I have just returned from Sap Sapphire 2025 to Orlando, and although SAP painted a convincing vision of a future propelled by AI, I could not help thinking about their brilliant new announcements and where most SAP customers are really today. Let me cut the media threshing and give you the analyst's perspective on what really matters.
The cloud migration elephant in the room
SAP's biggest challenge is not to build functions of COOL – is that the vast majority of their customers always perform ERP systems on site. While SAP was busy presenting their IA foundation and their improved Joule capacities, I continued to think of the thousands of companies still on SAP ECC 6.0 or older versions, some of which have not been updated for years.
Here is the verification of reality: almost all the fascinating announcements of AI in Sapphire require SAP cloud solutions. The AI ​​Foundation? Cloud based. Improved joule with proactive capacities? Needs cloud infrastructure. New commercial data information offers? You guessed it – the cloud only.
For the SAP Middle SAP store which performs on-site systems, these announcements could just as easily be science fiction. They are dealing with basic integration challenges, struggling with obsolete user interfaces and fighting to obtain reliable reports from their current systems. The idea that AI agents autonomously manage their supply chain seem ridiculously distant.
AI: useful tool, not the magic wand
Make no mistake – the capacities of the demonstrated AI are really impressive. Joule’s ability to anticipate user needs and provide contextual information could indeed improve productivity. But pump the brakes on the claim of SAP of “up to 30% of productivity gains”.
I have analyzed the implementations of corporate software for years, and the productivity gains of this magnitude generally come from improvements of processes and optimization of the workflow, not only by adding the AI ​​in addition to the existing ineffectures. If your supply process is broken, an AI agent will not repair it – it will automate the broken process faster.
The most realistic victories will come from:
- Reduce the time spent looking for information on several systems
- Automation of routine data analysis and report generation
- Provide better decision support through predictive analysis
- Rationalization of repetitive tasks in finance, HR and supply chain operations
These are precious improvements, but they are scalable, not revolutionary.
Partnership strategy: cover their bets
SAP's partnerships tell an interesting story. The Accenture Advance program acknowledges that many intermediate companies need a strong handling to modernize their SAP environments. Palant's integration suggests that SAP recognizes that they cannot be everything for everyone in the data analysis space. The collaboration of perplexity admits that their AI needs external data sources to be really useful.
These partnerships are intelligent commercial movements, but they also highlight SAP outbuildings. If you plan a SAP transformation, you do not only buy SAP – you buy in an ecosystem of partners and integrations that add complexity and cost.
What it means for your SAP strategy
If you currently direct SAP on site, Sapphire 2025 should strengthen a key message: the innovation train leaves the station and heads for the cloud. But before panicking at the idea of ​​missing the capabilities of AI, consider these pragmatic stages:
For SAP customers on site:
- First audit your current state. Most of the companies I work with do not maximize their existing SAP capacities, and even less ready for IA improvements.
- Plan your cloud migration calendar. The end date of SAP 2030 support for older systems does not disappear. Use it as a forcing function.
- Focus on data quality. AI is as good as the data with which it works. If your mastery data is a mess, AI will not help.
- Start small with the integration of the cloud. Consider hybrid approaches that connect your on -site kernel with Cloud -based analyzes and AI tools.
For companies already in SAP Cloud:
- Evaluate the features of AI actually solving the commercial problems you have today, not the theoretical future use cases.
- Display pilot of the ladder. Productivity claims very well, but test it in your environment with your data.
- Invest in change management. The biggest obstacle to the adoption of AI is not technical – it is to bring people to change their operation.
The essential: evolution, not revolution
SAP SAPPHIRE 2025 has presented legitimate innovations that will improve the operation of companies, but let's keep realistic expectations. Companies that will benefit the most from these AI capabilities are those that have already modernized their SAP infrastructure and cleaned their business processes.
For the majority of SAP customers always on inherited systems, the real question is not whether the AI ​​will transform their business – it is if they can execute a successful modernization program that positions them to possibly take advantage of these capacities.
Your next steps
Here is what I recommend to do this week:
- Evaluate where you are in your SAP modernization course. Are you ready for the cloud or do you have years of technical debt to approach first?
- Card your profitability analyzes for AI capabilities that have attracted your attention. Can you quantify the value they would bring to your specific environment?
- Build a realistic roadmap that recognizes both the exciting possibilities and the practical constraints of your current SAP landscape.
- Start conversation with your leadership on the long -term SAP strategy. The decisions you make over the next two years will determine if you are positioned to benefit from the AI ​​revolution or left with inherited systems.
The future SAP of AI is promising will eventually arrive, but for most companies, the path seems to migrate the cloud, data governance and process optimization. Focus on the construction of this foundation first, and the capabilities of the AI ​​will follow when you are really ready to use them effectively.
