditional ERP limitations

Growing adoption of standard applications with limited exceptions and across business areas

Fewer concerns about training and customization

Next

Now that you know the reasons customers are moving to SAP S/4HANA, you can learn more insights and best practices for SAP S/4HANA by reading the IDC white paper, "Voice of the Customer: 10 Insights, Direct from SAP S/4HANA Pioneers"

Hear the Voice of the Customer – Read the IDC White Paper