Five Business Opportunities Unlocked By Intelligent Cloud ERP Adoption

Niall Salmon

Investing in intelligent cloud ERP today can enable organizations to achieve the technology baseline needed to compete against today’s fast-changing market pressures. Deloitte’s research on enterprise tech trends confirms that a standardized, flexible architecture can allow IT to unlock efficiency, lower costs, and achieve faster speed to value with innovation.

Organizations can’t afford to invest in technologies that limit agility or scaling, or that don’t support end-to-end integration of Big Data throughout the enterprise. Switching your business from legacy ERP to a new, intelligent software-as-a-service solution in the cloud can be the turning point in preparing your organization for the future. You’ll gain a standardized system with simple updates, so your team can focus on strategic initiatives instead of trying to extend the lifecycle of aging systems.

The benefits of intelligent cloud ERP adoption can be measured in metrics that resonate with other business leaders – including profitability, cost reduction, and growth. If you’re working to achieve full executive buy-in for this investment, here are five data-driven categories of reward that resonate with leadership outside the IT department.

1. Profitability

Customer satisfaction and loyalty are at the core of profitability. Your customers may not know you’ve invested in cloud ERP, but they’ll notice the outcomes in terms of competitive pricing through operational efficiency or innovative new products. Aberdeen Group research reveals that organizations with best-in-class customer experiences outpace their peers in annual profit margin growth by 527%, as well as 359% higher annual revenue growth.

2. Reduced operating costs

An end-to-end ERP solution in the cloud doesn’t just reduce IT’s investment in hardware and labor. It supports enterprise-wide transparency, leading to cost reduction throughout your profit centers. The Center for Global Enterprise states that adopting a digital supply chain cuts costs by 50%, reduces procurement by 20%, and increases revenue by 10%.

3. Improved reputation

Customer perception is an invaluable success factor. Forbes reports that up to 75% of a brand’s value is intangible and directly related to concepts like reputation and trust. Kantar Millward Brown research confirms that brands with a reputation of innovation have nine times more “brand value appreciation.”

4. New sources of revenue

Intelligent cloud ERP can enable faster digital innovation and speed to value in deployments of emerging technology categories such as artificial intelligence and hyper-personalized experiences. These new products can increase market share and improve existing customer loyalty by providing additional revenue streams. Eighty-six percent of customers will pay more for an upgraded experience, while 55% will pay more for a “guaranteed good experience” according to thinkJar surveys.

5. Digitally driven growth

Success in the future may depend more on revenue streams that are digital, including personalized products and digitally driven customer experiences. MIT Sloan Management Review reveals that companies with at least 50% or more digital ecosystem revenue achieve 32% more revenue growth and 27% better profit margins than their peers. Intelligent cloud ERP solutions provide the Big Data and processing-power baseline needed to claim a stake in the digital economy landscape.

Think bigger than just IT solutions

IT’s challenge is no longer to find the right IT solutions. Legacy systems have given way to flexible, cloud-based architectures that can scale seamlessly to accommodate massive stores of Big Data and continual evolution. Intelligent cloud ERP automates the enterprise end to end, allowing IT to achieve benefits of speed, scalability, and lower maintenance.

Find out more about intelligent cloud ERP solutions at sap.com/cloud-erp.


Niall Salmon

About Niall Salmon

Niall Salmon is an ERP consultant for SAP S/4HANA Cloud at SAP. His experience lies in forging long-term partnerships, developing bespoke IT solutions for large corporate entities, and the promotion and understanding of emerging technologies. He has an honors degree in Business Marketing Management. He has operated as a B2B solution consultant for IT and telecoms companies for the last six years.