We are entering the era of intelligent mega processes, which start by combining the right data sets and converting them into intelligent insights. These insights then trigger automated transactions across the process. Leading companies that are making digital transformation a reality are putting data and intelligence at the center of their future. They are building new capabilities, skills, and technology, and evolving their culture to transform into an 'Intelligent Enterprise' and achieve the aforementioned outcomes. These companies are not only delivering short-term value to shareholders, but are also positioned to thrive and transform their industry.
No company has the appetite to replace their systems, as every company has a very different landscape and a different level of focus based on their business priorities. Everyone has to also see the value. Moving to the Intelligent Enterprise is not just a technical upgrade. The real value comes when companies adopt a customer-first, purpose-driven mindset, leverage innovative approaches such as design thinking and agile methodologies to reimagine business processes and business models.
From SAP and Approyo's experience, there are the top three paths to migrating your company architecture to the intelligent enterprise. These paths have one thing in common - a lean enterprise architecture that is low cost and is data driven and ultimately provides you with the architectural agility in the new economy. The path that is right for you should be based on value and strategic alignment. There is no one way to get there, but early adopters are finding success based on the scenarios below:
REIMAGINE BUSINESS PROCESS: Many companies are focused on end-to-end business process transformation (such as supply chain, procurement), landscape simplification, and reduction in customization. The goal is to migrate core ERP processes to S/4HANA +Cloud/ LoB with full transformation in mind. These companies are looking to change the front office, supply chain, and more to truly address customer experience. They are looking to drive the next-generation of processes across the value chain. This requires a fresh greenfield approach, and a detailed review of which standard best practices in S/4HANA meet your business requirements. These companies are ready to move their ERP into private / public cloud environments. While a major effort across business processes, it is paying off with a TCO reduction of 20 - 30% and tremendous business value as next practices are adopted.
REIMAGINE BUSINESS MODEL: There are also companies that are looking at business model innovation or M&A and are taking advantage of the ability to have many industry solutions in one box. With industry lines blurring, the ability to take business capabilities from one industry and leverage them for a new business model in another industry is tremendous (for example, bringing retail to telco). This requires a fresh greenfield approach.
START WITH MIGRATING LOBS TO BEST-IN-CLASS CLOUD SOLUTIONS: While some companies are planning and executing the move to S/4HANA they start in parallel to innovate on the edge. These companies are taking 1 LoB at a time - HR, Procurement, Supply Chain, Manufacturing and are focusing on driving value short-term with ECC + LoB cloud portfolio. Once moved to S/4HANA these companies will fully benefit from the latest innovative solutions end-to-end.
Start your path to the Intelligent Enterprise with Approyo
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