FEATURE
Instead of heavily customising core ERP software, organisations increasingly use SAP Business Technology Platform( BTP) as an extension layer for innovation.
This allows companies to build new applications, integrate AI capabilities and automate workflows without modifying the underlying ERP platform.
The strategy promises faster upgrades and lower maintenance costs while preserving flexibility for future innovation.
However, ISG also warns that BTP itself requires strong governance.
Without effective oversight, organisations risk recreating the same complexity that many SAP modernisation projects are designed to eliminate.
Portfolio management, architecture standards and disciplined development practices are therefore becoming increasingly important as BTP adoption accelerates.
AI moves into mainstream SAP operations
Artificial intelligence has become another major factor shaping SAP programmes.
While AI-generated content often attracts headlines, German organisations are primarily interested in practical operational improvements.
Why German organisations are changing SAP strategy
German enterprises increasingly want SAP programmes that deliver:
• Stronger governance and auditability
• Clear responsibility across providers
• Controlled SAP S / 4HANA migration
• Reduced operational disruption
• AI-supported automation
• Better cost transparency
• Data sovereignty and compliance
• Long-term business flexibility
Transformation providers are increasingly expected to automate system discovery, testing and migration planning to improve project predictability.
Within managed services, organisations expect AIOps and generative AI to reduce repetitive administration, accelerate incident resolution and improve operational efficiency.
Automation also helps organisations standardise processes while reducing manual effort across large SAP estates.
Yet German enterprises continue to approach AI cautiously.
Unlike some markets that prioritise rapid AI deployment, German organisations place significant emphasis on explainability, auditability and human oversight.
ISG notes that enterprises remain reluctant to hand critical business decisions entirely to autonomous AI systems.
Instead, AI is being positioned as an operational assistant supporting skilled professionals rather than replacing them.
Oliver Nickels, Lead Author of the report, believes providers increasingly need to demonstrate how automation fits within broader governance frameworks.
“ The strongest provider models combine automation, governance and operational proof so clients can modernise without adding new risk.” www. intelligentcio. com
INTELLIGENT CIO EUROPE
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