Explore the Business Value of SAP’s AI Use Cases

To date, the SAP Business AI catalog on the SAP Discovery Center site (AI catalog) offers descriptions for more than 240 AI use cases, including Joule capabilities and Joule Agents, categorized by business area.

Further, the AI catalog offers detailed business benefits and estimated business value for customers, as well as helpful resources like step-by-step product documentation and demos.

AI catalog home page
AI catalog feature page

“Since its launch 10 months ago, the AI catalog has been visited heavily by customers and partners,” explained Holger Neuert, chief product manager for the AI catalog. “Users spend a significant amount of time browsing the documented AI use cases, and return to the AI catalog on a regular basis researching AI features, Joule Agents, and [related] assets.”

SAP Business AI: Be more productive and faster across every team in your business

Showing customers the business value of AI

The AI catalog offers a great source of information as it combines solution details and potential business benefits.

SAP Customer Success manager Nick Pearce uses the AI catalog to access important documentation, value information, and pricing — in combination with the AI estimator — for customers.

“By providing fast access to potential business value statements, such as 70 percent faster job application processing with AI applicant screening, I can have value-based discussions with my SAP SuccessFactors customers about prioritizing where to start their AI journey,” Pearce shared.

“The AI catalog and estimator on SAP Discovery Center is a true game changer and the go-to resource for discovering SAP’s latest AI innovations across every industry and business function,” said Richard Grandpierre, head of SAP Business AI Product Management. “This powerful platform highlights business value and delivers transformative results at scale.”

Michael Glueck, global head of Value Advisory at SAP, explained that the value estimates used in the AI catalog are based on SAP’s industry expertise and are backed by benchmarking data and third-party research as well as early customer feedback on each AI use case.

“By looking at benefits in terms of both efficiency, direct impact, and effectiveness, indirect and causal-related impact, we provide a holistic view of the value a specific use case within SAP Business AI can deliver to our customers,” Glueck said.

Growing number of AI use cases

For an overview of SAP Business AI services already available to SAP customers, visit the SAP Business AI Discovery Center.

Dive into a summary of Q2 2025 release highlights for SAP Business AI, including product features released in SAP Early Adopter Care, beta, and general availability.

Discover How to Extend SAP S/4HANA Cloud the Right Way

Innovation is critical — but without the right foundation, it can quickly lead to complexity and cost. SAP’s clean core strategy helps customers build and extend their SAP S/4HANA Cloud systems in a way that is stable, agile, and innovation-ready.

Cloud ERP:  Be ready to seize opportunities and secure your success

The goal is simple: keep the core clean, standard, and upgrade-stable while still enabling business-specific differentiation where it counts.

Why clean core matters

Over time, many ERP landscapes become weighed down by custom code, undocumented changes, and hard-to-maintain integrations. This limits flexibility, slows down upgrades, and increases the total cost of ownership.

The clean core approach addresses these challenges by promoting the use of standard processes and enabling strategic extensions for differentiation. It focuses on building resilient business processes supported by seamless integration, efficient operations, and strong data quality.

By embracing a clean core approach, customers can:

  • Accelerate innovation cycles
  • Minimize technical debt
  • Simplify system maintenance and upgrades

Rather than limiting agility, clean core ensures that extensions are done the right way — with long-term stability, scalability, and innovation-readiness in mind.

Clean extensions: build what you need, without risk

Business differentiation often depends on tailored processes, custom applications, or personalized user experiences. SAP supports this through clean extensibility, a framework that enables innovation without compromising system integrity.

Extend SAP S/4HANA Cloud using:

  • Side-by-side extensibility on SAP Business Technology Platform (SAP BTP): creating scalable, decoupled applications that run independently from the core.
  • On-stack extensibility with ABAP Cloud: tightly integrated, upgrade-stable extensions within the ERP system

Both models ensure flexibility while keeping systems clean, secure, and easier to maintain. Choose between side-by-side and on-stack extensibility based on your use case, applying an SAP BTP-first strategy.

Clean core level concept: clarity and control

To clarify extensibility decisions and simplify qualification criteria, SAP has evolved its original three-tier model into the clean core level concept, an enhanced maturity model that brings greater structure, flexibility, and transparency. It also provides a more pragmatic approach to managing custom code in SAP S/4HANA Cloud.

The new maturity model categorizes extensions into four distinct levels (A, B, C, and D) based on their architectural integrity, upgrade safety, and alignment with clean core principles. The evolved framework empowers organizations to make smarter decisions, streamline development, and continuously optimize their extensions — with more clarity, confidence, and long-term control.

Each extension is evaluated using a standardized methodology that looks at how the extension is built, how well it is decoupled from the core, and how easily it can be upgraded or maintained.

The model defines four levels of compliance:

  • Level A – Extend with SAP Build: Fully compliant extensions using only publicly released and stable SAP interfaces, backed by formal stability contracts.
    • Side-by-side: Built on SAP BTP, using pro-code and low-code tools for app development and process automation.
    • On-stack: Built within SAP S/4HANA Cloud using the ABAP Cloud development model with publicly released APIs.
  • Level B – Leverage classic APIs: Compliant extensions, in addition to meeting level A criteria, using also SAP’s classic APIs and technologies.  These APIs offer well-defined, documented, and generally upgrade-stable interfaces for extension use.
  • Level C – Accesses internal objects: Partially compliant extensions allowing access to SAP internal objects, offering flexibility for legacy scenarios. To minimize upgrade risks, SAP plans to provide a changelog for SAP objects to help identify changes early and plan upgrades proactively.
  • Level D – Not recommended extensions: Extensions not considered “clean” that use explicitly non-recommended objects or techniques; for example, explicitly non-recommended objects, modifications, write access to SAP tables, or implicit enhancements. These represent the highest risk and create significant technical debt.

By assigning each extension to a compliance level, the clean core level concept gives IT leaders, enterprise architects, and business stakeholders a shared vocabulary and visual road map for assessing their current ERP landscape. It supports transparent decision-making regarding where to invest in cleanup, modernization, or new development.

How SAP supports your journey to clean extensions

SAP offers a full set of technologies to support clean, upgrade-safe extensions and provide clean core insights:

  • SAP BTP serves as the foundation for side-by-side extensions, enabling development, automation, and integration.
  • SAP Build is a unified application development and process automation solution for developing apps, AI agents, and automations using pro-code, low-code, and generative AI — enabling personalization and efficiency at scale.
  • ABAP Cloud, part of SAP Build, supports both on-stack and side-by-side development, enabling the enforcement of clean principles through syntax checks and lifecycle support.
  • Joule, SAP’s AI copilot, boosts developer productivity by generating clean, context-aware code and streamlining workflow automation across ABAP, Java, JavaScript, and low-code tools.
  • The RISE with SAP Methodology dashboard provides real-time insights into clean core adoption.
  • For detailed code-level governance, the ABAP test cockpit is the key tool.

Smarter way to extend

Supported by the level concept and a powerful set of extensibility tools, SAP’s clean core strategy empowers organizations to innovate faster, increase agility, and lower total cost of ownership.

Extend what sets you apart: Decoupled extensions simplify upgrades and accelerate innovation. That’s one advantage of clean core.

Learn more at sap.com/clean-core.


Priyadarsana Panda is senior vice president and general manager of Cloud ERP Solution Area at SAP.
Steffen Pietsch is vice president and head of SAP BTP Product Management at SAP.
Rudolf Hois is senior vice president and chief product owner of Cloud ERP Private at SAP.

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Henkel Partners with SAP to Implement AI-Assisted Returns and Exchanges Management Process

WALLDORF SAP SE (NYSE: SAP) today announced that Henkel AG & Co. KGaA, a leader in adhesives, sealants and consumer goods, and SAP have codeveloped a solution using SAP AI Services to streamline and enhance the returns and exchanges process.

SAP Business AI: AI that drives your business

The custom-built solution will enhance Henkel’s dispute management process by automating the indexing and classification of claim-related documents, setting a new industry standard for customer satisfaction and operational efficiency.

The custom solution, referred to as financial and supply chain management deduction and dispute management indexing (FSCM DDM Indexing), leverages SAP AI Services to automatically process and extract relevant information from customer claim documents. By embedding SAP AI Services into the early stages of the dispute resolution lifecycle, the solution minimizes manual interventions and ensures faster and more accurate case creation. This transforms what is often a manual and time-consuming process into a swift, intuitive and customer-centric experience.

“SAP’s AI-enabled solution will help us streamline our dispute management process, reducing manual labor and the time required for dispute resolution,” said Dimitri Lerner, Henkel’s corporate director of value chain platform. “As we continue our digital transformation, the partnership with SAP will not just enable our employees to become more productive but also elevate customer experiences.”

Based in Düsseldorf, Germany, Henkel is known for iconic brands such as Persil, Schwarzkopf, Dial and Purex. It operates in 79 countries. As such, its teams must often review high volumes of diverse and complex claim documentation, with claims policies differing in countries and rules. Where the process previously required considerable manual effort, the new AI-assisted claims solution automates the retrieval of documents from a central in-box and enhances the analysis of documents to determine reason codes and location codes. This speeds up and improves the accuracy of the returns and exchanges process. Once logged, these claims are integrated into Henkel’s business performance data, ensuring the company has real-time insights into its business operations, facilitating end-to-end process management.

“We are proud to support Henkel in its digital journey by delivering innovations tailored to its business processes while addressing operational challenges,” said Sindhu Gangadharan, head of SAP’s Customer Innovation Services organization. “This solution harnesses the power of AI to simplify dispute processing and improve end-user productivity. It is an excellent example of how SAP’s innovation capabilities can deliver tangible business outcomes at scale. We look forward to deepening our collaboration with Henkel.”

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Media Contact:
Lesa Plingen, +49 622 776 9000, lesa.plingen@sap.com, CET
SAP Press Room; press@sap.com

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Empowering Partners with Free SAP Build Licenses for Test, Demo, and Development to Create AI-Powered and Intelligent Applications

SAP partners enrich our industry-leading portfolio with unique IP built on SAP Business Technology Platform (SAP BTP), the platform that unlocks partners’ ability to innovate, extend, and integrate business applications at scale.

SAP BTP: Unlock the full potential of your AI, data, and applications

To further empower partners to build AI-driven innovations and unlock new possibilities for customers, we are pleased to announce free access to SAP Build test, demo, and development (TDD) licenses for all SAP partners.

SAP Build offers partners a comprehensive suite of low-code, code-first, and generative AI tools to create custom Joule skills and agents, applications, automations, and digital workspaces. This new offering gives partners access to SAP Build with included entitlements up to fair use limits, allowing ISVs to innovate at a low initial cost.

Partners can use SAP Build to develop, test, and deploy applications and proofs of concept, making it easier to bring new solutions to market. These solutions can be sold on SAP Store, expanding the reach to SAP’s global customer base.

Free TDD licenses for SAP partners: what’s included

Here is what’s included — all available as of today:

  • All SAP Build capabilities (developer, base and premium user, runtime, including Joule Studio and ABAP Cloud)
  • SAP HANA Cloud, our multi-model database, which serves, among other capabilities, as an enabler for RAG applications and powerful persistency layer for SAP Build projects
  • Additional SAP BTP services such as generative AI hub, logging services, cloud identity, and others

Furthermore, the SAP Joule for Developers add-on continues to be free for customers and partners until further notice as part of a promotion. 

Accelerating transformative AI innovation on SAP Build

SAP Build makes it easier than ever for partners to develop and integrate AI into their applications. With a SAP Build developer license, you can use Joule Studio to create and enhance Joule skills — all with intuitive drag-and-drop tools.

And, coming soon, agent builder in Joule Studio will let you design, build, and deploy your own custom AI agents. These agents will tap into the SAP Knowledge Graph for rich business insights and the SAP Business Data Cloud (SAP BDC) for seamless access to data across SAP and non-SAP systems.

At the heart of it all is AI Foundation, your one-stop shop for AI. The powerful, easy-to-use platform brings together everything you need to build, extend, and scale AI solutions. With tools like generative AI Hub, partners have secure access to frontier large language models (LLMs), prompt management, and tools, such as data masking and more, that provide them with everything they need to innovate with confidence.

SAP Build: making it easier for partners to create intelligent applications

There is even more to look forward to as we continue to invest in new SAP Build capabilities to help partners innovate and grow their market share.

In the second half of 2025, SAP Build will integrate with SAP BDC, enabling developers to connect with SAP BDC data products. Coming in early 2026, partners will be able to use SAP Build to create intelligent applications and data products that can be used with SAP Business Data Cloud.

Unlock the full potential of SAP Build: exclusive webinar and partner resources

To learn more, partners can register for our SAP Build free TDD enablement webinar on August 13, 2025. Partners can visit the SAP Partner Portal for more information about SAP Build capabilities and TDD license fair use limits.


Michael Ameling is president of SAP Business Technology Platform and a member of the Extended Board of SAP SE.
Karl Fahrbach is chief partner officer of SAP.

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SAP Taulia: Annual Savings of €8 Million Possible

SAP acquired Silicon Valley-based Taulia in March of 2022. Three years on, the fintech is helping customers unlock liquidity, and save big on costs as a result. Thomas Mehlkopf explains how.

SAP Taulia: Enabling customers with more flexible access to liquidity

The SAP Taulia portfolio offers solutions for working capital management and supply chain financing, as well as a network for buyers, suppliers, and financial institutions.

Mehlkopf is global chief revenue officer for Treasury and Working Capital Management at SAP, and is responsible for marketing and rolling out the solutions for these domains to customers.

Q: Three years ago, we announced that the Taulia products would be integrated into the SAP portfolio. What’s the status?

A: After acquiring Taulia, we pushed ahead with three main priorities to align with SAP Business Suite. The first was the integration of the portfolio into SAP Business Network so that, where suppliers and buyers both run SAP Taulia solutions, they can utilize the network to benefit from early payment options and supply chain finance.

We also worked on integrating the solutions into SAP S/4HANA Cloud Public Edition and released the SAP Taulia solutions for receivables financing and payables financing on SAP Cloud ERP in February 2025. These are particularly relevant for small and midsize enterprises that want to grow and that need quicker payments to do so. The current focus is on the U.S., Canada, UK, DACH, and Singapore markets, with the goal of making this functionality available in additional countries soon.

Our third priority was to embed SAP Taulia Virtual Cards into SAP Ariba solutions. The cards enable buyers to pay their suppliers sooner — even before they issue an invoice — using a “pay on purchase order” transaction. This ensures that the supplier in question has sufficient cash flow to fulfill the order.

Back in 2022, Taulia was described as a growth opportunity for SAP and for customers. Could you tell us how SAP Taulia is performing?

SAP Taulia already has several customers that finance billions through the platform, thereby improving both their own liquidity and that of their suppliers. My team’s objective is to increase that number and to continue scaling up, and we’re making good progress. Over the last three years, the volume of transactions processed with SAP Taulia has risen steadily from US$500 billion to US$800 billion.

Customers are benefiting from this progress: one large enterprise in the oil and gas industry saved almost €700,000 within a single month of going live. Extrapolated to a full year, that’s annual savings of almost €8 million. So, the business case for customers is definitely there.

You presented the first AI use case in SAP Taulia at SAP Sapphire in 2025. Can you tell us about its value for customers?

The AI use case relates to our “insight to action” approach and helps companies plan and improve their cash flow. SAP Taulia has already been using artificial intelligence for some time to forecast supplier behavior around early payments. By combining this insight with data from an app on SAP Business Technology Platform that provides transparency on free cash flow, the AI use case will give customers tips on how to improve their liquidity. It also runs through various scenarios showing them ways to influence it. Information like this is especially important for CFOs — never more so than in times of uncertainty.

Are there any other recent announcements you would like to share?

Yes, another important update is that SAP Taulia is now part of SAP’s cloud ERP packages for the public cloud, SAP Finance Base and SAP Finance Premium, as well as the private cloud, SAP Cloud ERP Private. This means that we can quickly show customers the positive business case for their transformation of using SAP Taulia to improve their cash flow and achieve savings.

In times of global crisis, trade tariffs, and supply chain disruption, why are the SAP Taulia solutions so vital for cash flow?

Cash is still king, especially in a crisis. An article published recently in German business newspaper Handelsblatt reported that net debt among the 40 companies on Germany’s DAX stock market index has increased eight percent to €227 billion since the pandemic. Clearly, financing is a major issue, particularly given that interest rates have risen so sharply. Many companies borrowed when interest rates were low and are now having to refinance their loans at higher interest rates, which puts enormous pressure on their finance teams. SAP Taulia solutions can help by providing the funding that businesses need.

Given the impact that trade tariffs have on the supply chain, it is vital that companies carry out liquidity planning and scenario analysis. They need to think about where they will manufacture their products in the future, what effect that choice will have on revenues, and how they can use SAP Taulia to improve their cash flow.

Which reference customers are already benefiting from this?

SAP Taulia customers include Henkel, Airbus, Nissan, AstraZeneca, Kimberly-Clark, and Bridgestone.

One customer has enabled early payments to suppliers totaling over €5 billion since the start of the program, which has led to an improvement in cash flow of more than €1 billion during this period.

Your pledge is “to create the future of finance together.” What does that involve?

We want to team up with our partners and customers to influence the transformation of corporate finance. That includes working with banks and implementation partners and integrating SAP Taulia into a swathe of SAP solutions. Together, we offer customers a comprehensive portfolio of treasury and working capital solutions, ranging from payments and cash management to financial risk management.

One key aspect of our road map is our treasury and payment portfolio, which covers topics such as the future of payments. We are also working to integrate new technologies, including blockchain and digital currencies, so that we can offer our customers innovative payment and financing solutions.

SAP Taulia: learn more

In March of 2022, SAP completed its acquisition of Taulia, a market leader in working capital management and supply chain financing offering a network for buyers, suppliers, and financial institutions.

The purpose of working capital management is to safeguard and optimize a company’s working cash flow. It helps businesses utilize their assets effectively and maintain sufficient liquidity to meet their short-term business objectives and financial obligations.

By managing their working capital effectively, businesses can free up cash that would otherwise be trapped on their balance sheets. This may in turn mean that they can reduce the need for external loans, expand their business, finance mergers and acquisitions, and invest in research and development.

Compared to other methods of generating liquidity, working capital management offers distinct advantages for businesses because it is directly linked to the receivables and payables transacted between buyers and suppliers. Smaller suppliers especially benefit from being able to prevent financing gaps by taking out loans from partner banks at rates normally enjoyed by large enterprises. Overall, working capital management strengthens the buyer-supplier relationship and creates a financial win-win for both parties.

Watches of Switzerland Group and Bluestonex Head for the Cloud

Based on a long-term relationship with SAP AppHaus Network partner Bluestonex, renowned luxury retailer the Watches of Switzerland Group moved to SAP Business Technology Platform (SAP BTP) in a partner-managed cloud approach to fully enable application development and digital innovation.

SAP BTP: Unlock the full potential of your AI, data, and applications

With the help of its trusted partner, the Watches of Switzerland Group also set up SAP Integration Suite within only two weeks, enabling the company to incorporate insurance offers in their processes.

The Watches of Switzerland Group is a leading luxury watch retailer with a reputation for quality and exclusivity. With operations spanning the UK, U.S., and parts of Europe, its portfolio of brands has been a trusted name in luxury timepieces for decades. As the company expands its business and adapts to new market dynamics, Watches of Switzerland Group is transforming its technology infrastructure to prioritize scalability, efficiency, and streamlined operations across its global presence.

The journey to SAP BTP as a partner-managed cloud model

At the beginning of the engagement, the English watch retailer relied on an enterprise architecture including legacy systems such as on-premise SAP ECC 6.0 systems and middleware built in-house. Limited IT resources made scaling difficult to meet business demands for faster project delivery and modern integrations.

After purchasing SAP BTP credits, the company faced internal skill gaps and competing priorities. Finally, the company wanted to adopt cloud-based technologies while remaining flexible about future ERP decisions, whether transitioning to SAP S/4HANA or exploring alternative platforms.

Partnering with Bluestonex

Watches of Switzerland partnered with Bluestonex and transitioned to a partner-managed cloud model – in this case SAP BTP. Under this model, Bluestonex took over responsibility for managing SAP BTP credits, resource allocation, and infrastructure support, allowing Watches of Switzerland Group to shift from an internal, self-managed approach to an expertly managed environment, always aligned with the retailer’s business objectives. Since moving to this model, Watches of Switzerland Group has:

  • Increased SAP BTP value: Freed from managing credits and technical configurations, the customer team can focus on business-critical projects
  • Streamlined SAP Fiori applications: All SAP Fiori apps have been successfully migrated to the cloud, enhancing performance and improving the user experience
  • Strengthened IT resilience: With Bluestonex acting as a strategic partner, Watches of Switzerland has built a foundation to support future growth and innovation
  • Future-proofed infrastructure: The agnostic capabilities of SAP BTP ensure that the integration framework remains relevant, regardless of the future ERP platform

Bluestonex Innovation Factory

With the foundational work completed, Watches of Switzerland decided to further expand its adoption of SAP BTP services, integrating more business processes and scaling globally. But what were the core business processes? Where was the room or even need for improvement to deliver best-in-class customer services, be successful overall, and remain on top of things in the luxury retail segment?

“The partnership with Bluestonex is not just about technology,” said Glenn Bamford, head of Business Systems at Watches of Switzerland Group. “They act as an extension of our team, bringing innovation and expertise that we lack internally. With their support, we’ve been able to make strategic moves towards modernizing our systems while remaining agile for the future.”

To understand business, user, and customer needs, thorough research can provide reliable answers and a solid foundation for innovation. So, along the human-centered approach to innovation, Bluestonex Innovation Factory team organized a user research journey visiting six representative Watches of Switzerland Group showrooms, shadowing employees and observing different processes in the context of purchasing, customer inquiries, deliveries, commissioning, and many more.

After visiting the different showrooms, one observation was that requirements could vary considerably from one to another, simply because of different locations and customer profiles. In some showrooms, it was mainly about selling middle-priced watches and attending several customers at a time; in others, it was about serving one customer with specific needs for a purchase of a very expensive and unique piece.

Incorporating insurance options with the help of SAP Integration Suite

Despite all the differences, there is one requirement the researchers observed, that spanned across all customer engagements. That is the wish for an appropriate insurance option for the purchased watch. The Watches of Switzerland Group and Bluestonex decided to realize this integration of an insurance option in its service processes through SAP Integration Suite.

In just two weeks, the insurance integration went live as scheduled, allowing the Watches of Switzerland Group to meet crucial business demands without sacrificing quality or functionality. With SAP Integration Suite, Watches of Switzerland Group is now positioned to continue modernizing its technology stack in alignment with its strategic vision. This scalable solution can evolve with their future needs, including a potential transition to SAP S/4HANA.

“This project demonstrates the value of Bluestonex as a strategic partner,” Bamford said. “Not only did they execute the integration under intense time pressure, but they also provided critical expertise. SAP Integration Suite, deployed with Bluestonex’s support, paves the way for greater flexibility and scalability as we move forward with our digital transformation.”

During the annual SAP BTP strategy day held in the Bluestonex AppHaus Shropshire, Watches of Switzerland Group identified concrete business objectives and how technology could be harnessed to accomplish these goals, both for them and for Bluestonex as its partner. With the proven hands-on methods to prioritize and align different solutions to these goals the joint team was able to map goals to short-term and medium-term actions.

Looking back, Bluestonex Commercial Director Richard Henry said: “Our partnership with Watches of Switzerland was born from our SAP AppHaus DNA, as well as the focus on providing value-driven user experience in SAP BTP applications. As a niche SAP partner, we could provide the right skill set, along a human-centered approach to innovation and support the Watches of Switzerland Group in its digital strategy with SAP.”

After realizing the value of SAP Integration Suite, Watches of Switzerland Group and Bluestonex are now looking for further integration projects right across the business. The group’s flexible and secure cloud-first approach enables it to adapt to changing markets and continue to deliver the best possible customer service.

The way ahead

One area where both teams are equally eager to progress is in artificial intelligence (AI). The Bluestonex team always looks for business use cases that could be improved with the help of SAP Business AI capabilities. Also, the Watches of Switzerland Group’s team is keen to understand how to unlock the use of AI in its organization. Bluestonex showcased several solutions, including its document processes application, which was developed as part of the Next Level Programme in just 10 days, as well as the integration of SAP’s generative AI copilot Joule for its flagship product Maextro, a data governance tool.

For all the opportunities SAP Business AI holds in stock, customer and partner are currently planning for a first SAP Business AI Explore workshop to identify use cases that could be improved with the help of AI. As said above, it is all about thorough research and a trustful collaboration to stay future-ready and a leader in luxury retail.


Imke Vierjahn is communications lead for SAP AppHaus Network.

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CIO Trends 2025: The Consolidation Imperative Takes Center Stage

Vendor consolidation has emerged as the dominant priority for CIOs in 2025, driven by mounting pressure to reduce complexity, control costs, and maximize the full potential of AI – while creating greater mechanisms for resiliency.

Fuel profitable growth and turn every customer interaction into a seamless, engaging experience

Research from multiple industry sources indicates that this isn’t just an emerging trend — the emphasis on consolidation is growing at an unrelenting pace.

According to ADAPT’s CIO Edge research, a comprehensive study of more than 140 CIOs, 68 percent of technology leaders are planning to consolidate their vendor landscape.

This trend is not just about making minor adjustments to meet market demands; a majority of organizations are targeting a 20 percent reduction in vendor count, which represents a significant and fundamental shift in how enterprises approach their technology ecosystems.

The urgency for CIOs to transform their vendor landscape is palpable across all sectors and industries. A survey of more than 1,000 technology professionals revealed that 90 percent of IT professionals identified software consolidation as a priority, with 73 percent predicting their organizations will continue growing software investments while simultaneously consolidating vendors.

This paradox — expanding capabilities while reducing complexity — defines the modern CIO’s challenge.

The false promise of best-of-breed

This vendor consolidation trend contrasts with movements like the MACH alliance, which  promotes a pure “best-of-breed” approach. While its underlying architectural approaches (Microservices, API-first, Cloud-native, Headless) are sound and arguably have become table stakes in the SaaS world, MACH created unexpected challenges for enterprises.

Initially lauded for its flexibility and agility, MACH ended up creating significant complexity — more than most enterprises can handle — at a time when they are looking for simplicity more than ever.

The economic reality is stark: fully MACH implementations usually require more money upfront compared to a unified solution that is pre-configured. Companies must consider not only the purchasing of multiple services, but also the cost and time required for employee training and adoption. Running MACH architecture requires people with highly specialized skills in cloud infrastructure, APIs, microservices, and tools designed to streamline development of the user-facing part of a website or web application. The job market for that talent is uber-competitive, even in the age of AI, meaning you’ll need to have the resources to pay them well or else your competitors will.

The hidden costs of fragmentation

Research reveals several critical drawbacks to the fragmented fully best-of-breed  approach:

  • Increased complexity: Managing hundreds of microservices becomes exponentially daunting and expensive rather quickly, with system issues potentially impacting multiple services simultaneously. The management and expertise required to oversee such architectures can be daunting — and expensive. Once system issues are discovered, they could impact numerous services, which requires deep knowledge coordinated across multiple areas of expertise for troubleshooting and debugging. This can make resolution complicated and cost prohibitive.
  • Integration challenges: Trying to make connections between services and systems that were not designed to work together requires additional development expertise, which is expensive.  Incompatibilities between functions like search, customer service, catalog management, and OMS can lead to degraded customer experience and loss of loyalty.
  • Security concerns: The beauty of MACH architecture is also the beast: all of the composable microservices, APIs, and cloud offerings represent security risks. Comprehensive security requires consistent implementation across all components, which can be challenging when using solutions from different vendors. Businesses must develop robust security frameworks and governance models to ensure protection across their entire MACH ecosystem.
  • Vendor management complexity: Best-of-breed usually means working with dozens of vendors rather than a few, which can add vast complexity to development and customer support depending on the long-term viability of each vendor, which must provide critical functionality for services or tools that could be discontinued or significantly changed in the future.

The strategic advantage of unified platforms

As CIOs prioritize vendor consolidation, SAP’s approach to “Suite as a Service” or “best of breed as a suite” offers a pragmatic solution that addresses the fundamental challenges of fragmented architectures. Rather than forcing organizations to choose between flexibility and integration, the SAP Customer Experience (SAP CX) portfolio provides both through a unified yet composable business suite that spans front and back-office operations, in conjunction with a pre-integrated and certified rich ISV ecosystem that allows businesses to compose with intention, wherever this makes sense business-wise.

The flywheel effect: applications, data, AI

The true power of consolidated platforms lies in what SAP calls the “flywheel effect.” In this model, applications generate data, data trains AI, and AI optimizes applications. This creates a virtuous cycle where:

  • Better data feeds better AI
  • Better AI feeds better applications
  • Better applications generate better data

This integrated approach is only possible when organizations move beyond siloed point solutions to embrace unified platforms that can leverage the full spectrum of business data. Companies already invested in SAP technologies have discovered that a unified data strategy provides a proven path to the data architecture that AI requires.

Quantified benefits: the economic case for consolidation

Enterprise Strategy Group’s economic analysis of SAP CX solutions reveals compelling evidence for the vendor consolidation approach:

  • Operational Efficiency Gains
    • Faster time to value: Organizations can fully connect and integrate their CX and ERP data in as few as six months
    • Reduced implementation time: Companies avoid roughly 25 to 50 percent of the time and effort required to build integrations from scratch
    • Improved productivity: Depending on job function, customers report 10 to 300 percent improvement in daily productivity
  • Cost Optimization
    • Lower total solution costs: While individual solutions may appear cheaper, the holistic end-to-end solution approach is far more cost-effective
    • Reduced maintenance overhead: Organizations can eliminate up to 70 percent of the time required to manage and maintain systems
    • Resource optimization: Companies avoid having to grow teams by up to 2x to support custom development and integrations
  • Strategic Advantages
    • Enhanced customer experience: Seamless connectivity between customer and operational data enables superior customer service
    • Faster innovation: End-to-end visibility enables quicker, more informed decisions leading to faster product launches
    • Reduced operational risk: Standard iFlows provide more reliable connections with fewer potential connectivity issues

The AI-driven imperative

AI is driving the consolidation trend as much as the need to reduce costs. AI models demand high-quality, accurate data to be useful. When organizations maintain data silos — often the result of disconnected digital tools — AI efforts fall short of expectations or stall entirely.

SAP’s unified approach addresses this challenge directly. By providing harmonized SLAs, UX, data models, and provisioning across the stack, along with embedded AI via SAP Business AI and a unified and semantically rich data layer via SAP Business Data Cloud, organizations can fully leverage AI capabilities across domains without the complexity of integrating multiple disparate systems.

The consolidation acceleration

The trend toward vendor consolidation is accelerating across multiple dimensions:

  • Seventy-five percent of organizations pursued vendor consolidation in 2022, up from 29 percent in 2020, according to Capgemini research
  • Gartner predicts that by 2027, 70 percent of organizations will optimize cloud-native application vendors to a maximum of three
  • For midsize companies, the average number of SaaS tools decreased 18 percent in the last two years

The path forward: strategic consolidation

The evidence is clear: 2025 marks a pivotal moment for CIOs. Organizations that embrace strategic vendor consolidation and choose unified platforms over fragmented point solutions will gain significant competitive advantages in operational efficiency, cost management, and AI readiness.

SAP CX represents the future of customer experience technology — not as a collection of disparate tools, but as a unified, intelligent platform that can adapt and evolve with business needs. As CIOs navigate the challenges of 2025, the choice between complexity and consolidation will define their success.

The question isn’t whether to consolidate; it’s whether to lead the trend or be left behind.

With 68 percent of CIOs already planning consolidation initiatives, organizations that act decisively on vendor consolidation will be best positioned to win when it comes to the future of enterprise technology.


Geert Leeman is chief revenue officer of SAP Customer Experience.

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How SLB Leveraged SAP IBP to Drive Supply Chain Excellence

For more than a century, SLB has been a technological pioneer in the energy sector.

Plan for a sustainable, risk-resilient future with the SAP Integrated Business Planning

With current operations spanning more than 100 countries, a workforce of 80,000, and $36B in revenue in 2024, SLB is a globally recognized leader with a focus on three pillars: traditional oil and gas activities; digital, where the company aims to deliver data-driven solutions at scale for the energy industry; and its new energy division, which is diversifying its portfolio for the needs of tomorrow.  

However, when it came to its supply chain, like many global enterprises, SLB faced challenges stemming from siloed planning processes.

Richard Bancel, global director of S&OP at SLB, recalled that there was a heavy reliance on Excel spreadsheets and that “a lot of these planning cycles were actually not really cycles, not orchestrated, and kind of happening on an ad hoc basis.” This lack of integration hindered scenario planning capabilities and disconnected planning efforts from executive decision-making.

Agnes Gaultier, global S&OP digitalization manager at SLB, further touched on this fragmentation, noting that among its core division the company had “13 business lines that operate almost like separate companies with their own processes, dataset, everything.”

Aside from an overreliance on Excel sheets and uncoordinated planning cycles, this fragmentation also led to inefficient resource allocation, excessive inventory, and inaccurate forecasting, with accuracy rates around 50 percent — ultimately impacting the company’s bottom line.

To address these challenges, SLB implemented SAP Integrated Business Planning (SAP IBP).

Reaping the rewards: tangible business value

The impact of SLB’s SAP-powered planning transformation has been noteworthy, to say the least. As Bancel put it, “The big enablers to make a vision come true are the focus on end-to-end processes, change management, and, of course, the digitalization. In our case it was with SAP IBP.”

Some key achievements for SLB include:

  • Efficiency gains: Planning activities that previously took up to three weeks now take less than a week, and some that took up to two weeks now take less than a day.
  • Inventory reduction: “SLB has been able to improve customer service, reduce lead-time, and drive over $1 billion in inventory savings over the last four years with SAP Integrated Business Planning,” Bancel noted. SLB is also reaching a historically low level of inventory days, reducing days inventory outstanding by 37 percent over three years.
  • Demand forecast accuracy: Some business lines that started with less than 50 percent demand forecast accuracy and that have been on this journey six to nine months have improved that number to around 90 percent.
  • Time savings: Teams now spend less time on data gathering and more time on simulations and scenario planning.

Beyond these quantifiable results, the transformation has fostered a culture of data-driven decision-making and collaboration, empowering SLB to navigate the complexities of the energy industry with greater agility and confidence.

Looking ahead

While impressive, SLB expects even more benefits.“We’re very proud of these results, but there’s now way more to come,” Bancel said. Wth SLB having all its data in one place, the company is starting to see even more opportunities to streamline and accelerate outcomes. “The fact that all the data is now available for AI, for forecasting, scenario planning — this is just opening a world of opportunities for us.”


Jeb Insley is head of Supply Chain Management for SAP Americas.

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Navigating Your RISE with SAP Journey: Updates for SAP ERP, Private Edition, Transition Option

Earlier this year, SAP announced a new cloud subscription offering, SAP ERP, private edition, transition option, which is designed to help our largest and most complex customers plan and execute on their cloud transformation strategy.

RISE with SAP: Tailor your transformation to modernize your business with SAP Business Suite

Since these first announcements in February and March, we have received encouraging feedback from the SAP community.

Today, we are providing additional details about this offering to better support our customers and partners in evaluating it as part of their RISE with SAP transformation journey. We’re also pleased to share that customers that subscribe to a new instance of SAP ERP, private edition in 2025 – or have done so already – can take advantage of a special promotion for SAP ERP, private edition, transition option.

What is SAP ERP, private edition, transition option?

As part of the RISE with SAP journey, many organizations are transitioning to SAP S/4HANA Cloud Private Edition and SAP S/4HANA Cloud Public Edition to modernize their operations and stay competitive. SAP recognizes that our largest and most complex SAP ERP customers may not be able to complete this transformation by the end of extended maintenance for their installed SAP Business Suite 7 in 2030.

To support these customers, SAP has introduced SAP ERP, private edition, transition option – a time-bound subscription offering designed to provide business continuity from 2031 to 2033 while enabling a structured path to SAP Cloud ERP or SAP Cloud ERP Private.

The offering includes an SAP ERP cloud subscription for specified products – centered around SAP ERP Central Component on SAP HANA – and is combined with services designed to facilitate the transition to RISE with SAP via the max success plan (to be generally available in January 2026). It will help customers focus on the setup and optimization of their new and future system landscape. Business continuity services will cover elements like legal changes, security patches, and bug fixing. The specifics of which products are eligible are detailed in SAP Note 3591251.

Key prerequisites for adopting this offering

To take advantage of the SAP ERP, private edition, transition option, there are a few prerequisites to keep in mind:

  1. Move to SAP ERP, private edition: Systems must be migrated to SAP ERP, private edition on SAP HANA before December 31, 2030.  SAP strongly recommends this move now in order to start preparing systems based on the additional prerequisites outlined below.
  2. Database requirement: SAP HANA will be the only supported database for this offering.
  3. System size: Minimum 2 TB for systems subscribed with SAP ERP, private edition, transition option.
  4. Technical readiness: Systems must be prepared for the transition option, namely mitigation coverage for products not included in the new option. See SAP Note 3591251 for details.
  5. Max success plan: The transition option is only available in combination with the max success plan during 2031-2033, including additional transformation services. This success plan will be generally available in January 2026.

Pricing and promotions

SAP ERP, private edition, transition option will be a new subscription, priced at an uplift compared to the SAP ERP, private edition pricing valid end of 2030. The detailed conditions are outlined below:

SAP is offering a special promotion for customers that commit to SAP ERP, private edition by the end of 2025 or have done so already. These early adopters will be eligible to adopt the SAP ERP, private edition, transition option in 2031 under commercially equivalent terms to their then existing subscription.

Customers that sign up for SAP ERP, private edition in 2026 will receive a standard 20 percent uplift in pricing when switching to the transition option in 2031. For those who sign up in 2027 or later, the uplift is not yet disclosed, final pricing will be communicated only closer to availability to purchase in 2028. 

In all cases above, the max success plan fee will come in addition to the respective final price of the SAP ERP, private edition, transition option.

Call to action

Now is the time to act. If your organization anticipates needing more time beyond 2030 to complete its transformation to SAP Cloud ERP or SAP Cloud ERP Private, taking the first step in 2025 is critical. Here’s why:

  • Secure the 2025 promotion: Customers that sign up for SAP ERP, private edition by the end of 2025 (with a start date no later than 2026) will be eligible for a 1:1 move to the SAP ERP, private edition, transition option in 2031 — without any uplift. This provides a significant financial advantage and provides cost predictability for long-term planning.
  • Gain valuable lead time to prepare your systems and teams: Moving now to SAP ERP, private edition allows your organization to address technical prerequisites – such as migrating to SAP HANA and mitigating unsupported technologies like Java – at a manageable pace. It also gives your teams time to align on transformation goals and build internal readiness.
  • Reduce risk with a phased, structured transformation path: Starting now enables a smoother journey: first moving to SAP ERP, private edition, then leveraging the transition option if needed, and ultimately adopting SAP Cloud ERP or SAP Cloud ERP Private. This phased approach minimizes disruption and supports continuous business operations.
  • Ensure eligibility for the transition option: The transition option will only be available to customers that have already moved their systems to SAP ERP, private edition before the end of 2030. Acting now guarantees that your organization meets this prerequisite.

For most of our customers planning to complete their transformation by 2030, this option won’t be necessary. Nevertheless, this option is tailored for those requiring additional time and support due to the complexity of their systems.

Learn more

To learn more about this offering, please refer to the following resources:

  • Visit this SAP Support Portal page and SAP Note 3591251.
  • Reach out to your SAP account executive or partner contact to discuss how the SAP ERP, private edition, transition option fits into your transformation strategy.
  • On the future direction of the SAP Services and Support portfolio, including the max success plan to be available in January 2026, see here.

Stefan Steinle is executive vice president and head of Customer Support & Cloud Lifecycle Management at SAP.

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WestWood’s Digital Transformation for Excellence in Compliance and Customer Service

WestWood Kunsttofftechnik GmbH is a rapidly growing, family-owned company specializing in liquid waterproofing systems for the construction industry. Its solutions protect everything from roofs and car parks to oil rigs, railway platforms, and bridges across 16 countries in Europe and North America.

SAP S/4HANA Cloud Public Edition: out-of-the-box enterprise management

With six locations and a rapidly expanding international presence, WestWood faced growing complexity in managing siloed data and keeping up with ever-evolving compliance requirements. The company’s small product safety team was stretched thin, struggling to maintain manual processes and ensure the highest standards across teams and departments. To better serve customers and streamline its operations, WestWood set out to find an integrated, automated solution.

To address these challenges, the German construction company adopted a comprehensive suite of cloud solutions, services, and learning resources to accelerate its digital transformation.

Working together with SAP gold partner Innovabee, WestWood implemented SAP S/4HANA Cloud Public Edition and SAP S/4HANA for product compliance. WestWood unified business processes, standardized information management, and automated workflows across the company. This integrated approach made critical data accessible to all relevant teams, helping WestWood stay ahead of compliance regulations and support sustainable growth.

Automating product safety for innovation and growth

“We wanted a solution that automated important steps of our product safety processes and was flexible, so we can evolve our workflows as compliance standards change and our company expands into new markets and regions with dynamic requirements,” explained Martin Wegner, product safety manager at WestWood.

The flexibility of WestWood’s products has spurred innovation, such as the growing trend of green roofs, which require robust waterproofing. “It’s becoming increasingly popular to grow plants on roofs, creating a ‘green roof’ that is environmentally friendly and improves air quality,” Wegner added. “New construction trends such as this encourage us to continuously innovate.”

Given that many of WestWood’s protective, decorative, and slip-resistant finishes require special handling, product safety and compliance are mission-critical. Previously, these processes were manually and fragmented across departments, making it difficult for the small team to keep up with changing regulations.

Harnessing automation for superior customer service

With SAP S/4HANA for product compliance, WestWood automated the delivery of product safety information. Now, every customer automatically receives up-to-date safety data sheets with their orders, and these updates can be sent instantly to all previous customers, ensuring safe and compliant use of WestWood products. Previously, this was a time-consuming manual process. Thanks to the automated customer service process, now over 24,000 e-mails are sent automatically each year, saving time and ensuring compliance.

“Automating this process is an amazing time-saver,” Wegner noted. “It makes our lives so much easier and helps us ensure the latest safety and usage instructions are reliably available to our customers.” Centralized data management also provides a continuously updated, auditable track record of all product safety activities.

Automation has also improved internal processes. The product safety team now receives automated notifications whenever product safety information is needed and can easily support multiple languages and fulfill local compliance requirements and regulations.

According to Wegner, “As we expand into new markets, the built-in internationalization features of SAP S/4HANA will be crucial to our success and help us deliver outstanding customer service and support sustainable processes in compliance with local regulations.” This enables WestWood to have faster, more practical management of customer orders for around 10 users across 3 departments, supporting the innovative company’s global expansion.

“Thanks to SAP S/4HANA for product compliance, it is impossible to forget things,” Wegner said. “No information gets delayed in communication between departments, and customers instantly receive the latest safety and usage information for our products.”

Streamlining workflows and supporting sustainability

With SAP S/4HANA Cloud Public Edition, and support from Innovabee, WestWood no longer needs to run on-premises IT systems and can focus on adding value for its customers.

Building on the success of its SAP S/4HANA Cloud Public Edition implementation, WestWood plans to further streamline its operations. The ambitious company aims to consolidate two systems for dangerous goods management into a single SAP application. They are also planning to fully automate label printing, which is an important step as new regulations require larger font sizes and more detailed information. Automatic label printing based on existing product data will optimize management, eliminate redundancies, and save significant time and effort.

WestWood is also committed to sustainability. By reducing paper use and leveraging integrated solutions from SAP, the company is expanding its sustainability management and reporting capabilities. Streamlining and automating compliance with documentation and labeling guidelines, as well as managing hazardous chemicals, allows WestWood to protect the environment at every stage — from production plants and warehouses to end customers.

Improved insights and reporting are also helping WestWood future-proof its business and stay competitive in an industry shifting toward greater environmental, social, and governance transparency.

To learn more, read WestWood’s customer story: Elevating product compliance processes through automation.

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