Closets. Every living space has one housing a mix of everything from the frequently used, the untouched, and the forgotten. And the only time they are thoroughly cleaned out and reorganized is when the owner decides to move to a new home.

In many ways, businesses are doing the same by storing in their ERP systems that no one will ever see. The technology may provide more tools — such as machine learning-enabled image and pattern recognition — to make sense out of all this information. But the business process layer is also evolving to the point where the entire data stack must be well-coordinated and connected.

The minute businesses realize that their ERP must be transformed and modernized, their attention turns to the latest applications, capabilities, and processes enabled by intelligent ERP such as . But very few of them assess their stack to determine which data should be removed or kept. Instead, the great majority fall victim to what I call the data dump syndrome – the wholesale migration of every piece of information into the new ERP environments.

Protecting ERP Transformation with a Proper Data Strategy

In any economic condition, the key to staying competitive is the ability to capture, analyze, understand, and act upon information in real time. According to , this includes recognizing patterns; comprehending ideas; planning, predicting, and problem-solving; identifying actions, and making decisions.

With the explosion of intelligent devices and digital interfaces creating interconnected ecosystems of people, processes, and systems, businesses have endless possibilities to convert data into insights and experiences augmented by context and machine-enabled intelligence. Despite all this opportunity, of companies still fail to realize such an edge to become truly data-driven.

Before transforming data silos and inefficient processes into a landscape of consistent data management and standardized operations, businesses need a dedicated data strategy to cover three fundamental principles:

1. Rethink the value of front- and back-office data

Over half of the companies reported in a study conducted by 451 Research have more than 11 separate repositories of customer data alone dispersed across various applications and organizational groups. And many more structured and unstructured data sources are often linking to that intelligence across both the back and front office.

Understanding the benefits of consolidating data into a single source usually compels executives to commit to transitioning their legacy ERP to a modern ERP. But such a move does not fix the fact that most of their information may still be left unused or forgotten.

Evaluating the usefulness of data – individually, by category, and in aggregate – is critical to ensure optimal modern ERP performance. Doing so can amplify the effectiveness of algorithms used to automate processes, executive dashboards that assist decision-making, and collaborative interactions that drive new business opportunities and revenues.

2. Help ensure the right data is in the right places

As the volume of available data increases, human-driven analytics becomes ineffective, sluggish, and error-prone. And in response, the ability to map the right data to the right functions in a modern ERP becomes even more essential.

The critical nature of this part of the data strategy further increases when intelligent technologies – such as machine learning, natural language processing, contextual artificial intelligence – are integrated into the ERP. Adding automated reasoning to dashboards, workflows, processed, and predictive forecasts allows users to make accurate inferences and enrich their analytics profile. It also enables line-of-business users to predict business outcomes such as financial turnover and profit, a customer’s propensity to buy, emerging skill gaps, and supply alternatives.

3. Build a secure and trustworthy business system

Unquestionably, effective use of data is an intrinsic part of business success. However, data strategies must also consider how data privacy and protection impacts the trust of people who provide their information willingly and the decision-makers who use it.

Facing emerging compliance regulations, consumer concerns over the safety of their personal information, and employee expectations for accuracy, the pressure to handle it all is only increasing. Companies that address data privacy and protection during their move to a modern ERP are well-positioned to deliver consumer and employee experiences that are transparent, controlled, and responsive.

Achieving the Full Potential of Modern Digital Investments

Remember, data is at the core of every customer interaction, organizational process, and employee decision – especially when running based on a modern ERP. And with a comprehensive strategy that addresses the principles of connected, clean, and consistent data, businesses can avoid the data dump syndrome to realize their digital transformation’s full potential.

Learn more about the importance of data management during an ERP transformation. Read our white paper ““ and explore solutions.

Engelbert Quack is a strategic customer advisor for 51·çÁ÷Advisory Services.

Now, with the addition of a next-generation strategy, their partners can too.

Every new digital innovation promises to help business operations run faster, more productively, and with more scalability and impact. But getting the most value from those technologies is not always clear – especially when avoiding business disruption.

Take, for example, 51·çÁ÷customers that choose to migrate their legacy to . Very quickly, they realize that the traditional model for ERP implementations cannot keep up with the dynamic nature of intelligent ERP. Everything from extensive customizations, IT-dependent decision-making, and complex user experiences to incomplete and inconsistent integrations does not match the promises of process standardization, experience management, and data trust that customers expect.

At first, 51·çÁ÷offered the innovation adoption process to provide a transparent method of structured and solution-specific practices carried out in a standardized environment. Even though the self-service offering puts business users in the driver’s seat during the implementation, something was still missing – the collective strengths of IT know-how and business process expertise.

Challenge the ERP Status Quo with Control, Innovation, Partnership

Enter , an integral part of 51·çÁ÷Activate in different phases within the implementation of 51·çÁ÷S/4HANA. But just like the technology it supports, the serviceis always evolving.

51·çÁ÷Model Company initially encompassed prepackaged, ready-to-use, end-to-end reference solutions for industries or lines of business – all aimed at simplifying and increasing the speed of 51·çÁ÷S/4HANA implementations. As customers became more mature digital innovators and strategists, the services were restructured on an interoperable architecture that empowered customers to combine line-of-business and industry model companies as they require.

Meanwhile, customers still wanted the freedom to work with their preferred 51·çÁ÷partners. This growing expectation inspired the creation of 51·çÁ÷Integrated Delivery Framework. In return, customers enjoyed having the best of both worlds: their partners and 51·çÁ÷experts carefully aligned and integrated across delivery roles, methodologies, and services. This simplified engagement framework not only helped reduce delivery inefficiencies, risk, and costs, but also helped increase the speed and certainty of expected outcomes.

Embrace a New Era of Partner Collaboration with 51·çÁ÷Model Company

The evolution of 51·çÁ÷Model Company has now reached a point of tremendous opportunity for customers and partners. All line-of-business and industry-specific systems designed, interoperable capabilities introduced, and the integrated delivery framework 51·çÁ÷enables have converged together, allowing partners to apply the services’ standard methodology when implementing 51·çÁ÷S/4HANA.

This next-generation model-company strategy qualifies partners on two levels:

• Solution level: Partners are committing to use 51·çÁ÷Model Company as a foundation for solution development and innovation efforts. They gain access to the partner development environment and go-to-market strategy for 51·çÁ÷Model Company and 51·çÁ÷Value Assurance service packages. Intellectual property (IP) developed by partners in this environment is eligible to get 51·çÁ÷Model Company certified.
• Qualification level: Partners gain access to the go-to-market strategy for 51·çÁ÷Model Company and 51·çÁ÷Value Assurance service packages. They can take advantage of the available education and enablement program and content. Partners entering the qualification program are eligible be named “qualified partner for 51·çÁ÷Model Company and 51·çÁ÷Value Assurance services.”

51·çÁ÷partners are encouraged to be certified for both levels to gain the full market potential of 51·çÁ÷Model Company. All enablement materials are available on the and sites.

Set the Foundation for Continuous Success with 51·çÁ÷S/4HANA

We live in dynamic times where digitalization is everywhere. Businesses are looking for their partners to remove every technology, process, and organizational obstacle to help them stay ahead of their competition.

With the next-generation partner strategy for 51·çÁ÷Model Company, it is easier than ever for 51·çÁ÷partners to guide their customers in the right direction. Partners in all areas of expertise can deliver strategic services that are aligned with standard best practices, supported by the latest technology, and carried out quickly – no matter how turbulent and intense our increasingly digital world becomes.

and take on the opportunity of our next-generation partner strategy for 51·çÁ÷Model Company.

Dr. Engelbert Quack is chief consultant for BTS Advisory Services at SAP.

Thomas Kesl is lead of Partner Stream for the 51·çÁ÷Model Company program and EMEA head of Energy and Natural Resources at SAP.