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US Enterprises Look to SAP’s S/4HANA to Transform Business Processes

ISG Provider Lens report finds US companies looking to service providers to manage complex SAP installations and move workloads to the cloud

US enterprises are using S/4HANA, SAP’s intelligent ERP system with integrated artificial intelligence, to transform their business processes, with many using SAP service providers to manage these installations, according to a new report published by Information Services Group, a leading global technology research and advisory firm.

The 2020 ISG Provider Lens SAP HANA and Leonardo Ecosystem Partners Report for the U.S. finds many enterprises here interested in a two-tier adoption model for S/4HANA, with many opting for on-premises installations with heavy customizations for their main offices and the cloud version for their satellite or regional offices. The cloud version of the ERP package allows for less customization, but also for automatic upgrades and faster implementation.

S/4HANA focuses on alleviating business process problems by applying analytics to speed up delivery of insights. Many service providers, meanwhile, are focusing on lowering costs and speeding up delivery by using artificial intelligence, machine learning and robotic process automation to streamline incident management and speed up configuration, the report says.

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In addition, SAP-certified professionals working at service providers are managing complex SAP installations for customers, the report adds. “Certified professionals can serve as one of the differentiators for service providers looking to showcase their SAP expertise,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Top providers are investing in reskilling employees and are growing the number of their SAP-certified professionals.”

The COVID-19 pandemic, however, is causing some enterprises to postpone new large-scale S/4HANA implementations and transformations, the report says. A few companies have completely halted their S/4HANA deals or decisions, but many others are asking services providers to “keep the lights on” and continue with basic SAP management support. Service providers are continuing to serve SAP customers with employees who work from home.

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In response to COVID-19, enterprises may move their SAP workloads to the cloud to cut costs, the report adds. As the pandemic continues, enterprises may migrate S/4HANA to the cloud, and providers may offer preconfigured templates to help with that process, the report predicts.

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The report finds growing demand from U.S. enterprises to integrate agile and DevOps processes into SAP services. Service providers are leveraging their proprietary tools and accelerators to deliver S/4HANA services, and they are integrating agile and DevOps methodologies with their frameworks to increase efficiency and reduce delivery times.

The report also finds that service providers are using a host of tools, proprietary frameworks, methodologies and templates for assessments code reconciliation, data management, testing and other components of S/4HANA conversions and transformations.

Many service providers also are increasing their focus on creating ready-to-run templates, industry-specific solutions and preconfigured offerings for S/4HANA, SAP Cloud Platform and Leonardo. Enterprises are embracing these solutions, seeing them as enabling faster time to market and helping them become intelligent organizations.

The 2020 ISG Provider Lens™ SAP HANA and Leonardo Ecosystem Partners Report for the U.S. evaluates the capabilities of 33 providers across five quadrants: SAP S/4 HANA System Transformation – Large Accounts, SAP S/4 HANA System Transformation – Midmarket, Managed Application Services for SAP ERP, Managed Platform Services for SAP HANA, and SAP Cloud Platform and SAP Leonardo Services.

The report names Accenture, IBM, TCS and Wipro as leaders in four quadrants and Capgemini, HCL and Infosys as leaders in three. NTT DATA and Tech Mahindra are named leaders in two quadrants, and Birlasoft, Cognizant, Deloitte, DXC Technology, Hexaware and Mindtree are named leaders in one.

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