How Midsize Businesses Get Ready For Accelerated Growth With The Cloud

Bogdan Grigore

Growth always comes at unexpected moments. In an irregular cycle of expansion and contraction within a dynamic, interconnected global economy, each new business opportunity brings the need to adjust headcount, accelerate and expand production capabilities, extend market reach, and manage an ever-increasing amount of data. Yet, if the business technology stack is not prepared to take on such growth, the speed, focus, and agility needed to capitalize on the next big wave for the company will suffer.

Processes will get disconnected. Meaningful insights from data will be harder to achieve. Operations and supplier management will become less transparent. And over time, these issues can worsen, making any level of success difficult to sustain.

The fundamental needs of a business evolve as it grows. In an IDC Analyst Connection interview, IDC’s Ray Boggs, VP of small and midsize business research, and Mickey North Rizza, VP of ERP and digital commerce research, highlighted that many of the new requirements to support change may not be evident at first. For example, spreadsheets and basic accounting practices may become insufficient as the customer base increases and deals become more complex. Plus, rising employee numbers require more transparency, visibility, and real-time information that is seamless and based on a single version of the truth.

Businesses that keep up with changes brought on by growth understand that digital and technology investments are a critical part of their climb to market prominence. One prime example is Pacha Group, a lifestyle and entertainment brand that is undergoing an expansion strategy to launch its edgy nightclub experience in new regions.

Why digitalizing the core of your business matters

For more than 50 years, Pacha Group has become a widely known brand in leisure, entertainment, and hospitality circles. The rapid pace of digitalization within the industry convinced the company to revolutionize how it operates. The first step in its transformation was establishing a digital foundation that connected its back-office and front-office systems to run in a coordinated, highly responsive, personalized way.

“Our systems had to support our expansion plans,” said Antonio Díaz, CIO of Pacha Group, during the SAPPHIRE NOW conference session “Digitalize Your Core Business with SAP S/4HANA Cloud.” Since the company’s infrastructure was very localized and disconnected, Díaz’s team changed all technologies supporting the back office and sales and marketing operations as well as the rest of the front office. This approach allowed the business to continue engaging with customers without disruption and generate reports that provide insight into the progress of its expansion plans.

In four months, Pacha Group deployed a next-generation, intelligent cloud ERP suite, unifying all of its data into one source and significantly reducing its manual tasks workload. With the ability to pull from the same end-to-end data, all business functions – from HR and finance to supply chain, commerce, and operations – are making unbiased decisions that contribute additional value to Pacha Group and its customers. More importantly, they are helping the company further expand and maintain its solid brand reputation internationally.

“We are a totally different company than before. We were isolated, but now we are connected,” Díaz advised. Pacha Group can scale itself and grow quickly by leveraging the flexibility of the cloud ERP. When the time comes, Díaz is confident that the business model, processes, and experiences will fit in a larger enterprise platform without disrupting information sharing and customer engagement.

Innovating for tomorrow’s growth while focusing on today’s profitability

If midsize businesses learn anything from Pacha Group, it’s the fact that billions in revenue and six-digit employee numbers are not prerequisites for building a strong global presence. The key to reaching and sustaining that level of success is the creation and maintenance of an always-on, reliable, and connected core of business-wide intelligence.

Harnessing intellectual capital in a cloud-based intelligent ERP suite, such as SAP S/4HANA Cloud, allows businesses to tap into the visibility, focus, and agility Pacha Group needs to drive ground-breaking growth. As it advances this platform to include innovations such as artificial intelligence and machine learning, these growing companies can quickly innovate and deliver new business models and customer experiences. And above all, they can accelerate and sustain their growth over the long haul as they put themselves on a path to become true intelligent enterprises.

Revolutionize how your midsize business prepares for accelerated growth and sustains it for the long term. Watch the replay of “Digitalize Your Core Business with SAP S/4HANA Cloud” to learn more.

For a first-hand view into SAP solutions for small and midsize businesses, visit



Bogdan Grigore

About Bogdan Grigore

Bogdan Grigore is vice president, Global Audience Marketing at SAP. In this role he is responsible for delivering SAP’s brand narrative to defined audiences through integrated demand programs across multiple solutions. Bogdan and his team focus on building global demand gen campaigns and resources that enable regional and local teams to directly engage their customers and market SAP’s Small and Midsize Business Solutions, emerging technologies and other.