RISE with SAP: Three Sources of Value

We are now all very familiar with an “expect the unexpected” way of life. It’s impossible to know what the future holds, and businesses must be prepared for anything to continue to support their customers. Technology-led transformation continues to be crucial to anticipate the unpredictable, adapt quickly, improve current business processes and make room for innovation that will drive profitable growth.

SAP introduced RISE with SAP to make such technology-led transformations not only possible, but also pragmatic, predictable, impactful and measurable. The overall goal is to enable companies to become intelligent, sustainable enterprises that consistently deliver business and societal benefits.

A study conducted by McKinsey foresees more than $1 trillion in potential run-rate EBITDA across Fortune 500 companies by 2030 coming from both cloud cost-related optimization levers, and value-oriented business use cases. Quite expectedly, most companies are already moving to the cloud or planning to do so soon; however, many are focusing on a simple ‘lift and shift’ of their on-premise applications to the cloud to reduce cost, leaving on the table the real transformational value that comes from new and innovative business capabilities and their use cases.

Many organizations are still hesitant and delaying their ability to realize such full potential for a variety of reasons, including:

1. Difficulty in exploring and quantifying the incremental capabilities enabled through next-generation business processes vs. the status quo;
2. An assumption that digitally transforming in the cloud means writing off years of efforts and investments on existing technology landscapes;
3. Having to engage with a wide range of vendors and partners to cover all transformation activities and mitigate all risks, which in turn creates an inherent governance and execution risk;
4. Limited ability to leverage the broader technology ecosystem capabilities and integrate them effectively;
5. Lack of real-time visibility on the performance and impact of newly implemented business process and innovations; and
6. Concerns of cyber threats during or after the move to the cloud

RISE with SAP has been designed with the core objective of addressing these challenges to help any organization arrive to a state of enterprise intelligence that is not only transformational, but also pragmatic and predictable, and no matter what the company’s technology departure point is.

Whether customers are new to SAP ERP or are already experienced users; whether they’ve already started leveraging SAP S/4HANA or are still planning their journey; whether they operate on-premise or have moved to a managed cloud - their ‘move to cloud’ with RISE with SAP can provide tremendous incremental value.

RISE with SAP unlocks three differentiated sources of value in particular:

1)???Take the Lead: ?Differentiating business capabilities and industry next practices create new revenue streams, improve efficiency, enhance employee engagement, and help in running in a sustainable manner, allowing organizations to Take the Lead. Case in point: AGG, a power supply equipment manufacturer and solution provider, has seen 20% increase in service revenue from new business models, 10% reduction in time to market for new products and 98% customer satisfaction.

?2)???Never Stop Improving: Continuous insight that optimizes business processes allows companies to identify and prioritize optimization opportunities with instant process analysis, and benchmark against industry peers, ensuring that they never stop improving. Case in point: Federal Mogul, a leading producer of original equipment and spare parts in the automotive industry, has seen 100% increase in automation of mission-critical back-office processes and 100% increase in traceability of manufacturing processes.

?3)???Secure Success: ?Cloud delivery capabilities accelerate time to value, reduce overall TCO, mitigate risk, and secure the success of companies who work with a trusted partner. Case in point: Aramco Europe, the energy giant’s company providing supply chain, technology and financial support to Aramco companies in Europe, Asia and Africa, has seen 50% reduction in application management efforts and fewer routine maintenance chores in IT.

?See more stories along the three sources of value here.

In March, 2022, SAP launched a new capability that allows companies to collaborate with SAP and SAP partners to quantify the full potential value, along the three sources of value, that RISE with SAP can bring to every organization at an individual level and based on their technology departure point using SAP Value Lifecycle Manager. Reach out at [email protected] to learn more.

What we’re learning in every consultative engagement we’re now doing, that with RISE with SAP, organizations no longer need to balance tough trade-offs – they can now execute on technology-led transformations that deliver transformational business benefits while optimizing their technology TCO and securing their success in the cloud.

Stay tuned for the next blog where I will explain in detail how each of the three sources of value I outlined here address the challenges that could cause transformation delay, paralysis or value dilution.

Sam Masri. Global Head, Industry & Value Advisory. SAP SE.