SAP 2025 Roadmap: Driving Digital Transformation

SAP 2025 Roadmap: Driving Digital Transformation

This document outlines SAP's strategic direction and key initiatives for 2025, focusing on cloud adoption, AI integration, and industry-specific solutions to drive growth and innovation.

Table of Contents

1. Cloud Transition and S/4HANA Migration
   • S/4HANA Adoption and ECC6 Sunset
2. Financial Ambitions
   • Updated 2025 Financial Targets
3. AI Integration and Business AI Focus
   • Expanding AI Capabilities Across the Portfolio
4. Operational Restructuring
   • Transformation Program for Enhanced Efficiency
5. Industry-Specific Solutions
   • Utilities Sector Advancements
   • SAP Business One Developments for SMEs
6. Intelligent Enterprise
   • AI and Machine Learning Enhancements
   • Data Integration and Interoperability
7. Sustainability and ESG
   • Integrating Sustainability Metrics
   • Promoting Green Technologies
8. Customer Experience
   • Enhanced User Experience and Interfaces
   • Focus on Customer Engagement
9. Cloud and Digital Transformation
   • Encouraging Cloud Adoption
   • Supporting Digital Transformation Initiatives
10. Security and Compliance
    • Strengthening Cybersecurity Measures
    • Offering Robust Compliance Solutions

1. Cloud Transition and S/4HANA Migration

• S/4HANA Adoption: SAP is actively encouraging customers to migrate to S/4HANA, its next-generation ERP suite. This push is driven by the planned phase-out of support for ECC6 by December 2027.

2. Financial Ambitions

• Updated 2025 Targets: SAP has updated its financial ambitions for 2025, aiming for a non-IFRS operating profit of approximately €10.0 billion, which now includes share-based compensation expenses of about €2 billion. The free cash flow ambition is set at approximately €8.0 billion.

3. AI Integration and Business AI Focus

• Strategic Growth in AI: SAP is significantly increasing its focus on Business AI, with the goal of integrating AI-driven efficiencies across its operations and product offerings.

4. Operational Restructuring

• Transformation Program: In 2024, SAP initiated a company-wide transformation program. This includes restructuring efforts affecting approximately 8,000 positions, aimed at enhancing scalability and efficiency.

5. Industry-Specific Solutions

• Utilities Sector Enhancements: SAP's roadmap for the utilities industry includes advancements in asset management, metering, analytics, and customer service management. There is a strong emphasis on AI-assisted tools and improved data handling.
• SAP Business One Developments: For small and medium-sized enterprises (SMEs), SAP Business One's roadmap highlights enhancements in the web client experience, global compliance features, analytics capabilities, mobility, and intelligent automation.

6. Intelligent Enterprise

• AI and Machine Learning: SAP is enhancing AI capabilities across its solutions to improve automation, predictive analytics, and decision-making.
• Data Integration: A key focus is strengthening data integration and interoperability to enable seamless data flow across systems.

7. Sustainability and ESG

• Sustainability Initiatives: SAP is integrating sustainability and Environmental, Social, and Governance (ESG) metrics into its solutions to help businesses achieve their sustainability goals.
• Green Technologies: The company is promoting the use of green technologies and practices within its product portfolio.

8. Customer Experience

• Enhanced User Experience: SAP continues to improve the user experience with more intuitive interfaces and user-friendly applications.
• Customer Engagement: A key area of focus is enhancing customer engagement through personalized and interactive experiences.

9. Cloud and Digital Transformation

• Cloud Adoption: SAP is strongly encouraging businesses to adopt cloud solutions for greater scalability and flexibility.
• Digital Transformation: The company is supporting digital transformation initiatives with advanced tools and technologies to streamline business processes.

10. Security and Compliance

• Cybersecurity: SAP is strengthening cybersecurity measures to protect data and ensure compliance with regulatory requirements.
• Compliance Solutions: SAP offers robust compliance solutions to help businesses adhere to industry standards and regulations.

This roadmap demonstrates SAP's commitment to leading digital transformation by enabling businesses to leverage the latest technologies and innovations.