Ericsson Cuts Costs by 30% with SAP S/4HANA, Expands AI Integration

Ericsson Cuts Costs by 30% with SAP S/4HANA, Expands AI Integration Image Credit: Fahroni/Bigstockphoto.com

SAP SE shared that one year since Ericsson implemented SAP S/4HANA, the company has reduced project costs by 30 percent and is now looking to leverage AI-driven analytics.

Ericsson completed its transition to SAP S/4HANA in 54 hours, setting a new industry benchmark for executing large-scale and complex system projects. With multiple solutions implemented, Ericsson and SAP’s partnership spans technical innovation projects and direct system support across key business areas such as finance, supply chain, HR, procurement and more.

With SAP S/4HANA, the company gained access to the latest business support tools and continuous system updates and improvements and has now launched its next project to fully leverage the software’s standard functionalities, initially focusing on finance. This initiative is expected to be completed in the first quarter of 2026.

Instead of a full-scale rebuild, Ericsson opted for a phased approach. Tapping into downtime optimized conversion methodology from SAP that significantly reduces the time required to migrate and convert data to SAP S/4HANA, Ericsson used SAP’s standard tools to sequentially execute the transition instead of setting up a parallel environment.

SAP S/4HANA helps Ericsson continuously evaluate and implement new technologies instead of being constrained by a custom-built system, freeing the company to further optimize its processes, analyze its operations in real time and maintain a competitive edge.

Tobias Ralsgård, Head of Finance Digital Transformation, Ericsson

We are now looking forward to further optimizing and refining our processes. The goal is to establish a more standardized, AI-driven and automated financial environment. This includes utilizing real-time data analysis and AI-driven insights directly within SAP software. Another key area of interest is automated compliance and fraud detection, where AI will help identify suspicious transactions and flag potential regulatory violations.

Last modified on Tuesday, 11 March 2025 08:18

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