Let us speak about the why, the what and the how of SAP´s digital core – SAP s4hana, and it is best to start with the market perspective.

The Digital Economy enables you to re imagine your business – and it is real

you can re-envision the promise to your customer and create new business models across your value chain

A world of real-time, digital connections across businesses, people, and devices is converging to create a new Digital.

Instead of marginal improvements to existing business models, leaders are looking to create entirely new digital experiences that completely reimagine the way organizations relate to customers, suppliers, and resources.

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There are many areas of digital disruption, let us focus on 3:

  • Digitization of the Work
  • Digitization of the Customer Experience
  • Digitization of Resources

So, the key to success lies in harnessing the power of digital technologies

86% of Global CEO’s are investing in cloud, mobile, social and Big Data and personally championing their use

While cloud, mobile, social, Big Data and the Internet of Things hold significant promise, the key is to harness and adapt the power of these technologies to completely reimagine your business and re-envision the promise to your customers.

And there are clearly new business models leading the digital transformation. So what role does the digital core play in this?

Again we need to look why we need a digital core. Customers today are looking for ways to transform their businesses and cater to our digitized, networked, and complex world. They need to deliver services rather than products, and everything needs to happen fast, so innovation with speed is key. But it is not speed only. Customers are looking to improve their decisions, processes and products next.

Ultimately they need to cater towards EXISTING AND NEW business models, this is where we come in with simplifying the core of their business.

And this is indeed needed as our environment is changing. Customers are used to seamless design, customized user experience and improvements on a regular basis. If you cannot deliver this as an organization, you will soon be overrun by your more agile and smarter competition.

This push from the customer side forces many new channels and connection points, which are supposed to make buying or collaborating more intuitive and user-friendly.

But too often, the infrastructure behind the surface cannot deliver to the speed that for example a digital store or a B2B network enables and requires.

Because we are now in a segment of one, the number of incoming orders rises and the size of each lot becomes smaller by the promised customization.

This greatly increases the complexity and puts the whole organizational infrastructure on the test.

This is the point where many fail. But the problem resides not in the employees or the company’s philosophy, no; it is the complexity of the IT and workflow processes which often unnecessarily complicate things.

And worse, some tend to throw technology in, just to desperately transform, they just digitize the analog world.

So, fact – every meaningful business process touches the core that runs a company. Something needs to be planned, produced (even if product or service) , shipped and paid. If ever this goes away – no digital core is needed. But it does not.

So we focused on the business challenges at hand, like Segment of 1, lot size of 1, huge volumes of data at scale to be processed without latency and more.

With S/4 we have extended the value play beyond the traditional core, taking also into account how digital trends like IoT, Big data, business networks and others impact business.

More on the how you will find in this video here

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