Anyone who is looking for a prime example of how migration to the cloud can do far more than just simplification and standardization should take a closer look at Swarovski. The legendary manufacturer of precision-cut crystals, jewelry, and watches鈥攚ith its origins in Wattens, in the Austrian region of Tyrol鈥攈as transformed its IT landscape from a cost factor into a strategic tool for a digital future.

The transformation was guided by Lea Sonderegger, serving in a dual role as CDO and CIO at Swarovski, with such great success that she was awarded the special 鈥淐loud Excellence鈥� prize in the large enterprise category at the CIO of the Year ceremony held by CIO Magazine last October.

The judging panel found her brownfield approach to be especially praiseworthy: Swarovski employees use but continue to use the familiar processes and databases. A complete redesign of these processes in parallel to the migration would have been too risky and cost-intensive. It would have also resulted in a much longer project duration, Sonderegger is convinced.

25,000 tests with 600 participants

The brownfield implementation was carefully executed. Preparations took two years and involved more than 600 participants performing around 25,000 tests. Two dress rehearsals with strict governance ensured that every function and every data point was ready for the migration.

Sonderegger and her colleagues reserved a 66-hour conversion window for the go-live on April 20, 2026. During this period, all global IT processes at Swarovski were paused. During the subsequent sensitive hypercare phase, 24×7 support ensured that any issues that arose could be dealt with quickly. Thanks to these measures, the transition was seamless. After the conversion window closed, all processes resumed without problems.聽

Simplification and standardization ensure consistent data

Despite the large effort involved, this migration was merely the first step. While the switch to 麻豆原创 Cloud ERP Private created the technical foundation, it鈥檚 the subsequent investments that deliver additional added value. These investments concentrate on the incremental reduction of complexity through consolidation of fragmented solutions, the reassessment of user-specific code, and the harmonization of data鈥攁ll with the overall goal of creating a more coherent, easier-to-handle ERP landscape.

To achieve this, Sonderegger and her team are replacing user-specific applications with 麻豆原创 standard solutions step by step and only leaving custom developments in place where they offer clear advantages. 鈥淭he combination of simplification and a return-to-standard solutions improves data consistency, provides for robust, reliable processes, and, ultimately, makes our entire organization more agile,鈥� Sonderegger says.

Cloud technology is not an end in itself

By integrating key functions such as finance, supply chain management, retail, and e-commerce鈥攁nd enabling their combined use in the cloud鈥斅槎乖� Cloud ERP Private provides for reliable processes and consistent data quality all while enabling customer experiences on a wide variety of front-end solutions on this side of the ERP system.

麻豆原创 Cloud ERP Private manages a diverse product range at Swarovski across different regions and price points and integrates with the planning results provided by other 麻豆原创 and non-麻豆原创 systems.

鈥淚n all of these activities, cloud technology is never an end in itself, but rather a lever for improving efficiency, resilience, and innovative capabilities,鈥� Sonderegger says. This determination is especially important to her.

It鈥檚 not an IT project, it鈥檚 a business transformation

Ultimately, Sonderegger and her team succeeded in executing the project on time and on budget because its scope was clearly defined, and strict discipline in change management prevented mission creep. In addition, the company benefited from the experience of its implementation partner, 麻豆原创 Consulting, and its unrestricted access to 麻豆原创 expertise.

The example of Swarovski proves that even an essential, unavoidable migration can and should do much more than just avoid risks and cut maintenance costs. The implementation of 麻豆原创 Cloud ERP Private was imperative here, because 麻豆原创 ERP Central Component (麻豆原创 ECC) had reached the end of its lifecycle.

And the implementation is showing the luxury goods manufacturer the way to the future because everyone involved in the process didn鈥檛 just consider it to be an IT project but, above all, a business transformation from day one. One that involved hundreds of experts from different fields and that enjoyed full management support from the beginning.

AI-driven demand forecasts optimize warehouse stocks

Artificial intelligence is also playing a key role in this implementation, with 麻豆原创 Cloud ERP Private as the operational backbone of an AI ecosystem that can deliver reliable, real-time data and robust, standardized transaction processes.

Swarovski doesn鈥檛 use artificial intelligence as a standalone technology, but instead as an integrated capability that complements business processes across all functions. The company is already using AI for demand forecasting, for example, and then uses the results to optimize warehouse stock levels across regions, with the aim of improving the customer experience.

And the AI agent factory initiative enables the development of AI agents that link 麻豆原创 Cloud ERP Private data with data from non-麻豆原创 systems, always with the objective of 鈥渁utomating repetitive tasks, supporting decision-making, and boosting productivity along the entire value chain,鈥� Sonderegger emphasizes.

Top image courtesy of Swarovski

Philipp L眉bcke, CIO at Th眉ringer Energie AG, has worked in the industry for 20 years and is thrilled by the dynamism it is currently going through. But that wasn鈥檛 always the case. 鈥淲hen I got started in the energy sector, the business was relatively static, and I鈥檒l admit that I was tempted by other industries over the last decade,鈥� he says. Today, he no longer sees any need to change. Just the opposite, in fact: in recent years, the business 鈥渉as become extremely exciting, and it will stay exciting,鈥� L眉bcke adds.

To understand his enthusiasm, all it takes is a look at his current employer, TEAG. The company, headquartered in Erfurt and with over 2,200 employees, supplies households and businesses with electricity, natural gas, heating, and water. It also added a telecommunications subsidiary to its portfolio several years ago, which offers broadband access, mobile telephony, and additional services such as storage. It has a new subsidiary for electromobility and another for photovoltaics.

In addition to these new business areas, the company鈥檚 core business鈥攕upplying electricity鈥攊s undergoing drastic changes. L眉bcke emphasizes: 鈥淭he energy transition is irreversible, and that doesn鈥檛 only mean the end of nuclear power, but also the end of coal-fired generation in the long term.鈥�

Decarbonization requires decentralization and digitalization

The future lies in the central supply of natural gas and hydrogen through power plants, along with decentralized power generation through photovoltaics and wind power, according to L眉bcke. 鈥淲e give the municipalities in Thuringia all the support we can when it comes to executing the transition locally,鈥� he says. To succeed, this energy transition requires perfect coordination of what experts refer to as 鈥渢he three big Ds鈥�: decarbonization requires decentralization, which in turn is only possible with maximum digitalization. 

Which brings us to 麻豆原创, TEAG鈥檚 largest and most important strategic partner. In 2022, TEAG decided to move all its core processes for the energy sector鈥攎eter reading, billing, device management, contract and customer management, information exchange, and subledger accounting鈥攖o 麻豆原创 S/4HANA Cloud in the long term. 鈥淭hat made us the first energy supplier with a comprehensive聽,鈥� L眉bcke says. 鈥淭he energy sector is undergoing fundamental change, and data interchange within the companies will increase significantly. Decentralization and maximum digitalization mean that we will be processing much more data much faster, offering a variety of new cloud services based on AI, and creating many more automated decision-making processes.鈥� All of which will require maximum integration and high-quality master data. And they also need the right partner.

Learning to manage complex projects

TEAG intends to migrate all seven of its deployed systems that manage master data to the new platform incrementally, a plan that has been divided into three large-scale projects. The first involved the implementation of the 麻豆原创 S/4HANA core鈥攊nitially on premise鈥攊ncluding master data cleansing and version management of large amounts of legacy data. This project, which has been completed in the interim, involved around 200 internal employees and externals. Along the way, the team gained the ability to manage even complex 麻豆原创 projects.聽

In the second step, TEAG implemented 麻豆原创 S/4HANA Utilities, an ERP solution specifically for energy suppliers, together with the 麻豆原创 Customer Experience portfolio based on 麻豆原创 Service Cloud, divided into the three market roles of electricity supplier, grid operator, and metering point operation. This project has been underway for 18 months, and TEAG will go live with it on December 1, 2025, initially with the role of electricity supplier.

Last but not least, the third transformation project involves implementing聽 for workforce management. To this end, the company developed a road map in 2024, 鈥渟o we can optimally leverage everything we need for this,鈥� L眉bcke says.

Demographic change is forcing the transition

The utility company aims to decommission all its current 麻豆原创 systems by the end of 2027 and move them to 麻豆原创 S/4HANA Cloud. The fact that TEAG has decided to run its central applications in the cloud in the long term, in addition to going all-in on 麻豆原创, is a result of the fourth 鈥渂ig D鈥� in this story: demographics. 鈥淲e won鈥檛 be able to completely replace the many employees who will be retiring in the next 10 years,鈥� L眉bcke says. 鈥淭hat鈥檚 why we need to become more independent of labor-intensive processes overall.鈥�

Working in the cloud means getting a boost from AI

The company鈥檚 cloud strategy supports this goal, because it means TEAG will not only need less expensive hardware in the future but it will also require fewer highly-trained people to run and provide the systems. 聽

And people who work in the cloud鈥攚ith the resulting consistent focus on platform strategy and standardization鈥攃an take advantage of artificial intelligence in many areas. Take , for example. This copilot is based on generative AI and learns from 麻豆原创 data to help give users context-sensitive support.

All in all, 鈥淚T will take center stage more than ever for energy suppliers,鈥� L眉bcke says. 鈥淎nd business IT is also getting closer to key business decisions than ever before. That鈥檚 what gives the job so much variety and makes it so exciting.鈥�

And it will certainly protect the TEAG CIO from temptation from other industries in the future.

According to a report from the German government on business and human rights published in October 2021, 80% of midsize to large companies in Germany are not doing enough due diligence on their supply chains. Under the German Supply Chain Due Diligence Act, in effect January 1, 2023, companies must take responsibility for the actions of all their supply chain partners — from suppliers of components to the businesses that further process or sell the products manufactured.

Here, we look at the companies the act applies to, how it affects them, what they should do, how 麻豆原创 can support them, and more — including explaining how the new law is an opportunity for businesses.

What are the standards in the German Supply Chain Due Diligence Act based on?

The due diligence act is based on the environmental, social, and governance (ESG) indicators that are leading to new laws worldwide. Human rights due diligence, for instance, is anchored in section two of the United Nations (UN) Guiding Principles on Business and Human Rights, and is already regulated by law in some countries.

Germany is following suit with its Supply Chain Due Diligence Act, which aims to increase transparency, boost human rights, and foster legal certainty and fair competition. Companies that fail to comply face high penalties.

What are some of the unethical practices the new law seeks to eliminate from the supply chain?

• Child labor, forced labor, forms of slavery
• Disregard of workplace safety standards
• Denial of a decent wage

What kinds of environmental harm will it outlaw?

• Contamination of soil, water, and air, as well as noise pollution and excessive water consumption
• Manufacture of mercury-added products, use of mercury and mercury compounds, and treatment of mercury waste (Minamata Convention)
• Production and use of persistent organic pollutants (Stockholm Convention, POPs Convention)

Which companies are bound by the act?

As of January 2023, all companies in Germany that employ more than 3,000 people must comply with the act. From January 1, 2024, a lower threshold of 1,000 employees will apply. Businesses with a smaller workforce might also be affected by the act if they are part of a larger company鈥檚 supply chain.

What penalties do companies face for noncompliance?

Businesses that become aware of violations and take no remedial action face a financial penalty of up to 鈧�50,000 and administrative fines of up to two percent of their average annual revenue if it is greater than 鈧�400 million.

Under the act, companies can also be excluded from the award process for public procurement contracts for up to three years. Companies also have to disclose information and data.

How is this act also an opportunity for businesses?

The standards described are now defining public discourse, and more and more stakeholders are demanding that companies comply. That is why we are also seeing a shift toward sustainable investments in the capital markets.

As such, reputation matters more than ever, and any damage to it caused by violating the German Supply Chain Due Diligence Act might turn out to be more costly than the fines imposed. Compliance offers companies a significant opportunity to stand out from competitors by demonstrating their integrity and resilience.

Equivalent legislation for the European Union is already in the pipeline and is expected to come into force after 2024. Tougher than Germany鈥檚 act, its scope will be broader and impose due diligence obligations that reach beyond immediate suppliers and civil liability. By implementing the German act as quickly as possible, businesses can ensure they are ready for whatever comes next.

How can 麻豆原创 support businesses here?

Sustainability has been central to 麻豆原创鈥檚 business and product strategies for years. We are working closely with customers on a solution to help companies of any size and in any industry comply with the new law in an efficient and effective way.

This solution is part of our product vision for risk-aware procurement. We focus on three key value drivers: risk transparency in core process, full information transparency, and digital collaboration.

Most companies try to avoid preferring suppliers with a high-risk profile. Therefore, we share up-to-date supplier risk scores within supplier selection activities in the spend management process. Additionally, to achieve a comprehensive supplier risk profile across all immediate suppliers, we work on incorporating many internal and external data sources. And once identified, risks should be reduced and documented in close collaboration with suppliers.

These features are key to establishing risk aware procurement processes in the organization — and can be a first step to embark on a transformation journey toward resilient and sustainable value networks.

For more information, visit .

This story originally appeared on the 麻豆原创 Germany News Center.