SAP S/4HANA–Generative AI Confluence Drives Efficient Operations and Accurate Business Decisions

As enterprises seek to enhance operational efficiency and user experience, the integration of generative AI (Gen AI) with SAP S/4HANA is gaining momentum. This is driving improvements in critical business processes such as procurement, financial management, supply chain optimization, and asset maintenance. Service providers are responding by developing tailored, industry-specific AI solutions through in-house efforts and collaboration with SAP and other technology partners. To maximize the ROI and reduce time to market, organizations are adopting phased implementation strategies, testing outcomes through proof of concepts, and leveraging service providers’ assets with preconfigured business processes. 

Both demand-side and supply-side trends are covered in Avasant’s SAP S/4HANA Services 2024–2025 Market Insights™ and SAP S/4HANA Services 2024–2025 RadarView™, respectively. These reports present a comprehensive study of SAP S/4HANA service providers and closely examine the market leaders, innovators, disruptors, and challengers. 

Avasant evaluated 35 providers using three dimensions: practice maturity, partner ecosystem, and investments and innovation. Of these, we recognized 25 providers that brought the most value to the market over the past 12 months. 

The RadarView recognizes platform providers in four categories: 

• • Leaders: Accenture, Capgemini, Deloitte, HCLTech, Infosys, TCS, and Wipro 

• • Innovators: Cognizant, Eviden, IBM, LTIMindtree, SAP, and Tech Mahindra 

• • Disruptors: Birlasoft, DXC Technology, Delaware, Hitachi Digital Services, and NTT DATA 

• • Challengers: EY, Fujitsu, ITC Infotech, invenioLSI, Kyndryl, PwC, and T-Systems 

“To remain competitive, companies must harness the power of cloud technologies, AI, and modernized applications like SAP S/4HANA,” said Naresh Lachmandas, senior partner and distinguished fellow at Avasant. “Adopting a hybrid model is part of the strategy enterprises are leveraging to build a robust foundation to drive transformation initiatives and enable a smooth transition.”

The reports provide several findings and recommendations, including the following:

• • Process standardization and technical simplification remain the top considerations for enterprises for SAP S/4HANA adoption.
  • Manufacturing, retail, and utilities contribute to more than half of the SAP S/4HANA services demand.
  • SAP S/4HANA service providers plan to allocate about 60% of their investments toward talent development and asset building.
  • More than 50% of SAP S/4HANA client engagements are driven through fixed-price models.

“Enterprise customers are progressively testing Gen AI in conjunction with SAP S/4HANA to achieve efficiency gains across business functions,” said Gaurav Dewan, research director at Avasant. “In addition to procurement, finance, and supply chain, there is an equal emphasis on solving industry-specific use cases using Gen AI.”

The SAP S/4HANA Services 2024–2025 RadarView also features detailed profiles of the top 24 service providers, including their solutions, offerings, and experience in assisting enterprises in driving digital transformation with SAP S/4HANA adoption. 

This Research Byte is a brief overview of the SAP S/4HANA Services 2024–2025 Market Insights™ and the SAP S/4HANA Services 2024–2025 RadarView™ (click for pricing).