SAP’s Q1 2024 results showcase the trust that globally recognized businesses in APJ have placed in the company’s cloud offerings. Industry giants such as Fujitsu Limited, SK E&S, and LTIMindtree have chosen SAP to drive their digital transformation initiatives. RISE with SAP, the company’s flagship offering for holistic business transformation, has been particularly successful in the region, with new wins and go-lives at companies like SinarMas, Sumitomo Heavy Industries, Havells India, and PharmaGendGlobal Medical Services.

SAP Q1 Results Showcase Strong Cloud Momentum

Paul Marriott, President of SAP APJ, emphasized the significance of these wins, stating that businesses of all sizes and across various sectors in APJ recognize SAP as a trusted partner for their cloud transformation and innovation initiatives, including in high-growth areas such as Business AI and sustainability.

SAP has been a leading provider of enterprise software for decades, helping businesses streamline their operations, optimize their supply chains, and make data-driven decisions. In recent years, the company has focused on expanding its cloud offerings to meet the growing demand for flexible, scalable, and secure solutions. RISE with SAP, launched in 2021, has been a game-changer for many organizations, providing a comprehensive package of solutions and services to support their end-to-end business transformation.

Small and Medium Enterprises in APJ Benefit from SAP’s Cloud Solutions

SAP Q1 2024 results also highlight the company’s success in catering to the needs of small and medium enterprises (SMEs) in APJ. GROW with SAP, a solution tailored for SMEs, has seen significant adoption in the region, with companies like MaxiTRANS and PT Hanwha Mining Services choosing the offering to support their cloud journeys. Additionally, Avenue Bank, an innovative Australian financial services company, selected SAP Fioneer, a cloud-based solution for the banking industry.

The success of SAP’s cloud solutions among SMEs in APJ underscores the company’s ability to provide scalable and affordable solutions that can be easily adapted to the unique needs of smaller organizations. By leveraging SAP’s expertise and technology, these businesses can streamline their operations, improve their customer experience, and drive growth in an increasingly competitive landscape.

SMEs play a vital role in the economies of APJ countries, accounting for a significant portion of employment and GDP. However, many of these businesses have traditionally struggled to keep pace with the rapid technological advancements and changing customer expectations. SAP’s focus on providing accessible and affordable cloud solutions for SMEs has been instrumental in helping these organizations overcome these challenges and unlock new opportunities for growth.

SAP Q1 2024 results demonstrate the company’s strong position in the APJ market, with impressive cloud revenue growth and a growing list of successful customer implementations. The adoption of SAP’s cloud solutions by both large enterprises and SMEs in the region highlights the company’s ability to cater to the diverse needs of businesses across various industries and sizes.

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The global leader in enterprise software has marked a year of substantial cloud momentum, as evidenced by its Q4 and full year 2023 results announced on January 24. The Asia Pacific and Japan (APJ) region has emerged as a focal point for SAP’s growth, with numerous enterprises across diverse industries choosing SAP for their cloud transformations. This surge in demand is not only a testament to SAP’s robust cloud offerings but also highlights the region’s growing embrace of digital solutions.

A Transformative Era with the Rise of Cloud and AI

The fourth quarter of 2023 saw SAP’s cloud revenue in APJ soar by 28% to €499 million, indicating a robust and growing appetite for cloud-based solutions in the region. This growth is attributed to the increasing recognition among APJ businesses of the need for agility and innovation in today’s fast-paced digital landscape. SAP’s cloud solutions are enabling companies to streamline operations, enhance efficiency, and foster innovation.

Under the leadership of Paul Marriott, President of SAP APJ, the company is not just focusing on cloud transformations but is also pioneering in areas like artificial intelligence and sustainability. These technologies are becoming crucial for businesses looking to stay competitive and responsible in the modern economy. SAP’s commitment to integrating AI into its offerings allows businesses to leverage data-driven insights, while its sustainability solutions help companies reduce their environmental impact.

The Strategy of SAP in Asia Pacific Japan

SAP’s strategy in APJ, as guided by Marriott, revolves around a customer-centric approach. This approach is evident in the diverse array of businesses that have recently partnered with SAP. For instance, Airservices Australia, responsible for a significant portion of the world’s airspace, has transitioned to SAP S/4HANA in the cloud. Similarly, Christchurch City Council has embraced RISE with SAP for a private cloud solution, demonstrating the flexibility of SAP’s offerings in meeting varied customer needs.

In Japan, leading firms like NEC Corporation and Daikin Industries have chosen RISE with SAP, signaling a shift towards more integrated and efficient cloud-based systems. This trend is also consistent across the APJ region, with companies like Matsumoto Precision Co. Ltd. adopting SAP’s solutions for enhancing their environmental sustainability practices.

Transforming Industries Across APJ

The implementation of SAP’s solutions has had a transformative impact on various industries across APJ. In Indonesia, PT Chandra Asri Pacific Tbk, a major chemical and infrastructure company, is leveraging SAP to support its growth and improve decision-making processes. Coles Group in Australia has also embraced SAP for its business transformation. These examples further demonstrate SAP’s ability to cater to diverse industry needs, from retail to manufacturing and beyond.

SAP’s suite of solutions, including SAP Signavio and SAP Datasphere, has been instrumental in enhancing process and data management for companies in the region. For instance, AusNet and Foodstuffs North Island have also integrated these solutions to streamline their operations and lay a foundation for future growth.

The integration of AI into SAP’s cloud offerings is enabling businesses in APJ to gain a competitive edge. AI-driven analytics and insights are empowering companies to make more informed decisions, optimize operations, and innovate in their respective fields.

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Global manufacturer Jabil embarked on a large-scale cloud transformation journey in partnership with long-standing ally German tech giant SAP. Anchored on the conglomerate’s growth strategy and commitment to driving innovation amidst the fast-evolving markets, Jabil migrated to SAP S/4HANA Cloud . (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.) 

Sharing on the company’s move to the cloud,  Cynthia Kendall, Director at Jabil IT Advisory Services, said:

“Because we use the SAP HANA Cloud database, the processing speed is very fast. In addition, moving the ERP application to the cloud has greatly improved the transparency and scalability of our business. What used to take hours or more to review all open sales slips for each facility is now visible in just a few seconds.”

Jabil serves original equipment manufacturers and hundreds of top brands across multiple end-markets and industries. Striving to be the to be the most technologically advanced and trusted manufacturing solutions provider in the world, the multinational manufacturer merges unmatched end-market experience with technical and design capabilities, manufacturing, supply chain and global product management expertise.

Jabil Moving to the Cloud 

As an innovative solutions provider, companies trust the multi-billion dollar company for many aspects of manufacturing, from product design to engineering and mass production, to assembly, quality testing, procurement and logistics. Jabil’s global business employs 250,000 workforce and serves customers across 30 countries, which necessitates digitization to ensure operations are unhampered, supply chains connected and customer service delivered excellently.

“Inventory management has become more efficient, and material inventory data can now be obtained in real time as the product is completed. During production, we can accurately track the parts and materials that can be used for each product. It speeds up the production, shipping and invoicing of products,” explained  Kendall.

During the SAP Sapphire in Orlando and ASUG Annual Conference, Kendall shared about SAP and Jabil’s partnership , with the enterprise software firm supporting the manufacturer’s cloud-first strategy. Among the common business goals of the two companies include commitment to innovation and sustainability. 

Migrating the manufacturing corporation’s ERP application to SAP S/4HANA Cloud is one example of their collaborative efforts to drive innovation, sustainability, and digital transformation. Explaining about how the cloud ERP transformation allowed for more flexibility across the organization, Kendall stated:

“Since moving to the cloud, we have been resizing our app servers. This used to take days, but now it can be done in hours. , reducing time spent on server administration, so our business can explore ways to transform and innovate in this new SAP S/4HANA landscape in ways never before possible. It’s been a long time since I’ve been in the middle of a long time.” 

She also mentioned several remarkable results since the deployment of the SAP cloud ERP such as capability to meet the evolving compliance requirements and customer needs across markets and create a resilient supply chain.  Kendall detailed:

“We are now able to seize many opportunities that were previously inaccessible. Especially in production planning, we are able to make faster, more informed decisions. Even if we face a shortage of parts from the chain, we will be able to decide in advance and agilely what we can produce and when.”

Having experienced working with SAP for Jabil’s digital transformation journey, the IT Director advised:

“Accept the fact that you need to migrate to SAP S/4HANA and start planning today. ” 

The global manufacturer recently launched the SAP S4-as-a-Service offering under Jabil IT Advisory Services to help companies streamline migrations to SAP S/4HANA Cloud.

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Taiwanese businesses are finding themselves confronted with pressing needs for sustainable transformation in response to the global sustainability movement —- whether as a result of the requirements of supply chain manufacturers or based on the need to comply with government mandates. SAP is aware that maintaining accurate and reliable data across the organization is critical to the successful execution of sustainability initiatives. In order for enterprises to increase their overall green competitiveness and experience sustainable transformations, each operational unit must first undergo the development of a digital core and then the introduction of sustainability factors.

For the benefit of Taiwanese organizations, SAP Taiwan and IT services provider eCloudvalley Digital Technology have announced that they will collaborate to offer a suite of sustainable solutions based on SAP’s cloud computing infrastructure and eCloudvalley’s knowledge of the local market. The products and services are designed to help businesses enhance their data collection and management, speed up the adoption of green practices like carbon inventory and carbon asset management, comply with the International Standard ISO14064, bolster their competitive advantages, and better prepare for a sustainable future. (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.)

SAP Global Vice President and SAP Taiwan General Manager Chen Zhiwei mentioned that the top 100 most environmentally conscious businesses in the world are almost entirely made up of SAP customers. Regarding SAP’s partnership with eCloudvalley, he shared:

“We will draw on the essence of sustainable transformation in the world, and use cloud technology to join hands with local partners in Taiwan to bring technology to Taiwan’s industries. It will become a solid and reliable backing for the sustainable transformation of Taiwanese enterprises, and comprehensively create a sustainable blueprint.”

SAP and eCloudvalley have teamed up on the development of a comprehensive cloud-based sustainable solutions that were officially launched last month. The solutions will enable businesses to comply with government regulations regarding sustainability and relevant international standards in the most time- and cost-effective manner possible. On the other hand, the comprehensively sustainable solutions will also be made available on the online SAP Store store for any and all businesses that choose to engage in sustainable transformation.

SAP Cloud Technology Leveraged in New Collaboration with eCloudvalley

Subscription-based software as a service (SaaS) is the backbone of SAP and eCloudvalley’s all-encompassing sustainability solution. To better understand their current sustainability performance, businesses can pick and choose among a wide range of options based on their specific requirements.

Additionally, the solution follows the government’s requirements on carbon emissions from Taiwanese businesses and is built on the SAP Business Technology Platform (SAP BTP). It creates importable, fully functional modules that may be utilized quickly and efficiently across various dimensions.Compliance with government sustainability rules and the needs of upstream and downstream manufacturers can also be met while reviewing the company’s carbon emission status and adapting to shifting conditions in the market.

eCloudvalley Chief Executive Officer Cai Jiahong explained that eCloudvalley partnered with SAP to help accelerate the sustainable digital transformation of large-scale enterprises by incorporating eCloudvalley’s expertise in digital transformation of Taiwan’s industries with SAP’s international-level technical resources and developing modules that can be imported quickly.

“We hope that by linking international standards and local industry insights, we will prepare Taiwanese enterprises with a sustainable tool, alleviate carbon anxiety, and help Taiwanese enterprises achieve green transformation,” he further commented.

Ultimately, SAP and eCloudvalley work together to help customers collect enterprise data in its whole, manage the three areas of carbon inventory, and implement sustainable international standards like ISO14064 and ISO50001. This allows customers to maximize their competitive advantage in the industry.

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Leading global private equity firm Warburg Pincus has been an active investor in the technology industry since 1966 establishing robust global operations through its offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. The New York-headquartered firm has over $24 billion worth of investment in tech companies including those in Asia such as Capillary, Converge, Encora, and Gaia Works. Just this month, Warburg Pincus was said to be the lead investor in the Singaporean tech startup ADVANCE.AI, a Big Data and AI company in Asia assisting enterprise customers with digital transformation, fraud prevention, and process automation.

Backing Warburg Pincus’ Technolgy Team

To further reinforce Warburg Pincus’ investment strategy in the technology sector, the company has appointed seasoned SAP leader Brian Duffy as a Senior Adviser in its Technology unit. Duffy will be collaborating with the firm’s portfolio companies to accelerate innovation and digital transformation as well as to identify and evaluate new investment opportunities in the global technology industry. While carrying out an advisory role in Warburg Pincus, he will continue to drive SAP’s cloud play as President of SAP Cloud, leading RISE with SAP’s momentum worldwide.

”Warburg Pincus has a five-decade history of successfully investing in technology businesses and an exceptional reputation for identifying future market leaders. I’m excited to partner with the global technology team and its portfolio companies as we work together to identify opportunities that enhance innovation, create value and inspire people for the greater good,” expressed Duffy.

Commenting on Duffy’s appointment, Flavio Porciani, Managing Director at Warburg Pincus, said:

”At Warburg Pincus, we have always recognized the importance of leveraging industry expertise to strengthen and grow the businesses in which we invest and to provide our current and prospective portfolio companies and their management teams with access to industry leaders and deep sector expertise. Brian’s track record of helping businesses accelerate innovation and digital transformation is perfectly aligned with our long history of investing in and successfully scaling tech-enabled businesses. We look forward to working closely with Brian.’’

Leading the SAP Cloud

Prior to his appointment as the leader of SAP Cloud in February 2021, Duffy had held several executive roles during the 15 years of being in the software company. He was the EMEA North Regional President from 2017-2021 and led growth efforts for the SAP platform, applications, and business networks in Great Britain, Ireland, France, Belgium, Luxembourg, the Netherlands, Sweden, Denmark, Norway, Finland, and the Baltic countries. Duffy also served as the Senior Vice President of Global Strategic Initiatives (GSI) and had held various positions in SAP’s legal department, including assistant general counsel in the United States, Japan in 2011, and China in 2012.

Today, as President of Cloud at SAP, Duffy oversees SAP’s cross-company collaboration to accelerate customers’ journey to the cloud and directly reports to Scott Russell, SAP Executive Board member, Customer Success, and former SAP Asia Pacific Japan President. He worked to pilot the Business Transformation as a Service offering RISE with SAP, which has now been gaining traction and massive support from partners and customers worldwide.

“On top of my current role leading RISE with SAP, I’m honoured and proud to serve in an advisory capacity to Warburg Pincus’ customers as they chart their digital journeys,” Duffy posted on Twitter.

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Earlier this year, by SAP CEO Bill McDermott announced that SAP’s value will double by 2023 and China was identified as the fastest growing market. SAP has so far appeared to stay the course, with SAP reporting revenue of $6.8 billion in the first quarter of the year.

S/4HANA acquisitions have reached 10,900 globally, contributing to a 12{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} rise in Applications, Technology and Services. Customer Experience Management, comprised of fledgling Qualtrics and C/4HANA projects has risen 100{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} to $340 million. Meanwhile, the SAP Business Network has risen 25{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}.

The growth in SAP cloud has been strong globally, but is showing particular promise in the APJ region, particularly in China and Japan. While Europe was up 42{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} and the Americas rose 45{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}, APJ boasted a healthy 55{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} rise in revenue.

The much scrutinised SAP restructure and departure of high powered SAP executives has contributed an expected loss. SAP reports a drop circa $150 milion in operating profit in their Q1 statement. Acquisitions, such as Qualtrics, were also a contributing factor.

In the Q1 conference call, CFO Luka Mucic said of Asia-Pacifc Japan business:

“In the APJ region, we had a solid performance too. Cloud and software revenue was up by 16{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} and cloud revenue increased by 55{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}, with China and Japan being highlights. For software license revenue, China, Japan, and also South Korea had a strong quarter.”

CEO Bill Mcdermott said of the strong quarter:

“We really couldn’t be prouder of these results. The metrics speak for themselves… we have an incredibly strong core business with a market-leading retention rate in our support business, demonstrating tremendous customer loyalty. We have a high-growth cloud portfolio powered by some of the best M&A in the enterprise software industry. These cloud businesses have years and years of runway for continued growth.”

For more detail on SAP’s first quarter results, visit the SAP Investor Relations page.

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The application, which integrates with the SAP Enterprise Asset Management solution, enables field technicians to access and update orders and obtain directions and other important information on multiple devices online or offline in case of a weak or no wireless signal. It also enables technicians to interact with other employees in real time and to track time spent on orders more accurately.

“Utegration is pleased to offer our customers a solution that will allow their employees to work more easily and efficiently, while reducing costs and improving customer service,” said Bin Yu, president and CEO, Utegration.

Part of Utegration’s digital asset and work management practice, the Mobius field order app is the Houston-based company’s second application on the SAP Cloud Platform, the first being Mobius Customer Self-Service, which enables customers to view their balance, pay their bill and make a service request. The field order app is also available in an on-premise version. Using SAPUI5 design, it provides a user-friendly interface that can be customised to meet a utility’s individual requirements.

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With its global operations centre in Shenzen, China and more than 800 service centres spread across India, Celkon Mobiles selected a set of applications created by 2iSolutions Consulting Services, headquartered in Toronto with its Indian operations centre in Noida.

“In today’s competitive environment, highly optimised distribution networks are crucial for OEMs and can have a significant impact on the business itself,” said Murali Retineni, director, Celkon Impex.

Describing the SAP Cloud Platform as the right solution for “mission critical” areas of his business, Retineni said, “The agility of the platform promises faster ways of implementing technology.” He said the platform has enabled Celkon Mobiles to improve accuracy levels in visibility of stock in channel, status and tracing of goods.

The platform is expected to reduce manual data loading and duplicate transactions while improving data capture capabilities, accuracy and timeliness of data flow from backend systems to its diverse channels.

“By choosing SAP Cloud Platform, Celkon Mobiles will have the capability to extend and integrate their business-critical applications in a simpler fashion,” said Kaushik Bagchi, vice president and head, digital enterprise platform group, SAP India.

“Thousands of companies across the world are choosing SAP Cloud Platform to innovate and Celkon Mobiles presents a roadmap for others to develop real-time applications to compete and win in this digital economy,” said Bagchi.

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