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Overcoming challenges with public cloud adoption

Topic: Technology

One of the primary challenges lies in the cultural transformation. Stakeholders must embrace standardisation, moving away from the heavily customised legacy systems that have long defined their operations. This shift often requires rethinking established processes and adopting a more uniform, scalable framework to drive efficiency.

Collaboration plays a critical role in ensuring a smooth transition. Close alignment between consultants and businesses is essential, allowing for the seamless exchange of insights and expertise. By working together, teams can anticipate and address specific challenges, ensuring that the implementation aligns with both immediate goals and long-term strategies.Equally important is the holistic adoption of SAP tools. Solutions such as Digital Manufacturing and Integrated Business Planning offer powerful capabilities to manage diverse and complex business needs. These tools enable organisations to streamline operations, enhance visibility and integrate processes across the enterprise.With thoughtful planning and robust support, the journey to the public cloud can be both seamless and transformative.

By addressing cultural, collaborative, and technological dimensions, businesses can unlock the full potential of SAP Digital Supply Chain and SAP Digital Manufacturing and position themselves for success in a rapidly evolving digital landscape.

Real-World application: Our lessons from recent implementation

Recently Deloitte worked on an implementation that exemplifies the transformative power of SAP Public Cloud for a manufacturing business. A global manufacturing firm with a spread across 20 countries and 4 divisions was burdened by legacy systems and a lack of governance. The challenges faced were such as:

●     Complex global templates that evolved inconsistently over years.

●     A lack of unified governance across disparate systems.

●     Process variations that created inefficiencies.

●     Inability to take into use the latest SAP innovations

The solution: Implementing SAP Public Cloud with SAP Digital Supply chain and SAP Digital Manufacturing, the company enforced a robust governance model, aligning processes to fit-to-standard best practices. Outcomes included:

●     One digital platform for standardized data and processes

●     Streamlined operations through automation and centralisation.

●     Faster deployment timelines due to reduced complexity.

●     Improved integration across plants and systems, enabling real-time insights and decision-making.

●     Robust solution governance

Key takeaway: Adopting a standardised approach combined with SAP Digital Manufacturing’s advanced tools is essential for businesses navigating the challenges of legacy systems and complex manufacturing operations. SAP Digital Supply Chain and SAP Digital Manufacturing was able to meet all the needs the client had for manufacturing on a global level.

Future outlook: SAP and the manufacturing industry

SAP’s vision for the future of manufacturing is both bold and inspiring, with a steady rollout of innovative features delivered annually. Exciting advancements are already on the horizon, promising to redefine manufacturing capabilities and drive even greater value:

●     Enhanced AI and automation: Innovations in AI will offer predictive insights, enabling smarter decision-making and operational efficiencies.

●     Improved MES connectivity: Greater integration between SAP Digital Supply Chain and MES systems will provide unprecedented visibility and control over production processes.

●     A Resilient manufacturing industry: SAP’s continuous innovation aims to support a fully digitalised and highly efficient manufacturing ecosystem.

By staying committed to these advancements, SAP is empowering manufacturers to thrive in an increasingly complex and competitive landscape.

David Colgan

Denmark
Partner

Ask me about: SAP, S/4 HANA, Digital transformation, IT strategy, Program management, Digital Finance function, Cloud David is a partner in Deloitte and the Nordic Lead of our SAP Practice. David has a background as a Chartered Accountant but has more than 25 years of experience with SAP transformation programs, where the underlying theme is SAP and financial & digital optimization. David works with Danish as well as Nordic companies advising on SAP-enabled digital transformations and delivering SAP S/4HANA.