Rise With SAP: Delivering Results
SAP’s Rise with SAP offering has seen tremendous growth over the past year as more companies move to the cloud. The integrated suite of SAP software and cloud infrastructure services is helping increasing numbers of customers to easily transition their systems to S/4HANA in the cloud.
In the last six months of 2023 alone, Rise with SAP has facilitated some truly game-changing projects across industries. These innovative implementations demonstrate how Rise with SAP enables digital transformation and positions SAP as a strategic cloud partner. With the growth of Rise customers, more stories of customer success will drive further adoption as the use cases provide further evidence of the viability of the platform for a wide variety of contexts.
Supply Chain Transformation at Johnson & Johnson
Johnson & Johnson commenced its supply chain transformation project in Q2 of 2023 to overhaul end-to-end processes on a global scale. This monumental undertaking impacts over 100,000 users. Johnson & Johnson is deploying a full suite of SAP Ariba, IBP, and S/4HANA capabilities via Rise with SAP to unify their data and enable real-time supply chain planning and execution.
The cloud-based solutions now provide better resilience against disruptions. Dashboards and analytics empower users with actionable insights. The company also plans to explore emerging technologies like AI, ML and blockchain through the platform. The project demonstrates clearly how Rise with SAP can facilitate complex multi-cloud environments.
Future-Proofing Manufacturing at BASF
The world’s largest chemical producer, BASF aims to optimize production and accelerate innovation. In Q3 2023, BASF continued expanding its use of Rise with SAP, deploying S/4HANA at 10 plants in Europe. S/4HANA provides these facilities with real-time data across operations and a digital twin to simulate production for planning purposes.
The implementation also incorporates SAP Asset Intelligence Network, which applies ML to predict equipment maintenance needs. By digitizing its assets and processes, BASF gains agility to quickly react to market changes. Analysts project the use of Rise with SAP will generate over €250 million for BASF in reduced IT costs and efficiency gains.
Revitalizing Merchandising at Canada Goose
High-end apparel maker Canada Goose is undertaking a merchandising makeover. Their 2023 initiative with Rise with SAP looks to optimize planning, procurement, inventory, and retail processes. SAP S/4HANA, Ariba, and IBP enable real-time visibility for Canada Goose across sourcing, stock monitoring, and sales.
The cloud suite integrates with Point Of Sales and inventory management systems to align supply and demand. Canada Goose also utilizes the SAP Store Inventory Management mobile app to improve data accuracy and omni-channel marketing capabilities. The merchandising transformation improves coordination of operations between manufacturing facilities, contract suppliers, warehouses, and hundreds of retail stores.
Optimizing Supply Chain For Hershey’s
Hershey’s massive manufacturing digital transformation aims to optimize its supply chain and production across 6 plants in the United States. The implementation focuses on leveraging the Internet of Things (IoT), advanced analytics, and artificial intelligence with S/4HANA at the core.
Hershey’s is installing thousands of IoT sensors on equipment and across its factory floors. This allows for real-time monitoring of all production assets from packaging machinery to forklift units. Sensor data feeds into S/4HANA, providing end-to-end visibility, and information about bottlenecks and downtime issues.
Advanced analytics can then be applied through S/4HANA with machine learning algorithms to accurately predict when maintenance is needed and avoid unplanned downtime. For example: sensor data detected heating issues, allowing proactive repair of a cooling fan before outage. This type of predictive maintenance has improved overall equipment effectiveness in production facilities by over 10%.
The S/4HANA system also enables quick analysis of the root cause and quick response times when downtime does occur. 80% of production issues can be resolved in under an hour by pinpointing failures and coordinating technicians with mobile alerts.
S/4HANA also integrates with high-resolution cameras on production lines to automatically detect product defects, allowing real-time adjustments to quality control, and reducing waste.
With the S/4HANA digital core optimizing assets, schedules, and processes, Hershey’s aims to increase output by over 15% across its digitized plants, and the use of IoT, analytics and AI is creating truly smart factories.
Porsche Transforms Vehicle Assembly Processes
Porsche recently undertook the digital transformation of its vehicle assembly processes by leveraging S/4HANA and Rise with SAP.
They deployed S/4HANA at the main production facility in Stuttgart, Germany, to gain end-to-end visibility and control over assembly operations. Sensors and automation technology were integrated to digitally map the entire production process.
Porsche can now to simulate vehicle assembly down to each individual station on the line, and engineers can digitally verify and optimize the sequence of thousands of steps required to build vehicles.
Using the digital twin capabilities of S/4HANA, Porsche was able to shorten new vehicle launch preparation by almost 3 days: a level of agility which is critical with Porsche’s preferred refresh cycles for new models.
The S/4HANA system also automatically adjusts assembly staffing and components needed at each station based on real-time production data. Machine learning capabilities embedded in S/4HANA optimize the production flow.
Porsche used the Rise with SAP program for quick cloud deployment, and also to take advantage of pre-packaged automotive industry functionality. The integration of sensor data, automation, and S/4HANA is enabling Porsche to increase manufacturing flexibility, productivity, and speed to market.
Consolidating Systems At The UK Environment Agency
The Environment Agency in the United Kingdom recently underwent a major digital transformation by consolidating multiple legacy systems into an S/4HANA core on Rise with SAP.
The project migrated over 8,000 users across water management, environmental monitoring, flood prevention, and regulatory functions onto a single cloud-based S/4HANA instance.
Real-time data across all programs now feeds into the S/4HANA system. This provides consolidated analytics and dashboards for more agile and insightful decision making.
For example, sensor data on water levels and rainfall patterns now enables predictive flood forecasting and early warning alerts. Real-time air and water quality data also improves monitoring of pollution and hazardous events.
The Rise with SAP deployment used solutions from SAP for the public sector and environment agencies. Pre-configured capabilities accelerated deployment for core functions like finance, HR, and payroll.
The Environment Agency estimates S/4HANA will reduce IT costs by over £12 million annually while also improving environmental oversight. Analysts have recognized the implementation for bringing together siloed legacy systems into an intelligent, responsive digital core.
PepsiCo Migrates 5 Business Units To S/4HANA In 3 Months
PepsiCo embarked on an ambitious initiative to migrate 5 of its business units to S/4HANA in under 3 months using Rise with SAP. The accelerated timeline was made possible by Rise with SAP’s preconfigured processes and migration tools.
The business units spanned PepsiCo’s food and beverage operations across North America and Latin America, involving thousands of users. By moving to S/4HANA, PepsiCo aimed to unify its finance processes and gain real-time visibility into sales, inventory, and profitability.
PepsiCo used the industry expertise within Rise with SAP for consumer products companies to accelerate deployment of core capabilities for order-to-cash, procure-to-pay, and record-to-report processes.
Unified financial data in S/4HANA has enabled consolidated reporting and analytics for better cost management, and PepsiCo also utilized the predictive modeling in S/4HANA to forecast demand more accurately.
Within 12 weeks, PepsiCo successfully deployed its new cloud-based S/4HANA architecture across the business units. By replacing fragmented legacy systems, PepsiCo realized over $75 million in cost savings in year one.
Advancements in Rise with SAP
The latest versions of Rise with SAP have added capabilities that make cloud adoption even simpler. SAP activated an automated migration path from ECC to S/4HANA using RISE with SAP in early 2023. Preconfigured best practices, and guided configuration enable quick deployment. With the inclusion of the SAP Business Technology Platform, customers can easily integrate S/4HANA with SAP SuccessFactors.
SAP is also enhancing industry-specific use cases like automotive, utilities, public sector, and professional services. Industry cloud solutions simplify the process of moving these sectors to the cloud.
At the “Rise Into the Future” virtual event in September 2023, SAP announced some major new purchase options and expanded capabilities. New Rise with SAP subscription options include flexible terms of monthly, yearly, and 3 and 5 year duration so customers can scale their usage as their business needs expand.
Business Process Intelligence in S/4HANA has now been enhanced so customers can monitor and analyze processes for continuous improvement. These actionable process insights are displayed immediately on a dashboard application.
SAP announced integration in Rise of intelligent Robotic Process Automation bots from SAP Process Automation for faster automation of repetitive tasks, and new embedded sustainability management tools help companies track carbon emissions across business operations and supply chains.
Customers can now also add Qualtrics Experience Management capabilities to engage employees and optimize processes, and Rise with SAP has now expanded Customer Experience functionality through integration with SAP Commerce Cloud and SAP Marketing Cloud solutions.
SAP has also introduced migration assurance services for customers to ensure a smooth transition to S/4HANA with best practices, automated checks, and guidance from SAP experts.
The Cloud-First Strategy Is Paying Off
By providing bundled solutions for moving on-premise environments to the cloud, SAP has made significant gains in numbers of Rise customers through 2023 so far. Many organizations now understand they cannot deliver consumer-grade experiences with legacy systems, and Rise with SAP is successfully catering to this demand by making it simpler to add new capabilities like AI, automation, and real-time analytics.
SAP’s Q2 2023 earnings report provided validation that its cloud-first strategy is succeeding and allowing it to gain market share in ERP. Cloud revenue reported in Q2 by SAP grew over 25% year-over-year, surpassing the overall growth rate of the software industry by a large margin, and cloud now represents over 30% of SAP’s total revenue, highlighting the importance of their change of business model.
S/4HANA ERP saw strong adoption in Q2 with revenue growth over 35%. Two-thirds of new S/4HANA customers were net new. Over 16,000 customers are now live on S/4HANA, with the customer count up by over 20% so far in 2023.
Rise with SAP adoption accelerated with revenue growth over 75% in Q2. By then SAP had secured 3,100 Rise with SAP customers, and this number will rise substantially with this week’s expected Q3 financial report.
Industry analysts like Gartner and IDC have noted SAP’s cloud momentum is allowing it to increase its commanding market share in enterprise applications. SAP expects cloud revenue growth to be over 25% for the full year 2023. The figure for cloud backlog in Q3 is hotly anticipated as this is the best indicator of adoptions going forward.
As these huge projects demonstrate, Rise with SAP has become the primary path to S/4HANA and digital transformation. SAP is cementing innumerable partnerships across industries by enabling innovation and delivering measurable business value. With cutting-edge capabilities being added on a quarterly basis, we can expect Rise with SAP to instigate even more monumental implementations through the coming year and beyond.
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