Samsung Electro-Mechanics factory in Suwon, Gyeonggi-do / Provided by Samsung Electro-Mechanics
SAP Korea announced Wednesday that Samsung Electro-Mechanics has successfully completed the implementation of SAP S/4HANA, the company’s next-generation enterprise resource planning (ERP) software, enabling an artificial intelligence (AI)-driven transformation framework built on an enterprise-wide integrated platform.
Using this software, Samsung Electro-Mechanics consolidated critical data that was scattered across ERP in finance and logistics, manufacturing execution systems (MES), and supply chain management (SCM) systems into a single business warehouse database.
“This SAP S/4HANA migration at Samsung Electro-Mechanics is more than just a system upgrade; it represents the next generation of digital transformation built on data and AI,” said Won Young-sun, vice president and head of enterprise at SAP Korea.
“SAP continues to actively support our customers in accelerating business innovation and ensuring sustainable competitiveness.”
This move enables real-time analytics and data consistency across all departments, while also significantly improving a company’s ability to make fast and accurate business decisions based on trusted information.
In this project, we implemented S/4HANA cloud based on SAP Premium Supplier option. This will enable the company to combine SAP’s world-class quality standards with Samsung SDS’ locally operated data centers and resources, including long-distance disaster recovery options, while meeting advanced security requirements and improving overall system stability.
“By fully integrating ERP, MES, and SCM data into a single platform centered on SAP S/4HANA, we were able to ensure data consistency and reliability,” said a Samsung Electro-Mechanics official.
“By leveraging the powerful AI capabilities provided by SAP S/4HANA, you can support data-driven decision-making and establish the foundation for AI-powered automation to significantly enhance your competitive advantage.”
This implementation uses SAP’s downtime-optimized conversion approach, which minimizes system downtime by performing data conversion and migration processes while the system is running.
This enabled Samsung Electro-Mechanics to reduce planned system downtime by more than 75% and ensured a seamless transition without disrupting business operations, including production line activities.
The strategy for achieving this goal also departed from the traditional full-scale reconstruction method. Rather than starting from scratch, the team standardized and integrated key processes in finance, procurement, production, and logistics ahead of a major rollout.
This approach reduced conversion development scale compared to traditional ERP implementations, minimizing risk and accelerating adoption across global sites, while reducing costs and project duration.
With S/4HANA serving as the backbone, Samsung Electro-Mechanics has established the foundation for AI-driven business innovation.
By leveraging SAP’s built-in AI capabilities, the company can automate routine workflows and enhance data-driven decision-making. During the rollout, we also piloted Joule, SAP’s generative AI assistant. This helped optimize problem resolution and contributed to a stable post-release environment with no major incidents.
