African organisations are accelerating their investment into cloud computing and data solutions to enhance their capabilities, speed up processes, and establish a foundation for future innovation.
Nazia Pillay, head of Partner Ecosystem for MEA South at SAP, says the growth is fuelled by a growing need among African organisations to improve decision-making and bring greater transparency and efficiency to core business processes.
“The future belongs to data-driven organisations that can maximise the value of their business data by leveraging insights that reveal new efficiencies and revenue opportunities. Organisations throughout the African continent are expanding their use of cloud and data solutions, paving the way for the accelerated adoption of AI and other future-ready technologies,” said Pillay.
Investment into cloud technologies is forecast to increase sharply over the next few years, with demand for cloud services growing by 25-30% according to some estimates.
In South Africa, a recent report predicted that the country’s cloud market could surge to more than $6-billion by 2028, tripling in value from $2-billion in 2023.
Optimising ROI ‘an ongoing challenge’
However, says, Ignatius Richards, Business Manager: Financial Planning & Analysis at Decision Inc, many organisations still grapple with understanding the true cost of ownership – and return on investment – of their cloud implementations.
Richards said:
“Scalability and flexibility are among the top benefits companies seek to unlock when they shift their business processes into cloud environments. But this is dependent on reliable infrastructure. Many companies face significant challenges with forecasting the return on investment of their cloud strategies due to fluctuations in infrastructure quality and network capacity, as well as challenges with unlocking the true value of their business data. “
To develop a clear picture of ROI and ensure the business enjoys optimal benefits from cloud and data investments, Pillay recommends that companies prioritise a unified data ecosystem, close collaboration with trusted partners, and the adoption of the latest technologies.
“Companies need new strategies to succeed in a world rapidly reshaped by technologies such as cloud and AI. By laying the groundwork now and adopting new processes and best practices, African organisations can establish a powerful foundation for future innovation and growth.”
Strategy 1 – Build a unified data ecosystem
Richards notes that organisations are generating data at an unprecedented rate, but often from fragmented sources instead of a unified data repository. This is driving the need for technology-led capabilities that turn that data into insights and competitive advantage.
“With data originating from numerous disparate sources, it is crucial to establish an open ecosystem that allows seamless consolidation into a single data repository, ensuring a unified version of the truth. Within this framework, data must be enriched and transformed into actionable insights that are accessible at all levels of the organisation to enable improved decision-making.”
Pillay notes that organisations are increasingly leveraging technology platforms that bring data and analytics, AI, automation and integration together in a single unified environment.
“Organisations leverage SAP Business Technology Platform to innovate faster within the context of their own business, connecting people with data insights to improve decision-making at all levels. But it is all underpinned and dependent on a unified data ecosystem that can deliver insights based on a single source of truth.”
Richards adds:
“Utilising a modern data platform like SAP Business Technology Platform to its fullest potential can unlock innovative methods for data processing, automate business processes, and accelerate the use of generative AI to enhance customer experiences.”
Strategy 2 – Leverage vendor, partner expertise
Digital transformation is in a phase of accelerated growth in Africa, with the market expected to grow from $22.67-billion in 2024 to over $45-billion by 2029 as more organisations seek to streamline their operations and enhance their customer value propositions.
“Given the multitude of options available in the market, selecting the appropriate data and information landscape technology can be a daunting task,” says Richards. “Many of the concerns around cloud adoption – including cost implications – require a certain level of expertise from technology vendors to ensure companies can overcome challenges in their cloud adoption.”
Pillay advises that organisations work closely with technology providers and implementation partners to develop a full understanding of cost implications.
“By adopting an approach of ongoing improvement and refinement through continuous value engineering, companies are better positioned to adapt their technology and business strategies to derive optimal value from cloud and data investments.”
She adds that close collaboration with technology partners can deliver continuous value improvements over extended periods of time. “Companies benefit from vendor and partner input through the adoption of best practices, sharing of latest insights regarding the impact of new technologies, and access to new releases of core systems and applications. This ensures companies operate on the most powerful and advanced versions of cloud and data solutions, driving improved business outcomes.”
Strategy 3 – Deploy advanced technologies
In the era of hyperconnectivity, companies need to look beyond basic adoption of cloud and data solutions to the strategic deployment of advanced technologies.
Pillay notes that artificial intelligence is an obvious candidate when companies seek to deploy advanced technologies to derive business value from cloud and data investments. “AI, real-time analytics and automation unlock the full potential of cloud infrastructure, enabling businesses to enhance decision-making, streamline operations, and drive measurable value from their data assets.”
Richards adds:
“The SAP Business Technology Platform (BTP) enables organisations to automate business processes, enhance user experiences, and generate new revenue streams through data utilisation, all while maintaining a clean and optimised core system. This platform integrates various technologies, including workflow management, robotic process automation, and advanced analytics, to drive efficiency, innovation, and agility in business operations.”
Pillay also notes the impact of initiatives that accelerate the deployment of cloud-based ERP solutions as a viable option for companies seeking to accelerate the value of their cloud and data solutions.
“Solutions like SAP S/4HANA Cloud help companies future-proof their business models by running core business processes in an agile operating model. This enables continuous innovation, driving substantial ROI over the short and long term.”
