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Perhaps it shouldn’t be surprising that Neil Gardner, Head of Cloud ERP at SAP UK&I, predicts that cloud computing will be one of the two technologies to shape the future of IT. The word “cloud” is in his job title, after all. But let’s put that aside, as what this interview quickly reveals is why he believes that there’s so much potential left for organisations to tap.
“In healthcare, cloud-based solutions are enabling smarter operations, such as the Bristol & Weston NHS Purchasing Consortium’s move to modernise its procurement processes,” Gardner told us. This, he added, means “critical resources are delivered where they’re needed most”. And he doesn’t just point to healthcare: telecoms, education and retail sectors are all mentioned below.
The other technology is artificial intelligence, which Gardner believes is accelerating the need for organisations to move to the cloud. Cloud ERP in particular. “GenAI simplifies the migration process by analysing existing systems, automating tasks like data mapping or coding adjustments, and delivering clear actionable insights,” he told us.
This not only makes this simpler in terms of the migration but afterwards too. “Post-migration, it enhances the user experience with tools like virtual assistants to guide teams through the new environment, deliver customisable and actionable intelligence, and identify areas for automation.”
Our huge thanks to Neil Gardner for taking the time to answer our questions so thoughtfully. We think this interview is packed with insights, not only for organisations who would benefit from moving their ERP to the cloud but for everyone considering how best to take advantage of Generative AI.
The future of IT will be shaped by two technologies: cloud computing and AI. Most organisations are only just scratching the surface of what these technologies can unlock for them, by way of operational resilience, automation, process intelligence and boosting workforce productivity. Over the next decade, we will see IT teams rapidly onboard these solutions to keep their organisations competitive, streamline costs and accelerate new innovation.
Businesses that have already made the move to the cloud are reaping the rewards. They are discovering that alongside its speed and scalability, it can have a material impact on their OpEx and CapEx costs to drive business growth. BT, for instance, recently retired 11 legacy finance platforms to benefit from millions of pounds worth of annualised savings in moving its ERP operations to the cloud.
The cloud has fast become the cornerstone of modern IT architecture and can be an enabler of AI transformation. Cloud-based platforms provide the scalability necessary for organisations to manage large and complex datasets required for AI models. It also enables them to integrate AI into their operations to support real-time data analysis and smarter decision-making.
The nature of the IT function continues to evolve rapidly as it is influenced by broader digital transformation trends and requirements. With cloud computing, technology roles have been reshaped by the need to manage workloads, build applications, oversee data analysis and security in the cloud. Now, we’re seeing AI and its emerging applications, like copilots and agents, influence the future of IT execution.
The attraction of AI-driven transformation is in part down to its productivity and efficiency benefits. IT teams can work smarter, leaving routine or administrative tasks to AI, so they can focus on more strategic or innovative outcomes. While there’s no doubt that AI is already empowering IT leaders globally to expand their roles and responsibilities, our copilot, Joule, is allowing them to go one step further.
Unlike other AI agents, Joule’s agents work together, crossing the boundaries of various business functions, like supply chain or HR, and this enables businesses to solve multifaceted challenges in a way that other autonomous agents simply cannot match. This ability to connect across applications means that they can influence entire workflows and deliver new business value. IT professionals stand to benefit from a wealth of data and insight at their fingertips, with a copilot that allows them to execute their role more efficiently, streamline tasks, solve client challenges faster and build new services.
In the coming decade, AI will continue to touch every area of an organisation, from finance to supply chain, customer experience, procurement, HR and IT.
We have a long history of developing AI solutions as we know that the IT function needs practical applications that go beyond theory and potential and show genuine use cases and results. Our Business AI is relevant from day one as it is built in across all SAP applications that customers already use. IT teams can transform their most critical business processes, and entire value chains, with more efficient, faster, better and sustainable decision-making.
Right now, everyone is talking about GenAI. There’s no doubt that it is a game-changer. But the platform needs to be accessible, customisable to business demands and work ‘out of the box’.
This is where our Business AI is unique. There’s no training or configuration necessary, and IT professionals can choose which open-source GenAI models they wish to use to build extensions, from Open AI to Google or Meta. Similarly, across all SAP applications, they can choose when and where to interact with our AI copilot, Joule, and ask analytical questions, describe their ideas or tell the system what to do, without clicking through coding applications or transactions.
For businesses, this translates to significant value. Whether it’s streamlining operations, improving customer experiences, or enabling teams to focus on strategic work, it empowers a more efficient and effective IT workforce.
Technology is undoubtedly a catalyst for transformation across industries, driving efficiency, accessibility, and innovation. In healthcare, cloud-based solutions are enabling smarter operations, such as the Bristol & Weston NHS Purchasing Consortium’s move to modernise its procurement processes, ensuring critical resources are delivered where they’re needed most. Education is similarly being redefined by IT, with digital platforms providing personalised learning experiences and streamlining administrative processes.
What is clear is that across all industries, IT is empowering organisations to be proactive, resilient, and customer-driven. By breaking down silos, enhancing collaboration, and enabling data-driven decision-making, IT is equipping businesses to streamline operations and focus on innovation. These capabilities help businesses balance service requirements with budgets and resources. They also allow organisations to deliver meaningful human outcomes – whether it’s improving healthcare delivery, expanding access to education, or creating financial systems that empower individuals and businesses.
IT drives growth and sustainability in a rapidly evolving world. As companies embrace digital transformation, they are better positioned to meet the needs of their stakeholders, navigate complex challenges and unlock new revenue opportunities. IT is laying the foundation for a future that is connected and innovative as well as inclusive and human-centred, where technology serves as a powerful enabler of progress and positive change.
IT professionals are under pressure to deliver against the promise of AI. Yet, as it stands, statistics indicate that nearly 80% of GenAI projects currently encounter setbacks or outright fail. This is not sustainable in a market of fierce competition and against a tough economic backdrop.
Right now, too many jump into AI without creating the conditions for success first. It requires the right data context and management to produce effective results. We’re seeing organisations rush into deployments without getting their data in order, which is leading to a web of issues like mass hallucinations (AI providing misleading information) as well as biases or debased claims.
Over the next decade, IT professionals will be tasked with helping organisations of all sizes overcome their data challenges to ensure they are in a position to benefit from AI. Market share, growth and innovation are all on the line.
IT professionals will need to understand how to create a strong data core and implement best practice in data management. They will need to bring together disparate data sources to create a single source of truth for all decision-making and outputs. To avoid hallucinations or instances of bias, and keep their organisations running efficiently, they will need to understand how data is generated, where it typically resides, when it was created and who it relates to, so AI models can produce reliable and valuable outputs.
This is why we encourage IT teams to work with a unified data platform, so they can get complete visibility into their business operations, and at the same time address issues with siloed data, eliminating the need for costly and timely data transferal.
We are excited about the impact that Cloud ERP and GenAI are already having on the future of IT. As an organisation, it has become our guiding mission. We’re helping businesses from large enterprises like Co-op, through to high-growth UK organisations like Faith in Nature drive transformation across their operations.
These organisations have realised that migrating their ERP platform to the cloud enables them to innovate at pace, stay resilient and agile to customer demands, and have complete visibility into their operations.
With new innovations, like GenAI, the move to Cloud ERP is getting more straightforward. GenAI simplifies the migration process by analysing existing systems, automating tasks like data mapping or coding adjustments, and delivering clear actionable insights. This reduces the manual effort and complexity involved in the upgrade and means that organisations can stand to benefit from the cloud faster. What’s more, post-migration, it enhances the user experience with tools like virtual assistants to guide teams through the new environment, deliver customisable and actionable intelligence, and identify areas for automation.
Once in the cloud, IT teams can then enjoy access to the latest technologies like AI or analytics, which provide better security, reliable performance and minimise downtime. Automatic updates also keep everything running smoothly. Whether it’s about boosting efficiency, streamlining expenditure or staying innovative, the cloud is a game-changer for modern business.
