Volatile markets, fragile supply chains, or ever more critical customers: companies in many sectors are currently facing major challenges. Transformation is required to keep up with the social and economic changes. This is best done using SAP S/4HANA. So why not use an upcoming SAP S/4HANA migration to futureproof one's own value creation and use digital transformation as an opportunity?
The good news: most company SAP users are versatile. They already use digital technologies to quickly adapt their processes on demand and to make them more resilient – this help get their enterprise through difficult times. A survey among international SAP user groups shows that more than 70 percent of companies in the German-speaking region are able to keep up with digital transformation to some extent. Only 15 percent of those surveyed feel left behind. At the same time, only 14 percent can keep up without problems. This is because there is often a lack of speed, a lack of expert and personnel resources as well as a resistance to change. But it is the high complexity of the business transformation, concerning data-driven business models, more agile business processes, and new requirements with regard to security, which is thwarting the capability of many companies.
Mechanical engineering and production companies are facing profound transformation. Sooner or later, they will have to rethink their business processes. For example, unstable supply chains lead to changes in ordering rhythms, in particular in the supply industry. While “just-in-time” production previously dictated precise order cycles, warehouse stocks are being built up to overcome possible supply bottlenecks. At the same time, digitalization topics are being driven forward and companies need to reposition themselves on the market. They now face the decision about whether to redefine their business processes for the coming 15 to 20 years, taking into account future requirements, or whether to gradually adapt their existing processes in small steps in response to new requirements.
One option is to embrace the switch to SAP S/4HANA as an opportunity to successfully introduce new business models. Companies can use the functionally necessary SAP S/4HANA migration as an excellent opportunity to modernize or set up new business processes using powerful software.
This works best with an SAP S/4HANA transformation from scratch, using a greenfield approach. This means launching the new SAP landscape with newly defined processes. Existing SAP processes are first checked, enabling businesses to say goodbye to inefficient processes and instead set up improved processes. For mechanical engineering companies and those in manufacturing, this means that they are digitalizing production, enabling them to optimally support future business strategies and new areas of business.