Henkel and GAMA are some of the companies that have embarked on business transformation journeys leveraging SAP cloud ERP Systems.
The recent pandemic years have had companies from across industries witness unprecedented disruptions– shining the spotlight on modern ERP systems to keep pace with the changes for them to survive and thrive. Specifically, the cloud ERP market, which has gained massive traction lately, is forecasted to grow nearly double from USD 64.7 billion in 2022 to USD 130.0 billion by 2027 according to the “Cloud ERP Market by Component (Solution, Services), Business Function (Accounting and Finance, Sales and Marketing, Inventory and Order Management), Organization Size, Vertical (BFSI, Manufacturing, IT, and Telecom) and Region – Global Forecast to 2027” report.
German software giant SAP shared that cloud ERP is the top-ranking trend for 2023 that would allow companies not only to accelerate their digital transformation but also to help them standardize core business processes. In the last quarter of 2022, the software enterprise firm has achieved cloud revenue growth by 30% year over year, reaching €3.39 billion and recognizing Lockheed Martin, Accenture, and Zespri as key customer wins.
Transforming Businesses with SAP Cloud ERP Systems
This month, SAP’s cloud momentum upholds with Henkel and GAMA as its latest customers to adopt the cloud ERP.
Henkel
Leading chemical and consumer goods company Henkel has announced an expanded partnership with SAP to drive its purposeful growth agenda which includes digital transformation, innovation, and sustainability.
According to Michael Nilles, chief digital and information officer (CDIO) of Henkel, the strategic alliance with SAP is critical because it is more than simply purchasing software and technology. He stressed:
“It’s much more about collaborating on innovations and developing solutions that are tailored to Henkel’s specific business challenges. A paradigm shift of this magnitude can only be achieved by working closely together.”
Juergen Mueller, CTO and member of the Executive Board of SAP SE highlighted that SAP has been a digital transformation partner of Henkel in recent years. The German multinational consumer goods company has been running several business-critical applications on SAP software in the cloud such as SAP Business Technology Platform (SAP BTP) for its Sales Promotions and Revenue Cloud (SPARC). Explaining the latest collaboration with Henkel, he said:
“Though working with Henkel is not new territory for us, this alliance is much more far-reaching. It will see Henkel leverage RISE with SAP to replace its existing ERP applications with SAP S/4HANA and migrate them from its on-premise data centers to the cloud. It’s a mammoth project: Henkel wants to move to SAP S/4HANA and the in-memory database SAP HANA and migrate all its core processes to the cloud at the same time.”
Mueller added that Henkel can be an exemplar of a business transformation journey for other companies that share similar circumstances.
GAMA
Greater Austin Merchants Cooperative Association (GAMA), a cooperative community/membership-based Trade Association in the Convenience/Gas industry from Texas has also selected SAP to be its digital transformation partner.
By adopting SAP S/4HANA Cloud, public edition, the organization intends to future-proof its business and scale its capabilities to serve and match its growing members and facilities. Currently, GAMA has 580 members that are achieving over 7 million dollars in product savings from the more than 220 vendors. The cooperative also recently purchased a new warehouse to organize its distribution and cash-and-carry businesses.
Greg Petraetis, North America senior vice president and managing director, Midmarket and Partner Ecosystem, SAP commented:
“We’re honored to have been selected by Greater Austin Merchants Cooperative Association to help get them ready for the future. With SAP S/4HANA Cloud, public edition – as well as our new offering, GROW with SAP – we are helping midsize businesses harness the proven benefits of cloud ERP with built-in industry best practices.”
On selecting the SAP Cloud ERP to support the organization’s business transformation journey, Salim Badarpura, information system analyst at GAMA said:
“SAP shined in these areas, and with SAP S/4HANA Cloud, public edition we expect to not only grow our business but keep up with the growth we experience for the next decade. From digital marketing to supply chain management, SAP will help give us the capabilities to address those issues which could potentially increase our revenue significantly.”
