Defining Strategic Fitness of Organisations: A Case for SAP ERP

Technology is fundamentally changing how organisations manage operations, serve customers, and define their business models and processes. The adoption of SAP ERP system by many organisations has resulted in a major paradigm shift in their processes and operations. This has placed many organisations to be strategically fit in the business arena.

The volume, variety and velocity of data any organisation is having is continuously reaching unprecedented levels. This is a phenomenal growth that requires an understanding to decipher the information that’s important for an organisation to create a strategic fitness. Strategic fitness of an organisation is the use of its capabilities such as the use of information and technology to create a competitive advantage that is difficult to be imitated by its competitors. Running SAP builds an organisation’s capabilities and gives it the power to deal with different threats in its environment and provides it with new opportunities to create strategic business units in the continuously changing business environment.

Strategic fitness gives businesses an advantage over a long-term to survive in a fierce business environment. Information is key to create strategic fitness of an organisation through making proper decisions that will enable it to attain and reach greater heights. Strategic planning is the starting point of creating a strategic fitness of an organisation but does strategic planning means fitness, and if not how does an organisation strategically position itself and build strategic fitness? The answer to this question rests in the quality of information to be used to implement the strategic objectives of an organisation and with SAP, an business entities can use the information provided in real time to foster its capabilities. Thus a combination of strategic planning and implementation through running SAP is equivalent to creating a strategic fit an organisation requires to achieve its strategic objectives.

SAP ERP system utilizes big data to make decisions that will drive performance of an organisation to boost its operations and streamline its processes. From business intelligence to business analytics, SAP ERP system provides analytical horsepower that sets an organisation to be strategically fit in its business environment. It provides data analytics in order to examine hidden patterns, trends, unknown correlations and other useful business trends that can be used to make better decisions and sets an organisation to be strategically fit.

SAP ERP system can tackle the most challenging business problems and pain areas through the functionalities it provides. The information provided will enable corporates to continuously drive innovation and make the most possible decisions aimed at increasing the value of the organisation. The use of predictive and prescriptive analytics provided by the ERP system enables businesses to be proactive hence building its strategic fitness even under a turbulence business environment.

The introduction of SAP S/4 HANA is an entirely a paradigm shift that is needed to be adopted by organisations to be strategically fit. SAP S/4 HANA is a new generation of SAP Business Suite that is characterized by simplifications, massively increased efficiency, and compelling features such as planning and simulation options in many conventional transactions intended to enable organisations to fully utilize their strategic capabilities and strategically positions themselves as it creates unique opportunities to reinvent business models and drive new revenues and profits. SAP innovative solutions are continuously building the muscles of various organisations in various industries to enable organisations to be strategically fit.

In conclusion, SAP enables organisations to fully exploit its strategic capabilities to gain a competitive edge. The strategic fitness of an organisation builds it  to stand firm against all threats in its operational environment. The end game of strategic fitness is thus value creation. Revenues and profits are the byproducts of value creation to the customers.

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