How the Digital Transformation Succeeds
We are facing a fundamental change in business. If entrepreneurs have so far designed their business model for the offline world and only then added online functions, they will soon be adapting new processes that are emerging in the digital age.
The consequences of this change cannot yet be truly fathomed, but there are recognizable trends that can be used to develop stable strategies to successfully manage change.
This is particularly true for SMEs that are faced with the decision of how much budget and resources they must or can spend on digital transformation, for example in B2B e-commerce or production control as part of Industry 4.0.
The framework: Omnichannel and Industry 4.0
When it comes to B2B e-commerce, users today expect the same convenient and personalized shopping experience at their workplace as they do when shopping online at home.
Omnichannel commerce - parallel on all channels, online, offline, mobile or by phone and with first-class service around the clock. Manufacturers and suppliers must follow this trend and prepare all relevant information for each product in a target group-oriented manner, present it in a structured, clear and consistent way on all sales channels and communicate with the customer on all channels simultaneously.
Today's B2B customers also want highly customized products (= batch size 1) at the same cost as series production. This increases the pressure to produce ever more cheaply and requires a high level of efficiency and transparency in the production halls, which can be achieved with a smart factory based on the Industry 4.0 concept.
It merges the real and virtual worlds with the help of decentralized, self-controlling processes and digital technologies to create an Internet of things, services and data and networks the value chain via machine-to-machine communication.
The opportunities: marketing innovative processes in SMEs too
Industry 4.0 is fundamentally changing industrial production and at the same time creating the basis for the development of innovative service and business models. Predictive maintenance is just one example:
Maintenance work on a machine at the customer's premises can be initiated before a breakdown occurs if the machine automatically transmits its data to the manufacturer, who in turn integrates it into the commercial processes of its SAP ERP system.
Unplanned downtimes are thus reduced to a minimum and costs are saved - turning customers into fans. Customer satisfaction can therefore be measured.
In an overall concept, this means that this machine data can be used to develop a highly individualized service or new and more efficient sales strategies.
Corresponding projects have already been successfully implemented in the SAP environment, including by us. For example, manufacturers of industrial sewing machines can offer their products in the form of an on-demand payment model.
This has the advantage for customers that they no longer have to purchase machines and equipment, but only pay a usage fee based on the number of sewing processes and stitches performed.
The centerpiece: an integrated ERP system
The prerequisite for omnichannel commerce and Industry 4.0 is a closely interlinked value chain with a smooth flow of information right through to the central SAP ERP system.
In the future, a company's market success will depend on the seamless linking and synchronization of B2B e-commerce and store floor processes with business processes in ERP.
At the same time, the immense amounts of data generated by these processes must be processed at lightning speed and analyzed in a highly agile manner in order to meet market and customer requirements in a timely manner.
A modern, lean and highly integrated SAP architecture with the simplest possible data structures is required to overcome the challenges associated with digital transformation and big data, for example in terms of process integration or the speed at which data is processed and analyzed.
In this architecture, the role of the central ERP system as the "heart" of business IT processes needs to be redefined. As more and more new business processes were developed, more and more IT solutions were grouped around the ERP core, which had to be integrated.
As the digital transformation is permanently changing value chains, there is a need for consistent, simple and adaptable end-to-end processes from development, production and logistics through to relationships with customers and suppliers.
This is possible if PLM, SCM, CRM and SRM functionality is brought back into the ERP system. Reporting processes can also be made "simpler" by returning business intelligence (BI) functions to ERP.
S/4 Hana: Analysis and action are united again
SAP Business Suite 4 SAP Hana (S/4), the next-generation application suite, has recently provided an answer to the question of what the ERP of the future must look like.
S/4 bundles ERP functions with the possibilities that Hana offers in terms of real-time data processing and analysis and with the HTML5 (UI5) interface of Fiori in a single product.
In the new application suite, the letter "S" stands for "Simple", the number "4" for fourth-generation business software and "Hana" for the fusion of processes and evaluations including simulations in real time on the Hana platform. S/4 thus serves as an enabler for innovation and at the same time provides a completely new user experience.
In addition, successful digital transformation requires a holistic approach that incorporates all relevant building blocks - information, processes, IT architecture and organizational structure.
The trick now is to link the individual components and technologies so intelligently and use them efficiently that a competitive advantage is created.
The question of the right IT operating model also needs to be answered: on premise in your own data center, in a managed cloud or in the form of a hybrid model?
The basis: intelligent advice that creates a link
All of this requires in-depth knowledge of the business content as well as the targeted use of suitable methods for implementation and system integration.
Medium-sized companies quickly reach their financial and organizational limits here, as building up the necessary expertise and additional human resources is time-consuming and costly.
They need the support of an experienced and innovative partner such as the SAP full-service provider Itelligence, which has proven consulting, process, technology and methodological expertise, on their way to becoming a digital company.
In order to guarantee the best possible support and so that customers can derive the maximum business benefit from their investments, all services come from a single source - management and IT consulting, implementation, application management and managed cloud services.
With its own business analysts, Itelligence also supports the customer in planning and implementing its business and IT strategy. However, as an IT transformation project also triggers structural and organizational changes, change management is also an integral part of the consulting portfolio.
The experience: S/4 can be translated into the midmarket
As an early adopter and one of SAP's closest partners, Itelligence was involved in the development of S/4 at an early stage. This expertise is now being passed on to customers, as Itelligence is the first SAP partner worldwide to launch an industry solution based on S/4, underlining its technological leadership in the SAP partner ecosystem:
it.machinery for medium-sized mechanical and plant engineering companies. The real-time view of data, key figures and processes along the value chain and the ability to make ad hoc decisions offer measurable success.
Industry 4.0 functions or the SAP Hybris Commerce Suite can be integrated into the backend just as easily as mobile apps, for example "it.mobile InfoCollector", or additional solutions for special tasks (= additions).
Interfaces for the cloud connection, for example to Cloud for Sales and Cloud for Service, are also an integral part of the solution. Based on our positive experience with S/4, we will be providing further industry solutions in the near future.
The future: IT implementation faster - consulting more important
With the help of modular industry packages based on S/4, medium-sized companies can create a customized and dynamic overall IT solution that closely links all business processes and is optimally tailored to individual requirements.
At the same time, this also simplifies and accelerates the development of new business processes or the implementation of additional customer requirements. In today's ever faster-moving business world, this is a competitive factor.
Just as important as the tailor-made configuration is the rapid implementation of the solution - on premise, in the cloud or hybrid - while precisely adhering to the schedule and budget. To this end, a tailored operating concept is developed and implemented in close consultation with the customer.
Successful implementation is guaranteed by a project-specific method ("One Method"), which also consists of individual modules and can be configured by the customer to meet their exact requirements.
Five steps to prepare for the digital transformation
- Promote willingness within the company to think about old and new processes and business models
- View operational processes strictly from the customer's perspective and analyze which services offer the customer added value
- Collect and prioritize ideas for new and innovative business models and services, for example by using creative methods such as design thinking
- Choose a holistic approach for the implementation of innovations, including processes, information, IT architecture and organizational structure
- Select an IT service provider that offers transformation projects based on SAP S/4 Hana, a stringent innovation strategy and services from a single source
SAP S/4 Hana: The ten most important advantages of it.machinery
The industry package it.machinery combines the best of both worlds, as it is based on S/4 and is preconfigured, process-oriented and modular thanks to "refined" industry expertise.
The value chain from sales, design and purchasing to assembly, commissioning, after-sales service and dismantling is covered in a single project structure.
The advantages at a glance:
- 1. fact-based decisions through detailed real-time insights into all areas of the company with S/4 Hana
- Ad-hoc corporate management through the combination of analysis and action, insight-to-action processes
- Quickly identify and solve problems with the help of Smart Business Cockpits
- Convenient completion of routine tasks with intuitive SAP Fiori interface on any end device
- Use of industry-specific preconfigured business processes
- End-to-end mapping of the value chain in a single project structure and control of business processes directly from the project
- Mapping of industry-specific requirements (long-running parts, growing parts lists, CAD integration) and different production typologies (make-to-stock, make-to-order, project production)
- Integration of additions for special tasks to "refine" the standard
- Needs-based, convenient expansion through mobile solutions and cloud services
- Implementation in line with SME requirements using a project-specific method
Good impact through joint creative workshops with customers - design thinking approach
If you want to stay a decisive step ahead of the competition in the future, you need to develop ideas for new business scenarios and implement them in a structured way. Creative methods such as design thinking are particularly suitable for this.
Together with the customer, collective ideas and suggestions for new processes are collected in workshops, evaluated according to their strategic importance and then implemented step by step according to a fixed schedule and action plan.
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