By leveraging SAP in the cloud, Thai enterprises aim to accelerate the digital transformation of their mission-critical processes which is key to achieving business scalability and agility.
In the fourth quarter of 2021, SAP’s cloud revenue grew by 24{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}. It is increasing at an 18{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} rate in the Asia-Pacific (APAC) region, which accounts for a third of the company’s overall business. In Thailand, the German enterprise software giant anticipates a 51{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} compound annual growth rate (CAGR) in terms of cloud uptake by 2025. According to global tech research company Gartner, cloud spending in Thailand could increase by 28.2{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} in 2022, reaching 34.4 billion baht (US$1.1 billion) approximately. Experts predicted that local businesses would invest more in cloud solutions this year as they continue to prioritise crucial technologies to assist them in maintaining daily operations during the COVID-19 global pandemic.
During a recent visit to Thailand, Scott Russell, Head of Customer Success and Member of the Executive Board at SAP, explained the company’s commitment to helping organisations turn into intelligent, sustainable enterprises. In terms of SAP’s business in the country, he further shared:
“SAP has a proud history with government agencies and enterprises, major conglomerates, and family-owned enterprises in Thailand. Our customers have depended on our technology in some cases for 20-25 years. Now, they are turning to us to make them more agile and sustainable and that’s where the cloud comes in.”
“As Thailand businesses emerge stronger from this pandemic, they need to address such urgent issues as talent retention and development, sustainability, and supply-chain resilience. A cloud-only strategy is key to them surviving and thriving,” Russell added.
Leveraging Solutions and Technologies of SAP in the Cloud
Furthermore, the strong uptake of SAP S/4HANA Cloud intelligent enterprise resource planning (ERP) system can be linked to the performance shown by RISE with SAP — the German tech giant’s Business Transformation as a Service (BTaaS) signature cloud offering. An increasing number of organisations intend to use the solution to help in the development of new business models and transformation of mission-critical applications to gain operational efficiencies.
Particularly, Thai customers that are already harnessing the power of SAP cloud-based solutions include DoHome, a retailer and wholesaler of construction and home decoration materials, and Thai Medical Glove, a major rubber glove manufacturer in Southeast Asia (SEA). Utilising SAP technologies, DoHome expanded its operations by commencing on a digital transformation journey and transitioning away from its traditional business models. Meanwhile, Thai Medical Glove leveraged cloud technologies such as RISE with SAP to modernise the company and transform it into a sustainable, intelligent enterprise.
CPRAM, a food manufacturer, and CP Retailink, an equipment supplier and service provider for 7-Eleven outlets —-both of which are subsidiaries of the CP Group —- are using SAP products to reimagine critical business processes and lay the groundwork for future growth. According to Russell, real-time analytics and performance visibility were needed by the companies because of the large transaction volumes experienced during the pandemic. He added that their partnership with SAP has improved their ability to handle and integrate complex data as well as their capacity to deliver better experiences more rapidly than before.
“In Thailand we’ve seen a real acceleration of human capital management solutions and supply chain planning. Operating in the cloud brings the desired agility. You’re able to get the latest innovations in real-time without setting it up yourself,” he remarked.
With the world being divided and volatile due to COVID-19, Russell further emphasised that companies that do not invest in cloud computing technologies are unlikely to be able to maintain their competitive advantage in the future.
