During the XXI AUSAPE Forum, SEIDOR has presented a study that analyzes the state of modernization of SAP environments in large companies. According to the report, 94% of SAP user organizations plan to undertake modernization projects for their ERP in the coming years, although only 15% propose these initiatives with a vision of strategic transformation based on data and artificial intelligence.
The study, prepared from interviews with 360 CIOs of companies with a turnover of more than 100 million euros in nine countries in Europe and America, points to a significant difference between the objectives that organizations associate with modernization and the reality of the projects they finally execute.
Although innovation, advanced analytics and artificial intelligence are among the main drivers of change, most initiatives continue to focus on aspects such as technological migration, operational continuity or platform upgrades.
Three levels of evolution
The report classifies modernization projects into three levels. The first corresponds to migration or technical evolution, aimed at updating the infrastructure and guaranteeing the continuity of the systems. The second focuses on simplification, reducing customizations and moving towards “clean core” models. The third level involves the reinvention of processes through the use of data and artificial intelligence.
The results show that practically all the companies analyzed are in the first phase, while only 23% have incorporated effective simplification strategies and only 15% have reached deeper levels of transformation.
AI drives modernization, but does not guarantee transformation
Artificial intelligence appears as one of the main factors that are accelerating the evolution plans of SAP environments. 46% of organizations cite analytics, data and AI among the reasons for tackling these projects.
However, the study indicates that 72% of companies continue to view AI mainly as a tool for automation and productivity improvement, rather than as an element capable of redefining business processes.
According to Javier Navarro, Global SAP Leader at SEIDOR, the real challenge is to take advantage of modernization to simplify systems, improve data quality and redesign processes. Otherwise, organizations risk completing a technology migration without realizing significant changes to their operating model.
Technical debt remains an obstacle
Another highlight of the report is the impact of accumulated technical debt in SAP environments. 71% of companies recognize that custom developments and customizations make the evolution of their systems difficult, while nine out of ten would be willing to adopt more standardized processes in exchange for a greater capacity for future evolution.
For those responsible for the study, the simplification of the ERP core will be one of the priorities in the coming years, especially in a context where organizations seek to accelerate the adoption of capabilities based on data and artificial intelligence.
Two stages for modernization
The analysis identifies two major cycles of transformation. The first, between 2026 and 2028, will be marked by technology migration and upgrade projects, driven in part by SAP ECC support schedules. The second, scheduled between 2028 and 2032, will be more oriented towards the simplification of processes and the incorporation of advanced artificial intelligence capabilities.
In this context, the study concludes that organizations that take advantage of the current modernization phase to reduce complexity and improve data management will be better positioned to address the next steps of digital transformation.
