SINGAPORE, July 24 – Businesses across Asia Pacific and Japan (APJ) are creating new value from cloud innovations with SAP.
SAP announced its global Q2 2023 results on July 20, recording continued growth and strength in S/4HANA cloud revenue and cloud backlog. In APJ, SAP showed significant ongoing cloud momentum, particularly in public cloud, with a range of high-profile net new customer wins and go-lives underlining the demand for innovative intelligent solutions to empower cloud transformations across the region.
- Cloud revenue in APJ was up 17% to €427 million, up 25% at constant currencies.
- Globally recognised brands are choosing SAP Business Technology Platform (BTP) to empower their innovation including Visa, Singtel, and Apollo Tyres.
- SAP secured significant wins with new solutions, including new data fabric solution and RISE with SAP at LS Cable & System, and our midmarket solution, GROW with SAP, at NKK Switches Co. Ltd.
- The APJ region saw significant RISE with SAP momentum, with new wins and go-lives including Tech Mahindra, Aboitiz InfraCapital Inc., Fiberstar, FGV IFFCO, Foodstuffs South, and Tobu Railway.
- Further wins and go-lives include Fujitsu Australia, Larsen & Toubro Technology Services Ltd., NTT, Asahi Kasei, and Tata Projects.
In APJ, SAP grew cloud revenue to 427m Euros in Q2 2023, an increase of 17% over the same period in 2022, while total revenue grew to 1.1B Euros. Globally, SAP’s cloud revenue was up 19%, with S/4HANA cloud revenue up 74%.
SAP continues to invest in innovation to support our customers’ cloud journeys, empowering them to develop and build for their customers and employees. Global digital payments leader Visa chose SAP Business Technology Platform (SAP BTP) to embed payments into the SAP ecosystem to better digitalise and speed up B2B payments. Singtel, Asia’s leading communications technology group, is using SAP BTP to develop a 5G Intelligent Edge Aggregator (IEA) solution to improve computer vision, workplace safety, and last mile delivery.
President of SAP APJ, Paul Marriott, said “World-class businesses across Asia are collaborating with SAP to create new revenue streams, new business models, and new value, all based on our innovation platforms. These exciting ideas are underpinned by companies across APJ continuing to adopt a cloud-first approach to digital transformation.”
SAP’s cloud strategy continues to resonate with customers across the region. World-renowned brands like Tech Mahindra, Tata Projects, and Aboitiz InfraCapital Inc, are benefiting from SAP’s comprehensive cloud transformation through solutions including RISE with SAP and SAP S/4HANA.
New SAP solutions are also seeing great uptake in the region. Korean infrastructure company LS Cable & System chose RISE with SAP and new data fabric solution SAP Datasphere to take advantage of its seamless, scalable access to data. While midmarket Japanese industrial company NKK Switches selected GROW with SAP as the foundation for its core IT system with the aim of integrating operations across its entire organisation to help standardise processes, improve efficiency, and realise time to value faster.
“These results again underline the relevance of SAP’s strategy,” continued Marriott. “Through our combination of flexible, scalable cloud solutions and integrated business networks, customers across Asia are reaping the rewards of new innovation to become intelligent and sustainable businesses.”
New APJ customer wins and go-lives
With the mission to drive change for a better world by advancing business and communities through innovative infrastructure solutions, Aboitiz InfraCapital, Inc. (AIC) is the infrastructure arm of the Aboitiz Group, one of the Philippines’ largest and most successful conglomerates. The company puts innovation at the forefront of the group’s growth strategy as it aspires to become the Philippines’ first ‘techglomerate’. AIC went live with RISE with SAP (SAP S/4HANA Private edition) and chose SAP Cloud Success Services as its trusted implementation partner. The next step in AIC’s digital transformation journey is the implementation of SAP Real Estate Development Lifecycle Management on SAP S/4HANA, followed by SAP Signavio Process Insights. To simplify the end-to-end management of private cloud systems, application operations and innovation adoption, AIC decided to leverage SAP Cloud Application Services (CAS). This will help the company to boost the efficiency of its IT operations by safeguarding and optimizing critical business processes and establishing IT operational excellence.
Asahi Kasei is a Japanese company primarily focused on material (chemicals, electronics, and fibers) homes, healthcare. Committed to promoting a clean environment and sustainable energy solutions, the company recently successfully migrated its business platform to SAP S/4HANA cloud. This migration not only realigned the company’s business operations, people, and data but also accelerated its digital transformation journey through the integration of new technologies. SAP Cloud Success Services played a vital role in collaborating closely with Asahi Kasei, ensuring a smooth transition to the cloud.
Established in 2014, PT Mega Akses Persada (FiberStar) is a leading provider of national fiber optic infrastructure services across Indonesia. FiberStar has selected SAP Cloud Success Services as its implementation partner to drive RISE with SAP deployment, setting the stage for SAP S/4HANA RISE to form the basis of its IT infrastructure and adding SAP Billing and Revenue Innovation Management as a core element for its finance system. The collaboration includes a range of workshops, a comprehensive solution plan, consulting, SAP Premium Engagement Services, as well as SAP Education Services to ensure customer success and the timely implementation of a new IT landscape.
Larsen & Toubro Technology Services (LTTS) is a global leader in engineering and research and development services known for remarkable engineering milestones and innovations like the world’s first autonomous welding robot. To streamline its procurement processes and enhance productivity, LTTS has chosen SAP Ariba solutions. LTTS worked with PWC as its implementation partner and SAP Cloud Success Services to ensure a smooth and integrated Ariba solution rollout. This has reduced turnaround times and ensured data transparency. This collaboration reflects LTTS’s commitment to leveraging transformative technologies and supporting core customer business transformations for continued growth and innovation.”
NKK SWITCHES CO., LTD. has selected GROW with SAP as the foundation for its core system. The complexity of the company’s previous system could have helped with standardization and efficiency of operations and reduced transparency. This made it difficult to accurately forecast delivery dates and control costs, making it difficult to understand the business situation and make decisions quickly. To solve these challenges, the company selected SAP S/4HANA Cloud, public edition, as the core of GROW with SAP and SAP Analytics Cloud. Integrating operations across the entire organization in a single system will help standardize processes and improve efficiency. It also unifies operations at domestic and international locations and leverages global supply chain management to enhance collaboration with suppliers and production sites. This will enable them to monitor inventory and transportation status in real-time and the supply of products efficiently while reducing costs and ensuring prompt and reliable delivery to customers.
NTT is one of the world’s top five technology and Business Solutions Providers, delivering Technology and communication services for good in more than 190 countries and regions. NTT is supporting its mission with its own digital transformation, focused on finance, procurement, and human capital management. This transformation will empower NTT with deep customer insights, high-speed innovation, and enable the company to create new, disruptive business models for a sustainable future. The digital transformation project went live across NTT Group’s 115 operating companies, covering 250,000 employees, in Japan in April 2023 with the help of SAP Cloud Success Services and SAP solution product management. NTT standardized operating procedures and data by applying the fit-to-standard process, while also combining a top-down, bottom-up approach to build consensus among all parties.
Singtel plans to develop a 5G Intelligent Edge Aggregator (IEA) solution, powered by SAP’s Business Technology Platform services, for computer vision, workplace safety and last mile delivery use cases. Together, we’ll co-create a reference architecture for this bundled solution, to serve as a framework for industry players and customers to integrate with their backend systems and processes. This collaboration will also include a joint go-to-market plan to scale the bundled solutions across the region covering for example Australia, Thailand, Indonesia, Philippines and India. Singtel has already made significant headway in a number of areas using 5G – including deploying a commercial 5G millimetre wave solution in Singapore’s largest semiconductor manufacturing facility and electric vehicle manufacturing centre. We’re excited to see what else we can develop together to make further impact on the industry.
Tech Mahindra Ltd. delivers innovative, transformative, and customer-centric digital experiences globally through its expert workforce and insight into advanced technologies. Collaborating with SAP since 2020, in Q2 Tech Mahindra successfully migrated to SAP S/4HANA Private Cloud Edition with the support of SAP Cloud Success Services and plans to consolidate its ERP landscape and enhance cloud capabilities using SAP Ariba and SAP Business Technology Platform in the future. The implementation will support Tech Mahindra’s growth ambitions and by creating value and driving business innovation.
Tobu Railway operates the second longest private railway line in Japan. Founded in 1897, it is the oldest of Japan’s major private railroad companies. SAP has been a partner of Tobu Railway since 2004, helping the company standardize and visualize its operations with ERP, and in recent years, helping the company grow and digitally transform through cloud, AI, big data, and IoT technologies In May 2023, with the help of SAP Cloud Success Services, the company went live with RISE with SAP and migrated to SAP S/4 HANA private cloud version, benefiting from an end-to-end process implementation. Tobu Railway has been able to integrate into one cloud system, including SAP Data Warehouse Cloud and SAP Analytics Cloud, to automate operations, increase efficiency, and drive data-driven decision making, enabling the company to move to the next stage of transformation.
Visa is a world leader in digital payments, facilitating payments transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Widely recognised as an innovator, Visa recognised an urgent need to modernise the B2B payment experience to be more intuitive, speedy, and fuss-free. That’s why Visa is collaborating with SAP to embed payments into the SAP ecosystem through the SAP Business Technology Platform so organisations can make payments immediately on SAP platforms with Visa corporate cards. Visa estimates that opportunities to digitise B2B payment flows today represent more than USD$50 trillion across Asia Pacific, based on research and analysis by Visa in conjunction with McKinsey conducted in 2020.