Digital Transformation and the Art of the Possible:

An Innovation Opportunity with SAP and Microsoft

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Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 2

CONTENTS
3 8 13
Digital Transformation is Shore Up Disaster SAP on Azure Helps
Coming—for Business Recovery and Business Chobani Satisfy Its
and IT Continuity Appetite for Quality and
Innovation

4 9
Smart business leaders Create a Foundation for

14
are embracing the Innovation Frost & Sullivan
benefits of a hybrid model Recommends

10
Luminous Lights Up

5
How IT Benefits from Digital Transformation
Moving to the Cloud Using RISE with SAP on
the Microsoft Cloud

6
Improve Security,

11
Performance, Scalability, Standard Chartered Bank
and Agility Leads by Example with
Intel, Microsoft, and SAP

7
Major benefits of using

12
cloud services in digital Wolverine Worldwide
strategy implementation and RISE with SAP on
Azure: Fit for Digital
Transformation
Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 3

Digital Transformation is Coming—

for Business and IT
Business leaders know that digital transformation can have a significant impact on business
performance. But forward-thinking organizations are also using it to reimagine the role of
IT. That’s because when companies leverage the cloud to deliver mission-critical business
applications, they free up some of their IT professionals to focus on more strategic initiatives—
without giving up any of the cloud’s foundational benefits, including better performance, stronger
security, simpler scalability, greater accessibility, and more agility in an ever-changing world.

Just as enterprise resource planning (ERP) changed the game when it first appeared on the corporate
landscape, today’s cloud-based systems are allowing companies to make a once-in-a-generation shift in
how they and their employees interact with customers, partners, manufacturers, suppliers, and each other.

In a recent Frost & Sullivan survey of more than 800 IT decision-makers, improving operational
efficiencies is a top priority, along with growing revenue and boosting creativity and innovation.
And guess who’s driving those digital transformation initiatives? IT. In 65% of organizations
surveyed, the IT department is responsible for spearheading the adoption of new enterprise
digital solutions in conjunction with line of business managers and the C-suite. But when
technologists evaluate the benefits of digital transformation for the business overall, they
should also consider the benefits of digital transformation to their own IT organization.

Top Four Business Objectives for 2023

Growing Boosting creativity

revenue and innovation

Enhancing sales and Improving customer

marketing effectiveness experience and satisfaction
Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 4

Smart business leaders are embracing

the benefits of a hybrid model
Improved productivity
Flexibility
and engagement

Reliability Agility

Broader recruiting
Cost reduction
and retention

Companies with an on-site workforce must prepare for the worst and be ready to immediately transition
to a work-at-home model, thus avoiding any gaps in business execution or customer experience.
Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 5

How IT Benefits from Moving to the Cloud

When asked to rank the importance of several top technologies to their organization, Distribution of data: structured,
the largest number of IT decision-makers put the cloud first—ahead of even big semi-structured, and unstructured
data analytics, artificial intelligence, and machine learning. A remarkable 87%
of respondents agree that the cloud is the most important part of their digital 40%
transformation strategy, that a cloud strategy is essential to remaining competitive in Structured data
their industry, and that they have adopted a cloud-first approach to new IT initiatives.
IT leaders recognize that the best way to initiate and scale digital transformation 31%
efforts is via the cloud. Semi-structured data
One of the biggest reasons for this is the need to manage the ever-growing amount of data
that companies are collecting, processing, and (ideally) using in their day-to-day operations. 29%
This need is driven by the use of increasingly advanced enterprise software that leverages Unstructured data
algorithms to help users—from the production line and accounting office to the sales
force and service desk—make better-informed decisions faster. But the challenge lies
in managing all that information—everything from storage and access to security and
compliance—especially considering how many forms it comes in.
91% of IT decision-makers
This is one of the many areas where the cloud shines. By managing the massive
data your company collects in the cloud—whether it’s structured, unstructured,
say the cloud is a key to
or something in between—you can count on your information being secure, safe, achieving their business
and available to your employees whenever and wherever they need it. priorities.
That’s on top of the other benefits the cloud offers, including scalability, flexibility,
agility, easy onboarding and offboarding of new employees, and a steady, transparent
pricing structure that makes budgeting simple. You also get built-in disaster recovery
because all your critical data and related services reside in the cloud and are protected by
fail-over databases designed for just that purpose. And you’ll free up your IT staff to focus
on more strategic, growth-driving initiatives, rather than mundane operations.
Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 6

Improve Security, Performance,

Scalability, and Agility
Frost & Sullivan data shows that when it comes to ERP deployments, IT managers
are most concerned about keeping their data, networks, and applications safe and
secure. But they are also paying close attention to performance, especially in a hybrid
environment in which employees are working from a mix of remote and in-office
locations. Applications and the infrastructure that supports them must be flexible and
scalable, delivering agility in a constantly changing world.
The best way to ensure all these priorities are being met is to pair your cloud-based
ERP system with back-end infrastructure services that are purpose-built for enterprise
use. You want a system that delivers high availability and recovery; can handle multiple
workloads of any size at any time; offers intelligent insights for real-time monitoring,
management, and cost optimization; and leverages automation to streamline processes
and development.
Key Priorities for ERP Deployments

• Secure remote access for all users—including employees, suppliers, and customers

• Certified data centers that are cost-effective and scaled right for the business

• Responsiveness and agility for constantly changing times

• Accessible data, making real-time insights easy across the organization

• Ability to innovate without sacrificing business results

Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 7

Major benefits of using cloud services in

digital strategy implementation
In a recent Frost & Sullivan survey, IT decision-makers weigh in

43% 43% 36%

Improved security and compliance Faster delivery time for Reduced operational
reporting for managed workloads managed workload functionality or labor costs

46% 48% 38%

Improved and optimized performance Improved ability to provide better service Ongoing cost optimization for
of managed workloads to internal and external customers running workloads in the cloud

Single sign-on is critical for cloud-based ERP solutions. Look for a provider that makes it easy to
identify users and grant access from any device and any network.
Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 8

Shore Up Disaster Recovery

and Business Continuity
Business continuity/disaster recovery (BCDR) plans are a key
component of today’s business operations, from back-office functions
like ERP, finance and accounting and supply chain management to
the customer experience and employee communications. In the face
of increasing ransomware attacks or threats to physical plants and
employee resources—whether caused by epidemic illness, natural
disasters, or human-created events—companies must be able to
support a flexible workplace, 24/7.
Whatever the cause, sudden change can wreak havoc on business
operations, which does major damage to the company’s profits
and reputation. When customers can’t get through, the costs can
be substantial, and the negative effects can last well beyond the
interruption itself.
Companies that support fully remote or hybrid work get an added
bonus: the ability to quickly and easily react when disaster strikes.
After all, if employees are already working away from the office,
companies might not even need to respond to disruptive events.
But even for organizations with an on-site workforce, the ability In a recent Frost & Sullivan survey,
to pivot on a dime is crucial for maintaining productivity and 41% of IT decision-makers say
customer value. In short, they must deploy their IT infrastructure they’ve seen better BCDR thanks
in such a way that allows them to switch from an in-person model
to cloud deployments.
to a remote one in a matter of hours, not days or weeks.
Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 9

Create a Foundation for Innovation

Hiring and retaining talent is top-of-mind for almost all IT leaders. The best
way to improve these metrics is to give your team a reason to go to work
every morning. While “keeping the lights on” is foundational for any IT
department, it’s important to offer rewarding opportunities for employees
to gain new skills, tackle new challenges, and grow the business.
But once you outsource your ERP infrastructure to a trusted partner, you
free up more of your IT staff to focus on innovation and creativity—and
to produce ideas and solutions that will positively impact the company
and its bottom line.
First, technologists can work with business leaders and end users to
develop functionality that addresses key pain points and will be used
every day to improve business outcomes. Whether it’s leveraging
business intelligence to make it easy for non-technical users to create
meaningful dashboards and reports, connecting the ERP solution to
other back-office and communications software for better collaboration,
sharing insights across the organization with the tap of a button, or using
low-code tools to build new apps, IT can show business users how to
transform the way they work with customers, suppliers, and one another.
IT can also help business units think creatively as they reconsider
everything from the customer experience to the supply chain. By
integrating key technologies based on user feedback, IT can break down In a recent Frost & Sullivan survey,
internal silos and streamline workflows; implement secure, reliable 35% of IT decision-makers say cloud
Internet of Things (IoT) capabilities; deploy next-generation supply chain deployments let them refocus staff on
operations; create chatbots and other automated experiences to enable higher-value work.
smoother customer support interactions; and facilitate community and
cooperation inside and outside the organization.
Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 10

Luminous Lights Up Digital Transformation

Using RISE with SAP on the Microsoft Cloud
When it comes to innovation, Luminous is by no means in the dark. The
manufacturer has been producing cutting-edge products in the power backup,
battery, home electrical, and solar spaces for the past 30 years, with a presence in 36
countries, 6,000 employees, 60,0000 channel partners, and millions of customers.
“Having SAP BTP on Azure
With growth like that, it was only logical that Luminous turn its innovative powers
on itself. The company recently launched an aspirational transformation roadmap to
and integrated with Teams
develop the digital core it needs to operationalize innovation. has really changed the
way in which we work. It’s
“We have a 4C digital strategy in place, which stands for Connected People, created a lot of operational
Connected Products, Connected Processes, and Connected Plants,’” says CIO
efficiency because now the
Chander Khanduja. “We made RISE with SAP on Azure and the Microsoft Cloud
data is coming in real-time.”
the backbone of our digital journey—it helps us innovate, integrate, and extend
our capabilities on both cloud and hybrid platforms.” —Chander Khanduja, CIO

For Luminous, bringing these two digital powerhouses together just made sense.
Since its founding, Luminous has used SAP and Microsoft as strategic providers. More
recently, the company implemented Azure services for disaster recovery and in support of its IoT products. When the company began
to add more SAP cloud solutions, it decided to migrate its entire SAP landscape to Azure. By joining the two, Luminous not only brought
both long-term technology partners under one service-level agreement, it also better integrated operations and technology support.
For Luminous, it’s all about the integrations. The company points to the real transformational value gained from its enhanced
stability and security combined with the ease of integration facilitated by SAP on Azure and the Microsoft Cloud. For example, the
company’s developers created a sales bot called SalesKUBE that sends customer data directly from the SAP system to Teams to
better integrate real-time data into sales workflows and streamline sales processes. “[Now] there’s only one version of the truth
available to salespeople,” says Khanduja. “They can work way more effectively with all our customers, dealers, and distributors.”
Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 11

Standard Chartered Bank Leads by With the vast

Example with Intel, Microsoft, and SAP majority of SAP on

Microsoft Azure
customers running
Already a leader in digital experiences among financial institutions, Standard Chartered Bank on Intel processors,
updated its digitalization and technology strategy in 2021 to derive 50% of its income from new
customers benefit
businesses. The company took a three-pronged innovation approach that includes transforming
its core via digitization—and to that end, it has doubled its yearly spending on strategic initiatives
from pre-validated,
to $1 billion. Standard Chartered is modernizing its core business systems on Microsoft certified SAP HANA
technology and leveraging the agility, flexibility, and continuity RISE with SAP provides to Cloud instances that
improve its decision-making across a complex network of international financial markets. help grow business
value from faster
Standard Chartered has made operating synergy a focus of its digital experience initiatives. Its
insights, future-
modern architecture, enabled by digital technologies, has helped score measurable improvements
in three areas: the elimination of manual processes in its central treasury systems; the ways in which
proof their cloud
critical systems like front office, risk, and regulatory reporting connect with each other and drive investments, and
efficiency and employee productivity; and the consolidation and democratization of data that fuels achieve high return
real-time decision-making. The architectural backbone of RISE with SAP, powered by 3rd Gen Intel® on cloud investments.
Xeon® Scalable Processors and optimized with Intel® Optane™ persistent memory, is designed
to give leaders the opportunity to make those improvements in the most frictionless way possible.

“Really good CFOs not only have a 360-degree view of the business and operations, but also a vision of
the future—being able to identify new business opportunities while keeping risks under control. It’s not just
about numbers, it’s about people, culture, and technology,” —Andy Halford, Chief Financial Officer, Standard Chartered Bank.
Ultimately, the efficiency and opportunities for innovation facilitated by digital transformation benefit customers, too. “The
starting point for me is always, ‘What would customers be delighted by? What would make their lives easier?’ Then, ‘What are
the metrics that go with assessing that?’ It’s a fascinating, highly strategic part of a CFO’s role because it’s quite complex and
there are many, many different technologies and tool sets one can push on.”
Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 12

Wolverine Worldwide and RISE with SAP on Azure:

Fit for Digital Transformation
See why footwear and apparel company Wolverine Worldwide chose RISE with SAP on Azure to simplify business
operations, drive deep relationships with customers, and empower its staff to focus on brand differentiation with a
landscape for tomorrow.
Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 13

SAP on Azure Helps Chobani Satisfy

Its Appetite for Quality and Innovation To take Chobani to the
next level, we needed to
Chobani began humbly in 2005, when founder Hamdi Ulukaya bought a shuttered move to the cloud,” says
yogurt plant in upstate New York. Today, Chobani is much more than a yogurt Parag Agrawal, CIO at
company. It produces oat milks, ready-to-drink cold brew coffee, plant-based and Chobani. “We wanted a
dairy coffee creamers, and oat-based probiotic drinks while investing in communities simple, streamlined platform
and donating products to those in need. As the company rapidly grew, it operated as for both our front-end
a start-up and often moved ideas from concept to market in just six to eight months. applications and our back-
“We couldn’t build IT infrastructure quickly enough to accommodate the fast pace end systems.”
of our business,” says Shahid Khan, Senior Director IT Infrastructure and Security
at Chobani. After the company evaluated ERP systems, it decided to adopt SAP
S/4HANA. Next, Chobani needed to select the best cloud platform for its SAP
environment. Microsoft Azure appealed most for its agility, pay-as-you-go cost structure, and easy interoperation with the
company’s existing environment. The company already used Windows 10, Windows Server, Microsoft SQL Server, Office 365,
and Azure Active Directory, and adopting Azure fit with Chobani’s business objectives, such as building true disaster recovery
capabilities, supporting SAP analytics without impacting production servers, and improving productivity.
“Running SAP S/4HANA active-active on Azure has definitely boosted our availability, and we aim to get to near-zero
downtime maintenance,” says Khan. “Now that our reporting provides up-to-date details into inventory and production levels
and other variable information, the business can respond faster to market conditions and make data-driven decisions.”
By moving to Azure, Chobani can easily spin up the SAP S/4HANA instances it needs without upfront costs. By spinning up
virtual machines for disaster recovery testing and then removing them after the test, Chobani saves any costs of added hardware.
The company also continues to prepare for the future by exploring AI, machine learning, and Azure Logic Apps. “With Azure,
we have the agility to spontaneously scale up as needed and make sure that infrastructure never becomes a bottleneck,” says
Agrawal. Adds Khan, “We became more nimble and agile with Azure. We can build whatever we need without overbuilding.”
Digital Transformation and the Art of the Possible: An Innovation Opportunity with SAP and Microsoft 14

Frost & Sullivan Recommends

Not every cloud provider can meet the needs of every business—
especially when the goal is to reimagine and transform how work gets
done. When a company is considering moving its ERP system to the
cloud, several key criteria stand out:

X Seamless data migration

X Integration with third-party apps

X Best-in-class identity management and governance

X Advanced security, including network security and ransomware

protection

X Real-time data analytics with predictive intelligence and

visualization

X Innovation through partnerships and programming support

X Robust, scalable compute options for all workloads

X High availability, business continuity, and disaster recovery

X A range of storage options that can scale to meet your needs

X Built-in, centralized management

X Cost optimization
To learn more about SAP on the Microsoft Cloud, please visit
https://azure.microsoft.com/solutions/sap.

For additional insights, you can also watch the webinar

How to Drive Digital Transformation: RISE with SAP on Azure.

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