Differences Between Digital Newcomers and Veterans

Research from ASUG and Google Cloud on SAP customers and their digital transformation projects revealed shifts in priorities based on how much time organizations are spending as they roll out digital technologies.
We found that 75% of SAP customers who participated in our research are digital newcomers, which means they are in the planning or early stages of their digital transformation journeys. The remaining 25% are digital veterans. Most have projects that are well underway, and a small minority have completed their work.
Figure 1: Where Digital Newcomers Are Versus Digital Veterans
Source: ASUG research, June 2019
Of the 57% of SAP customers who told us their organizations prioritize having a digital transformation strategy...

How many are veterans?

71%

are veterans

How many are newcomers?

53%

are newcomers

Newcomers likely will need additional help proving the value of their digital systems to organizations.
Digital newcomers expect technology to help them accomplish mission-critical tasks. In fact, 79% of digital newcomers indicate increased access to analytics as a desired result, while 72% say it’s part of their goal to improve the customer experience. Overall, faster access to data and analytics and enhancing the customer journey were top motivators for digital transformation projects across the board.

Implications: Both Digital Newcomers and Veterans Need Support

Even though newcomers and veterans are at different project stages, they share similar goals and concerns. Common concerns include the ability to scale their infrastructure over time and how to offer easy-to-use tools for employees.
Wherever you fall, there’s still time to make sure you’re working with the right cloud-based data warehouse provider that can help you achieve the agility and flexibility that’s the promise of digital transformation.

Whether you’re a digital newcomer or veteran, learn how Google Cloud can help you get the most from your SAP environment.

Increasing Investments in Digital Transformation

ASUG and Google Cloud research found that SAP customers are spending less than $500,000 a year on digital transformation today, but most plan to increase that investment significantly in the next two years.
Organizations are investing heavily in digital transformation projects. In fact, 75% plan to increase their spending during the next two years. Of those, 1 in 4 plans to increase their digital transformation budget by 50% or more. Beyond budgeting, it’s important to focus on projects that will deliver value by aligning them with your business goals.
Figure 2: Digital Transformation Spending for SAP Customers
Source: ASUG research, June 2019
75%
plan on increasing their digital investments within the next two years
How many SAP customers plan to increase their digital spending by 10% to 50% during the next two years?
You're right!
Some 58% plan to increase it by 10% to 50%, and 17% plan to increase it by 50% or more.
That can be scary for digital newcomers, of which 62% said budget challenges are a top concern—a worry that also applies to 41% of digital veterans. Despite this, 97% of our respondents already have taken the leap into active projects.
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Some 58% plan to increase it by 10% to 50%, and 17% plan to increase it by 50% or more.
That can be scary for digital newcomers, of which 62% said budget challenges are a top concern—a worry that also applies to 41% of digital veterans. Despite this, 97% of our respondents already have taken the leap into active projects.
“We plan to use artificial intelligence (AI) and machine learning for digital cross-selling and for implementing targeted, predefined responses to customer inquiries.”
– SAP customer

Implications: Spend Wisely by Planning for Success

The most common obstacles to digital transformation are budget challenges, a lack of internal skills, and change management. Choosing the right cloud-based data warehouse provider can make the difference in driving adoption rates for these new technologies by delivering accessible, manageable data and easy-to-use tools for employees of all skill levels. Working with an advanced provider opens the door to technologies such as AI that can drive process efficiencies and cost savings down the road.

If you’re planning to invest in a digital transformation project, learn how Google Cloud can help you get the most from your SAP environment.

The Secrets Behind the Drivers of Digital Transformation

The most important drivers of digital transformation for SAP customers are gaining faster access to analytics and reporting, improving the customer experience, and lowering operational costs, according to research from ASUG and Google Cloud.
Digital transformation gives organizations a chance to keep up with competitors in ever-changing industries. Most of the SAP customers who participated in our research have taken on projects aiming to reinvent their analytics and reporting. They are looking for real-time data to help them make decisions quickly to meet customer demands—even as those change in real time.

The 7 Drivers of Digital Transformation

#1 Faster access to analytics/reporting

73%

#2 Improved customer experience

68%

#3 Lower operational costs

50%

#4 Greater supply chain visibility

45%

#5 Improved data security

43%

#6 Predicting customer expectations/demand

42%

#7 Flexibility/scalability

41%

“By providing relevant customer information to our sales force in real time and a platform that brings together structured and unstructured data, we are helping our salespeople create ad hoc, ‘what-if’ scenarios.”
– SAP customer
The SAP customers who participated in our study identified seven drivers of their digital transformations. Interestingly, predictive forecasting (typically driven by artificial intelligence) was not the top driver. Organizations are instead focused on solutions that expedite reporting and improve the customer experience. This indicates that these organizations still need to get the basics down for their data and analytics before they can advance to more sophisticated tools. It’s possible that the lack of internal skills they identified as a challenge may also be holding them back.

Implications: Don’t Underestimate the Importance of Data

Data plays a role in all seven of the drivers respondents identified in our study. It’s critical to work with a cloud-based data warehouse provider that will help you distribute clean, up-to-date data securely across your organization through analytics that you don’t have to be a data scientist to use. It’s impossible to improve the customer experience without the data you need to understand and respond to their needs.

No matter what is driving your digital transformation project, learn how Google Cloud can help you get the most from your SAP environment.

What’s Next for Digital Transformation

Though predictive analytics aren’t a top driver for those who are transforming today, there is growing interest in bringing advanced technologies such as artificial intelligence (AI) into their digital mix, according to research from ASUG and Google Cloud.
We learned that the top drivers of digital transformation for the SAP customers in our study are gaining faster access to analytics and reporting (73%), improving the customer experience (68%), and lowering operational costs (50%). Adding emerging technologies to your transformation strategies can help jump-start these goals.

Emerging Technologies SAP Customers Plan to Use

Mobile applications
63%
Predictive analytics
60%
Multicloud environment
46%

How did these other technologies rank?

AI/machine learning

39%

Open-source technologies

37%

Internet of Things (IoT)

34%

Conversational user interfaces/chatbots

24%

“We developed our AI system to help with analytics and to align with our SAP investment.”
– SAP customer
One of the most critical steps in digital transformations and implementing emerging technologies throughout an organization is encouraging a culture of innovation. Digital transformation journeys often are hampered by a lack of internal knowledge, change management issues, and an immature digital culture. As companies build their digital transformation road maps, they might find themselves balancing the need to innovate quickly with campaigning to convince everyone of the value of the change.

Implications: How to Make the Hard Parts of Transforming Easier

Digital transformation is a massive umbrella that includes everything from switching from pen-and-paper workflows to software, developing cloud infrastructure, better supply chain tracking, and serving customers more efficiently. Working with a strategic cloud-based data warehouse provider can help with two key areas: building a modern infrastructure and sparking collaboration across an organization. By making the hard parts of digital transformation easier, organizations can free up precious resources to innovate faster.

If you’re looking to the future and emerging technologies to help your organization transform, learn how Google Cloud can help you get the most from your SAP environment.