Its efforts didn鈥檛 go unnoticed: in 2021, the United Nations and Bloomberg named BayWa one of the 鈥�50 Sustainability and Climate Leaders鈥� worldwide, thanks largely to the company鈥檚 big push into renewable energies, which now make up more than half of BayWa鈥檚 annual earnings.

The Challenge of Transformation

BayWa鈥檚 journey with 51风流began in 2000 when the company implemented the on-premise ERP system, 51风流ERP Central Component聽(51风流ECC). However, as the business evolved it became apparent that their processes and technology could no longer keep pace. BayWa鈥檚 four business units operated in silos, which became unfeasible for a company striving to become more streamlined.

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鈥淲e want to move to a process-oriented company, so that means we want to implement one ERP template,鈥� Lars Pischke, global enterprise architect at BayWa, explains. 鈥淲e have to transform all four business units into a single ERP template, which is a significant challenge.鈥�

To address this, BayWa set out to migrate from 51风流ECC to 51风流S/4HANA Cloud, the foundation of its new . This transition marked a critical step toward unifying the company鈥檚 operations under one streamlined template. Additionally, BayWa implemented a digital platform, with 51风流Business Technology Platform (51风流BTP) as a key component.

“A clean core strategy for BayWa means we leave our ERP solution, 51风流S/4HANA Cloud, as standard, and we implement BayWa鈥檚 specific requirements on our digital platform side by side, where we rely heavily on 51风流BTP as our main module,” says Pischke.

Lessons Learned and the Value of a Clean Core

The concept of a “clean core” is central to understanding the benefits of BayWa’s transition. Imagine a shared grain silo system on a farm. If each farmer keeps their grain in separate, uncoordinated silos, tracking quality, utilizing storage space efficiently, or distributing the grain becomes a cumbersome task. However, when all the grain is stored in a unified system, it becomes significantly easier to manage, access, and maintain quality. Similarly, having a clean core in business processes ensures that all parts of the organization work harmoniously, preventing inefficiencies and missed opportunities that arise from working in silos.

For BayWa, establishing a clean core was crucial. The standardized, non-differentiating functions 鈥� such as accounts payable, tax, and treasury operations 鈥� constitute approximately 75% of business processes across companies, regardless of industry, size, or location. These functions are essential but do not differentiate one company from another.

In the past, over-customization in these areas led to inflexibility and slowed down business operations. But in today’s fast-paced, competitive environment, agility is key and maintaining a clean core is vital to achieving this agility.

“Keeping the core clean is also key when it comes to security issues. BayWa is part of the critical infrastructure in Germany,” Pischke explains. “To use a standard software like 51风流BTP allows us to rapidly adapt to new business models and technologies.”

Gaining a Competitive Edge with 51风流BTP

With BayWa鈥檚 clean core firmly in place, the focus shifted to building a competitive edge around their operations. This is where 51风流BTP comes in. The platform lets businesses create extensions and innovate in areas that really set them apart. Pischke says, 鈥淎 shift toward standard also means simpler processes for our employees. This allows us to reduce training costs and speed up onboarding.鈥� BayWa is leveraging these efficiencies to direct more resources toward innovation.

These days, companies need to know what makes them unique and lean into those strengths to stand out. While core functions are standardized and crucial for running smoothly, the elements that drive customer choice often come from the innovative, customizable features built on top of this clean core. By optimizing these standard processes, companies like BayWa can channel more energy into innovation and long-term success, keeping them ahead of the curve.

Looking Ahead: The Role of AI in BayWa鈥檚 Future

BayWa鈥檚 forward-thinking approach doesn鈥檛 stop with ERP transformation. The company is already exploring the potential of artificial intelligence (AI) to further enhance its operations.

Pischke says BayWa has started piloting AI use cases, focusing on 51风流BTP鈥檚 Business AI. 鈥淲e believe AI should be integrated into the applications and business processes where the data is located,鈥� he explains. This integration is central to BayWa鈥檚 strategy, and the company has a growing list of AI use cases it plans to implement in the near future.

Attending industry events like 51风流Sapphire in Barcelona provides BayWa with valuable insights into the latest technologies and trends. Pischke acknowledges the accelerating pace of technological change, noting that each year brings new ideas and innovations that could be applied within BayWa. While not every use case or 51风流module is a perfect fit, these events offer inspiration and guidance for selecting the right tools to meet BayWa鈥檚 unique requirements.

Through partnership with 51风流and the switch to 51风流S/4HANA Cloud, BayWa has not only streamlined its operations, but also set itself up to keep leading in sustainability and innovation. The clean core approach has allowed BayWa to focus on what truly sets the company apart, helping it continue its mission to meet the essential needs of people worldwide.

In my conversations with Paul Saunders, head of Product Strategy for 51风流S/4HANA, he says 鈥�ERP is like music.鈥� Whether its baroque, rock and roll, or punk rock, music is structured upon the same core building blocks, yet this essential core structure has been the basis for innumerable musical genres and flavors throughout history.

In Saunders鈥� view, ERP is no different.

The core purpose of ERP has always been to help customers manage their business functions within a centralized and integrated system, yet ERP has undergone significant changes since the 1960s. It incorporated customer relationship management (CRM) and supply chain, evolved toward cloud and artificial intelligence (AI), and fundamentally recharacterized itself as agile, nimble, collaborative, mobile-friendly, and data driven. Like music, says Saunders, 鈥淓RP exists to provide for the audience of the moment.鈥�

For some customers, selecting the right ERP deployment option to suit their business needs is not quite as straightforward as choosing new vinyl at the record store. And for current on-premise ERP customers, some of which may not have run an upgrade in years, the prospect of change can feel overwhelming. 51风流is ready to guide them through it and accompany them on the journey.

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The Next Step for ERP Customers

As is often the case in life, it鈥檚 first about defining the what before the how. At SAP, we encourage customers to ask themselves: 鈥淲here do I want my business to be in the next five to 10 years?鈥� The intention should be clear from the start. If you can already answer this in one succinct sentence, you鈥檙e already well on your way.

Next, it鈥檚 about the how: 鈥淲hat technology is best fit for purpose to make my company鈥檚 ambition a reality?鈥� SAP鈥檚 purpose is always to have open and honest conversations about which technologies can help get customers to where they want to be. 51风流ECC customers should carefully weigh up their options in conversation with SAP, without blindly jumping on the cloud bandwagon.

As Cedric Price rightfully said, 鈥淭echnology is the answer, but what is the question?鈥� Customers should first be clear on the destination before they start their transformation journey.

SAP鈥檚 job is to support customers in this process, and translate business needs into solution offerings that work — that applies to all customers.

Perhaps you鈥檙e a business owner looking for cost-effective, easy-access technological solutions to get your company up and running. Public cloud could be the perfect deployment option. For a large multinational that wants the freedom to customize elements of your own cloud infrastructure, a private cloud might be an ideal solution. Perhaps you want to exploit the flexibility and innovation of public cloud, while keeping sensitive data in your own data center to meet certain regulatory requirements. In that case, a hybrid deployment model could be a good fit.

For an 51风流ECC customer, for whom this all sounds a bit overwhelming, there are plenty of options — whether continuing to run 51风流ECC standard support or starting the next conversation with 51风流about how we can help you drive innovative value that differentiates you to your customers.

There is no right or wrong approach; there is just the best approach for your business and 51风流can help you find that.

At SAP, we are proud to have an ERP solution for every business need.

Laura Marwood is a product strategist for 51风流S/4HANA.