More than the sum of its parts

They unerringly identify customers' requirements and meet them with innovative products and services. In doing so, they exploit the opportunities that present themselves without losing sight of the risks.

The idea that intelligence is also a crucial factor for companies as an organization was formulated by American scientist James Brian Quinn in his 1992 book "Intelligent Enterprise: A Knowledge and Service Based Paradigm for Industry."

He assigns a decisive role to innovative technologies. In this respect, it is not surprising that SAP has been focusing on the "Intelligent Enterprise" in its communications for a few years now - even if it is not entirely clear whether the software provider is explicitly referring to Quinn. In any case, the fact is that SAP obviously sees potential that companies have not yet exploited despite the use of a number of IT tools.

Intelligence at the level of the organization

It is legitimate to ask whether there really is a fundamental difference between an "intelligent enterprise" and a conventional company. Or whether the term merely expresses a self-evident fact. We are convinced that a paradigm shift can indeed be associated with the use of innovative technologies:

Until now, IT has been used primarily to support people in their cognitive tasks. IT provided key figures, for example. People made decisions on this basis. In an "intelligent enterprise," IT - or rather technology - acts much more autonomously. It is able to do this because a whole series of individual components are interlinked in a complex architecture. The whole thus becomes much more than just the sum of its parts!

SAP illustrates this idea with the help of an endless band that encloses three areas: "Intelligence" in the middle is flanked by "Experience" on the left and "Operations" on the right. In the intelligence area, the experience data and the operational data flow together. By analyzing the database consolidated in this way - even in real time - insights can be gained into what happened and why it happened. In addition, technologies use these insights to make autonomous decisions, trigger processes related to experience and operations, and initiate dedicated activities.

The new openness in the SAP world

To enable scenarios to be realized across the three areas, an "Intelligent Enterprise" should combine very different technologies. Solutions that do not originate from SAP can also be used explicitly. SAP is well aware that this openness is essential in today's world. However, the aim is not to create a system landscape that consists of a number of individual solutions that are not coordinated with each other, as was almost the norm in the past.

Instead, the selection and connection of components should follow a holistic plan that spans the entire company. This first requires a cultural change in the companies. Because to this day, many departments see themselves as independent units and stubbornly defend their entrenched rights. Including the right to choose their own IT. If they are to give this up, it will require convincing by the company's management and proof that the new orientation works.

In addition to the cultural change, a solid technological foundation is indispensable that provides all the basic functions and via which the integration of all other technologies can take place. This is exactly what the SAP Business Technology Platform is designed to do. It includes applications for database and data management, analysis solutions, tools for application development and integration, and intelligent technologies.

Transformation to the Intelligent Enterprise

The transformation to an "Intelligent Enterprise" follows an individually designed roadmap for each company - based on the respective business model, the products and services, the organization, the processes and the existing technology. Nevertheless, the steps that should be considered are always similar:

1. Holistic Plan: Every company should be clear about why it wants to evolve into an "intelligent enterprise" and what that means in concrete terms: What should be offered to customers in the future and how? How should the business model, products and services change? And what does this mean for the organization and processes? Answers to these questions outline a vision for the future from which a holistic plan can be derived.
   
2. Target architecture: On the basis of the holistic plan, a target architecture can be designed with which all the desired scenarios can be realized. The comparison of this target architecture with the actual architecture shows which steps must be taken to close the gaps.
   
3. Prioritization of scenarios and technologies: Completing the entire transformation in one big sweep is neither feasible nor sensible. Instead, individual projects should be identified, prioritized and then successively implemented. The yardstick for prioritization can be the benefit of a project - the optimum situation is when added value is achieved quickly, especially at the beginning of the transformation.
   
   However, the technological gap can also serve as a benchmark: Sometimes it is enough to add small applications to the architecture to achieve an effect. Or you use an app in the MVP approach (Minimum Viable Product) to quickly gather experience in productive use and incorporate it into rapid further development.
   
4. Technology selection: Even if it is clear what type of technology is to be introduced, there is still a certain amount of choice in many cases. In the sense of a best-of-breed approach, the decision in favor of a specific solution should be guided on the one hand by how well it meets the requirements set. On the other hand, it is always worth taking a look at the big picture. An application that is perfectly suited to a single scenario may be difficult to integrate into the overall architecture.
   
5. Implementation: Even if companies have maximum flexibility in prioritizing and selecting use cases and technologies, there is much to be said for SAP S/4 Hana as the core of an "Intelligent Enterprise". In this respect, the introduction should be prepared strategically - this includes the decision for a deployment variant and a transformation path. However, the development of an "Intelligent Enterprise" can also begin before the introduction of SAP S/4 Hana. However, the role of the innovative ERP suite should always be considered.
   
6. Iteration: The list of the five steps mentioned above assumes a linear process. This is essentially true, but must not be interpreted too rigidly. For example, the examination of technologies often generates impulses for the business model, products and services. In addition, new technologies become available at short intervals that were not anticipated at the time of initial planning.
   
   Ultimately, this also means that the transformation to an "Intelligent Enterprise" is never complete, because innovations always open up new possibilities.
   Nagarro Allgeier ES supports companies holistically in their transformation to an "Intelligent Enterprise" - across all business and technology aspects. Always with an eye on what can be done with IT in reality!