Enterprises in the Nordic region are increasingly adopting the SAP Cloud Platform to build mobile applications and deliver services to customers while COVID-19 social distancing guidelines remain in place, according to a new report published today by Information Services Group (ISG), a leading global technology research and advisory firm.
The 2020 ISG Provider Lens SAP HANA and Leonardo Ecosystem Partners Report for the Nordics finds enterprises in the region, including those in the retail and consumer packaged goods industries, looking to use the SAP Cloud Platform to enable mobile-based applications and contactless payments in response to the pandemic.
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The report also sees Nordic enterprises slowly adopting SAP’s S/4HANA intelligent ERP system. They are looking to SAP service providers to help them move SAP S/4HANA tools to the cloud, but the COVID-19 pandemic has led companies to seek price reductions or cost deferments. Many Nordic enterprises are demanding new types of outcome-based pricing and services from SAP service providers.
“The pandemic is leading to workforce reductions, and enterprises are looking to manage the costs of their SAP installations,” said Barry Matthews, partner and leader, ISG North Europe. “Many Nordic enterprises are looking to save money through new or revamped outsourcing deals.”
Many service providers are enabling their teams to manage the SAP contract process through virtual tools, the report adds. Most providers also are allowing employees to w************* to deliver SAP-related services.
Service providers in the Nordics are focusing on the healthcare, manufacturing, retail and consumer packaged goods industries for SAP services. Some providers have developed COVID-specific offerings to help clients in niche areas and to expand their relationships with existing clients.
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Providers also are using bots, automation, and artificial intelligence to manage applications for their clients and to optimize business processes, the report says. Many providers are also focusing on design thinking-based tools as a way to deliver low-cost services. In many cases, bots are handling low-level support requests and resolving minor incidents without human intervention. Bots are logging support tickets, updating ticket status, and reducing the time to resolution.
Service providers are also using artificial intelligence and machine learning to aid SAP transformation services, the report says. These tools and accelerators may apply to the entire development lifecycle or to portions of it.
The report also finds service providers focused on expanding local expertise in SAP. Providers are cross-training and upskilling their staffs and providing employees in the Nordics with online and SAP-certified training.
While embracing the SAP Cloud Platform, Nordic enterprises have been slower to adopt SAP’s Leonardo software and microservices delivery tool, the report says. Some providers are building Leonardo proof-of-concept demonstrations to address specific industry issues or show the benefit of the emerging technologies that Leonardo showcases.
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