On February 19, SAP Japan Co., Ltd. announced its 2025 business strategy, adopting the motto “AI First, Suite First.” The company aims to accelerate the adoption of business AI and enhance proposals through SAP Business Suite.
AI as a Key Driver for Business Transformation
SAP Japan President Hirofumi Suzuki emphasized that 2025 will mark the full-scale utilization of AI in business. “SAP is making significant investments in AI, which we believe will play a crucial role in restoring the competitiveness of Japanese companies. To maximize the benefits of business AI, companies must adopt ERP with a clean core. Implementing ERP without modifying workflows or relying heavily on add-ons will lead to stagnation. Instead, we will focus on reducing system implementation time, improving efficiency, and ensuring continuous improvements post-deployment. Through SAP Business Suite, we will drive our customers’ digital transformation.”
Regarding the “2025 Cliff” highlighted in Japan’s Ministry of Economy, Trade, and Industry’s DX report, Suzuki noted, “While not everything can be resolved by 2025, the challenges will persist beyond this milestone. Some companies began migration projects years ago, while others are still in the early stages. However, few businesses are opting to do nothing—most are strategizing for the future. At SAP Japan, we are committed to exploring how we can best support them.”
Business Suite 7 and Cloud Migration
With maintenance for Business Suite 7 set to end in 2027, SAP Japan has committed to providing individual ongoing maintenance until 2030. “Many users are opting for cloud migration, and we expect most companies to transition successfully. However, for those unable to meet the deadline, we offer extended support options beyond 2030,” Suzuki stated.
Advancements in AI Integration
SAP’s AI initiatives are progressing rapidly, with over 130 generative AI use cases now embedded in SAP Cloud products. “AI is seamlessly integrated into business processes, and our digital assistant, Joule, will be available for ABAP developers in Q1 and consultants in Q2, significantly reducing system implementation times and enhancing work quality,” Suzuki said.
Joule can automatically generate ABAP code based on development requirements and suggest optimal parameters for SAP S/4HANA Cloud configurations. “From 2025 onwards, SAP’s business AI will transform corporate operations and software. Joule will evolve into a business expert, working alongside AI agents in accounting, sales, and customer management to automate business processes end-to-end.”
For instance, a sales AI agent can predict demand, relay it to a supply chain AI agent, which will then manage global inventory and oversee real-time deliveries. Procurement AI agents will maintain optimal inventory levels. Additionally, Joule enables CFOs to use financial data for precise decision-making simulations. “By integrating knowledge graph functionality and an AI agent builder, Joule can accurately identify relevant data, APIs, and business needs, setting SAP apart from competitors.”
Enhancing SAP Business Suite with Data and AI Integration
SAP Business Suite is built on three core pillars: deep understanding of end-to-end business processes, reliable business data, and integrated applications. “With these capabilities, we will drive the ‘Suite First’ approach, integrating AI, data, and applications to foster continuous innovation and address business challenges.”
A major component of this strategy is the newly announced SAP Business Data Cloud, which centralizes data from SAP and external systems like Salesforce and Google into a secure, unified information pool. “By strengthening AI capabilities with real-time data insights, SAP Business Suite will unlock its full potential.”
RISE with SAP and GROW with SAP
SAP Japan will continue strengthening RISE with SAP, aimed at modernizing legacy systems, and GROW with SAP, designed for new customers adopting cloud-based SAP ERP. “In 2025, we will enhance both offerings technically and commercially to accelerate cloud-driven business growth.”
SAP is also committed to promoting a clean core strategy. “To harness AI’s full potential, ERP must migrate to the cloud while minimizing customizations. This requires a clean core that leverages standard ERP functions with minimal disruption. The key is preparing high-quality, clean data,” Suzuki explained.
To support this, SAP has introduced the Tool Chain, which includes enterprise architecture management (LeanIX), business process management (Signavio), test automation (Tricentis), and digital adoption tools (WalkMe). “Japan’s ERP implementation timelines are 2.5 to 3 times longer than global averages, driving up costs. By leveraging the Tool Chain, we aim to streamline implementations and accelerate the adoption of a clean core.”
Expanding the Partner Ecosystem
In 2024, SAP Japan’s cloud resale business through partners grew by 44% year-over-year, with 41 new partners joining, bringing the total to over 500. The number of SAP-certified consultants increased by 30%, with SAP S/4HANA Cloud Public Edition consultants growing fivefold.
“100% of our SME business is conducted through partners. Since launching TV commercials in October 2024 targeting SMEs, SAP’s brand awareness has risen by 60%, and purchase consideration has increased by 12%. In 2025, we will continue engaging SMEs, focusing on SAP S/4HANA Cloud Public Edition.”
SAP Japan will also expand partner-led initiatives beyond Tokyo, Chubu, and Kansai. “We will establish a partner self-driving model, offering AI-based training, project quality support, and collaborative development. Additionally, we will focus on disaster mitigation, women’s reskilling through ‘Digital Girls,’ and corporate decarbonization efforts.”
Strong Growth for SAP Japan and Global Operations
SAP Japan reported a 20% increase in total sales for fiscal 2024, double the global growth rate. “Cloud adoption, including ERP, has become the standard choice in Japan. Companies such as Eneos, Shiseido, Zeon, Japan Airlines, and Fujitsu have adopted RISE with SAP, while GROW with SAP customers include GEX and Mitsui Information. Mitsui O.S.K. Lines has implemented a two-tier model using both SAP S/4HANA Cloud Private and Public Editions.”
Partner-led implementations have surged, with orders from partner-driven projects tripling year-over-year. Globally, SAP’s total revenue reached €34.18 billion, up 10%, with profits rising 11% to €24.93 billion. Cloud revenue increased 26% to €17.14 billion, while SAP S/4HANA Cloud ERP revenue surged 34% to €14.17 billion. The cloud backlog for the next 12 months stands at €18.08 billion, a 29% increase.
“We met all key performance targets, and SAP’s market capitalization now exceeds ¥50 trillion, ranking 30th globally. In 2025, we anticipate cloud revenue to reach €21.6–21.9 billion, growing 26–28%, with operating profit rising 26–30% to €10.3–10.6 billion. SAP Japan expects to maintain growth on par with global performance.”
With a firm commitment to AI-driven transformation, SAP Japan is poised to lead enterprises toward a more efficient, intelligent, and competitive future.
