Ask Approyo: How can SAP S/4HANA impact the Technology Industry?
Radical change in the high-tech industry is occurring at a rapid pace. Changes in technologies, in business models, in standards, and in the makeup of high-tech companies themselves require constant adaptation.
The following four examples show how SAP S/4HANA enables high-tech companies to transform their digital core to be ready for change.
Change in technology: Internet of Things (IoT)
SAP S/4HANA enables high-tech companies to take advantage of rapid technological advances in the IoT. Miniaturization of sensors, combined with increased network bandwidth, is creating a treasure trove of data that is most useful when analyzed and acted on in real time with integration into a digital core as supported by SAP S/4 HANA.
Change in standards and processes ‒ revenue recognition
All companies (public and private) will be required to prepare their revenue contracts now to comply with the new IFRS15 revenue recognition regulations by 2018. SAP S/4HANA Finance provides, along with SAP Revenue Accounting and Reporting, one of the most-modern revenue recognition solutions available.
Change in business model: outcome-based business
SAP S/4HANA supports high-tech companies in taking the next step to being a value-adding company. Combining IoT capabilities with advanced billing functionality opens the door to new business models where outcomes are provided to customers instead of selling products.
Change in company makeup: mergers and acquisitions (M&A)
M&A activity is constantly changing the makeup of high-tech companies. SAP S/4HANA provides the ideal platform to unify business processes across the new makeup. It enables rapid adoption of changed companies, their changed business processes, their new business models, and newly acquired technology.
SAP S/4HANA provides the digital platform for uninterrupted, real-time transactions and analytics; the ability to work with Big Data; and connectivity to line-of-business (LoB) extensions. This allows companies to support business processes, to transform existing supply chains into digital supply chains, or create new business models where an outcome is delivered instead of just products. SAP S/4HANA provides high-tech companies with a proven framework to adopt industry best practices while attaining operational excellence.