Toyota accelerates digital transformation with SAP S/4HANA upgrades

Toyota South Africa Motors (Toyota) has accelerated digital transformation with two major SAP S/4HANA system upgrades.

The projects, executed by IBM in collaboration with SAP, mark a significant milestone in the automotive leader’s enterprise-wide modernization journey. 

With mainstream support for legacy SAP ECC systems ending in 2027, IBM guided Toyota through a Brownfield upgrade strategy, enabling a transition to SAP S/4HANA while preserving existing business process investments. This approach minimized disruption, accelerated deployment timelines, and ensured continuity for critical operations, according to the announcement.

Last month, management and technology consultancy BearingPoint released BeMind, a new artificial intelligence (AI) powered platform designed to revolutionize SAP transformations.

BeMind aims to tackle the challenges of complex and resource-intensive SAP transformation projects by streamlining processes, accelerating delivery and timelines, reducing effort, and improving quality.

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Toyota accelerates digital transformation across 2 core business functions

Toyota is driving digital transformation across two core business functions – vehicle management modernization and human capital management enhancement.

1. Vehicle management modernization

IBM spearheaded the overhaul of Toyota’s nationwide vehicle management system, a central platform supporting order processing, inventory control, sales operations, and financial reporting across factories and dealerships. Through the migration to SAP S/4HANA, Toyota gained real-time visibility, smarter inventory optimization, and quicker responsiveness to market and customer needs.

2. Human capital management enhancement

The second phase cantered on transforming Toyota’s HR landscape, including payroll and personnel administration. IBM implemented a streamlined SAP S/4HANA–based HCM solution that simplified workforce management and established a strong foundation for advanced talent development and improved employee engagement.

Building on these successes, IBM is collaborating with Toyota on the next phase of its SAP modernization program, focusing on parts management systems.

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Driving innovation and strengthening business resilience

“We are proud to support Toyota South Africa Motors in their digital transformation journey by delivering technology solutions that accelerate innovation and strengthen business resilience,” said Sikhumbuzo Ngcobo, managing partner, IBM Consulting South Africa. “At IBM, we call this the science of consulting – combining human expertise, AI, and technology to deliver scalable, data-driven transformations. By improving data visibility and governance, we help organizations like Toyota achieve their goals with speed and confidence.”

The best companies run on trusted data, optimized business processes, and real-time intelligence into every part of the business, commented Nazia Pillay, managing director, Southern Africa at SAP. “By upgrading to SAP S/4HANA, companies like Toyota unlock a suite of intelligent technologies that help transform business processes with intelligent automation. We commend Toyota and IBM on this powerful business transformation initiative and wish them well as they continue their rollout.”

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