Automotive Businesses Map a Future of Fast-Paced Innovation

The next five years will bring a wave of transformative innovation that will surpass anything achieved over the last 50 years.

Thanks to recent advancements in the Internet of Things (IoT), artificial intelligence (AI), predictive analytics, and mobile technology, the automotive industry may soon realize that reality in the coming year.

As automotive manufacturers, suppliers, and distributors optimize their existing business operations, industry players are driving down a long road of disruption. New competitors are emerging and forcing the rest of the industry to accelerate their model cycles. Customers want experiences that promise secure connectivity, predictive maintenance, and relevant personalization as well as a continuous stream of value-adding technology updates – all of which must be delivered conveniently, quickly, and without delay.

How can automotive businesses get the foresight and inspiration they need to drive the right outcomes and speed past the competition? For many SAP customers, the answer is the SAP Model Company service for Automotive.

What is SAP Model Company for Automotive?

SAP Model Comany for Automotive

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SAP Model Comany for Automotive

SAP offers more than 25 line-of-business and industry-specific model company services that are prebuilt and comprehensive reference solutions covering a broad portfolio of end-to-end processes. SAP Model Company services contain standardized best practices and relevant business content delivered through a cloud-based library of accelerators and enablement services. Organizations can adopt any of these capabilities during the discovery, exploration, and realization phases of their digital transformations.

Whether undergoing new technology implementation, migration, or conversion, businesses can accelerate their projects while reducing costs and minimizing risks with a ready-to-run, preconfigured solution. This approach can be applied as early as the first day of the initiative to analyze and help ensure that digital investments meet business requirements.

As part of its portfolio of interoperable services, SAP offers SAP Model Company for Automotive. It enables industry players – from suppliers to OEMs and automakers – to cover a large variety of core processes. Additionally, a strong focus on logistical scenarios such as order to cash, plan to product, procure to pay, and extended warehousing opens the door to opportunities that increase efficiency, create new customer engagement channels, and boost revenue and profitability.

Take, for example, a company’s order-to-cash operations. SAP Model Company for Automotive supports various scheduling and agreement scenarios for sales in general, including just-in-time and just-in-sequence processes. The service enhances the business system to run self-billing scenarios. Furthermore, advanced customer management, returns processing, consignment, and intercompany processes are available. The model company also includes complex functions such as make-to-stock activities with repetitive manufacturing and materials staging from embedded extended warehousing management.

The model company service provides flowcharts, test scripts, and configuration guides for each process. Test scripts contain detailed descriptions of each process step, including test users and master data. For a deep dive into the content, customers can request a 10-day business process workshop. Model company experts from SAP can explain how a defined set of processes and scenarios and help ensure a smooth handover of the implementation to key organizations and their users.

Strategic Priorities that Profoundly Impact the Automotive Landscape

The key to moving forward with speed and agility is combining real-time data with solution know-how and industry-specific process expertise. By analyzing this information objectively, organizations can define and implement a digital reference architecture that can simplify and speed up business transformation and innovation.

SAP Model Company for Automotive represents the ideal form of standardization for the industry. The service provides the intelligent business solutions and networks needed to address every aspect of a company’s operations and promote purpose-driven strategies. More importantly, businesses can unlock the true potential of the empathic symbiosis between machine and human ingenuity.


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Laura Fritsche is a team lead for SAP Model Company.