Why Are Companies Investing Billions in SAP Implementation? - Blog The Tech (2024)

The Systems, Applications, and Products (SAP) system from SAP AG is recognized as the market leader in ERP, application software, analytics, supply chain management, human capital management, master data management, data integration, and more. Around 88,000 companies select SAP over other ERP options. With 100+ innovation and development centers, 102,400 employees, and market-leading implementation partners like Wipro and Oracle, SAP customers include 92% of the Forbes Global 2000 companies and 98% of the 100 most valued brands. But what is so special about this ERP implementation that separates it from the crowd? Why do businesses like National Grid, Siemens, and American Airlines opt for this ERP and consider it a strategic investment?

To find the answer, let’s look at some underlying challenges faced by enterprises today-

• SMEs have limited resources and need to balance business value with functionality, support, and costs.
• Even though BI, performance management, and analytics are quickly gaining traction, businesses still struggle to go beyond basic reporting and analysis.
• Increased adoption of mobile, Big Data, and social networking have gaslighted the need for high-end data management.
• There is a growing demand for cloud adoption and/or migrating legacy applications to cloud-based options that provide flexibility in terms of usage and costs.

SAP enables this adaptation journey with people-centric cloud applications that cross the traditional boundaries of enterprises.

<<SAP USP>>

More than the basic ERP

SAP has garnered some positive reviews and around 7.7% share of the global enterprise applications market due to its mature operation policies, faster gain on higher ROIs, enhanced productivity with controlled risks, and smooth flexibility with attenuated costs. Different organizations across industries have turned to SAP for several reasons like faster access to information, intelligent insights, elimination of department silos, and more. The market is filled with examples like National Grid, Whirlpool, Coca-Cola, and Nike that have leveraged the benefits of SAP implementations to transform their business.

Everything from ERP and CRM to procurement and supply chain management is packed in a simple SAP solution implemented by vendors like Wipro, AWS, Oracle, etc. –

<<Case Studies>>

Creating Impact Across Industries

Let’s how market leaders are leveraging SAP-

1. To simplify complex and disjointed processes and also speed up access to information, Siemens started using SAP and recently migrated to the SAP HANA. This shift led to increased productivity through more rapid processes and real-time data insights, lowered costs for both hardware and data-processing centers, and improved business integrations and continuity. SAP transformed the Siemens business with added benefits of 24% reduction in the size of its database, 60% increase in productivity, and as much as 90 times faster reporting performance.
2. Being one of the world’s largest airlines, American Airlines was struggling with global processes and multiple outdated systems of HR/payroll that resulted in inconsistent business. It was hampering the record management of over 335,000 employees, retirees, and non-employees. Deloitte helped them implement a single, unified global SAP HANA Enterprise Cloud solution to transform the employee experience. Its best-in-class features and future-proof capabilities enabled the airlines to adopt a “people-first” culture and drive digital processes for enhanced employee experience.
3. A UK-based electricity and gas utility major, National Grid, implemented a cloud-based procurement system to boost its supply chain efficiency. SAP SCM was integrated with SAP ERP to facilitate National Grid’s transition. With the help of Wipro as an implementation partner, the solution was delivered to 600 vendors through SAP Supplier Self Services. In the end, it replaced the non-scalable, heterogeneous, on-premise procurement system with an integrated, cloud-based platform that supported supplier growth plans and improved collaboration.

<<Conclusion>>

The Best-Run Businesses Run SAP

A fully operational SAP ERP software with its tremendous potential to positively impact businesses offers promises not to be ignored. When implemented strategically, it can prove to be a major positive turnaround that can amp up the business game across industries like utilities (eg. National Grid), CPG (eg. Coca-Cola), and aviation (eg. American Airlines). However, companies need to strategize the project by understanding the business cases unique to their domain and organization, analyzing the situation and the resources, and implementing correct planning and execution using a suitable methodology. Therefore, it is wise to partner with an experienced provider like Wipro or Oracle to help you make the transition effectively and seamlessly.