SAP's AI: Companies struggle with S/4 transition and neglect Joule

Manufacturer marketing meets user reality: While SAP is boasting new announcements around AI and the AI-powered copilot Joule at the recent TechEd and Connect events, a large proportion of companies are struggling to transition their business processes to S/4HANA. According to a recent study by the consulting firm Horváth, six out of ten companies are currently still in the transformation phase.

For Horváth, the switch to the not-so-new ERP software from Walldorf actually provides a good starting point for directly planning the introduction of AI tools like Joule. This is all the more true since such a step—as Horváths  SAP expert Stefan Maus emphasizes—can be classified as low-risk. The use becomes particularly attractive considering the low or nonexistent acquisition costs. For example, Joule is already completely included in the Rise license model from Walldorf in the public cloud, and at least with basic functions in the private cloud. Furthermore, there is no implementation effort, as the agent technology is already firmly integrated into the S/4HANA environment.

SAP transition often more expensive

Nevertheless, according to the consultant's observation, the AI aspect is usually neglected in the transition. Companies are not agile, efficient, or flexible enough to approach the topic holistically and in a well-founded manner. The obvious reason: A system change of the SAP software often turns out to be more challenging than initially assumed, even without extensive “AI add-ons.” Almost every second company would have to allocate more time and a higher budget in retrospect to meet all the requirements of a transformation and to allow sufficient room for adjustments and optimization.

In addition, comprehensive practical experience with AI agents is still lacking in the majority of companies. Joule is also still in the early bird stage. This means that experiences so far are based on tests and proof-of-value projects. However, initial projects are already showing efficiency gains—be it through more specific search results tailored to the individual user, reduced manual tasks, or faster decisions through a more precise presentation of decision-relevant data.

Against this background, Maus recommends that companies be more open to SAP's AI offering—even during the transformation phase. In addition to the obvious use in redesigning application processes, according to the consultant, it also makes sense in the optimization phase to individually review or use the AI agents included by default. In order not to get lost in the sheer number of agents, the focus should be on standard tasks that promise immediate, significant benefits. The consultant's credo: better to select specific business processes and automate them correctly than to do a little bit of everything.

(wpl)