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Discovering SAP Business Transformation Management Solutions | ZH

Understanding Business Transformation

Now, in today's rapidly changing world and economy, companies need to be ready to transform, to serve their customers best, cope with changing business environments, and stay competitive. As you know, at SAP, we provide our customers with the latest technology to run their businesses the best they can. What I'll speak about today is how SAP Signavio and LeanIX solutions can help our customers to transform to new technologies, for instance, to SAP S/4HANA. That means we will first have to dive into why it is so important for our customers to become agile, more resilient, and sustainable in their operations. Now, what do we actually mean when we speak about companies becoming more agile? We mean the ability to respond quickly to changing market trends, the ability to adapt to new business models, the ability to cope with mergers and acquisitions, and of course taking advantage of new technologies such as AI, the cloud, automation, just to name a few. And what does resilience mean to us? Being resilient means to have your business set up in a robust way and to be able to respond to upcoming challenges, for instance, in supply chains. It is being able to address unexpected disruptions like we had during the pandemic or even wars. And when we talk about a sustainable business, we mean those who want to ensure that there will be a tomorrow for all the upcoming generations and who are willing to reach ESG goals and aim to produce less waste. But we know transformation, even if not business-wide, can be hard and disruptive. There's lots of uncertainty mixed with layers of complexity. Companies find themselves with little visibility into the existing processes and application landscapes. They often have no idea where the actual value potential in their operation is. And because of all the complexity, they don't even know where to start. Secondly, we are faced with shortages. Shortages in capacity, like time and resources. More than ever, we're faced with a lack of skills. Management often lacks insights into data, systems, roles, and responsibilities. And of course, we never have enough budget to really innovate business operations. Last but not least, we see it all too often that business and IT stakeholders want different things, which leads to inconsistencies. There's poor alignment or collaboration between business and IT due to different languages and goals, which often leads to difficulties when trying to get stakeholder and management buy-in. All in all, this either leads to decision paralysis or to decisions made by gut instinct rather than based on meaningful insights. And as an outcome, we see delays in progress, higher costs, and eventually failed transformations. Well, I have great news. This is where business transformation from SAP steps in. To tackle these challenges and to get the greatest benefits of the transformation, our customers need to address four areas simultaneously. On the left side, we have the processes. Businesses will have to change the way they're working. Now, changing processes typically also means that you will change the underlying applications that are supporting these processes. By the way, it could also be the other way around, that a change driven by a new application or system triggers a change in process. Customers decide, like in the case of S/4HANA, all too often to change their applications, but forget that this will have implications on their processes. And of course, most processes are operated by people, which leads us to the centerpiece of this loop. With everything we do, we need to keep in mind that change management, winning people's hearts and minds, will be key to a successful transformation. Resistance to change is something very human and must be understood by IT and management. It's imperative to get people excited and enabled about the new way of working. Last but not least, our customers have tons and tons of outdated, useless data collected over the last 10-20 years that have been operating their systems. Data management is another key factor for success in a business transformation. Now, let's break this down into the dimensions and into a project. On the left side, we have the four dimensions of processes, people, data, and applications. And on the top, we have the project phases from discovery to operation. Now, your customer may have their own methodology. The consultant who is working for the customer may also have their own methodology. But whatever the phases are called, all customers need to do process management. They need to analyze their current processes. They need to do change management. They need to train employees. They need to look at their data. They need to look at their application portfolio and their entire enterprise architecture management. The point is, if you talk to your customer and your customer says, we're already using vendor XYZ for process analysis and mining, it does not mean the end of the discussion. Because we cover the enterprise stack from business architecture to individual IT components and how these are all affected through change. And where we don't have SAP solutions in place today, we bring in ecosystem partners to cover essential parts of this story, like Calibra for data quality and observability. Now, you might recognize that this is different to SAP Activate. And yes, it's because here we're talking about business transformation, whereas Activate is very much an S/4HANA implementation methodology. So let's focus on the key activities to drive any business transformation end-to-end. Regardless of their ERP, we're enabling customers to continuously monitor their processes and application landscapes for further improvement, understanding the vulnerabilities, and to discover further optimization potential. And of course, this might mean that they go to the analyze phase when another change trigger hits. Let's say they're undergoing a merger. This might not necessarily mean they rediscover the organization that they have, but they use our solutions to scope the new organization to ensure that whatever applications or processes which exist in that organization are able to seamlessly integrate into the combined organization of tomorrow. On the bottom layer, we see some of the USP as you look through these activities. For example, in the Discover phase, no other competitor can claim that they know the SAP landscape like we do. From an SAP Signavio perspective, our customers get a digitally powered upfront analysis of all their processes and how they're working on their systems today. Soon, we'll have a similar SAP landscape discovery where we can speak to how we discover the SAP ecosystem and the applications by the key integrations that we make leading up to today. This automation reduces the analysis of your application landscape from months to just a few hours. But let's also speak about the reference architecture and the reference content as one of our USPs. Here, as you're designing and determining how you get fit to standard, we can leverage this to accelerate the time it takes from analysis to designing the to-be state, and of course, driving the implementation to a new level. Ultimately, this will help our customers get faster time to insights, understanding the what, the why, and the how for transformation. And faster time to adapt, understanding how it's going to work in your new landscape and making sure that you're operating on this new level. But don't just take our word for it. Our solutions have been rated as leaders by analysts and customers. For example, the Gartner Magic Quadrants, Signavio, a leader in process mining tools, LeanIX, a leader in enterprise architecture tools. And it's not just the analysts making these claims. Our customers are also rating us the same way. If we look at our G2 grids for LeanIX, for example, rated leader in enterprise architecture and application portfolio management tools. So even as separate solutions, we are market leaders. Can you imagine the power of now bringing the two together?