For Modern Businesses, Standing Still Is Not An Option
In order to stay competitive in a relentlessly changing world, it is no longer optional but imperative that companies keep pace with technological disruption.
Businesses are realizing that in order to reach new sets of customers and increase the lifetime value of existing ones, they have to embrace fundamental shifts in the way they operate. One thing is crystal clear: standing still is not an option.
In my role as chief revenue officer for SAP’s Cloud ERP, I have the pleasure and delight of speaking to customers almost every single day. When we discuss the need for business transformation, the most important question my customers seem to ask is: are we changing as fast as the world around us?
For many companies, the answer is no. But that should not impede the motivation to transform. Based on our conversations, the following are key observations on what drives companies out of their comfort zones, to embrace business transformation.
#1 KEEN UNDERSTANDING OF THE FUTURE
I’ve spoken to many business and IT decision makers over the course of my career, and have asked them about their understanding of, and vision for, the future. How do they envision their businesses thriving in the face of technological disruption?
And if there is one commonality amongst all of their responses, it is their keen understanding of the nature of change, and the reality that strategy life cycles are shrinking. Industry after industry, we see challenger brands and born-in-the-cloud insurgents ride the waves of change, leaving incumbents far behind. The message is clear to them: transform or be outpaced.
For these decision makers, they know that the only thing they can count on is that, soon, their organization will be challenged to change in ways for which there has been no precedent.
And based on that, they’re ready to tackle head on, a future that demands change.
Consider how the numbers back this observation too: 70% of CIOs say they will embrace a cloud-first strategy by 2020[1], and 70% of Enterprise IT spending will be for the cloud by the same year[2].
By embracing change, companies are taking the steps necessary to future-proof their businesses.
#2 MOTIVATION TO RUN — AND STAY — AHEAD
Another recurring theme in my conversations with customers is the threat of being outpaced by their competitors. These threats do not have to become reality.
Many of my customers are realizing that by adopting intelligent technologies, they can revolutionize the way they do business, increase their effectiveness, and very quickly respond to changing market and customer needs. This lets them run — and stay — ahead of their competition.
Take Vital Proteins for instance. A manufacturer of powdered collagen and other sustainably-sourced nutrition products, the company has a vision of becoming an intelligent enterprise poised for new levels of innovation, growth, and digital advancements.
Vital Proteins chose to implement SAP S/4HANA Cloud to provide a sophisticated user experience and AI platform that helps them drive hypergrowth and continuous innovation. Since then, the company has seen significant growth since their debut in 2014, and they plan to continue at this pace in partnership with SAP.
#3 NEED TO SHARPEN COMPETITIVE EDGE
I’ve also come across companies that are struggling with high costs of ownership, overly-complicated processes, ineffectiveness, and other inefficiencies. They have reached the realization that traditional software and legacy business processes are impeding their ability to stay competitive.
This is where their search for future-ready solutions typically begin. They understand that in order to sharpen their competitive edge, they need intelligent software that enables them to run faster, operate smarter and improve the way they serve their customers.
SMA Railway Technology, as an example, picked SAP S/4HANA Cloud because they needed a fast and robust solution to help them operate independently, sustain their growth model, and make use of best practices while ensuring a low total cost of ownership.
SAP S/4HANA Cloud Empowers Companies to Run Ahead
I may be biased, but SAP S/4HANA Cloud, SAP’s flagship intelligent cloud ERP solution, may just be the business suite that businesses need to gain their competitive edge.
Designed to be the world’s most intelligent — and first hands-free — cloud ERP solution, SAP S/4HANA Cloud leverages the latest in machine learning, predictive analytics and conversational user interface to help businesses become more agile and realize greater profitability.
We will be discussing this topic and more, in detail, at SAP’s SAPPHIRE NOW and ASUG Conference 2018 from June 5 to 7 in Orlando, Florida. Come hear about how intelligent cloud ERP solutions will revolutionize and redefine the way companies work today.
If you are considering joining us at the event, register now! If you are already planning on attending — well done! Just be sure to come up and say hi… I would love to hear from you.
[1] IDC FutureScape: Worldwide IT Industry 2017 Predictions — Nov. 2016
[2] IDC Futurescape: WW Intelligent ERP 2017 Predictions — Nov. 2016.
