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Why enterprise modernisation through cloud adoption is now imperative

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Enterprise modernization through cloud adoption is emerging as a crucial concept in South Africa. Many organizations are dealing with legacy IT systems that are incompatible with the latest technologies, such as AI, ML, and digital workplace systems. Modernizing enterprise applications ensures businesses remain agile, efficient, and adaptable to the rapidly changing technological landscape, achieving operational resilience. This transformation improves business outcomes and productivity by accelerating innovation and time to market.

Organizations recognize that digital transformation is essential for improving operational efficiency and achieving financial benefits. As a result, they are increasingly adopting cloud-based enterprise resource planning (ERP) systems. According to IDC’s Syndicated Cloud Research, 96% of South African CIOs have strategic intentions to modernize their ERP applications using cloud services. However, actual levels of ERP modernization remain surprisingly low due to fears of disruptive transitions and data loss.


Key benefits of modernisation

Business transformation involves developing digital competencies to create new business models, products, and services that enhance operational efficiencies and overall organizational performance.

According to IDC’s IT Services Survey (October 2023), enterprises are improving their cybersecurity capabilities to prevent potential cyberattacks, making robust cyber defence mechanisms a priority.

Implementing multi-cloud strategies in a hybrid cloud environment allows enterprises to select vendors based on organizational needs, leveraging various cloud providers’ capabilities. This approach minimizes risks and costs while reducing resistance to cloud migration among stakeholders.

Modernizing applications through cloud adoption provides operational advantages, including greater scalability and measurable business outcomes, as highlighted by key transformation initiatives planned for 2024–2025.

Why risk mitigation remains critical

Standardizing and simplifying internal processes through modern technologies ensures ease of adoption for internal teams. Rapid IT system deployment aligned with modern technologies reduces business disruptions and operational risk.

Business transformation enhances operational efficiency and visibility into enterprise operations, automating internal processes and streamlining business operations through AI, cloud, and ML technologies.

Using advanced predictive technologies, modern applications provide accurate predictions of emerging business trends and outcomes. Stringent internal controls ensure compliance with regulatory requirements and secure data management.

Adopting robust cyber defence solutions minimizes risk exposure to cyberattacks, ensuring compliance with regulatory requirements related to customer information processing.

Tackling the challenges posed by ERP modernisation

Challenges to enterprise modernization include limited local capabilities to enable modernization and integrate advanced IT systems. The South African IT services market is affected by the limited availability of IT skills, particularly in cybersecurity, cloud, and DevOps.

High costs of subscribing to managed cloud services and associated security risks deter enterprises from using these services. However, cutting-edge technologies can streamline processes and reduce the need for in-house IT capabilities, addressing these challenges.

PhaseCONVERT

Based on proven methodologies, NTT DATA’s PhaseCONVERT minimizes the need for custom code. PhaseCONVERT offers brownfield conversion from SAP ERP Central Component, allowing adoption of SAP S/4HANA at a chosen pace. NTT DATA integrates current processes with new SAP S/4HANA functionality as part of a low-risk migration approach.

MAKIRA

MAKIRA is a cloud-based document handling suite that combines RPA, ML, and AI to automate document processing, improving operational efficiency and reducing risks associated with manual processes.

ControlPanelGRC

ControlPanelGRC is a governance, risk, and compliance platform for SAP environments, automating compliance reporting and audit support, increasing operational efficiency and reducing risk exposure.

GLASSWING

GLASSWING simplifies master data management with AI, enabling rule-based automation and better governance, ensuring secure and efficient data management.

Solutions like PhaseCONVERT, MAKIRA, ControlPanelGRC, and GLASSWING from NTT DATA Middle East and Africa offer scalable, easy-to-adopt cloud-based technologies that enhance operational performance and predictability while ensuring regulatory compliance and operational transparency using SAP.

The NTT DATA advantage

NTT DATA is a globally certified SAP partner with extensive experience in simplifying and securing enterprise applications. Because of NTT DATA’s global reach and local investments, they have access to an extensive range of skills and experience. These layers of expertise have come together in focused SAP S/4HANA accelerators which facilitate the adoption or migration of SAP S/4HANA Cloud.

Ideal collaboration

The ideal local partner for integrating modern cloud-based IT infrastructure should have a strong track record, a broad channel partner ecosystem, localized skills, and the ability to deliver to market rapidly.

Modernizing legacy IT infrastructure using cloud-based solutions is now imperative for businesses to achieve operational efficiency and remain competitive. Cutting-edge technologies, complemented by ideal technology partners with local expertise, drive this transformation, ensuring agility, scalability, and minimized operational risks.

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