In most global customers, the initial implementations of SAP were completed several years ago, with the focus thereafter being on maintenance and incremental improvements. Over time, especially over the last few years, the environment has changed rapidly – both internally and externally. Organizations need to continually adapt business strategies and models to meet the demands of an ever-changing market. At the same time, disruptive technologies and evolving SAP roadmap which is now leading towards S4HANA present never-before opportunities for enterprises to leverage. Marrying the two poses a huge challenge to the IT organizations of today.

The net result is that most organizations have an application landscape that is out of tune with both the business requirements and the external environment. This is clearly revealed by the 2014 DSAG survey, which discovered that:

  • More than 75% of the companies have planned dedicated transformation management measures
  • In 2013 and 2014, Business-IT Alignment was the key to increase the value addition of IT

Therefore, there is an imperative for significant change and, from our experience, the drivers for this transformation are one or more of the following:

  • TCO: Optimizing overall cost to ensure more productive use of stagnant IT budgets
  • Visibility: Ensuring enterprise-wide transparency for better governance and control
  • New Business Model: Imparting agility to allow business to adapt to changing environment
  • M&A: Supporting efficient, structural organizational changes that are a given in today’s business