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SAP News Center Features


VITAL TRUTHS ABOUT BUSINESS DIGITALIZATION FROM HIGH PERFORMERS IN ANZ

Feature by Susan Galer September 21, 2021

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Having experienced the equivalent of 10 years of digital change in the past 18
months or so, organizations are addressing the realities of transformation as
digitalization becomes the business norm.

Leaders from two high-performing organizations in ANZ recently shared their
experiences with digitalization during a SAPPHIRE NOW session hosted by Des
Fisher, innovation principal at SAP ANZ. Here is a sampling of the far-ranging
thoughts on the sustainable business realities behind innovating on cloud-based
digital platforms.


DIGITALIZATION IS A MINDSET AND TECH TRANSFORMATION

For Australian-based Stockland, digitalization involved transforming people’s
mindsets along with systems company-wide. As one of the largest diversified real
estate groups in Australia, the company owns, develops, and manages a large
portfolio of retail town centers, workplace and logistics assets, residential
communities, and retirement living villages. It’s replaced over 100 disparate,
legacy software systems with SAP software, including SAP S/4HANA and SAP Ariba
solutions, as well as embedded artificial intelligence (AI) and robotics.

“We now have a single source of the truth,” said Tiernan O’Rourke, CFO at
Stockland. “I’m absolutely convinced that in time we’ll look back and say that
was one of the best things we did in the 70-year history of the company…Our
digitization journey shows that unless you’re on the journey you’re going to
struggle in business, not only in Australia, but globally.”

Stockland began by defining digitalization in the company’s own terms. The
digital platform was designed to strike a balance between achieving three
objectives: organizational risk, governance, and business growth.

“We first looked at what digitization meant to us and came at it by putting the
company on the core SAP platform,” said O’Rourke. “We’re a tactile industry of
property, bricks, and mortar. Getting people’s minds away from physical to
digital was…one of the biggest obstacles to overcome.”


DIGITAL BACKBONE DRIVES INNOVATION

Oil and gas provider OMV New Zealand recently won an SAP Innovation Award for
its groundbreaking digitalization that included digital twins and augmented
reality (AR) in onshore and offshore inspections. Replacing paper-heavy
processes with digitalized and integrated workflows based on the latest mobile
solutions and wearable technologies will help OMV improve decision-making,
performance, and efficiencies in inspections and maintenance. Its integrated
workflow management relies on SAP S/4HANA, SAP Intelligent Asset Management, SAP
Asset Manager, and HoloLens 2.

“The use of automation and AI-driven technologies for creating intelligent
digital twins is a key enabler for global scalability and accelerates creating
the digital backbone of the company during digital transformation. Enhancing
this technology with an augmented reality experience including mark-up
annotations provides a solid basis for data insights, data-driven
decision-making, and performance optimization,” said Farid Akbari, functional
lead for Digital Transformation at OMV New Zealand. “This innovation project
will change the way we are working and enable us to position ourselves among
digital front-runners within our industry.”


DIGITAL PLATFORMS ARE CORE TO SUPPLIER RELATIONSHIPS

Acknowledging that no business does business alone, O’Rourke said that
Stockland’s deep supplier relationship management strategy is foundational to
customer centricity.

“If you don’t partner with best-in-breed, like-minded companies to help deliver
premium services to customers, you won’t win,” he said. “We have 14% market
share in residential business…because we evaluate every step of the customer
journey, including supplier choice…You can’t know your suppliers unless you have
deep relationships and are collaborating with them at a very granular
level…Collaboration is an absolute threshold issue in business today.”


CLOSE GAP BETWEEN DX AND BUSINESS REALITIES

When asked about some of the biggest digital transformation challenges, Akbari
discussed the gap between innovation aspirations and reality. He pointed out
that while everyone wants simplicity, getting there means answering difficult
questions.

“We asked ourselves if we had the right organization in place to achieve digital
maturity,” he recalled. “Other questions were about managing resistance to
change and how to actively support the change management process with tools that
were changing the way we work…We asked how to build and retain skills over time
as innovations like blockchain, the Internet of Things (IoT), and cloud
computing continue [to emerge].”

Akbari also warned organizations not to neglect core details such as
infrastructure capabilities, technology integration, and resultant business
process changes.

“Often the business comes up with a good idea, but we’re not ready yet,” he
said. “For example, AR had to be integrated into the environment…You also have
to consider operational maturity…As a global gas and oil company, we have
different maturity levels of all assets and have to map where we are for each
asset and how we will achieve that automation level.”


SUSTAINABILITY IS MUCH MORE THAN CLIMATE CHANGE

While ESG (environmental, social, and governance) demands tend to emphasize
climate change, O’Rourke urged companies to consider all aspects of
sustainability, including diversity.

“Everyone talks about climate change, but that’s just about the environment. To
do business successfully…you’re going to have to be very balanced in the E, S,
and G of ESG,” he said. “Everyone is focused on net zero carbon, and rightly so.
But we can’t do that in isolation…We have to jump on [behavior change]
proactively to get suppliers to work with us in a way allows us to operate
effectively. On the diversity side, business has been playing lip service for so
long and needs to get serious about focusing on this change.”

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Follow me @smgaler.
This blog also appeared on SAP BrandVoice on Forbes.

Tags: digitalization, SAP ANZ, SAP Asset Manager, SAP Innovation Awards, SAP
S/4HANA
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