U.S. Enterprises Structure SAP Modernization with Measurable Value Checkpoints
U.S. Enterprises Structure SAP Modernization with Measurable Value Checkpoints
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erptechnical
ERP, or Enterprise Resource Planning, is a comprehensive software system that helps organizations manage and integrate core business processes such as finance, supply chain, and human resources in one unified platform. For investors, ERP systems can indicate how efficiently a company operates; strong and well-integrated systems often suggest good management and potential for sustainable growth.
sap s/4hanatechnical
An enterprise resource planning (ERP) platform that combines core business functions—such as finance, supply chain, sales and manufacturing—into one software system and processes data much faster than older systems by using a modern, memory-based database. Investors care because adopting or upgrading to this platform can change a company’s costs, speed of operations and ability to scale, affect recurring software or cloud spending, and influence competitiveness and future revenue growth.
sap erp central component (ecc)technical
SAP ERP Central Component (ECC) is a core enterprise software system that links a company’s key back-office functions—like finance, purchasing, manufacturing, inventory and human resources—into one shared database and interface. Think of it as the company’s digital control hub that keeps operations coordinated; investors watch it because its performance, upgrades or replacement can drive costs, affect productivity and reliability, and influence a company’s ability to scale or respond to market changes.
sap business technology platformtechnical
SAP Business Technology Platform is a cloud-based toolkit that helps companies collect, connect and analyze business data, build or extend applications, and automate processes across their software systems. Think of it as a central utility hub that lets different business apps share information and work together more efficiently; investors watch it because adoption affects a company’s ability to scale, cut operating costs, launch new services faster, and — for the platform provider — generate steady subscription revenue.
greenfieldtechnical
A greenfield project is a new business development built from scratch on unused land or in a market where no prior operations exist, like constructing a factory on an empty lot instead of renovating an old site. For investors it signals a large, upfront capital commitment and longer timeline but offers more control over design and operations; that trade-off affects expected returns, regulatory and construction risks, and how quickly revenue can begin.
brownfieldtechnical
A brownfield is a property or site that has been previously developed or used—often with existing buildings, infrastructure, or environmental contamination—and is being reused, redeveloped, or expanded rather than built on from scratch. For investors it matters because brownfields can offer cost and time savings compared with starting new (like renovating an old house versus building one), but they also carry risks such as cleanup obligations, regulatory delays, and hidden expenses that affect returns and timelines.
STAMFORD, Conn.--(BUSINESS WIRE)--
Many U.S. enterprises are dividing SAP transformation programs into manageable phases with milestones that demonstrate business outcomes, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2026 ISG Provider Lens® SAP Ecosystem report for the U.S. finds that organizations are preparing for the end of mainstream SAP ECC support by carrying out controlled modernization strategies, often using AI, that balance transformation goals with operational continuity. Enterprises are sequencing programs into waves that each create incremental value, limiting the disruption of core processes. This approach reflects growing pressure from executive leadership to ensure accountability, cost discipline and measurable returns on large-scale technology investments.
“U.S. enterprises are no longer pursuing SAP transformation for its own sake but are aligning every step with measurable results,” Bill Huber, partner, ISG Digital Platforms and Solutions. “They are taking a disciplined approach that reduces risk while maintaining their momentum toward modern, AI-enabled ERP environments.”
As enterprises face the discontinuation of mainstream support for existing SAP ERP Central Component (ECC) systems in 2027, those in highly regulated sectors in the U.S. are accelerating migration to SAP S/4HANA to meet stringent compliance requirements. Those in less regulated industries, such as manufacturing, are more likely to defer migration decisions and consider buying extended support or third-party maintenance until 2030.
Companies are integrating new technologies into SAP environments to enhance system performance while retaining the ability to adapt to rapidly changing business conditions. AI adoption is expanding into production-level use cases to improve efficiency and reliability, including automated testing, incident resolution and system monitoring. Strategies are evolving toward standardized ERP cores supported by modern data and integration layers that enable flexibility and scalability. To simplify updates and maintenance, enterprises are reducing customization by building extensions outside the core environment using SAP Business Technology Platform.
U.S. companies with SAP are looking for clear choices among greenfield, brownfield and selective data transformation. Many large enterprises with complex environments are pursuing selective modernization instead of full system replacement due to heightened sensitivity to operational risk and the need for continuity. Meanwhile, SAP is targeting the midmarket for greenfield projects through the GROW with SAP program, ISG says.
“AI is central to SAP modernization for U.S. enterprises, but the need for operational resilience guides their strategies and execution,” said Tarun Nathooram Vaid, principal analyst at ISG and lead author of the report. “Service providers play a key role by supporting structured transitions and helping clients navigate the complexity of SAP transformations.”
The report also explores other trends affecting SAP adoption in the U.S., including growing demand for industry-specific accelerators and an increasing focus on data quality and integration as foundations for long-term transformation success.
For more insights into the SAP-related challenges faced by enterprises in the U.S., along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.
The report evaluates the capabilities of 44 providers across five quadrants: SAP S/4HANA Transformation — Large Accounts, SAP S/4HANA Transformation — Midmarket, SAP Application Managed Services, SAP Business AI and Business Technology Platform (BTP) Services and Managed Cloud Services for SAP ERP.
It names Accenture, Capgemini, Cognizant, HCLTech, Infosys, TCS and Wipro as Leaders in four quadrants each. Deloitte, EY, IBM and LTM are named as Leaders in three quadrants each, and DXC Technology and Tech Mahindra are named as Leaders in two quadrants each. The report names Atos, Birlasoft, Cognitus, Hexaware, Hitachi Digital Services, Kyndryl, NTT DATA and Syntax as Leaders in one quadrant each.
In addition, Atos, DXC Technology, Hitachi Digital Services, KaarTech, NTT DATA and Syntax are recognized as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
In the area of customer experience, Infosys is named the global ISG CX Star Performer for 2026 among SAP ecosystem providers. Infosys earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
The 2026 ISG Provider Lens SAP Ecosystem report for the U.S. is available to subscribers or for one-time purchase on this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.
