DSAG Annual Congress 2024: Setting the pace for digital transformation

Leipzig is undoubtedly a city of music with a great tradition. People there know that the harmonious interplay of musicians in an orchestra is essential for melodious music. In a similar way, the success of the digital transformation also depends on user companies, SAP and SAP partners working together. The analogy to music was frequently used by the keynote speakers on the first day of the DSAG Annual Congress 2024 in Leipzig. And it is also expressed in the motto of this year’s edition: “The triad of the future – users, SAP and partners as drivers of transformation”.

Tackle the cloud transformation

The coverage of the DSAG Annual Congress 2024 at a glance

• Preview: A harmonious triad for transformation
• Day 1: Setting the pace for digital transformation
• Day 2: Symphony of interaction

• Day 3: Positive vibes at the end

DACH companies lagging behind in the transformation

So far, however, companies in German-speaking countries have tended to play second fiddle when it comes to digital transformation. In the latest DSAG investment report, 48% of the companies surveyed stated that they have not made much progress in terms of digital transformation. Compared to the figures from previous years, no significant improvement can be seen here. A certain stagnation seems to have set in.

DSAG Chairman Jens Hungershausen cites the division into several projects, which can then be worked through step by step one after the other, as a key measure for the success of the digital transformation. This helps to reduce the enormous complexity of the topic and avoid stagnation. It also depends on targeted support from SAP and the SAP partners, which must be tailored to the individual requirements of the company. There is no doubt that it is becoming increasingly challenging for companies to keep pace with the changes in the business world.

Companies fear disadvantages for on-premise

DSAG takes a critical view of SAP’s accelerated SAP S/4HANA cloud strategy. Member companies fear that on-premise customers will be disadvantaged if certain innovations are only made available in SAP S/4HANA Cloud. Hybrid IT landscapes will remain the reality for the foreseeable future. According to DSAG, on-premise will continue to play an important role in the future, for example in industries that are characterized by high process complexity or strict legal requirements. Ultimately, viable migration scenarios are needed that pay off for companies and offer recognizable added value.

AI is not yet used extensively

Besides the cloud, artificial intelligence (AI) is the main driver of digital transformation. It enables completely new use cases. However, many companies are also taking a wait-and-see approach to AI. For almost two thirds of them, artificial intelligence had little or no relevance for IT investments in 2024. In order for AI applications to become more prevalent in companies, practical use cases are needed above all. In addition, companies still need to build up the necessary AI expertise.

The digital transformation is supposed to succeed with SAP

Thomas Saueressig, SAP Executive Board Member for Customer Services & Delivery, also emphasized during his appearance at the DSAG Annual Congress 2024 that the use of new technologies is of fundamental importance in order to remain competitive and generate growth. Wait and see is not an option in the fast-moving business world; instead, it is important to actively drive the digital transformation forward.

In this context, he emphasized SAP’s commitment to supporting all customers on their journey to the cloud. For example, the “RISE with SAP Migration and Modernization” program offers various services and incentives to help on-premise customers make the move to SAP S/4HANA Cloud. From SAP’s perspective, the path to the cloud is basically open to all industries. However, this requires sovereign cloud offerings in order to avoid dependencies on hyperscalers and retain control over their own data. SAP also wants to lead the way when it comes to AI: SAP Business AI will make artificial intelligence available in all SAP applications in the future.

Conclusion: Technologies strengthen competitiveness

Companies are well advised to embrace change and actively tackle digital transformation. They will then be able to benefit from the new technologies and strengthen their competitiveness. The tools for successful digital change are available. Now it is up to the companies, with the support of SAP and SAP partners, to bring them together to form a coherent overall picture and play their part in the concert of transformation.