SAPinsider Issue 3 2020

Having a Linux-based operating system is required for deploying many SAP solutions (a limited number of vendors offer SAP-certified Linux systems, SUSE being one of them), but most businesses’ data centers contain a myriad of operating systems and versions. As a result, Totev says that many customers look at the migration projects toward SAP HANA and SAP S/4HANA as a good time to standardize and expand their Linux footprint beyond SAP workloads. “We invite SAP customers to consider consolidating their legacy operating systems into a modern IT platform comprised of enterprise Linux, container, and edge computing technology that is not only capable of driv- ing standardization, but also aims to realize better uptime and higher security — two goals that are top of mind for chief information officers,” he says. In addition to fulfilling the aforementioned rec- ommendations, the SUSE platform for SAP solutions makes it easy to move applications around, such as from on premise to the cloud. It further provides powerful tools that automate such migrations and reduce the risk and effort, making it easy to run SAP solutions on premise, in the cloud, and in hybrid environments. The concept of Linux and containers can be com- pared to how items packed together in a suitcase are much easier to load into cars, trucks, planes, or ships and transport — as opposed to trying to move dif- ferent goods around individually. Since many com- panies have not yet moved to the cloud, this is an in-demand capability, says Totev. Viewing SAP HANA and SAP S/4HANA as Accelerators into the Experience Economy Many SAP customers are keen to move to SAP HANA and SAP S/4HANA as smoothly as possible to remain competitive and drive their business transforma- tion agenda. Due to impacts on business continuity caused by recent global events, however, the migra- tion is now urgent for a second reason: the need for flexibility when adjusting to the realities imposed by the COVID-19 crisis — an adaptation that Totev says will likely accelerate the move into the experience economy. Even before these events, he says, customer interest and expectations were moving away from a product mindset and toward the next level — expe- rience. “Starbucks, for example, does not compete on the price of a cup of coffee because it is not just selling coffee,” he says. “It has differentiated itself in the market by selling a consistent and engaging experience. SAP is helping customers to provide great experi- ences through Qualtrics solutions, which help mea- sure customer experiences and deliver the right insights and recommendations for how to improve. Implementing modern solutions is becoming more essential for businesses to create experiences that can compete in today’s economy. “Let’s say you are a manufacturer that wants to start selling products in a service-based model with subscriptions,” Totev sug- gests. “If your finance system is not capable of deal- ing with subscriptions, then you may be held back.” Food and beverage companies are a prime example of an industry that can benefit from getting ahead in the experience economy by moving to a digital envi- ronment. Pre-COVID-19, many of these companies manufactured their products and sold them through stores, requiring customers to buy the products in person. In response to increased online shopping, food and beverage companies have started to seek direct channels where customers can buy certain products or supplies online. “These companies are looking to establish, in parallel with large retailers, their own channels,” Totev says. “Having a solution managing the production, logistics, and shipment to retailers is one thing, but having your own digital channel and supply chain to the end consumers is a very different thing. In this particular scenario, the business needs modern systems such as SAP Com- merce Cloud and SAP S/4HANA to accomplish this change in business model.” In addition to a heightened need for flexibility, the importance of data analysis nearly doubled over- night in response to the pandemic, causing organiza- tions to focus more on understanding and predicting customer behavior so they can better serve customer needs. Emerging technologies such as machine learn- ing, Internet of Things, and artificial intelligence support the level of data analysis that is needed for businesses to remain competitive in today’s digi- tal world, and modernized IT environments have become a prerequisite for capitalizing on them. Setting the Stage for Future Experience Economy Masters SAP is seeing a trend in how businesses are analyz- ing and integrating experience and operational data in particular to become “masters of the experience economy.” The company found four common traits 28 SAPinsiderOnline.com