IoT SAP – Digital Transformation from SAP CEO Bill McDermott Perspective


Two years ago, digital transformation was a new trend, and the awareness was low. Today, companies and government agencies are thinking through how to transform the way they deliver existing products and services and create new ones in shortest cycles. Companies that act with urgency will win.


Digital Transformation - Digital Transformation in the industry


Productivity growth over the past few years has gone close to zero. Organizations need a change in productivity, reimagine company strategy, operation and technology, and recognize that everything is connected. Technology is only measured by the value it delivers, and value is often driven by adoption.

Last year’s Fortune 500 companies actually lost money. There is a tsunami of economic, social, and environmental factors to address. Today, you’re seeing established companies shake things up on their own terms because a failure to do so from a position of strength will result in a fast decline.

Companies directly interacting with consumers are further down this path, but other companies like oil and gas, transportation, and mining are waking up to Industry 4.0. In government, the cost of healthcare, the heavy trend towards urbanization, and education are just a few of the many pressing topics.

Many of these “new” technologies like machine learning and artificial intelligence are “old” ideas. Now organizations have a situation where hardware costs have dropped, and cloud innovation cycles are so much faster. The result is a massive boost in the feasibility and viability of digital technologies.

Only six years ago putting sensors in a car would cost $75,000 USD. Today it’s less than $250. Now every car can be connected. The ROI on technology is becoming more and more attractive where seven or eight technologies are all reaching maturity at the same time. This is a phenomenon we’ve never experienced before.


Digital Transformation - Trend on ROI Technology


Digital Transformation is happening at an unprecedented speed. Think about how long it took for PC technology to reach 100 million users versus technologies like mobile or social media.

The pace of adoption has gone from 10 years to as little as a week. Adoption is so fast that the innovation cycles have to be much faster for companies. With mobile enabling billions of users to be connected, a new technology like augmented reality or digital assistants can reach maturity at scale in one to two years.

In the industrial and even in the Internet economies, we had some modest buffer between early adoption and mainstream adoption. Today we don’t. It’s almost to the point where we have only two categories: early adopters and also-rans. Perfection can no longer be the enemy of “good is enough.” It’s all about speed to innovation and differentiation.

SAP is committed to address the world’s biggest economic, environmental, and social issues. SAP technology is helping to prevent and cure cancer, diabetes, and other diseases, monitor and forecast flooding, and protect people and property from fire in cities.

SAP is aggregating all the emerging technologies cloud, mobile, machine learning, blockchain, the Internet of things (or everything) and combining them in an integrated fashion to help private and government sector to reimagine their business. 

Consumers are at the epicenter of solutions developed between SAP and their customers. This means connecting the front and back office with a consumer-grade user experience and industry-specific expertise.

Every CEO is obsessed with consumers. The question is why? And the answer is because “the winners will have a 360-degree view of every consumer and with this they will serve them better than any competitor.”



No company can go alone in the digital economy. It’s no longer a matter of “what if.” It’s all happening now.


Digital Transformation - SAP Digital Core


That’s why SAP is partnering with the best to give their customers access to the best technology integration and solutions.



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