How SAP S/4HANA Cloud Became a Gartner Magic Quadrant Leader

As technology organisations tackle market volatility, supply chain disruptions and evolving customer expectations, the traditional on-premises ERP (Enterprise Resource Planning) systems that once formed the backbone of business operations are increasingly giving way to more agile, cloud-based alternatives.

The migration to cloud ERP isn’t just about a technological shift—but a strategic imperative driven by the need for enhanced operational resilience, real-time analytics and seamless scalability.

Considering this shift in the tech industry, in a landmark achievement for enterprise software, SAP S/4HANA Cloud, the cloud-based enterprise resource planning (ERP) solution, has secured its position as a leader in Gartner's Magic Quadrant for Cloud ERP for Product-Centric Enterprises for the third consecutive year.

The Gartner Magic Quadrant is a research tool that visually represents the positioning of technology providers in specific markets based on their ability to execute and completeness of vision.

This achievement for SAP comes at a time when the global cloud ERP market is projected to surpass US$100bn by 2025 and this shift to Cloud based practices is particularly crucial for product-centric enterprises grappling with complex manufacturing processes, intricate supply chains and multi-faceted distribution networks in an increasingly volatile market environment.

Challenges SAP S/4HANA Cloud are addressing

SAP's leadership position reflects the growing sophistication of cloud ERP solutions in addressing critical business challenges.

Modern enterprises require platforms that can deliver real-time analytics, enhance operational resilience and enable seamless scalability—while ensuring compliance across multiple jurisdictions.

The S/4HANA Cloud solution has distinguished itself by meeting these demands while supporting the automation of operational activities for manufacturing, distribution, delivery and servicing of goods.

Gartner defines the Magic Quadrant status as reflecting Gartner’s definition of ‘composable ERP’.

It explains: “We define this as an adaptive technology strategy that enables the foundational administrative and operational digital capabilities for an enterprise to keep up with the pace of business change.

“This strategy delivers a core of composable applications and as-a-service software platforms that are highly configurable, interoperable and flexible to adapt to future modern technology.”

Key features and benefits of SAP S/4HANA Cloud

SAP S/4HANA Cloud is designed to help businesses transform their operations and enhance overall performance. Its key features include:

SAP's cloud ERP solution

SAP's cloud ERP solution that provides end-to-end process support, enabling companies to integrate various business functions seamlessly. This integration allows for a more holistic approach to business management, improving efficiency and decision-making.

RISE with SAP program

The RISE with SAP program combines the transformation to SAP S/4HANA with cloud migration.

Business technology platform

The solution also includes a Business Technology Platform (BTP) for process automation, integration and extension. This feature allows businesses to customise the solution to their specific needs, providing flexibility in an ever-changing business environment.

Digital discovery assessment

Additionally, SAP offers a Digital Discovery Assessment (DDA) implementation methodology. This approach helps organisations configure the right processes for their operations, ensuring that the ERP solution aligns with their unique business requirements.

Jan Gilg, President and Chief Product Officer at Cloud ERP, emphasises the impact  SAP S/4HANA Cloud has had on other companies in a blog post: “SAP S/4HANA Cloud is at the core of this transformational process that enables companies to grow, optimise and transform on their own terms while providing for the smooth integration of all business processes.

“A strong example is the greenfield transformation at Hitachi High-Tech, which simplified life for its users, unlocking value with the latest intelligent technologies, products and solutions from SAP.”

SAP S/4HANA Cloud industry impact and customer adoption

The recognition of SAP S/4HANA Cloud as a leader in the Gartner Magic Quadrant reflects its growing adoption across various industries.

Several companies and industries as well as Hitachi High-Tech have reported significant benefits from implementing the solution:

Automotive industry

Smart Press Shop, a joint venture between Porsche and Schuler, is one of many automotive collaborations that utilises SAP S/4HANA Cloud to support intelligent automotive manufacturing. The company has implemented AI-powered innovations, such as automated checks for component defects, demonstrating the solution's capability to enhance quality control processes.

Komax

Whilst Komax, a Swiss technology company, has automated key processes and consolidated legacy systems by adopting SAP S/4HANA Cloud.

This implementation has enabled the company to drive process standardisation and simplification, showcasing the solution's ability to streamline complex business operations.

REHAU China

Additionally, REHAU China and its intelligent transformation journey unlocked value with SAP’s latest intelligent technologies, products and solutions for "Cloud Asia Until 2025". This initiative aims to establish a cloud-based business platform to enhance process standardisation and integration across Asia, facilitating supply chain excellence.

“This shows how cloud transformation is best achieved with process standardisation, where composable services come together to support end-to-end processes”, Jan adds.

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