I just returned from SAP Sapphire 2025 to Orlando, and although SAP drew a convincing vision of the future contributing to AI, I could not help but think about the gap between their brilliant new ads and where most SAP customers are actually. Let me go through a marketing hype and give you an idea of analytics about what really matters.
Cloud migration of the elephant in the room
The biggest problem SAP does not create cool functions of AI is that the vast majority of their client bases are still using local ERP systems. While SAP was busy demonstrating my AI fund and Joule's advanced capabilities, I continued to think about thousands of companies that are still in SAP ECC 6.0 or more old versions, some of which have not been updated for years.
Here is a verification of reality: almost every exciting announcement of artificial intelligence in Sapphire requires SAP cloud solutions. AI fund? Cloudy. Advanced Joule with premature capabilities? Needs cloud infrastructure. New Cloud Data Cloud Cloud offers? You have already guessed – only a cloud.
For the average SAP Shop working on local systems, these ads can also be science fiction. They are dealing with the main tasks of integration, are fighting outdated user interfaces and fighting to get reliable reports from their current systems. The idea of AI agents is autonomous to control their supply chain seems to be a ridiculous distant one.
AI: A useful tool, not a magic wand
Do not understand me wrong – the demonstrated SAP AI SAP is really impressive. Joule's opportunity to anticipate user needs and provide contextual ideas can really increase performance. But let's pump the brakes at the request of SAP about “up to 30% increase in performance.”
I analyzed the implementation of software for the enterprise for many years, and increasing productivity of this value usually comes from improving processes and optimizing work processes, and not only from adding AI in addition to existing inefficiency. If your procurement process is violated, the AI agent will not correct it – it simply automates the broken process faster.
More realistic victories will come:
- Reduction of time spent on finding information on several systems
- Automation of routine data analysis and report generation
- Ensuring better support of decision -making through forecasting analytics
- Optimization of repeating tasks in the field of finance, HR and operations of the supply chain
These are valuable improvements, but they are evolutionary, not revolutionary ones.
Partnership Strategy: Hedging of their bets
SAP partnership tells an interesting story. The Accenture Advance program recognizes that many companies in the middle market need to manually retain a considerable retention to modernize their SAP environment. Palantir integration suggests that SAP recognizes that they cannot be all for everyone in the data analysis space. Cooperation in bewilderment admits that their AI needs external data sources in order to be in real useful.
These partnerships are smart enterprises, but they also highlight SAP dependencies. If you plan to convert SAP, you are not just buying SAP – you buy partners and integration to the ecosystem, which adds complexity and cost.
What does this mean for your SAP strategy
If you are currently using SAP in the local position, Sapphire 2025 must strengthen one key message: the innovative train leaves the station and it goes to the cloud. But before panic from the fact that you miss the capabilities of AI, we will consider these pragmatic steps:
For local SAP customers:
- First check your current condition. Most of the companies with which I work do not maximize their existing SAP capabilities, not to mention the improvement of artificial intelligence.
- Plan your temporary scale for the migration of cloud migration. The deadline after all SAP support is not disappeared. Use this as a coercion function.
- Focus on the quality of the data. AI is as good as the data with which it works. If your basic data is in a mess, AI will not help.
- Start small with cloud integration. Consider hybrid approaches that connect your local core with cloud analytics and artificial intelligence tools.
For companies already at SAP Cloud:
- Evaluate what functions of artificial intelligence actually solve business problems today, and not theoretical future use options.
- Pilot before scaling. Productivity claims that it sounds great, but check them in your environment using your data.
- Invest in changes management. The largest barrier for adoption of AI is not technical – this makes people change how they work.
Essence: evolution, not a revolution
SAP Sapphire 2025 demonstrated legitimate innovations that will improve business, but let's save realistic expectations. Companies that will benefit the most from these capabilities of artificial intelligence are those that have already modernized their SAP infrastructure and cleaned their business processes.
For most SAP customers, still in outdated systems, the real question is not whether their business transforms and whether they can fulfill a successful modernization program that positions them in order to ultimately use these capabilities.
Your next steps
This is what I recommend to do this week:
- Evaluate where you are standing on your trip to modernize SAP. Are you ready for the cloud, or do you have years of technical debt to solve first?
- Compare your businesses for AI capabilities that have attracted your attention. Can you quantify the value that they would provide in your specific environment?
- Create a realistic road map that recognizes both exciting opportunities and practical restrictions on your current SAP landscape.
- Start a conversation with your guidance on the long -term SAP strategy. The decisions that you make in the next two years will determine whether you are positioning to benefit from the Revolution of AI or left in outdated systems.
Ultimately, SAP, the future AI, will ultimately arise ultimately, but for most companies the path passes through cloud migration, data management and process optimization. First, focus on creating this foundation, and the capabilities of AI will follow when you are actually ready to effectively use them.
Fast SAP Sapphire 2025 appeared first GigamaField
