• Approyo

Ask Approyo: How can SAP S/4HANA impact Industrial Machinery and Components Companies?


The digitalization of business across all industries is happening rapidly, and there is no turning back. Companies are looking for new ways to deliver value to their customers using digital channels and creating personalized, digitally enabled products across all sectors, from consumer products to heavy equipment and machinery. The industrial machinery and components industry (IM&C) is at the heart of this shift, providing the intelligent machines and equipment needed for this transformation as well as spearheading innovative processes like connected manufacturing and predictive maintenance and service. So the value of digitalization for IM&C companies lies in two areas:

  • Top-line growth through better solutions that are digitally enabled and more differentiated.

  • Bottom-line cost savings through more efficient and effective digitally enabled processes

But the market is not uncontested, and as new entrants are breaking into traditional manufacturing domains, established manufacturers are moving their focus from delivering pure products to providing end-to-end solution lifecycle services. IM&C companies need to redefine their core competencies and rebuild their business strategies that support them. In working with leading companies across the globe, we see investments and energy around five strategic priorities:

  • Customer centricity

  • Serving the “segment of one”

  • Digital smart products

  • Digital supply chain and smart factories

  • Servitization and new business models

To execute on these, companies will have to evaluate if they have the right technology platform that can support these five priorities.The right platform requires an IT architecture that provides both stability and long-term reliability for core enterprise processes, while simultaneously allowing for flexibility in areas where change is happening on a constant basis. The digital core is the foundation for the fundamental processes that need to run consistently and flexibly. This digital core provides uninterrupted, real-time transactions and analytics, the ability to work with Big Data, as well as connectivity to Line of Business extensions that enable supporting processes such as talent sourcing or business networks.

SAP S/4HANA was specifically developed to represent the digital core in this “bi-modal IT architecture.” The suite provides IM&C companies with a proven framework to adopt industry best practices while attaining operational excellence across the entire value chain.

SAP S/4HANA: sources of value

The fundamental value from SAP S/4HANA comes through the ability to deal with Big Data in real time, simplified processes, built-in analytics, and a simplified user experience (UX).