The new digital economy is impacting every industry and forcing them to consider digital transformation in order to remain relevant and competitive. Companies need to redefine customer experience and rethink what they do, how they do it, and who they do it for. Digital transformation and innovation should now be at the core of every CEO’s agenda with clearly defined goals and strategies to thrive in the digital world. SAP consulting services can help you achieve digital transformation by implementing disruptive innovations that transform business models, processes, and the way organisations operate in the digital economy.
What is digital transformation?
Digital transformation is a fundamental rethinking of customer experience, business models, and operations. It's about finding new ways to deliver value, generate revenue, and improve efficiency - and SAP digital transformation consultants are using innovative SAP technologies to do it.
Breakthrough technologies like AI and the Internet of Things (IoT) are reaching maturity and becoming more accessible and affordable. SAP consulting agents are leveraging these technologies to help organisations transform customer experience, improve productivity, and gain competitive advantage.
Digital transformation in numbers
- 3 % of companies have completed true digital transformation projects.
SAP Center for Business Insight & Oxford Economics, Digital Transformation Executive Study
- 90 % of business leaders believe artificial intelligence (AI) is critical for their companies' survival over the next five years.
SAP survey of 2,500 C-level executives
- 94 % of digital leaders are investing in Big Data and analytics.
SAP Center for Business Insight and Oxford Economics, SAP Digital Transformation Study
SAP’s viewpoint on digital transformation
“Digital transformation is, and must be, pervasive in order for companies to compete in an ever-faster, ever-more competitive environment. Those companies that are focused on the future better meet consumer needs even as their marketplace rapidly changes. This constant change, combined with new enabling technologies, drives fundamental business model changes. Companies that embrace this transformation grow their share of wallet and establish themselves as trusted partners. Companies that are slower to transform risk being left behind as new competitors emerge with better value propositions. This means that companies must become more agile so they are not caught flat-footed in the new digital world. It’s far more than adding online direct-to-consumer sales, social media, or other ‘front-office’ trends. Companies must examine the entire business top to bottom and
front to back. If a company cannot support its front-office innovations, it cannot meet the rising tide of customer expectations. If it does not modernize its back office, it cannot deliver on its promise to the consumer.”
Markus Schwarz, Senior Vice President and General Manager of SAP S/4HANA, SAP SE.
What does digital transformation entail?
Organisations need to view data as a strategic asset and adopt a data-driven culture where the focus is on customer and business value with SAP digital technology as the enabler. Part of this transformation is the establishment of an agile, self-service model where data prep and visualisation are available anytime, anywhere, allowing teams and individuals to translate their departmental information into insights and ultimately into outcomes that drive material ROI for the business. Implementing a self-service, data-driven culture that operates from the boardroom to the manufacturing floor creates a quantifiable competitive advantage for businesses.
SAP consultants focus on the following innovations to digitally transform organisations.
New business models
SAP consulting services can include advice on new business models designed to drive digital transformation.
A Business Model is defined by the following characteristics:
- Value proposition and how it is delivered to the target customers.
- Innovative ways to make money and maximize shareholder value.
- Core competencies and assets needed to create competitive advantage.
- Strategic suppliers and partnerships critical to a successful business.
- External market forces and regulations that could impact the business.
Some of the most effective business models driven by digital technologies include:
- Outcome based models: Move beyond selling products and services to delivering on measurable business outcomes. The customer pays for business outcome or impact.
- Expansion into new industries and markets: Enter and disrupt other industries or markets by leveraging core assets and capabilities (customers, assets, intellectual property, etc.).
- Digitization of products and services: Disrupt entire value chain by rethinking how products and services can be delivered faster and at a lower cost.
- Competing as an ecosystem: Digital and seamless connections of products and services from several companies to deliver better outcomes for the end customer.
- Shared economy: Facilitate peer-to-peer share or access to underutilised resources through a community-based digital platform.
- Digital platform: Monetise a large, captive community of users and customers by charging transaction fees and opening access to marketers (for advertising, analytics, research).
New business processes
Fresh thinking and new skills are required to take full advantage of new technologies. Digital capabilities will transform business processes and functions, and change the way we do business, deliver on promises, and generate value. With digital business processes, you can improve the customer experience, act on real-time and predictive insights, and increase productivity.
Digital capabilities for business process innovation include:
- Customer centricity: Provide products, services, and information tailored to customers needs at the time and place of their choice. A SAP consultant can help you implement SAP solutions that delight customers at every touch point of their journey from product search, to order, to delivery, to post sales service.
- Real-time business: Use live information from diverse sources, to instantaneously sense and respond to demand signals. A SAP consultant can help you implement SAP solutions to empower executives to make smart decisions in real time leveraging insightful data at their finger tips.
- Predictive insights: Institutionalise the power of foresight and simulation to drive proactive decisions, reduce latency, and increase profitability. Data and supercomputing has made it possible for companies to provide accurate estimates of current or future behaviour. A SAP consultant can help you implement SAP solutions that enable companies to move from reactive to proactive ways of managing business and optimising every process.
- Business-wide collaboration: Connect workforce, suppliers, and systems in a seamless manner to innovate and serve customers better. A SAP consultant can help you implement SAP solutions that connect workforce, business partners, and processes in a seamless manner to serve customers better and operate with low friction and costs across the value chain.
- People and machine collaboration: Streamline operations through integrated workflows, connected assets, and complete automation or significant reduction of manual tasks. A SAP consultant can help you implement SAP solutions that drive a step change in productivity from your employees and assets through seamless collaboration. Machines can take over voluminous and repetitive tasks from their human colleagues.
New ways of working
Digital innovations are changing the workplace with people at the heart of it all. A SAP consultant can help you create a digital transformation strategy that includes retooling your current workforce, targeting new talent, and adopting technologies to engage employees.
The ways you work can be significantly transformed by the following digital innovations:
- Real-time automation: Focus on strategy and managing your business in real time with fully automated reporting. Role-based, personalised dashboards based on real-time information give executives an easier way to receive alerts, explore insights, and test scenarios.
- Real-time collaboration: Collaborate with next-generation tools and leverage cloud platforms and collaborative workspaces to focus on the job to be done. Enable seamless collaboration, create workflows, assign tasks, track progress, and provide intelligent data and share learnings.
- Employee experience: Empower employees with consumer-grade technology and contextual information to work faster and make the best decision every time. Enable consumer-grade user experience, and intelligent analytics to make decisions in real time.
- Intelligent technologies: Eliminate repetitive, high-volume, monotonous tasks through AI technologies. Reduce costs and improve productivity, leverage intelligent applications, shift employees to more value-add work, and increase speed and accuracy.
Solutions SAP consultants may recommend for digital transformation
SAP S/4HANA is a next-generation ERP solution that combines business transactions and analytics to form a reimagined digital core that connects applications and ecosystems across all the key parts of your business. Deployable on premise and in the cloud, it delivers real-time intelligent insights for enhanced decision making.
As the data foundation of SAP’s Business Technology Platform, SAP S/4 HANA, SAP HANA provides advanced analytics on multimodel data, on premise and in the cloud. The SAP HANA platform ties into the full suite of SAP applications, both at the core with SAP S/4HANA and at the edge with SAP’s line-of-business applications.
Cost management is a top priority for every CEO and CFO, and SAP Ariba and Concur solutions digitalize spend management across materials and travel, while SAP SuccessFactors and SAP Fieldglass solutions digitalize the management of the entire employee and contingent workforce. SAP Hybris solutions drive fourth-generation customer engagement and commerce, and the SAP Leonardo system intelligently connects people, things, and businesses.
As your needs change, you can continue to innovate and evolve with SAP Cloud Platform, which provides the foundation for new application development, extensions, and integration across the SAP product portfolio.
Get in touch with MDSap for a full range of SAP consulting services. We make the adoption and extension of SAP technology in both new and existing environments easy and fast, letting you focus on the details of running your business. Leave the development, deployment and management of your infrastructure to us.