Samsung C&T: Enabling construction excellence with SAP S/4HANA Cloud Private Edition and SAP BTP
Explore Samsung C&T’s journey with SAP
For Samsung C&T, modernizing ERP systems was a huge challenge. Choosing SAP S/4HANA Cloud Private Edition and SAP BTP was a game changer, delivering flexibility and confidence to help the company succeed as it grows its presence in global construction. This strategic choice revolutionized Samsung C&T’s operations and set a new industry standard.
| Industry | Region | Company Size |
| Construction and real estate | Seoul, South Korea | 5,452 employees |
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Ex-CIO, Senior Executive Management Systems Team, Samsung C&T Corporation
Addressing operational challenges in construction
Samsung C&T Corporation, a leading global construction and trading company, faced significant challenges in managing its diverse and complex projects. With revenues of KRW 14.7 trillion (US$10.2 billion) and a workforce of 5,452 employees, the company needed a robust and scalable ERP system to support its continuous growth and global business expansion. Its existing system was becoming obsolete, and there was an urgent need to transition to a more advanced solution to meet evolving business requirements and customer expectations.
The construction industry is known for its complexity, with numerous stakeholders, intricate supply chains, and the need for precise coordination. Samsung C&T’s legacy ERP software struggled to keep up with these demands, leading to inefficiencies and delays. The company recognized that, to maintain its competitive edge and continue delivering high-quality projects, it needed to embrace digital transformation.
Hyo-Seung Nam, the company’s ex-CIO and a senior executive on the management systems team, explains: “Our legacy ERP system was no longer sufficient to handle the increasing complexity of our projects and the dynamic nature of the construction industry. We needed a solution that could provide real-time insights, streamline operations, and support our global expansion efforts.”
Ex-CIO, Senior Executive Management Systems Team, Samsung C&T Corporation
Embracing a clean core strategy and connecting the enterprise
After evaluating various options, Samsung C&T decided to adopt SAP S/4HANA Cloud Private Edition along with SAP Business Technology Platform (SAP BTP). The decision was driven by the need for a cloud ERP solution that could offer periodic upgrades, standardized processes, and smooth integration between headquarters and subsidiaries. As shown in the figure, SAP Integration Suite, part of SAP BTP, provided the necessary tools to integrate ERP with multiple legacy systems more securely and efficiently.
The choice of SAP S/4HANA Cloud Private Edition was crucial. As a next-generation ERP solution, it offered Samsung C&T the ability to run a live business environment with real-time data processing and analytics. This enabled the company to make faster and more-informed decisions, ultimately improving project outcomes and operational efficiency.
A clean core strategy is designed to maintain a streamlined and efficient core system by minimizing customizations and adhering to standard processes. Samsung C&T leverages standard functionalities and processes provided by the ERP solution, handling custom developments and extensions with a clean core approach.
The adoption of the clean core strategy was driven by several key factors. Samsung C&T needed a more efficient and globally adaptable ERP solution to help manage its expanding international operations. The existing on-premises ERP software was optimized for domestic projects, which constituted about 70% to 80% of its operations. However, with the majority of projects now international, the ERP software no longer aligned with the needs of overseas sites. By implementing the clean core strategy, Samsung C&T could standardize processes and benefit from smoother upgrades, enhanced security, and improved flexibility.
Hyo-Seung Nam adds: “Adopting a clean core strategy has been instrumental in our digital transformation journey. It has allowed us to stay current with SAP’s latest innovations while maintaining a stable and reliable core system. This approach has significantly reduced our total cost of ownership and improved our agility.”
To connect Samsung C&T’s new ERP solution with its existing business applications, the company sought a versatile, enterprise-grade integration platform as a service that could simplify and optimize integration development through modern modeling-based tools. SAP Integration Suite met these requirements by providing a next-generation hybrid integration suite that supports flexible runtime deployment in both cloud and on-premises environments.
Security was another critical factor. The company needed to manage and control sensitive data within its internal network in compliance with Samsung Group’s security regulations. SAP Integration Suite’s on-premises runtime, Edge Integration Cell, allowed Samsung C&T to meet these stringent security and compliance requirements while still benefiting from the advanced features of the integration platform.
The adoption of SAP Integration Suite has been transformational for Samsung C&T. The company successfully transitioned from its existing SAP Process Orchestration software to SAP Integration Suite, setting a best-practice example for other Samsung Group companies. This transition has simplified the IT architecture by directly connecting SAP S/4HANA Cloud Private Edition with external integrations through SAP Integration Suite, reducing the effort required for upgrades and helping ensure that the latest features and technologies are supported.
Ex-CIO, Senior Executive Management Systems Team, Samsung C&T Corporation
Realizing the foundations for operational excellence
The implementation of SAP S/4HANA Cloud Private Edition and SAP BTP brought about significant improvements in Samsung C&T’s operations. The company has seen a reduction in project management costs and an increase in operational efficiency.
The benefits of Samsung C&T’s clean core strategy have also been significant. With reduced maintenance costs, enhanced system performance, easier integration, and future-proofing capabilities, Samsung C&T has been able to maintain an efficient, more secure, and more adaptable ERP system. This has supported its global business operations and continuous growth, helping ensure that it remains at the forefront of innovation and efficiency in the industry.
Supported by SAP Integration Suite, Samsung C&T today handles a high volume of integration tasks efficiently and with confidence. With approximately 270 integration developments and around 30 integrated systems, the suite processes about 100,000 transactions per day, demonstrating its robust performance and scalability.
In addition to these benefits, Samsung C&T experienced several qualitative improvements. Enhanced visibility into project performance allowed the company to identify and address issues proactively, reducing the risk of delays and cost overruns. The integration of various systems also improved collaboration among teams, leading to better communication and coordination.
Ex-CIO, Senior Executive Management Systems Team, Samsung C&T Corporation
Reflecting on success and planning future steps
Reflecting on the successful implementation of SAP S/4HANA Cloud Private Edition and SAP BTP, Samsung C&T is now focused on enhancing its digital capabilities. The company plans to leverage advanced technologies such as artificial intelligence and machine learning to drive innovation and improve project outcomes. Additionally, Samsung C&T aims to expand its use of SAP S/4HANA Cloud Private Edition and SAP BTP to other business units, enabling a unified and integrated approach across the organization.
The journey with SAP software has also inspired Samsung C&T to explore new opportunities for growth and innovation. The company is considering the adoption of additional SAP solutions, such as the SAP Business Data Cloud and SAP Ariba solutions to further streamline its operations and enhance its competitive advantage.