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IBM, SAP target ERP modernisation as businesses prepare for AI
IBM has teamed up with SAP to launch IBM Ready for SAP Solutions, designed to help mid-size organisations move to cloud ERP as they look to prepare their enterprise data and business systems for AI.
IBM said the offering combines its industry expertise with SAP’s cloud ERP technology and a “fit-to-standard” approach to implementation.
“Businesses are under increasing pressure to operate with greater speed, efficiency and predictability, and many are implementing AI to improve,” said Tom Janoshalmi, IBM Consulting Global Managing Partner. “But scaling AI requires a connected and modern enterprise foundation.”
According to research from the IBM Institute for Business Value, 68% of enterprises say accelerating ERP modernisation is important to improving operational efficiency and maintaining competitiveness.
Customers on SAP Cloud ERP with IBM
IBM said two customers, Volumetric Building Companies (VBC) and Second Nature Brands, have used SAP Cloud ERP with IBM for different operational needs.
According to IBM, VBC, a global modular construction company, reduced operational cycle times by 50% across purchasing, manufacturing and inventory processes following a three-month SAP Cloud ERP transformation.
“As our business continues to grow, we needed technology that could scale with us and give our teams a more connected way of operating,” VBC COO Chris Macies said.
“By modernising our ERP environment with IBM, we now have unified visibility across our supply chain and operations, helping our teams move faster and make more informed decisions with greater visibility throughout the manufacturing process.”
Meanwhile, Second Nature Brands used SAP Cloud ERP to integrate its acquired Voortman Bakery business and establish a common enterprise platform across its operations.
“Successfully integrating an acquisition is about more than combining operations. It’s about quickly implementing and expanding a unified foundation built for future growth,” said Second Nature Brands VP IT Jeff O’Gradney.
IBM claims the two projects illustrate how ERP modernisation can be used to address different business requirements, including improving operational efficiency and integrating acquired businesses.
“VBC and Second Nature Brands started from different places, and now both run on a modern SAP platform built for what comes next,” Janoshalmi said.
IBM Ready for SAP Solutions is currently available in limited countries and for specific industries. IBM said there are plans to expand the offering to additional industries and markets.
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