This article examines SAP’s pivotal role in driving digital transformation within the manufacturing industry. As manufacturers face increasing pressure to modernize their operations, SAP has evolved from a traditional ERP system into a comprehensive digital enabler that orchestrates complex processes across the enterprise. It explores how SAP’s suite of solutions—including S/4HANA, Manufacturing Integration and Intelligence, and Digital Manufacturing Cloud—creates a technological foundation for transformation across multiple dimensions. By integrating end-to-end processes, connecting operational and information technologies through IoT capabilities, and leveraging advanced analytics and AI, SAP enables manufacturers to achieve unprecedented efficiency and transparency, develop innovative service-based business models, and accelerate innovation cycles. The article also addresses implementation challenges, success factors, and future trends, providing a holistic view of how manufacturers can leverage SAP to thrive in an increasingly digital landscape while creating sustainable competitive advantages through technological advancement and business model innovation.
Keywords: Digital Transformation, Industry 4.0, Manufacturing intelligence, SAP manufacturing solutions, Servitization
