SK C&C: Elevating business operations with AI and cloud ERP
SK’s strategic adoption of SAP solutions
SK Inc. C&C, a leader in South Korea’s IT services industry, successfully implemented SAP S/4HANA Cloud Private Edition and SAP Business Technology Platform (SAP BTP) through the RISE with SAP offering to enhance operational efficiency. The deployment reduced payment processing time from five days to two, optimized resource allocation, and integrated AI for improved cost management, setting the stage for future growth and innovation while maintaining cost control.
| Industry | Region | Company Size |
| Professional services | Seoul, South Korea | ~4,000 employees |
for payment processing, down from 5.
reduction in cost of ownership compared to on-premise system.
of customizations eliminated through a clean core approach.
Project Manager, Manager Digital Innovation Planning Team, Digital Innovation Group, SK Inc. C&C
Resolving to future-proof systems with a move to the cloud
SK Inc. C&C is a powerhouse in South Korea’s IT services sector and a driving force in the region’s digital revolution, providing a wide array of offerings, including systems integration, outsourcing, and technologies such as artificial intelligence. However, like many companies facing the pressures of technological evolution, SK found itself at a crossroads when its existing on-premise ERP system approached the end of support. The company was confronted with a series of pressing business challenges that could no longer be ignored. The most critical of these challenges involved the need to enhance financial operations and consolidate scattered ERP functions that were causing inefficiencies across the company. The high costs of maintaining the legacy system, coupled with the complexities of data management, were also significant concerns. What’s more, SK was keen to nurture internal talent to meet the rising demand for a clean core approach and services running on SAP BTP, which were becoming increasingly vital in the domestic market.
These challenges weren’t just technical, they were strategic. SK needed to modernize its IT infrastructure to maintain its competitive edge and continue its growth. The company’s leadership understood that without a robust, future-proof system in place, the company risked falling behind in a rapidly evolving industry.
Choosing the best option for innovation
In its search for the ideal solution, SK meticulously evaluated several options. After careful consideration, the company decided that SAP S/4HANA Cloud Private Edition through RISE with SAP was the best fit for its needs. This business transformation as a service offers advanced ERP in the cloud, business process transformation capabilities, and extensibility options using SAP Business Technology Platform (SAP BTP). The choice was driven by several strategic imperatives. The clean core approach offered by SAP was particularly appealing, as it provided a flexible upgrade path that would allow SK to minimize core development while maximizing the usability of SAP BTP. This was crucial for the company’s goals of achieving cost-efficiency, streamlining operations, and driving business growth. As strong governance is a central tenet of the clean core approach, SK adopted the SAP Cloud ALM solution to provide the environment to manage its clean core projects.
Another factor that tipped the scales in favor of SAP solutions was the potential for smooth integration with external solutions, especially in areas such as AI and data management. Despite encountering some challenges with local partners who lacked sufficient experience in these new technology areas, SK’s leadership remained confident that SAP solutions would enable them to build a resilient and scalable IT infrastructure. The decision was not just about solving immediate problems but also about laying the groundwork for future innovation and long-term success. SK’s solution landscape is illustrated in the diagram below.
Project Manager, Manager Digital Innovation Planning Team, Digital Innovation Group, SK Inc. C&C
Realizing the vision with tangible business benefits
Since the deployment of SAP S/4HANA Cloud Private Edition and SAP BTP through RISE with SAP, SK has experienced transformative results that have exceeded expectations. One of the most significant achievements has been the substantial increase in work efficiency. The new system has enabled SK to access a variety of ERP data views that were previously out of reach, facilitating better decision-making and operational efficiency. Furthermore, SK deployed SAP Business AI into its financial operations, enhancing the accuracy and speed of cost management processes.
The impact of SAP solutions can be measured in concrete terms. For instance, the time required for payment processing was slashed from five days to just two, thanks to the automation and process optimization facilitated by technology from SAP. This reduction in processing time has not only improved operational efficiency but also freed valuable resources that can now be redirected toward more strategic initiatives. Additionally, by categorizing users more effectively, SK has achieved significant cost savings, optimizing resource allocation and ensuring more efficient use of company assets.
Despite initial concerns about the potential increase in operating expenses with the new system, SK found that costs compared favorably with the legacy system. In fact, SK realized a 40% reduction in total cost of ownership and eliminated 82% of customizations through transitioning to a clean core. The addition of new functionalities, such as integration of scattered financial functions within legacy systems using SAP BTP, reduced operating costs by 20%, allowing SK to maintain financial control while greatly enhancing its technological capabilities.
Project Manager, Manager Digital Innovation Planning Team, Digital Innovation Group, SK Inc. C&C
Shaping the future with ambitious growth plans
As SK looks to the future, the company is committed to expanding its use of SAP solutions to further optimize business processes and drive innovation. One of the primary goals is to maintain the clean core approach using SAP Cloud ALM to guide clean core projects and continuing to leverage standard functionalities from SAP. This approach will enable SK to keep operational costs low while still benefiting from the latest technological advancements. Additionally, SK plans to expand the use of SAP BTP by incorporating new features and functionalities, such as environmental, social, and governance (ESG) AI tools and integrated business management solutions.
SK is also exploring innovative projects that could significantly enhance its operations. One such project involves developing AI agents for tasks including tax management and public disclosure, leveraging the rich data available in its ERP system to automate and streamline these processes. This forward-looking strategy underscores SK’s commitment to staying at the forefront of technological innovation and maintaining its leadership position in the IT services industry.
What’s more, SK aims to deepen its partnership with SAP, particularly in areas related to new technology and future innovation. The company is eager to engage in continuous collaboration with SAP to gain insights into emerging trends and new solutions that could further enhance its operations. This ongoing relationship is expected to play a critical role in SK’s ability to adapt to changes in the market and continue delivering value to its clients.
SK’s adoption of SAP S/4HANA Cloud Private Edition and SAP BTP through RISE with SAP has not only addressed their immediate business challenges but also set a solid foundation for future growth and innovation. The successful implementation and strong partnership between SK and SAP demonstrate how leveraging advanced technology can drive operational excellence and secure a competitive edge in a rapidly evolving industry.