The Internet of Things, Digital Economy as well as the SAP S/4 HANA Business Suite, is a hotbed topic currently trending in digital scenarios. Most business enterprises that are competing for the digital transformation race are aware of how these next-generation technologies are influencing the business processes and commerce.
SAP S/4 HANA Industry 4.0 and IOT Concept
SAP’s in-memory technology S/4 HANA has been highly relevant in database management and proved its efficiency in handling a large amount of data. With time, S/4 HANA has merged with new cloud technologies and intelligence tools to take the business on Industry 4.0 and IoT concepts. According to the PWC Global Survey, Industry 4.0 is expected to bring an average cost reduction of 3.6% P.A. across the industry, which amounts to a total of $421 billion.
The Internet of Things in association with Industry 4.0 has gained ground in offering automation in manufacturing and product development along with IT support. However, the traditional technologies in the ERP system failed to match-up the innovative solution. Enter S/4 HANA, which eliminates the obstacles and accelerates the process of digital manufacturing to bring competitiveness and more efficiency.
Mr. Bill McDermott, CEO of SAP, has announced that the Company has already planned to invest about $2.2 billion in IoT technology over the next 5 years. The company is expected to unveil a new product line, dubbed SAP IoT. It will have a huge amount of data with the added advance of Machine Learning and real-time database S/4 HANA. He further added that S/4 HANA has been designed to process high volumes of data in real-time. Now that cloud technology and business intelligence solutions have joined the party, it will boost the advanced ERP to help out PLM developers and business enterprises.
SAP S/4 HANA Partnership With IoT
The Internet of Things has played a central role in the evolution of both business and society, bringing an ocean of data through connected devices and sensors. According to IDC Forecasts, IoT spending is expected to reach about $745 billion with 30 billion connected devices by 2019. The SAP can’t refrain from getting along with innovative technology.
SAP S/4 HANA’s partnership with IoT has enabled the business to fulfill its objectives. They can now focus on three major areas in particular. These are-
- Becoming more customer-centric
In order to remain upbeat in the digital competitive scenario, business enterprises need to focus on the end customers. S/4 HANA along with the IoT will help them to offer much improved customized products and solutions. The IoT-based sensors gather data and information about the product through machine-to-machine interaction. SAP S/4 HANA manages and monitors the data in real-time to speed up the response and delivery of the product.
- Business Models and Integration Services Come Together
The data generated from the customers have helped the new business models and integrated services come together. IoT sensors, digital supply chains, manufacturing in smart factories, and communication have led to this merger.
- Improved IT Services
The companies had been looking for an innovative technology, which could make their IT system much more efficient, flexible, scalable, and cost-efficient. Both S/4 HANA and IoT help the organization to provide faster support and create new opportunities. It helps the organizations to keep their IT expenditure under control. The business can mainly focus on planning strategies and processes rather than paying attention to unimportant aspects. This is the reason why SAP S/4 HANA Cloud is gaining impetus in the IT cell.
SAP S/4 HANA Connection with Digital Economy
At a time when the digital economy has exceeded the figure of $3 trillion, most businesses have already migrated to the innovative platform. SAP S/4 HANA has started offering instant value across all verticals of business irrespective of size. It is offering a foundation that is helping the business to operate seamlessly in the digital economy.
How Does SAP S/4 HANA Simply the Business Process in a Digital-based Economy-
- Digitizing the Financial Process: SAP S/4 HANA helps to usher in the financial progress of your organization. The ERP solution can access the financial condition of the company in real-time. This helps to take better budget-based decisions and manage the treasury better.
- Controlling the Supply Chain: If you want to manage your finances systematically, it becomes important to keep control of the supply chain. You need to have access to the digital supply chain for appropriate inventory management. Make use of advanced machine learning tools powered by SAP S/4 HANA to speed up manufacturing and gain business agility.
- Advanced Procurement Needs: Stay ahead with the procurement needs with the help of S/4 HANA and intelligent applications and IoT. Enhance the management of suppliers and streamline purchasing power.
- Streamline Product Management Cycle: SAP S/4 HANA can be connected to Product Lifecycle Management (PLM), automation, and Manufacturing Execution Systems (MES) to create a comprehensively aligned portfolio for monitoring production cycles, costs, and deployment. This is why top PLM vendors such as Bosch and Siemens have partnered with SAP.
- Getting Business Insights in Real-time: SAP S/4 HANA allows you to achieve a full insight into your business process and customer information in real-time to digitize the marketing and sales tactics. Moreover, it also improves employee productivity and establishes collaboration between teams.
The collaboration of IoT, Digital Economy, and SAP S/4 HANA: What are the Possible Business Implications
When three innovative and digitally advanced technologies share a single stage, it’s certainly the icing on the cake. We need to discuss the possible implications of this collaboration.
- Real-time connection with the business network, customers, individuals, and devices. Pro-active business planning with comprehensive risk management and knowledge of demand-driven supply chains.
- Make full use of appropriate data to accelerate the production process and identify the problematic areas, which can lag performance.
- Providing a simplified structure of SAP Digital Economy by working on different verticles such as procurement process, supply chain and digital finance.
- Completing tasks in real-time with much flexibility and scalability.
- Creating a simplified user experience to enable customers to take improved decisions.
The Bottom Line
With the transcendence of technologies and the arrival of the Industry 4.0 concept, we can expect that business enterprise will upsurge to new heights. SAP S.4 HANA is collaborating with all the next-generation technologies such as the Internet of Things and Digital Economy to further boost the prospects.