Overview
Mercedes-Benz has a historically grown, global SAP landscape it aims to transform through consolidation and modernization. That includes eliminating redundant systems, establishing overarching governance, and migrating to AWS for RISE with SAP to save operational costs and enable innovation. “Radical standardization is an important lever in our strategy”, says Mercedes-Benz CIO Katrin Lehmann. “We have thousands of different applications in our system landscape and decided to radically reduce complexity and avoid cost overruns. This is where AWS plays an important role.”
About Mercedes-Benz Group AG
The Mercedes-Benz Group AG is one of the world's most successful automotive companies. With Mercedes-Benz AG, we are one of the leading global suppliers of high-end passenger cars and premium vans. Mercedes-Benz Mobility AG offers financing, leasing, car subscription and car rental, fleet management, digital services for charging and payment, insurance brokerage, as well as innovative mobility services.
Challenge | Outdated and complex landscape
“Our SAP landscape is very fragmented and outdated. We have many solutions that exist twice - or even multiple times around the globe, with varying upstream and downstream integrations across business areas,” explains Michael Hermann, Head of Global SAP Strategy, Architecture, and Transformation. “This complexity leads to enormous operational effort, ties up significant resources, and drives maintenance and upgrade costs.” The approaching end of maintenance for several SAP core products intensified redundant effort. As resources were consumed by keeping systems up to date, opportunities for innovation remained out of reach.
To address this, the organization centralized its mandate for SAP-related transformation and decision-making. It focused on eliminating redundant systems, establishing overarching SAP governance, guidelines, and processes, and transitioning to RISE with SAP on AWS to enable innovation. “We plan to reduce our applications by up to 60 percent over the next few years,” says Hermann. The organization is also preparing to modernize its remaining mainframe estate.
Solution | Moving to AWS for RISE with SAP
To align with SAP’s strategy, Mercedes-Benz chose AWS for RISE with SAP to unlock new capabilities including AI while lowering costs and complexity. The company began its migration by archiving, optimizing data volumes, refactoring code, sizing infrastructure requirements, limiting downtime, and backup/restore operations. The migration positions the organization to realize enhanced reliability, security, and efficiency on AWS. Integration work also drives automation and faster, data-driven decisions across the business. The RISE deployment leverages the latest and highest-performing Amazon EC2 instances, the u7i family.
In parallel, the central program team prepared the technical foundation by setting up interfaces, defining management processes, coordinating security standards, and building a robust operating organization to support future initiatives. The OneERP team simultaneously managed version upgrades, roll-ins, and other activities.
“We’re moving our SAP legacy systems now one by one to this new environment and we're very happy that we can do this together with AWS,” says Hermann.
Using agentic AI to accelerate mainframe migration
Mercedes-Benz looked to AWS and agentic AI to increase developer productivity and accelerate its mainframe migration. “We’ve infused AI into our migration journey and we ensure that we're always using the latest technology. We have a huge development hub in India, but also in other locations. Our experts there are increasingly using developer-tools that are supported by AI,” says Hermann. “As a result, developers report higher satisfaction as AI helps address routine questions and processes such as testing documentation and code-generation.”
Additionally, the organization is migrating its remaining mainframe applications to AWS, refactoring code with support from agentic AI. This is especially impactful when converting COBOL to Java using tools such as AWS Transform, leading to more efficiency and productivity and a much faster migration process.
Outcome | Radical standardization results in IT transformation
As a result of the transformative impact of its SAP landscape migration to AWS, Mercedes-Benz IT can now increasingly focus on driving innovation. “The DNA of the partnership of Mercedes-Benz, AWS and SAP is quite special,” says Katrin Lehmann. “We want to ensure that our systems are highly available and that we have a clear path forward regarding innovation. All of us are excited about technological innovation, yet we are just as focused on ensuring stability and security—both are key elements of our partnership.”
Things are moving at lightning speed. We’ve migrated our largest application, the core group finance target application, OneERP. This is an absolute heavyweight with tens of thousands of users and many systems, and we brought it to the cloud in a record time of just nine months!
Michael Hermann
Head of Global SAP Strategy, Architecture, and Transformation at Mercedes-Benz Group AGAWS Services Used
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