Expert View: Reasons to Make the Jump to SAP S/4HANA
The world is changing faster than ever, scary fast. Businesses everywhere are seeing unprecedented disruptions and questioning their core beliefs of what it takes to succeed. How do you prepare for this new paradigm? It can be argued that to be in the best position to outperform your competition; you need to have access to the right information when and where you need it. SAP S/4HANA provides that access, and the business case for Consumer Industries is compelling.
Change is Good
It’s been said that companies who don’t change go out of business. We’ve seen this far too often with companies such as Radio Shack, Toys R Us, Blockbuster, and so on. But you have to ask yourself, for those in positions of power, shouldn’t the path to success be evident to them? Why do they refuse to change? Are they surrounded by ‘Yes Men’ who fear challenging the status quo? Or maybe it’s less about their leadership abilities and more about how they are viewing their business and possibly driving critical decisions with obsolete data?
Read More: Adapting to the COVID-19 Reality in Retail
What Do the Industry Leaders Have in Common?
True leaders embrace change—they create a transformation culture. True leaders focus on solutions, not problems. True leaders are masters at simplifying the issues. Being in a position to enact change requires knowing what to change and when. Who best to inform us than customers? And by customers, we mean all of them, internal as well as the end-user. Are we providing the customer with the best experience possible? Or, are we causing them unknown frustration?
No Magic 8 Ball, but Something Almost as Good
There is no replacement for the human element in business, yet there are ways to improve the odds in your favor through technology. Technology has come a long way, and, in most cases, it’s crucial for your business to change to real-time or near real-time data while maintaining a robust digital presence. Companies must be able to transform their business models, yet many can’t access necessary data on their current platform.
For those on SAP’s Business Suite on HANA or even those who are on SAP’s legacy ERP, moving to SAP S/4HANA gives you a strong foundation to reduce or eliminate the frustrations for your employees and your customers and grow your bottom line. The move should be about removing technical roadblocks and barriers of the past, and then nurturing a climate where companies can take advantage of new business opportunities due to a more agile technology backbone. How can this best be achieved?
Based on our experience with SAP customers, we know a migration to SAP S/4HANA can:
- Improve business flexibility: Upgrade your toolsets to predict, accommodate, and tackle the many challenges that face us today and those that will come tomorrow. Specifically, SAP Analytics Cloud will allow users to build predictive models with automation and access to a wide variety of machine learning algorithms. No coding required!
- Be your early warning system: Prepare users by anticipating and alerting the business to disruptions in supply, drastic changes to the demand for products, and to the daily changes this has on available resources. Predictive forecasting, coupled with augmented analytics with AI, enables data-driven decisions, so users spend less time exploring data and more time acting on insights given to them.
- Provide real-time updates: See activities from employees, customers, distributors, vendors, and suppliers, so timely course corrections can be made to handle inevitable challenges.
What Do the Numbers Tell Us for an SAP S/4HANA Business Case?
In September of 2019, Forrester published an economic impact study of moving to SAP S/4HANA through interviews and surveys of over 100 customers. They found that, on average, the ROI achieved was 134%, and the payback was just over 13 months. Incremental revenue was up close to 3%, and incremental net profit reached 1.5% after three years.
Here’s how the benefits broke down in that Forrester study:
- 66% of benefits came via increased revenue from functionality enabled by SAP S/4HANA
- 22% came from increased customer retention due to capabilities enabled by SAP S/4HANA
- 6% of benefits are the result of increased end-user productivity due to reduced run times
- 3% derive from accelerated collections due to simplified accounting capabilities
- The last 3% of SAP S/4HANA benefits come from a combination of increased IT productivity, accelerated cash flow in managing customer orders, and avoided cost of previously licensed software and hardware
Don’t Be a Statistic
A recent article from Business Insider says more than 6,300 stores will close in 2020. These high-end names include JCPenney, Victoria’s Secret, Tuesday Morning, Bath & Body Works, Nordstrom, Sears, Forever 21, and Walgreens. If you’re facing a similar situation, or want to grow in a competitive market space, arm yourself with the ability to react at lightning speed.
Start by introducing powerful tools like SAP S/4HANA and the complementary but very capable SAP Analytics Cloud to help build your business transformation. With SAP’s user-friendly and mobile-ready Fiori apps and a simplified ERP, you can concentrate on the business and implementation of best practices, while enabling scale and growth for your organization. Now is the time to make the data work tirelessly for you in determining root causes for challenges and visualizing relationships with customers and end-users. Don’t be a sad statistic – build momentum and optimize your business today.
To find out how SAP S/4HANA fits into SAP’s Intelligent Enterprise, download our white paper, “Breaking Down SAP’s Intelligent Enterprise Strategy.”