According to the latest online survey conducted by the German-speaking SAP user group DSAG in summer 2020, 74% of respondents are experiencing a decline in sales and only 19% are not noticing any impact on sales. Nevertheless, 7 percent can state that their sales are increasing. As a consequence of coronavirus on IT budgets, 22% expect a decline of over 20%. However, it is also clear that the requirements regarding digitalization in companies are increasing in principle due to corona. Eighty-one percent of respondents fully or mostly agree with this. The progress of digitalization in companies is correspondingly good: 61% are progressing rather quickly and only 34% rather slowly. This is a much more positive picture than in the DSAG Investment Report 2020, when only 35% considered themselves to be very far or far along in their digitalization process.

Dr Marco Lenck, Chairman of the DSAG Executive Board: "Companies are operating in a field of tension between falling sales, massively shrinking IT budgets and simultaneously higher demands due to digitalization."

© DSAG

DSAG members' S/4HANA projects are also benefiting from the increased digitization efforts. 50 percent of those surveyed are accelerating their S/4HANA projects or pursuing them consistently. 43 percent are postponing them or putting them on hold as a matter of principle. "The digitalization train is moving, companies have recognized how important the topic is and are making progress. However, they are operating in a field of tension between falling sales, massively shrinking IT budgets and simultaneously higher requirements due to digitalization," says Marco Lenck, Chairman of the Board of the German-speaking SAP User Group, assessing the current situation.

What about the approval of the SAP product strategy?

With regard to the SAP product strategy, the perception among DSAG members has changed only slightly compared to last year. 31% consider the SAP product strategy and roadmaps to be fully or mostly reliable and trustworthy, which is 7% more than in 2019. 42% partially agree with the statement, a decrease of 3% compared to the previous year. SAP received less or no approval on this point from 27%. "This is a slight improvement compared to last year. It shows that something has changed and the direction is right. But this has not yet been fully recognized by the market. SAP needs to communicate ready-made solutions along the roadmaps even better," says Marco Lenck.

Processes must become more efficient

When asked about the greatest need for action due to the coronavirus crisis with regard to digitalization in the SAP context, 72% responded with increasing the efficiency of existing processes. When asked last year as part of the 2019 DSAG Annual Congress survey about the areas most affected by the digital transformation, increasing efficiency was still the top priority for 62%. This year, the development of new digital business models and services is still in second place at 36%. Only 24% consider a more flexible relationship between customers and partners as part of a platform strategy to be important. "It is understandable that increasing efficiency is still ahead as a classic field of action. I see this as a clear reaction to the lower turnover and smaller IT budgets," says Marco Lenck. However, DSAG is of the opinion that companies that want to be successful in the future should not only digitize their business processes in the long term, but also change their business models.

Platform strategy on the rise

As far as a platform strategy is concerned, 58% of respondents are accelerating or consistently pursuing this. 24% are currently postponing or reconsidering a corresponding project. And only 19 percent do not see it as an issue or have postponed it in principle. Anyone considering a platform strategy is spoiled for choice among providers. In terms of collaboration with customers and suppliers, SAP is highly and very highly relevant for 72%, followed by Microsoft with 37% and others with 22%. When it comes to making supply chains more flexible, 65% of respondents still rate SAP as very relevant or highly relevant, followed by Microsoft with 19% and others with 15%. "I find the high level of approval for SAP and Microsoft in these areas compared to the others at 22% remarkable. I would have expected others to be further ahead in terms of cooperation with customers," comments Marco Lenck.

SAP unchallenged in product development

In terms of product development, SAP leads with 33%, ahead of Microsoft with 26% and others with 23%. In terms of financial and payment processing, SAP is rated as very highly and highly relevant by 77 percent, followed by others with 17 percent and far ahead of Microsoft with 6 percent. "This result is only logical. Finance has been one of SAP's core competencies for decades. Many companies have grown up with it and have deeply rooted the corresponding processes," explains Marco Lenck.

The bottom line is this: In many areas, SAP enjoys a high level of trust among DSAG members. "We still see potential in SAP's product strategy and a major communication task. With the SAP Road Map Explorer and the integration strategy, important steps are being taken to provide customers with orientation. However, customers' perception of the product strategy is still characterized by an unclear direction and integration that is in need of improvement. And SAP must ensure that customers have better orientation. SAP has promised to work on this. These actions must now be followed by results," concludes Lenck.