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Transforming Japanese Enterprises Through SAP S/4HANA Migration

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Japanese companies have begun the process of SAP S/4HANA migration to unlock the true business potential of an intelligent enterprise in today’s digital economy.

SAP S/4HANA is the German tech giant’s fourth-generation enterprise resource planning (ERP) system based on the SAP HANA database. It is SAP’s solution to the increasingly complex digital business environment — with intelligent features, a simplified data model, and the new SAP HANA in-memory database that enables real-time data analytics.

As the deadline for SAP S/4HANA migration approaches, more and more businesses in the Asia-Pacific (APAC) region are looking into migration options and strategies. Amid a challenging and highly competitive market, the adoption of SAP S/4HANA calls for a major shift in how an organisation consumes services and develops applications, as well as how technology is translated into performance and service delivery.

In a blog post, Sven Denecken, Senior Vice President and Head of Product Management and Co-Innovation for SAP S/4HANA at SAP, said that SAP S/4HANA customers have a chance to achieve faster execution, standardisation, simplification, and a higher level of business process integration by following the SAP Activate methodology.

“By choosing to activate both our solution and methodology, customers have repeatedly demonstrated how they went above and beyond former best practice,” Denecken stated.

Embarking on a Digital Transformation Journey with SAP S/4HANA Migration

Several organisations in Japan have already embarked on their transformation journeys — transitioning from highly-customised software solutions to move towards cloud-based IT workloads and the implementation of SAP S/4HANA with best practices content.

Trusco Nakayama Corporation is a leading supplier of machine tools, distribution equipment, and environmental safety equipment, as well as a manufacturer of machine tools. Atsushi Kazumi, CIO at Trusco Nakayama Corporation, said that the company’s migration to SAP S/4HANA marks the beginning of its digital transformation journey. He stated:

“Using SAP S/4HANA, we have enriched the customer experience by improving convenience. With Intelligent ERP, we now have a platform for ongoing business innovation, dramatically accelerating our business transformation.”

Trusco manages 2.3 million products, keeps its inventory stocked with 390,000 pieces, and has achieved a 90{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} inventory hit rate using SAP S/4HANA’s inventory and supply chain management solutions. Furthermore, the company has extended S/4HANA with custom applications leveraging the SAP Business Technology Platform to achieve new levels of customer experience throughout the supply chain. Trusco Nakayama Corporation positions itself for further innovation using intelligent technologies with its business transformation centered on Intelligent ERP.

“And thanks to SAP Business Technology Platform turning businesswide data into business value, we’re boosting on time deliveries and offering new levels of convenience for our customers,” Kazumi further said.

Utilising the Capabilities of SAP Solutions

By moving to SAP S/4HANA, Toyota Motor Corporation is following a global trend among automotive companies that are modernising their businesses in today’s intelligent enterprise era. There was a business need within the group to regulate its accounting system up to international standards, such as the International Financial Reporting Standards (IFRS).

In 2018, Toyota Systems Corporation President and Representative Director Hiroaki Kitazawa, who was then the company’s Executive General Manager of the Information Systems Group, said that they turned to SAP to help build the infrastructure of Toyota’s new company-wide accounting information system. Since the implementation of SAP S/4HANA, Toyota has improved visibility and speed of financial management reporting and analytics by simplifying business processes, technology management, and efficient data acquisition.

Meanwhile, general trading company Mitsui and Co., Ltd., one of the largest sogo shosha in Japan, is driving a move to cloud-based solutions within the organisation as part of its strategy towards digital transformation. The company has migrated all 40 countries to SAP S/4HANA in a cloud environment after having worked with its old legacy ERP software since 2000.

Mitsui’s journey to becoming an intelligent enterprise began with the adoption of SAP S/4HANA as its backbone for managing backend processes around the globe. To minimise the manual matching load in accounts receivable, the company is now fully leveraging SAP S/4HANA’s simplified data model, in-memory analytics, and machine learning capabilities.

Moreover, Mitsui has automated up to 90{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of payment matching and invoice processes for high-frequency company codes, reducing the amount of time it takes to match one payment to several invoices.

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