SAPinsider Technology Executive Forum Issue 1 2021

14 Many leaders see SAP S/4HANA as a foundation for bringing agility, flexibility, and visibility to their core business processes. “We had an antiquated platform that was limiting our ability to do new and innovative things with SAP. For us to implement new functionality, it requires significant effort and testing just to do something new. We cannot sup- port the level of innovation we want with that, and these limitations are driving us to build a new digital platform with SAP S/4HANA,” says Michael Mullis, CIO of Ingevity, a chemical manufacturing com- pany based in South Carolina. (Read about Ingevity's transformation on page 36.) Likewise, the cloud further strengthens compa- nies’ core. Our past research shows that almost two thirds of companies plan to run SAP S/4HANA on a cloud of some sort, but cloud investments will extend far beyond this approach. Our “State of the Market” report shows that in the year 2021 companies will invest in a variety of cloud solutions including SaaS (53%), private cloud (35%), platform-as-a-service (31%), infrastructure- as-a-service (30%), and hyperscaler solutions (26%). Suffice it to say, many companies will be using a mix of solutions and operating in hybrid environments. Many leaders are adopting a cloud-first strategy to simplify their environments, but also to provide flexibility and speed when it comes to infrastructure and resources. This strategy will require new skillsets around cloud and integration. The Triple “As” of Technology and Skills Investment Operations are critical, but so too are visibility and intelligence, and these are enabled by analytics. According to our State of the Market Report, 42% of respondents will increase or significantly increase their investment in analytics. The past year has demonstrated why it’s important to have visibility into all aspects of the business so that companies can react, make decisions on the fly, and model new scenarios in real-time. Respondents also plan to invest in the cloud (39%), robotic process automation (33%), integration (32%), and artificial intelligence (32%). Operation efficiency and leveraging data to make processes and analytics more intelligent are clear imperatives for most organizations. Executives and their teams are likewise pri- oritizing the acquisition of talent and skills that support these technologies. The top in-demand skills include analytics (42%) followed by cloud and infrastructure (24%), and artificial intelligence and machine learning (20%), according to our State of the Market study. What Does This Mean for Executives? Accelerate the transformation of your core. Cloud and SAP S/4HANA are not just options but pri- orities for those that are sticking with SAP ERP. Even if you do not move right away, advance your knowledge and understanding of SAP S/4HANA and its impact on process, architecture, and overall functionality. Focus on your people and culture when it comes to change. Most leaders acknowledge that strategy and technology mean nothing if you do not have buy-in from all levels of your organization. Successful leaders are getting their people involved by helping them understand the technology and its potential impact. Many are putting early pilots in their hands and giving them free reign to use and experiment. Fail quickly and often so that you can learn. Agile methodologies for pilots and running projects are ramping up for many early adopters. This type of innovation environment allows companies to experi- ment and learn without wasting a lot of time or significantly impacting existing operations. Start small with areas that can show quick wins and tan- gible results. Leverage the cloud to quickly roll out applications and experiment with new technologies. Aggressively expand your skills across the three “As”. In addition to cloud and SAP S/4HANA, ana- lytics, artificial intelligence, and automation are important to delivering increased value to your business as well as supporting innovation. As many leaders discuss transformation, business processes are at the core of that discussion. It is not just about efficiency, but intelligence and visibility. These tech- nologies offer a way to unlock critical value at the process level. SAPinsiderOnline.com