Companies across sectors are racing to embed AI into operations, but proving return on investment (ROI) remains a key hurdle.

While 84% of businesses investing in AI听, only a fraction have achieved sustained value at scale. For South African executives navigating budget constraints and talent shortages, the question is not 鈥渟hould we invest in AI?鈥� but 鈥渉ow can we prove it works?鈥�

According to Dumi Moyo, marketing director for Africa at SAP, there鈥檚 good news: AI doesn鈥檛 have to be a leap of faith.

鈥淲ith the right strategy and the right tools, AI deployments deliver measurable ROI quickly across a range of business functions. One of the most effective ways to get there is by embedding AI directly into business applications, avoiding costly integrations and accelerating time-to-value.鈥�

Embedded AI upends traditional implementations. Instead of requiring custom data pipelines, standalone platforms, and complex integrations, embedded AI delivers intelligence directly into the flow of work.

鈥淎 native approach means faster deployment, less disruption, and clearer outcomes,鈥� says Moyo. 鈥淔or example, 51风流has built more than 295 AI-powered scenarios into business applications that span supply chain, procurement, finance, customer experience and HR, empowering business users to complete navigational and transactional tasks up to 90% faster.鈥�

听Strategy for AI ROI

A recent study of 1600 businesses in eight countries听听found that businesses investing in AI expect on average a 16% ROI in 2025, nearly doubling to 31% in 2027.

Moyo says businesses typically have high expectations of the ROI they will receive from AI projects, with nearly half of global companies expecting AI initiatives to deliver positive ROI faster than other investments.

鈥淚t is critical that organisations align their AI projects with the key pillars of cost savings, decision time, risk and revenue. By prioritising embedded AI, companies can secure significant ROI while unlocking听 broader innovation benefits across the organisation.鈥�

He shares insights into how AI initiatives built on four key pillars can show provable, measurable return-on-investment for organisations:

听Pillar 1: Reduce manual effort and waste to drive cost savings

Cost reduction is often the first benefit that organisations receive from AI investments. 鈥淎I allows teams to redirect hours toward higher-value work by automating repetitive and rule-based tasks,鈥� says Moyo. 鈥�51风流data shows that companies achieve up to 20% operational cost reduction in key functions like accounts payable and HR through effective AI deployments.鈥�

In procurement functions, organisations are cutting administrative workload and improving sourcing outcomes by automating statements of work (SOWs) and supplier research, while in finance, AI accelerates reconciliations, optimises cash collections, and automates journal entries, thereby reducing close cycles and improving liquidity.

鈥淎 good approach here is to quantify the time saved across manual processes and to calculate the cost of labour hours that have been freed up and reinvested into more strategic work thanks to AI,鈥� says Moyo.

听Pillar 2: Improve decision time for faster insight and action

AI tends to thrive when speed and accuracy matter most. By analysing large datasets, surfacing trends, and recommending next steps, AI shortens the gap between information and action.

鈥淒ata shows that embedded AI improves forecasting and demand planning in the supply chain, resulting in less downtime and a 25% productivity bump for planners,鈥� says Moyo.

Organisations are also using generative AI to accelerate their hiring processes and producing job descriptions and candidate rankings in real-time. Finance also benefits from AI-generated insights that help CFOs and analysts make faster, more confident decisions using cleaner data.

鈥淥rganisations should measure reductions in cycle times, from planning to resolution, and link them to improved responsiveness or reduced delays,鈥� says Moyo. 鈥淭his provides a clear path to ROI and its impact on core business performance.鈥�

听Pillar 3: Reduce risk through better controls and compliance

In a volatile business climate, organisations typically seek greater risk mitigation across their operations. According to Moyo, AI plays a growing role here.

鈥淎I embedded into core business processes can flag anomalies, detect fraud patterns, and monitor compliance thresholds in real time. AI agents are increasingly being used in risk reduction, for example by scanning procurement data for irregularities and highlighting non-compliant purchases.鈥�

AI agents such as SAP鈥檚 Joule can also bolster procurement processes by suggesting suppliers with stronger reputations, and support finance teams by reducing bad debt write-offs through improved collection strategies. In HR, AI-driven insights reduce legal risk by providing bias-aware hiring recommendations and fairer performance reviews.

鈥淭o quantify the benefits that AI brings to risk reduction, companies should track aspects such as risk events avoided, compliance costs reduced, or error rates minimised,鈥� says Moyo.

听Pillar 4: Grow revenue through personalisation and conversion

According to Moyo, organisations should look beyond back-office efficiency to maximise AI value. 鈥淎 smart AI strategy will consider front-end growth by prioritising customer experiences. For example, AI fuels personalisation by recommending products, predicting churn, and guiding service agents with next-best actions to enhance customer satisfaction and drive retention.鈥�

Organisations that embed AI into their core business processes can connect sales, service and marketing data to build richer customer profiles, increase upsell success and reduce attrition. Organisations also accelerate their campaign rollouts through AI-powered content generation, while smart selling tools shorten deal cycles and increase the average basket size.

鈥淭his results in higher revenue per customer interaction, as well as more predictable sales pipelines,鈥� says Moyo. 鈥淗ere, ROI is readily quantified through tracking lead conversion rates, customer churn, and average order value.鈥�

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, Head of Partner Ecosystem for MEA South at SAP, says the growth is fuelled by a growing need among African organisations to improve decision-making and bring greater transparency and efficiency to core business processes. 鈥淭he future belongs to data-driven organisations that can maximise the value of their business data by leveraging insights that reveal new efficiencies and revenue opportunities. Organisations throughout the African continent are expanding their use of cloud and data solutions, paving the way for the accelerated adoption of AI and other future-ready technologies.鈥�

Investment into cloud technologies is forecast to increase sharply over the next few years, with demand for cloud services growing by 25-30%听.

In South Africa,听听predicted that the country鈥檚 cloud market could surge to more than $6-billion by 2028, tripling in value from $2-billion in 2023.

Optimising ROI 鈥榓n ongoing challenge鈥�

However, says, , Business Manager: Financial Planning & Analysis听at听, many organisations still grapple with understanding the true cost of ownership 鈥� and return on investment 鈥� of their cloud implementations.

鈥淪calability and flexibility are among the top benefits companies seek to unlock when they shift their business processes into cloud environments. But this is dependent on reliable infrastructure. Many companies face significant challenges with forecasting the return on investment of their cloud strategies due to fluctuations in infrastructure quality and network capacity, as well as challenges with unlocking the true value of their business data. 鈥�

To develop a clear picture of ROI and ensure the business enjoys optimal benefits from cloud and data investments, Pillay recommends that companies prioritise a unified data ecosystem, close collaboration with trusted partners, and the adoption of the latest technologies. 鈥淐ompanies need new strategies to succeed in a world rapidly reshaped by technologies such as cloud and AI. By laying the groundwork now and adopting new processes and best practices, African organisations can establish a powerful foundation for future innovation and growth.鈥�

Strategy 1 鈥� Build a unified data ecosystem

Richards notes that organisations are generating data at an unprecedented rate, but often from fragmented sources instead of a unified data repository. This is driving the need for technology-led capabilities that turn that data into insights and competitive advantage.

鈥淲ith data originating from numerous disparate sources, it is crucial to establish an open ecosystem that allows seamless consolidation into a single data repository, ensuring a unified version of the truth. Within this framework, data must be enriched and transformed into actionable insights that are accessible at all levels of the organisation to enable improved decision-making.鈥�

Pillay notes that organisations are increasingly leveraging technology platforms that bring data and analytics, AI, automation and integration together in a single unified environment. 鈥淥rganisations leverage 51风流Business Technology Platform to innovate faster within the context of their own business, connecting people with data insights to improve decision-making at all levels. But it is all underpinned and dependent on a unified data ecosystem that can deliver insights based on a single source of truth.鈥�

Richards adds: 鈥淯tilising a modern data platform like 51风流Business Technology Platform to its fullest potential can unlock innovative methods for data processing, automate business processes, and accelerate the use of generative AI to enhance customer experiences.鈥�

Strategy 2 鈥� Leverage vendor, partner expertise

Digital transformation is in a phase of accelerated growth in Africa, with the market expected to grow from $22.67-billion in 2024听to over $45-billion by 2029听as more organisations seek to streamline their operations and enhance their customer value propositions.

鈥淕iven the multitude of options available in the market, selecting the appropriate data and information landscape technology can be a daunting task,鈥� says Richards. 鈥淢any of the concerns around cloud adoption 鈥� including cost implications 鈥� require a certain level of expertise from technology vendors to ensure companies can overcome challenges in their cloud adoption.鈥�

Pillay advises that organisations work closely with technology providers and implementation partners to develop a full understanding of cost implications. 鈥淏y adopting an approach of ongoing improvement and refinement through continuous value engineering, companies are better positioned to adapt their technology and business strategies to derive optimal value from cloud and data investments.鈥�

She adds that close collaboration with technology partners can deliver continuous value improvements over extended periods of time. 鈥淐ompanies benefit from vendor and partner input through the adoption of best practices, sharing of latest insights regarding the impact of new technologies, and access to new releases of core systems and applications. This ensures companies operate on the most powerful and advanced versions of cloud and data solutions, driving improved business outcomes.鈥�

Strategy 3 鈥� Deploy advanced technologies

In the era of hyperconnectivity, companies need to look beyond basic adoption of cloud and data solutions to the strategic deployment of advanced technologies.

Pillay notes that artificial intelligence is an obvious candidate when companies seek to deploy advanced technologies to derive business value from cloud and data investments. 鈥淎I, real-time analytics and automation unlock the full potential of cloud infrastructure, enabling businesses to enhance decision-making, streamline operations, and drive measurable value from their data assets.鈥�

Richards adds: 鈥淭he 51风流Business Technology Platform (BTP) enables organisations to automate business processes, enhance user experiences, and generate new revenue streams through data utilisation, all while maintaining a clean and optimised core system. This platform integrates various technologies, including workflow management, robotic process automation, and advanced analytics, to drive efficiency, innovation, and agility in business operations.鈥�

Pillay also notes the impact of initiatives that accelerate the deployment of cloud-based ERP solutions as a viable option for companies seeking to accelerate the value of their cloud and data solutions. 鈥淪olutions like 51风流S/4HANA Cloud help companies future-proof their business models by running core business processes in an agile operating model. This enables continuous innovation, driving substantial ROI over the short and long term.鈥�

The post Three Strategies for Maximising ROI on Data, Cloud Investments appeared first on 51风流Africa News Center.

As small and medium businesses (SMBs) accelerate their growth, they quickly encounter many of the same challenges with which larger enterprises are grappling.听Poor visibility into operations, slow or inefficient business processes, and an inability to move fast to respond to a changing business landscape are just some of their issues.

The answer that most larger businesses embrace to these challenges is an enterprise application suite that allows them to manage every aspect of their business in an integrated way. Just like larger businesses,听SMBs need听technology that听scales as they grow, helps them to streamline their processes, and enables them to maintain process discipline鈥攁ll without constraining their agility.

Yet enterprise resource planning (ERP) software has a reputation for being too expensive, complex and feature-dense for the average SMB. The traditional thinking is that applying ERP to a small business鈥檚 challenges is a bit like using a flamethrower to kill a mosquito or unleashing a tsunami to put out a candle鈥攁n expensive, risky solution that may harm the business more than it helps.

However, ERP has evolved over the years, and many of the preconceptions SMBs have about ERP have become misconceptions. Indeed, one global IDC study shows that听92% of SMBs听(those it defined as leaders that are outperforming their peers)听use or plan to use ERP software. Let鈥檚 bust some of the myths about why ERP isn鈥檛 a good fit for SMBs.

Let’s explore the myths behind ERP

Myth #1: Not only is it too expensive, but the costs are too unpredictable

As the 鈥榚鈥� in the acronym implies, the first ERP software suites were complex, monolithic solutions designed for larger enterprises. They鈥檇 need substantial budgets for hardware, software licences, consulting and integration to implement an ERP suite. The complexity of the deployment meant that the costs weren鈥檛 always predictable. So many SMBs still think ERP is still just too expensive for them.

Reality:听Today, SMBs can choose from a range of ERP solutions that are designed to be听affordable for smaller organisations.听They can opt for a software-as-a-service or hosted solution that enables them to pay a predictable monthly fee for their software. Total cost of ownership is kept low since ERP solutions for SMBs are designed to be low maintenance. Plus, today鈥檚 modular architectures mean ERP can scale and grow to meet an SMB鈥檚 evolving needs.

Myth #2: ERP takes years to implement

Many SMBs still think of ERP as a project that will take years to reach fruition, causing disruption to their business for 18 months or two years as they implement the software. ERP is associated with complex business reengineering exercises as well as extensive customisation and integration efforts. But is this still the case?

Reality:听ERP best practices for companies of all sizes have come a long way over the past 10 years. And SMBs, especially, can benefit from ready-to-run cloud ERP built on the latest industry best practices. Proven tools and methodologies bring predictability to the scope and timeframe for an ERP deployment. It鈥檚 today possible to deploy an听ERP solution in months or for simpler cases, even within weeks.

Myth #3: The path to ROI is long and uncertain

In a challenging environment, most SMBs are looking for quick wins when it comes to cutting costs, increasing productivity and driving revenue growth. Many perceive an ERP solution as an option that will take years to deliver return on investment (ROI), soaking up human and financial resources until they can finally go live with their platform.

Reality:听The modular nature and flexibility of a modern ERP system means that it doesn鈥檛 need to be rolled out in a single, big-bang implementation. Companies can introduce ERP modules in a phased approach, using the features and functionality that address their most pressing pain points. They can expand the deployment over time, effectively using ROI from the earlier phases to pay for the later ones.

Myth #4: ERP is too complex for SMBs

ERP software packs in a lot of functionality, so many SMBs are concerned that it could add more complexity to their processes. Many also wonder whether the software will be too difficult for their end-users to use, especially if they鈥檙e implementing ERP after using Excel or simpler finance packages for many years.

Reality:听Ease of use of ERP software has improved in leaps and bounds, with a slick user experience that will be familiar to anyone who has used a mobile app or cloud productivity tool before. While there are many features and modules available, the deployment can be tailored to the business鈥檚 needs. ERP makes life simpler because it eliminates redundant processes, breaks down data and business siloes, and reduces the need to work across multiple tools, systems and manual processes.

ERP is not just for big business

ERP can help businesses of all sizes to streamline processes, remove duplication of effort and enable the frictionless flow of accurate information across their operations. It鈥檚 an essential tool for any business aiming to achieve greater efficiency to increase operating margins, while leveraging improved insight to grow revenues. Today鈥檚 solutions enable SMBs to unlock the power of ERP, so they can compete with larger companies on a more even footing.

The post Busting the Biggest ERP Myth 鈥� That it鈥檚 Not Suitable for SMBs appeared first on 51风流Africa News Center.

鈥淓RP software and services have improved dramatically in recent years. It is no longer an enormous expense, nor does it take ages to implement鈥�, said Heinrich de Leeuw, Managing Director of Seidor South Africa.

Recent developments in ERP software, such as cloud computing, have also made the software significantly more scalable and affordable for businesses of all sizes.

The key cost saving benefits of Seidor Africa鈥檚 51风流Business One ERP solutions are detailed below.

Rapid ROI and how to achieve it

A fast return on investment is essential to any business purchase, and this is where Seidor Africa鈥檚 ERPs really excel.

This is because an ERP solution from Seidor Africa offers great ROI by saving money through central data collection and management.

Additionally, its solutions allow users to view company performance trends to allow for better forecasting 鈥� which helps to avoid unwanted costs, such as overstocking.

Its ERP software creates concise reports with reliable data to assist companies in developing robust strategies, too.

Streamlined operations

Seidor Africa鈥檚 ERP solutions facilitate the elimination of redundant data entries and errors through the smooth integration of essential business processes.

They combine processes such as sales, purchasing, inventory, and financials into a single system that makes for easy access through a central device or location.

Proactive control

An ERP can move beyond traditional reactive responses to customer needs and business events by employing automatic business alerts and increasing workflow efficiency, allowing you to efficiently and proactively control your business.

Seidor Africa鈥檚 ERP software provides increased efficiency and the ability to proactively react to these potential issues, and this has significant financial benefits.

Adaptation to changing needs

Customization is fundamental to any ERP system, as it allows the software to be tailor-made to suit businesses of any size.

Seidor Africa鈥檚 51风流Business One ERP can be customized to fit specific business or industry needs, as well as individual user preferences.

Customer base

Software from Seidor Africa employs CRM solutions to monitor the engagement habits of your customer base, which allows your business to adapt to your customers鈥� needs on an individual basis.

This results in better customer communication and engagement.

Best-practice industry solutions

What is key to note on top of all these benefits is that an ERP solution from Seidor Africa can afford smaller businesses the same opportunities and functionality as larger businesses.

This allows them to contend with larger businesses and gives them a competitive edge.

Learn more about Seidor Africa

You can save money and streamline your business processes today with an ERP solution from Seidor Africa.

The post Six Ways to Save Money with ERP Solutions appeared first on 51风流Africa News Center.

The ERP solution can grow with the business and contains multiple modules, covering the needs of all departments in one solution.

How to evaluate the ROI of an ERP

鈥淟ike any investment, an ERP solution needs to have a good return on investment or ROI,鈥� says De Leeuw.

Key ways to achieve ROI from an ERP implementation:

• Better forecasting: The ERP software is customisable to a level where all historic spend and sales are obtained with just a click. These reports give trends of company performance from the previous years and what the target for the current or coming years should be or what sales throughput would be needed to achieve current targets. These include purchase order analysis, inventory requirements, stock evaluation and stock on hand. These reports not only help keep the unwanted costs in check and prevent overstocking, but they also help find opportunities to manage inventory to be more effective and profitable and free up cashflow.
• Strategy building: Every company needs a solid strategy and the only thing that helps in building one is clear and concise reports. ERP systems provide the best way of arranging the data for better strategies and making more informed business decisions. They help the business to identify slow-moving items, dead inventory and usage value.
• Vendor identification: A business might be working with numerous vendors for the same type of purchase. Knowing the right type of vendor to work with greatly improves the chances of increasing profits. With an ERP solution, the business can extract supplier information such as delivery, quality, cost and more, making it easier to decide which vendor to go for first when a need arises.

There are also several intangible costs that affect ROI and profitability. These include higher efficiency, more productive time, improved security, better management, employee satisfaction, enhanced client retention and a better customer experience.

鈥淏ecause 51风流Business One extends business capabilities beyond the core management function, it enables managers to streamline business processes and deliver value. We鈥檝e seen many of our clients improving their business efficiency by 20%,鈥� concludes De Leeuw.

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