The following guest perspective was authored by Nitin Singh, of the SAP Value Advisory team, who recently addressed attendees alongside Gerry McCool, of the SAP Value Advisory team, at SAP Sapphire & ASUG Annual Conference 2024 in an ASUG Power Peer Group session, "Simplify business process transformation with SAP Signavio solutions."

Being a technology-driven organization is no longer a luxury but a necessity in today's fast-paced business environment. With the right tools and technologies in place, companies can not only stay ahead of the competition but drive innovation, increase productivity, and build resilience for the future.

The adoption of cloud and AI technologies has become a top priority for organizations looking to stay competitive and relevant in their industries. However, the key question remains: how can organizations ensure they are getting true value from these innovations, and that they are adopting the most relevant innovations for their business?

This is where business process management software, such as SAP Signavio and SAP LeanIX, can play a crucial role. These tools not only identify key gaps in their organizations’ current operating models but also provide the latest best practices to make operating models more agile. By leveraging these technologies, organizations can ensure that they are adopting the right innovations to drive real value for their business.

In addition to identifying the right innovations, the adoption of cloud ERP can provide a foundation for organizations’ success by simplifying IT operating models. This means that business and IT teams can focus on tasks that truly matter, rather than wasting time and resources on solving infrastructure and cybersecurity issues. Traditional on-premises ERP systems were constrained by about a 5-7 year innovation cycle, which led organizations to lose value by not adopting innovations rolled out within that timeframe.

Numerous studies have shown that organizations with a cloud-first mindset as well as AI, digital, and sustainability investments tend to outperform their peers by a significant margin. By leveraging the cloud, organizations can gain productivity and focus on driving innovation and growth. Incremental innovations drive additional value during each upgrade cycle, thereby widening the gap in value attainment between a cloud ERP and an on-premises ERP, as shown in the diagram below.

Additionally, reducing technical debt and building a cleaner, leaner core can accelerate business outcomes from ERP, leading to faster upgrades and less effort required.

The benefits of cloud ERP are not uniform, as they vary based on each organizations’ unique business needs and situations. That's why the SAP Value Advisory team has developed a RISE value framework, using a flywheel model to identify and quantify potential benefit areas from cloud ERP. This framework helps organizations understand the specific value they can derive from cloud adoption via RISE with SAP and how to maximize these benefits for their business.

Ultimately, building a technology-driven organization is about more than just adopting the latest tools and technologies. It's about leveraging these innovations to drive real value, increase resilience, and stay ahead of the competition. With the right strategies and technologies in place, organizations can navigate the evolving business landscape with confidence and drive success for years to come.

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