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Inventec: Enhancing operational efficiency, increasing manufacturing flexibility, and powering business development in the cloud

Logo of Inventec Group, an SAP customer

Explore Inventec’s journey with SAP

Inventec Group needed to migrate core ERP to the cloud. After deploying SAP S/4HANA Cloud Private Edition, it can access global operational reports more quickly, gain a comprehensive view of business operations, and seize new opportunities. This helps it continuously solidify a leading position in areas such as server and computer manufacturing.

IndustryRegionCompany Size
High techTaipei, Taiwan (China)~28,000 employees
90%

efficiency improvement in accessing operational data.

90%

faster production-order settlement.

10x

increase in the efficiency of generating PO price reports.

To maximize our global operational capabilities, we decided to make SAP S/4HANA Cloud Private Edition our robust backbone. This helps IT respond more quickly to cross-departmental needs, supports uninterrupted operations and manufacturing, and lets us gradually realize our goal of global manufacturing, global order taking, and global operations.
Hendry Huang
CIO and Chief Information Security Officer, Inventec Group

Combining global operational consistency with a future-ready strategy

Inventec Group is a leading high tech enterprise in Taiwan and one of the country’s leading electronics manufacturers. In recent years, capitalizing on the AI server boom, the company has ventured into AI, automotive electronics, 5G mobile networks, and metaverse technologies, continuously diversifying its product lines and business scope.

 

With manufacturing and operational sites across Asia, Europe, and the Americas, Inventec’s primary goal was to ensure consistent operational efficiency across global locations by migrating to the cloud.

 

This migration also aligned with the group’s growth strategy. As digital technologies and applications as well as supply chain and ecosystem partners move to the cloud, Inventec recognized that making the same transition was essential. Another consideration was that SAP continues to roll out business AI innovations across its cloud solutions, making migration essential to Inventec’s sustainable growth and operational strategy.

Achieving four business goals with robust support

After a thorough evaluation of its options, Inventec decided to deploy SAP S/4HANA Cloud Private Edition. According to Hendry Huang, the group’s CIO and chief information security officer, the solution would help it address four key considerations.

 

First, the company knew the solution would enable operational efficiency and scalability in the cloud to support the group’s business expansion needs. Second, it would facilitate information security compliance, with Huang noting, “SAP’s discrete approach to cloud data security management gave us confidence in the migration.” Third, it would let the company optimize maintenance and operational models, allowing the IT team to shift from infrastructure management to critical tasks directly related to business profitability. Finally, a total cost of ownership analysis showed that SAP S/4HANA Cloud Private Edition would help efficiently connect global operations without separate local system deployments.

 

With a critical requirement to minimize operational disruption and a maximum permitted downtime of 48 hours, Inventec partnered with the team for SAP Services and Support during the project. The migration was successfully completed ahead of schedule in just 44 hours, helping ensure zero impact on customer revenue. Experts for SAP Services and Support mobilized resources from Shanghai, Dalian, and Beijing, China, as well as India, Singapore, and Germany during the upgrade process. They also conducted rehearsals to aid a smooth migration, successfully meeting Inventec’s delivery requirements and applying best practices for a successful cloud ERP migration.

 

Inventec’s initial data volume of 13 TB presented a significant challenge. Using a near-zero-downtime approach, the team of experts successfully reduced this volume to less than 4 TB through systematic data conversion. “This helped streamline both our data volume and system architecture,” explains Huang, “not only expediting the migration process but also resulting in significant cost savings—a crucial benefit for our operations.”

Accelerating decision-making with real-time data

Rapid decision-making is crucial for maintaining Inventec’s competitive edge. The new cloud ERP solution creates a unified platform for operational data, enabling standardized processes and real-time insights. This empowers management to monitor global operations instantly, develop more-informed strategies, and guide the company’s future direction with greater confidence.

 

Inventec’s server business unit conducts detailed analyses of cost and profit metrics. Now, different departments can obtain and analyze these reports much more quickly. The time required for monthly financial closing and cost planning execution has fallen by around 53%, from 196 hours to 91.5 hours, while production-order settlement time has dropped from 5 hours to 30 minutes. Meanwhile, a tenfold increase in the speed of generating purchase order (PO) pricing reports, commonly used by the procurement department, has enabled real-time monitoring of order content and enhanced the transparency of procurement information.

 

“Migrating to SAP S/4HANA Cloud Private Edition while maintaining its most streamlined state has improved the efficiency of accessing real-time operational reports for global production sites and business units, reduced delays in aggregating production data, and ensured the manufacturing rhythm and progress at each site are not affected. This is of great significance for consolidating our existing business revenue and accelerating the development of new businesses,” says Huang.

Innovating with a “clean-core, large-periphery” approach

Inventec’s successful cloud ERP migration represents a strategic milestone. The company now plans to combine a clean core and large periphery, using the solution as an agile operational foundation while deploying SAP Business Technology Platform for diverse integration needs and innovative applications. This strategy promises to enhance both operational efficiency and business agility.

 

As Inventec celebrates its 50th anniversary under the banner “Inventing today, inspiring tomorrow,” the company has reinforced its commitment to building sustainable value chains in partnership with suppliers and customers. Its collaboration with SAP continues to evolve, with plans to use advanced cloud technologies and business AI capabilities to optimize operations. This technology foundation facilitates expansion into emerging sectors such as automotive electronics, Internet of Things products, and 5G applications, strengthening Inventec’s market position and supporting long-term growth.

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