“It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.” The principle in this famous quote about adaptability as critical to surviving a changing natural environment can also apply to business transformations that drive meaningful value versus those that don’t.
So what’s the difference between transformations that drive value and those that don’t? According to a recently published IDC business value study, the answer is US$1.27 million in higher revenue for every 100 business users each year.
This IDC survey finding is particularly relevant for organizations that use SAP Business Technology Platform (SAP BTP) to integrate, extend, and innovate with the cloud-based ERP, SAP S/4HANA Cloud. They can not only create more value with their operational data but also respond faster and more fully to customer demand and deliver process automation that generates significant time savings.
Integrated and streamlined development adds value
The reality of the digital world means organizations run on a continuous innovation cycle. And as long as the shortage of skilled application developers intensifies, businesses need tools that allow all employees to design new applications, extend existing capabilities, deliver process improvement, and replace manual activities. Most important, all these tasks must be accomplished where and when users need them with greater ease and speed and without compromising core ERP applications.
The low-code capabilities of SAP BTP deliver on this emerging mandate through SAP Build – especially when organizations evolve from on-premises legacy systems to cloud ERP such as SAP S/4HANA Cloud. IDC's study showed the advantages of low-code development, including 87% higher productivity, 37% faster innovation cycle times, and a $10,400 lower cost in infrastructure and other data-related investments for every 100 users annually.
Moreover, built-in customization, governance, and security capabilities further lower the effort, cost, and risk associated with delivering new use cases with intelligent technologies. As one surveyed organization validated: “We started using AI and predictive modeling […] with SAP BTP and SAP S/4HANA Cloud as part of [our] corporate strategy. As a result, it’s easier to launch new products, price them effectively, and get data about their margins and sales trends.”
Access to quality data boosts productivity
Another key benefit of implementing SAP BTP across SAP S/4HANA Cloud is access to a wide array of data connectors and prebuilt integrations. In fact, one survey respondent considers that feature as “a definite way to grow services and have specific applications available to access and support Big Data and integration processes.”
Study participants also reported to IDC extraordinary ease, purpose, and visibility when moving and using data, opening the door to higher-value use cases and greater consistency in insight and service delivery. This includes 64% faster generation of data-based reports and 67% less lost productive time.
In return, business user confidence in the information they rely on to get work done daily increases. And as the risk of application outages and performance degradation goes down, their ability to contribute to improved business outcomes rises – driving higher line of business productivity, proactive generation of ideas, and cost optimization.
Process automation generates critical business gains
Business process automation also becomes more intelligent and smoother when connecting SAP BTP with SAP S/4HANA Cloud – saving each business user, on average, 43 hours annually. Data moves more readily across the cloud ERP environment, while intelligent algorithms address time-consuming, friction-laden actions and transactions.
Organizations interviewed by IDC underscored gains in their data – and process-related quality. For example, they report 63% fewer business processes that incur at least one error and 56% faster resolution of errors when they occur. These outcomes reflect how the platform enables organizations to reduce the risk of establishing and running existing and new business models and processes with increased cost-effectiveness and efficiency.
As one study participant explained, “We have around 15 people handling business processes across all business units. We would need many more people without SAP BTP with SAP S/4HANA Cloud – a minimum of 2.5x to 3x more for these processes.”
A cost-effective, efficient environment saves time and cost
Reliance on timely, uninterrupted access to cross-organizational operational data is at an all-time high for every department – from sales and marketing to HR and manufacturing. And any opportunity to leverage more regular access to new application functionality and accelerated delivery of innovative technologies is always welcomed.
IDC’s research demonstrates that using SAP BTP with SAP S/4HANA Cloud helps businesses worldwide gain that advantage. Integrating, extending, and innovating cloud ERP-based applications and capabilities through the platform enables line-of-business teams to work more cost-effectively, address business needs more efficiently, and win more business opportunities.