In industries where every operational decision can ripple across supply chains, SAP Intelligent Asset Management solutions are reshaping how companies think about their assets.

By blending advanced technologies like SAP Business AI and the Internet of Things (IoT) with state-of the art solutions, SAP Intelligent Asset Management transforms operations and sustainability, and enables organizations to unlock new value and efficiencies in their asset management programs.

Reflecting high customer satisfaction in the enterprise asset management (EAM) market, IDC has awarded SAP the 2024 SaaS EAM Customer Satisfaction Award. This recognition underscores SAP’s dedication to delivering innovative solutions that empower organizations to achieve operational excellence and long-term sustainability.

Integral Part of ERP Suite and Unified Asset Data Thread

Asset management capabilities from SAP are deeply embedded in the core ERP suite, with solutions for asset performance management and field service management complementing ERP to support advanced use cases.  

At the core of SAP Intelligent Asset Management is a unified asset data thread, enabling a complete view of an asset’s lifecycle. This digital chain empowers proactive decisions, such as failure prediction and resource optimization, while enhancing collaboration and aligning strategies with business goals.

Transforming Asset Management with AI and IoT

Artificial intelligence (AI) and the IoT are no longer futuristic concepts; they are the driving forces behind a new era of asset management. By embedding SAP Business AI across asset life cycles, SAP Intelligent Asset Management has unlocked new efficiencies.

Closing the Loop: From Data to Decisions

SAP Intelligent Asset Management excels at creating closed-loop asset management systems. This means that every piece of data — whether from IoT sensors or manual inspections — feeds back into the system, enabling continuous improvement.

By integrating asset lifecycle data into operational workflows, organizations can reduce downtime, increase asset availability, and align maintenance strategies with environmental, social, and governance (ESG) goals. This closed-loop approach fosters collaboration and helps ensure that businesses can adapt dynamically to changing conditions and demands, and continuously improve maintenance programs.

At the core of this methodology is a failure mode-centric approach, which focuses on identifying potential failure modes early and addressing them proactively. By analyzing historical and real-time data, SAP Intelligent Asset Management helps businesses target root causes and implement tailored maintenance strategies.

Efficiency Anywhere with Mobile Work Management

SAP Service and Asset Manager provides technicians with real-time access to work orders, asset data, customer information, and instructions directly on their mobile devices. This enhances productivity, supports offline work in remote areas, and improves first-time fix rates by delivering essential information on-site, reducing paperwork, and streamlining updates — all within an intuitive mobile app experience

Operational Success Meets Sustainability

SAP Intelligent Asset Management is not just about operational efficiency; it’s about creating a sustainable future. By integrating environmental health and safety features, the platform helps ensure that maintenance practices align with regulatory and environmental goals. This allows businesses to not only reduce costs, but extend asset life cycles, reduce emissions, and make a meaningful impact on their sustainability journey.

For example, SAP Field Service Management enables customers to optimize schedules with AI, and retrieve AI equipment insights, boosting first-time fix rates and minimizing return visits. Predictive routing further enhances efficiency for field service organizations by cutting travel time and lowering emissions.

A Future Built on Collaboration and Innovation

SAP Intelligent Asset Management empowers organizations by fostering collaboration across stakeholders to achieve mutual asset performance goals. Its flexible platform supports industry-specific customizations for adaptability and scalability. Partnerships with leading companies, such as Cumulocity  for market-leading IoT integration and AsInt for mechanical integrity and safety, further enhance its capabilities, addressing the unique needs of diverse industries.

“In today’s dynamic environment, effective asset management is essential to operational success,” said Ralf Vath, head of Product Management for SAP Digital Supply Chain Cloud – Operate at SAP. “SAP Intelligent Asset Management helps our customers achieve significant gains in productivity and efficiency while advancing long-term sustainability.”

With stories of transformation across sectors and a clear vision for the future, SAP Intelligent Asset Management is not just leading the market; it’s redefining what is possible in asset management.

Stories That Showcase Transformation

The real impact of SAP Intelligent Asset Management lies in the success stories of its customers:

• Equinor Boosts Asset Performance with Condition-Based Maintenance Enabled by SAP Asset Performance Management
• Freeport-McMoRan: Using Mobile Apps to Make Asset Maintenance Faster, Safer, and More Efficient
• Patterson Dental: How Does Integrated Field Service Management Help Save Time and Cut Costs?
• Swiss Federal Railways Speeds Ahead with SAP Business Network Asset Collaboration

Ryan Jones is Product Marketing manager for SAP Service and Asset Management at SAP.

SAP has been recognized as a Leader in the 2024 Gartner® Magic Quadrant™ for Financial Planning Software.

SAP Analytics Cloud is the trusted choice for the most mission-critical organizations worldwide, redefining financial planning for enterprises globally by offering clients:

•  95% reduction in time to generate on-demand access to financial metrics
• 10x faster planning cycles via automating up to 70% of data entry points with artificial intelligence (AI)
• Increased simulation and insight generation for better plan accuracy and improved business execution with reduced risk

Unlocking the Power of Extended Planning and Analysis

SAP has long championed the integration of planning, forecasting, and analysis across the enterprise, known as extended planning and analysis. By harmonizing diverse planning functions like supply chain, sales, and finance, SAP enables its customers to align departments and increase enterprise agility and performance. SAP customers call this “aligning operational planning with financial performance.”

SAP believes that our recognition as a Leader in the Gartner Magic Quadrant for Financial Planning Software highlights our strategic vision and operational excellence. SAP Analytics Cloud empowers enterprises with unified financial operations and data-driven decisions, driving agility and insight.

To learn more about SAP’s position as a Leader and see in-depth analysis of the financial planning software landscape from Gartner, read the 2024 Gartner Magic Quadrant for Financial Planning Software here.

For more information, visit the SAP Analytics Cloud area of sap.com.

Daniel Yu is senior vice president of Solution Management and Product Marketing for SAP Data and Analytics at SAP.

Gartner does not endorse any vendor, product or service depicted in our research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved

As we close out 2024, it’s time to reflect on the year’s developments in procurement, external workforce, business network, and travel and expense management. The past year has been marked by economic uncertainty, supply chain disruptions, and an increased focus on sustainability and social responsibility. Despite these challenges, businesses have shown remarkable resilience and adaptability.

Looking ahead to 2025, several key trends are poised to reshape the landscape, promising both challenges and opportunities for forward-thinking organizations. To gain insight into what lies ahead, we’ve reached out to Intelligent Spend and Business Network executives at SAP for their predictions.

The AI-Powered Procurement Revolution

Etosha Thurman, chief marketing officer for Intelligent Spend and Business Network at SAP, envisions a future where artificial intelligence (AI) takes center stage in procurement:

“In 2025, AI and cloud-based solutions will position procurement at the heart of data-driven decision-making, enabling real-time insights and freeing teams to focus on high-impact initiatives. The future belongs to procurement professionals who blend strategic thinking with relationship management and a combination of functional and technological expertise. These skills will be crucial in fostering cross-functional collaboration and advancing corporate goals, from supply assurance to compliance to sustainability. In the digital age, spend management expertise extends to not just supporting, but also steering the business.”

This prediction underscores the critical role that AI will play in transforming procurement from a support function to a strategic driver of business value.

Streamlining Processes Through Orchestration

Manoj Swaminathan, president and chief product officer for Intelligent Spend and Business Network at SAP, highlights the growing importance of process orchestration:

“The technology landscape is rapidly evolving, and organizations are grappling with a heterogeneous mix of solutions. Many companies now employ multiple systems to meet their end-to-end business needs, leading to siloed processes and confused employees. Procurement, in particular, often suffers from fragmented systems handling everything from purchase requests to supplier onboarding, creating inefficiencies and frustration.

To address this challenge, we’re seeing a shift toward process orchestration – a centralized approach that connects disparate systems, streamlining procurement inquiries and status updates. Our newest solution, SAP Ariba Intake Management, can tackle this head-on by automating request creation and providing a single point of entry so that organizations can empower employees to adhere to policies and regulations without the burden of manual corrections. This approach can not only save valuable time and resources but also drive user adoption and increase compliance and efficiency, positioning companies to thrive in an increasingly competitive landscape.”

The Rise of a New Generation of Procurement Leaders

Jeff Collier, chief revenue officer for Intelligent Spend and Business Network at SAP, predicts a significant shift in procurement leadership:

“In 2025, a shift will occur in the procurement landscape as a wave of fresh faces step into the chief procurement officer role. AI-driven procurement strategies, ever-evolving requirements, and changing demographics have created the perfect storm for new leaders to emerge. As the industry stands on the precipice of transformation, organizations must prioritize nurturing existing talent, upskilling their workforce, and attracting bright young professionals to the procurement function. The stage is set for junior procurement leaders, who have proven their mettle during the challenging COVID-19 years, to rise to the occasion, particularly those who can showcase tangible achievements in sustainability, AI integration, or risk management. Brace yourselves for a year marked by new names, fresh perspectives, and a reshaped procurement industry in 2025.”

The Power of AI Across Business Networks

Val Blatt, chief revenue officer for SAP Business Network, offers insights into how AI will transform business networks:

“In the near term, AI is already making waves by optimizing process efficiency and information sharing within and across companies in a supply chain. As we move into 2025 and beyond, we’ll see AI do more to synthesize intelligence and efficiency across areas like risk, demand, and inventory planning, as well as manufacturing and delivery. This evolution becomes even more relevant because no business does business alone, and AI can synthesize and be predictive across company boundaries. We’ll see AI decision support evolve into decision-making – and, ultimately, automated process execution. These advancements will occur as the need for AI to sense and predict situations with proposed planning recommendations grows, spanning across related functional areas and processes that involve trading partners in a supply chain.

In its Network Adoption Research Study* sponsored by SAP, IDC found that “Digital Champions” who use modern, cloud-based tools like AI, analytics, and business networks have grown over 140% in revenue and profit performance indices from 2016 to 2021. As AI capabilities expand to sense, predict, and execute across organizational boundaries, businesses will gain next-level efficiency, visibility, and compliance. This will enable them to maintain a resilient supply chain that delivers on customer promises, especially in times of disruption, by leveraging the collective intelligence of their entire business network.”

The Evolution of Travel and Expense Management

Christopher Juneau, SVP and head of SAP Concur Product Marketing, Intelligent Spend and Business Network Marketing & Solutions, shares his insights on the future of travel and expense (T&E):

“As leaders strive to position their company for growth in 2025, they will still attempt to maintain employee spending at 2024 levels. Inflation drove higher spending beginning in 2023, resulting in fewer trips in 2024. As inflation slows, many leaders are likely to expect that their T&E budget – even if flat year over year – will go further in 2025.

Meanwhile, finance teams and travel managers will adjust their T&E policies to account for AI as more tasks and processes become automated. Will managers need to approve every expense report? Will they need to review them at all? How can policies and rules be modified so that travelers spend as little time in T&E tools as possible? These are some of the questions they will start to ask in 2025.

Investments in technology innovation and security infrastructure will be top priorities. The risks associated with security and privacy incidents will only continue to grow, which means companies are looking for technologies that deliver greater value to customers with lower risk. It is really a balancing act to move fast without disregarding the very important aspects of security and privacy when architecting solutions – internally and for customers.”

Looking Ahead

As we look to 2025, it’s clear that the world of spend management and supply chain is on the brink of transformative change. The convergence of AI, sustainability imperatives, and interconnected business ecosystems will reshape how organizations operate and compete.

At SAP, we’re not just observing these trends – we’re actively shaping them, working to ensure our customers are well-equipped to navigate the complexities of tomorrow’s business landscape.

The future may be uncertain, but one thing is clear: those who embrace these emerging trends and technologies will be best positioned to thrive in the dynamic world of 2025 and beyond. As we continue to design and deliver spend management and business network solutions that drive efficiency, leverage AI responsibly, and create greater visibility for businesses of all sizes, we look forward to partnering with our customers on this exciting journey of transformation and growth.

Cindy McKendry is a director for Intelligent Spend and Business Network Corporate Communications at SAP.

*Source: “IDC Network Adoption Research Study eBook: Driving Best-in-Class Supply Chain Collaboration with a Business Network,” #US5084723, August 2023, page 18

Grown from a one-man business into a global leader, STIHL Group develops, manufactures, and distributes power tools for professional forestry and agriculture, garden and landscape maintenance, the construction sector, and private garden owners. The product range is complemented by digital solutions and services. Products are distributed through authorized dealers and STIHL’s own online shops – which will be expanded internationally over the next few years – including 44 sales and marketing subsidiaries, about 120 importers, and more than 55,000 servicing dealers in over 160 countries.

Founded in 1926 and with headquarters in southern Germany, STIHL has been the world’s top-selling chain saw brand since 1971. With a workforce of almost 20,000 employees, the family-owned business generated 5.3 billion euros in revenue in 2023.

Siloed Supply Chain Planning Insufficient for Informed Decision-Making

In the past, STIHL’s subsidiaries and production companies relied on their own SAP ERP Central Component (SAP ECC) systems, deployed on premise, with a heterogenous landscape for supply chain planning processes across 35 sales and eight production companies that were tailored to the needs of each subsidiary.

“We lacked an end-to-end, consolidated view and overall transparency to improve decision-making for the company as a whole and not only for one subsidiary,” said Lena Domhan, global process owner for Integrated Planning at STIHL. “Previously, we spent a lot of time analyzing and verifying data and had no single source of truth. In addition, disconnected planning systems hindered collaboration and coordination between subsidiaries.”

Market Trends Drive Change

With the introduction of new product lines with integrated batteries, STIHL found itself in a new business, selling to end customers also. “This VUCA world required us to react even faster to volatility and changing demand,” explained Axel Erhard, senior vice president, global ONE STIHL program lead. “To optimize planning, we needed a better overview of the different production and sales companies.”

The company established the ONE STIHL program with the goal to consolidate all subsystems across all sales and production companies into one integrated SAP S/4HANA system. Moreover, STIHL aims to bring several solutions into one hybrid ecosystem, such as the SAP Integrated Business Planning for Supply Chain solution (SAP IBP) with the applications for sales and operations and response and supply, the SAP S/4HANA Manufacturing solution for planning and scheduling, and SAP Transportation Management. “One goal of the ONE STIHL project is to reduce fixed capital and get more transparency on different management levels. SAP IBP with SAP S/4HANA Manufacturing for planning and scheduling play crucial roles in this process, serving as the starting point for planning,” Erhard said.

Synchronized Planning Approach for Distribution Center Refills

“We were one of the first customers to introduce SAP IBP in combination with SAP S/4HANA Manufacturing for planning and scheduling and SAP Transportation Management,” explained Fabio Fender, interim global process owner for Integrated Planning at STIHL. “With real-time integration, our planners can quickly react. For example, when tackling issues on the planning or production side, they immediately see the impact on the distribution side and vice versa. That provides confidence and trust.”

Georg Fuchs, director of Integrated Planning and global solution architect, ONE STIHL project, added: “Order-based planning and real-time integration are the heartbeat of our production. For instance, in Austria, finished goods are produced and then shipped to distribution centers in Germany or the Czech Republic. The order-based planning process in SAP IBP is used to allocate, prioritize, and schedule the delivery of these goods. We are decoupling this from our production plan in SAP S/4HANA Manufacturing for planning and scheduling.”

With this synchronized planning approach, STIHL consolidates supply planning, distribution planning, and production planning into one seamless process, enabling a holistic workspace for planners. Detailed scheduling results from SAP S/4HANA Manufacturing for planning and scheduling are visible in SAP IBP in real time, helping to ensure maximum transparency. In addition, the integration of SAP Transportation Management allows for the creation of freight orders to ship STIHL’s finished products. “STIHL’s vertically integrated supply chain gives us the potential for end-to-end control,” Erhard said.

Higher Transparency Enables Accurate Planning

SAP IBP is live at two production sites in Austria and Switzerland and is used by several planners and others utilizing its reporting capabilities. “The integration with SAP S/4HANA Manufacturing for planning and scheduling and SAP Transportation Management was the most effective solution to meet our business needs,” Fuchs said.

STIHL already recognizes and anticipates a range of immediate and long-term benefits, including:

• Better visibility across subsidiaries, enabling accurate and feasible plans that can adapt to production constraints
• Increased efficiency with sales and production teams using the same system with one source of truth for all relevant data
• End-to end transparency for global planning processes with optimized planning for the network 
• Time savings for planners who see real-time impact of changes and can instantly make better-informed decisions
• Creation of feasible production plans to meet customer demand
• Real-time integration with SAP S/4HANA Manufacturing for planning and scheduling ensures planners and production teams are using the same data for decision-making
• Logistics planners can efficiently plan truck load orders and promptly fulfill logistics requirements
• Improved customer service while reducing inventory costs through network planning
• Enhanced decision-making between quantity and revenue planning provides a crucial element to business processes and reporting

Future Plans and Leveraging AI

“We have four to five rollouts ahead of us on our journey. Over the next few years, we will integrate about 40 global subsidiaries into one network planning solution,” Domhan said.

In relation to the utilization of artificial intelligence (AI), Erhard said, “STIHL will invest in AI in the future. That is a clear focus of our owners.”

“We are starting to explore potential opportunities to determine what would benefit us. However, regarding SAP IBP, we are already fit for the future,” Fender concluded.

Karin Fent is senior director of global Customer Success Digital Supply Chain at SAP.
Top photo courtesy of STIHL