Xerox Selects RISE with SAP to Transform Enterprise Architecture

Rhea-AI Summary

SAP SE announced that Xerox Holdings Corp. has chosen multiple SAP solutions to transform its enterprise architecture as part of its multi-year Reinvention. Xerox selected the RISE with SAP solution to move to the cloud, adopting a clean core approach to streamline operations across markets and business processes. By implementing SAP S/4HANA Cloud, Xerox aims to reduce IT costs, standardize global processes, and simplify its application landscape.

Xerox will also utilize other cloud solutions, including SAP Business AI, the SAP Customer Experience portfolio, SAP Business Technology Platform (SAP BTP), and supply management solutions. This integrated platform will provide real-time insights across finance, supply chain, and sales functions, enabling greater agility and cost reduction. Additionally, Xerox will leverage SAP's digital supply chain solutions to optimize operations and improve inventory visibility across nearly 145 countries.

Positive

• Xerox's adoption of SAP solutions is expected to reduce IT costs and streamline operations
• Implementation of SAP S/4HANA Cloud aims to standardize global processes and simplify application landscape
• Integration of multiple SAP cloud solutions provides real-time insights across various business functions
• SAP's digital supply chain solutions are expected to optimize Xerox's supply chain and improve inventory visibility

Negative

• None.

Insights

Technology Transformation Expert

Xerox's adoption of RISE with SAP marks a significant shift in its enterprise architecture, aligning with its multi-year Reinvention strategy. This move is strategically impactful for several reasons:

• The transition to SAP S/4HANA Cloud is expected to reduce IT costs and standardize global processes, potentially improving Xerox's operational efficiency.
• The implementation of SAP Business AI, initially for business integrity screening, opens doors for future AI-driven innovations.
• Integrating multiple SAP solutions on a single platform should provide Xerox with real-time insights and greater agility, important for adapting to market changes.

While this transformation is promising, investors should note that large-scale IT projects often come with implementation risks and initial costs. The long-term benefits, however, could position Xerox more competitively in the evolving digital services landscape.

Financial Analyst

From a financial perspective, Xerox's investment in SAP's cloud solutions is a strategic move with potential long-term benefits. Key financial implications include:

• Cost reduction: Expected decrease in IT costs through streamlined operations and simplified application landscape.
• Operational efficiency: Standardization of global processes could lead to significant cost savings and improved margins.
• Revenue growth potential: Enhanced ability to deliver new business models may open up additional revenue streams.

However, investors should be aware of potential short-term pressures on cash flow and profitability due to implementation costs. The full financial impact will likely be realized over several years, making this a long-term play for improved financial performance and competitiveness.

Supply Chain Management Expert

Xerox's adoption of SAP's digital supply chain solutions is a strategic move to optimize its global operations. Key benefits include:

• Enhanced inventory visibility across nearly 145 countries, potentially reducing carrying costs and improving working capital management.
• Improved risk mitigation in the supply chain, important in today's volatile global markets.
• Data-driven decision-making capabilities through extended analytics across the business.

This transformation could lead to significant improvements in Xerox's supply chain efficiency and responsiveness. However, the success will depend on effective implementation and change management across Xerox's global operations. Investors should monitor for improvements in inventory turnover and supply chain-related costs as indicators of successful implementation.

WALLDORF, Germany, Aug. 7, 2024 /PRNewswire/ -- SAP SE (NYSE: SAP) today announced Xerox Holdings Corp. (Nasdaq: XRX) has chosen multiple SAP solutions to transform its enterprise architecture as part of its multi-year Reinvention. Xerox's Reinvention involves aligning its resources to improve and stabilize its core print businesses, increase productivity and efficiency, and focus on its emerging digital services and IT services capabilities to improve business outcomes for its clients.

Moving to the Cloud to Achieve a Clean Core

In choosing the RISE with SAP solution to move to the cloud, Xerox is embarking on the clean core approach to streamline operations across markets and business processes. By selecting SAP S/4HANA Cloud, Xerox expects to reduce IT costs, standardize global processes in connection with the creation of a global business services organization and significantly simplify its application landscape, enabling the delivery of new business models in line with the changing demands of the industry.

"By shifting to the cloud with SAP solutions, Xerox is streamlining operations, becoming easier to do business with and within, and positioning itself to be a services-led, software-enabled organization," said Louie Pastor, executive vice president, chief transformation and administrative officer at Xerox. "SAP is a strategic partner helping us meet the evolving needs of our clients and partners as we increase our speed, agility and cost-effectiveness while providing the entire enterprise with modern tools and improved support. As we continue our Reinvention, this partnership underscores Xerox's dedication to enabling client and partner success across the hybrid workplace."

Single Platform of Truth

Some of the other cloud solutions chosen by Xerox include SAP Business AI, the SAP Customer Experience portfolio, SAP Business Technology Platform (SAP BTP) and supply management solutions from SAP. Bringing several innovative cloud solutions together on SAP BTP provides Xerox with an integrated platform across functions such as finance, supply chain and sales. This will allow the company to have real-time insights with live drill-downs to operational transactions, creating greater agility and flexibility to add new offerings, while increasing automation, simplification and cost reduction throughout its operations. SAP Business AI will initially be deployed for business integrity screening, and additional use cases will be explored in the coming months to deliver further benefits for the business.

Xerox will also tap into digital supply chain solutions from SAP to optimize its supply chain and mitigate risks by improving inventory visibility across the nearly 145 countries in which it operates, extending analytics across the business for better data-driven decision-making.

"We are proud that Xerox has decided to leverage the power of SAP's solutions to drive its reinvention," said Dominik Asam, chief financial officer and a member of the Executive Board of SAP SE. "Through its selection of RISE with SAP, Xerox will implement new business models to enhance client experiences and begin integrating SAP Business AI to drive its business forward. This will enable the company to build on its strong history and introduce a new era of workplace innovation for its clients."

Visit the SAP News Center. Follow SAP at @SAPNews.

About SAP
As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP's 2023 Annual Report on Form 20-F.

© 2024 SAP SE. All rights reserved.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see https://www.sap.com/copyright for additional trademark information and notices.

For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)

Please consider our privacy policy. If you received this press release in your e-mail and you wish to unsubscribe to our mailing list please contact press@sap.com and write Unsubscribe in the subject line. 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/xerox-selects-rise-with-sap-to-transform-enterprise-architecture-302216698.html

SOURCE SAP SE

FAQ

What SAP solutions has Xerox chosen for its enterprise transformation?

Xerox has chosen RISE with SAP, SAP S/4HANA Cloud, SAP Business AI, SAP Customer Experience portfolio, SAP Business Technology Platform (SAP BTP), and SAP's supply management solutions for its enterprise transformation.

How will SAP solutions benefit Xerox's Reinvention strategy?

SAP solutions are expected to help Xerox reduce IT costs, standardize global processes, simplify its application landscape, provide real-time insights, increase agility, and optimize its supply chain across nearly 145 countries.

What is the primary goal of Xerox's Reinvention strategy involving SAP (NYSE: SAP)?

The primary goal of Xerox's Reinvention strategy is to align resources to improve and stabilize its core print businesses, increase productivity and efficiency, and focus on emerging digital and IT services capabilities to improve business outcomes for clients.

How will SAP Business AI be utilized in Xerox's transformation?

SAP Business AI will initially be deployed for business integrity screening, with plans to explore additional use cases in the coming months to deliver further benefits for Xerox's business.