SKF, one of the world’s leading makers of innovative and sustainable solutions for bearings and rotating equipment, has selected the RISE with SAP solution to future-proof its global operations, simplify its IT infrastructure and leverage innovative technologies such as AI and Machine Learning.
“Transitioning from a traditional on-premise setup to the cloud demonstrates our commitment to operational efficiency,” said Pedro de Freitas, Head of Global Digital Services, SKF.
“By integrating the existing SAP S/4HANA software into its advanced cloud strategy, SKF will be able to boost critical business sectors, including finance, parts supply, warehousing, supply chain and manufacturing. Moving to the cloud is a choice that is aligned with SKF’s philosophy of pushing the boundaries and supporting progress toward a sustainable future.”
According to SKF, roughly 20% of global energy goes to overcoming friction. Swedish-based SKF provides products at the centre of multiple industries to reduce friction and maintain optimal temperature and speed to have efficient production output. Its products are used across industries that include transport, agriculture and food and beverage.
By transitioning to SAP S/4HANA Cloud through RISE with SAP, SKF will take advantage of a smooth, secure migration of their on-premise ERP to the cloud while being able to make data-driven business decisions with real-time operational insights and embedded intelligence. Relevant, reliable and responsible business AI will be built directly into SKF’s processes and aligned with internal AI strategies.
“With our AI- and cloud-driven solutions, we help our customers to become more efficient, resilient and sustainable,” said Emmanuel Raptopoulos, President of SAP Europe Middle East and Africa. “We have had a strong collaboration for many years, and we will continue working closely with SKF to identify new innovative solutions and opportunities for streamlining processes.”
We asked Pedro de Freitas, Head of Global Digital Services, SKF, further questions to find out more.
What motivated SKF to choose RISE with SAP for your move to the cloud?
SKF strives to make a positive impact on the industries we serve, the society we are part of, and the planet we live on. Driving innovation is part of it by continuously pushing advancements in clean technologies contributing to a more sustainable industrial landscape. RISE with SAP will give SKF that edge, more than a move to the cloud, it is a transformation mindset that will push SKF for driving more innovation in areas such as AI technology and digitalising our full value chain.
Can you explain the key benefits SKF expects to gain from this transition?
Besides further deepening our strategic partnership, we expect also to gain substantial ground on operational resilience, technology simplification and innovation. That means our SAP systems are always up to date with latest innovations and security measures thus reducing the risk of downtime. It also brings a simplified engagement approach by offering a one stop shop for all SAP service needs whether it is software, infrastructure, or technical managed services.
How does RISE with SAP align with SKF’s overall Digital Transformation strategy?
‘Accelerate technology development’ and ‘Digitalis our full value chain’ are key components of SKF’ Intelligent and Clean Strategic Framework to generate profitable growth. RISE with SAP brings to SKF the much sought after technical development leverage to make better business decisions or reimagine new business models, whilst ensuring that its data is connected and consumable within SKF’s full value chain.
What challenges did SKF face during the implementation of RISE with SAP, and how were they overcome?
We are just starting the implementation and, so far so good. However, a complex and heavily customised SAP landscape makes the transition to RISE very challenging. We are also transitioning from a more traditional customer-vendor relationship into a new partnership model with SAP and need to find our new roles, in both companies. At SKF we are very privileged in having the executive unwavering sponsorship in this journey which makes a big difference when tough prioritisations and escalations emerge through the process.
How do you anticipate RISE with SAP will enhance your operational efficiency and business processes?
We expect operational efficiency at various levels such as 1) Cloud integration and thus reducing operational silos leading to improved data accessibility and accuracy. 2) Automation and AI, leveraging SAP AI infused engineering to operate machinery and processes more efficiently, reducing downtime and optimising maintenance and 3) RISE’s flexibility and scalability offer aligns well with SKF’s decentralised operating model of local financial accountability and when to be closer to our customers
What role do you see RISE with SAP playing in SKF’s future innovation and technology roadmap?
RISE with SAP will play a vital role, as a stable foundation, in future proofing SKF ability to accelerate its Digital Transformation, to further enhance our operational efficiency and foster innovation in a sustainable way.
