Solar company leverages digital transformation for a brighter tomorrow

Humans have long been fascinated by the power of the sun. Since as early as the 7th Century B.C., humans used magnifying glass to spark fires with sunlight. Later, we used mirrors to light torches.  But if you get too close to the power of the sun while continuing to use outdated methods and tools, you’re apt to crash and burn. Just ask Icarus.

Our curiosity with the sun has led us to work continuously to develop solar power and make harnessing the sun’s power a reality. Nowadays, you can use solar power to run your entire home. It can be used to clean water or power electric vehicles, trains and even spacecraft. It is even being used to power planes that can fly around the world.

A sun-powered future is bright and sustainable

Today, solar energy is one of the world’s cleanest, most sustainable energy resources. And decentralized solar power is currently the most cost-effective option for energy generation, compared to wind, gas, and coal. 

That’s why SMA Solar Technology, a global energy solutions provider, is on a mission to help make this sustainable, secure, and cost-effective energy supply accessible to everyone worldwide. 

Achieving this mission requires solar storage systems and digital solutions that balance energy generation and consumption so customers can share their electricity with other consumers. And rapid innovation is necessary for building these systems in the future.

Blinded by the light as a result of aging and complex systems

SMA’s manufacturing execution system (MES) was initially built in-house over 40 years ago. As the system continued to develop over the years, it became extremely complex, difficult to maintain, and inefficient. Production downtime resulted in frustrated employees, high logistics costs, unsatisfactory inventory management, and a lack of process transparency. The aging system posed a major challenge to the delivery of the latest solar technology innovations. 

The forward-thinking technology company knew that if they were going to be successful in getting solar power into the hands and homes of more customers, they needed their business systems to be more agile and resilient. 

Brilliant innovation requires digital transformation 

PWC supported SMA in the selection of SAP solutions to achieve the client’s challenging goals. As an implementation and service partner, the SAP Cloud Success Services team supported SMA in its ambitious digital transformation and move to the cloud. Together, they built a comprehensive and scalable global digital business platform. With a cloud foundation that includes SAP S/4HANA Cloud Private Edition integrated with the SAP Digital Manufacturing solution, operations were overhauled and modernized. With the support of SAP’s Cloud Success Services team and PWC, SMA has adopted a flexible cloud roadmap to create a modern framework for the future. This secure framework will help SMA pave the way for the future of energy supply.

Digital transformation lights up new horizons

With their digital transformation fully underway, SMA is seeing impressive results, boosting supply chain productivity by 15%, improving supply-chain planning costs by 10%, and reducing inventory carrying costs by 10%. 

The initiative will also help streamline transportation planning, curb freight spending, and establish a collaborative partner portal. Additionally, the platform’s real-time visibility can help improve order status transparency while supporting connected devices. These outcomes highlight an enhancement in operational efficiency across the organization. 

Here comes the sun: Sustainable energy for all

SMA now has the digital foundation it needs to support the global energy transition and decarbonization of the planet. They have the right software, processes, services, and data to enable customers to participate in the energy system of tomorrow and today. And they are doing it all in the most sustainable way possible.

SMA Solar Technology is an SAP Innovation Awards 2024 finalist. To learn more about the SAP S/4HANA Cloud and SAP Digital Manufacturing, download the pitch deck.