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RISE with AWS? Adidas migrates SAP S/4 HANA to the fluffy white stuff, snubs SAP's lift-and-shift programme

Globo sports brand also interested in aws analytics systems, data lakes and ml tools as part of upgrade.

Updated Adidas has opted to upgrade its ERP system to SAP S/4HANA, transferring it to the cloud with AWS rather than using RISE with SAP, the lift-shift-and-transform service launched by the German vendor earlier this year.

Seemingly without SAP’s knowledge, AWS confirmed it is now the sports brand's preferred cloud provider for SAP workloads. Under the arrangement, Adidas, which boasted sales of around $23bn in 2020, will migrate its SAP environment to AWS and implement a modern SAP S/4HANA platform.

The press blurb said running these workloads in the cloud would “enable Adidas to digitize core business processes across its value chain to provide better consumer experiences, become a more data-driven business, and support new business models such as direct-to-consumer”.

“By committing to cloud infrastructure, we have the scalability and elasticity we need to handle the seasonality of our business during peak demand and support the projected growth in our e-commerce business in the years to come,” said Markus Rautert, Adidas senior vice president, technology enablement, in a pre-canned statement.

“Deploying SAP environments on AWS isn’t just about transforming our technology — it’s about transforming business opportunities and using AWS’s wide range of cloud capabilities to create efficiencies and bring us closer to consumers.”

SAP is keen to get its extensive on-prem ERP users-base into the cloud, if only because subscription revenues offer it higher margins. Such is its desire, it launched RISE with SAP at the beginning of the year, after SAP slashed its forecasts for sales in 2020, which wiped €28bn off its value .

The programme promises to simplify migrations by providing clients with “one hand to shake” behind which it would deal with third-party service providers.

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It appears as if the Adidas deal has been struck outside of that arrangment, with neither the sportswear brand, SAP or AWS providing further comment.

According to analyst website, AppsRuntheWorld, Adidas currently runs an ECC 6.0 environment , the last version of SAP's ERP system before the in-memory system S/4HANA was released in 2015.

According to the released information, Adidas is set to take advantage of AWS technologies which compete directly with SAP’s portfolio.

These include advanced analytics capabilities, data science, and enterprise reporting. Adidas plans to build a cloud-based data lake on AWS, to help it “gain visibility across its internal and consumer-facing operations to deliver new business and consumer insights.”

Adidas also plans to use Amazon SageMaker, a machine learning environment, to help developers and data scientists build, train, and deploy machine learning models quickly

The sports brand also intends to use AWS to run “complex workloads” for design teams around the world to “modernize 3D design capabilities at scale”. It hopes this will speed up the design and creation process, reduce costs, and allow for greater collaboration with consumers and designers.

SAP has its own data lake technology in Data Lake IQ, as well analytics system Leonardo and SAP Fiori machine learning environment. ®

Updated to add at 14:10 UTC 23 November 2021:

An SAP spokesperson told us: "Adidas and SAP share a long-standing and trustful collaboration and both AWS and Adidas kept us in the loop on this announcement. As part of the SAP S/4HANA transformation, Adidas has decided to host its SAP System infrastructure on a platform provided by the hyperscaler AWS."

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adidas: Sprinting to Transformation with SAP Business Technology Platform

Hear how adidas AG, the iconic athletic shoe and sportswear brand, is propelling its SAP S/4HANA transformation with SAP Business Technology Platform. Learn how the company is innovating and meeting needs quickly because it can focus on the use case and not the technology.

How adidas is owning the digital transformation game

3 ways adidas is reinventing itself for the digital age.

On March 19, 2021, Adidas outlined a new 5-year growth plan dubbed “Own the Game.” The goal? Double online sales to €9 billion by 2025 while boosting profit margins and working towards climate neutrality. 

Critical to this endeavor is Adidas’ embrace of digital technology and automation. According to a blog post outlining the “ Own the Game ” strategy, “the company's digital transformation is driven by investments of more than € 1 billion until 2025. Core processes across the entire value chain will be digitalized: from the creation process with 3D design capabilities, via the sourcing of its products to selling it to customers and consumers. In 2025, the vast majority of adidas’ sales will be generated with products that were created and sold digitally. To achieve this, the company will expand its data and technology expertise internally and increase the size of its tech team. In 2021 alone, adidas will hire more than 1,000 tech and digital talents. The company is also investing into the new ERP system S/4HANA.”

According to additional reports , the S/4HANA will be fully integrated with AWS. Not only will the deployment of SAP on AWS streamline the company’s global supply chain, inventory, and merchandising operations, it will enable the company to leverage machine learning techniques to deliver personalized customer experiences such as product and fit recommendations. They also hope to use the technologies to create digital twins of products to help accelerate and increase the efficiency of the product development process. 

Via a 2021 statement, Markus Rautert, senior VP, technology enablement at Adidas AG, explained, “We want to drive innovation across our business, which includes everything from how we design our products to how we engage with the consumers who buy them. By committing to cloud infrastructure, we have the scalability and elasticity we need to handle the seasonality of our business during peak demand, and support the projected growth in our e-commerce business in the years to come. Deploying SAP environments on AWS isn’t just about transforming our technology, it’s about transforming business opportunities and using AWS’s wide range of cloud capabilities to create efficiencies and bring us closer to consumers.”

adidas sews a data mesh

By decentralizing and democratizing enterprise data, data mesh architecture has emerged as a powerful enabler of digital transformation. With this in mind, adidas too has transitioned from a monolithic, centralized data architecture to a data mesh.

As adidas’ Director Platform Engineering, Javier Pelayo, exclaims in a recent blog post that outlines how they successfully implemented a data mesh (which we highly recommend you read ,  “ We can proudly say that adidas has been successful in the Microservices journey; definitely, applying the same concepts to democratise the access to the data was a clear field of investment.

Also, to complete the context, we implemented a Data Streaming strategy based on Kafka that was following the main principles:

• Domain-oriented decentralized data ownership and architecture
• Self-serve data infrastructure as a platform”

Welcome to Ozworld

Like many retailers looking to target younger generations of consumers, adidas is diving headfirst into the Metaverse. Phase one began in late 2021 when the launched and sold their first NFTs, the total sales of which amounted to over $22 million . 

Phase two began in April of 2022 with the launch of Ozworld, the world’s first personality based, AI generated avatar creation platform, to help promote its OZWEEGO series of physical footwear. In short, after completing a highly designed, interactive questionnaire, Ozworld’s AI generates an individualized adidas-branded Avatar that can be downloaded and used across the web. 

To celebrate the launch of Ozworld, they also co-hosted an online event at Tencent Music Entertainment Group’s virtual music festival TMELAND. Using their Ozworld Avatars, users could attend a “concert” featuring Jay Park and MC Jin as well as socialize with friends and walk a virtual catwalk to show off their avatars. 

Advancing the sustainability blockchain

Over the past decade, adidas has emerged as a pioneer of sustainability. In addition to increasing the use of recycled materials in their products, the company has also vowed to reduce GHG emissions across its entire value chain by 30% by 2030. 

Quantifying the environmental impact of a single garment is an incredibly difficult process. Organizations must look at everything from where the product was made, material waste and how the original raw materials were sourced, amongst a few dozen more variables. 

In order to overcome these challenges, adidas partnered with TrusTrace to more effectively aggregate and leverage material traceability data. According to TrusTrace’s website , “adidas chose Certified Material Compliance and they've integrated their systems with TrusTrace, ensuring seamless data flow between PLM, Purchase Order System, and Supplier Management systems. Besides automated data flows, the integrations also ensure data quality, as the data is continually updated, capturing last minute changes to designs or purchase orders. adidas and the TrusTrace Business Services team also worked in tandem to onboard hundreds of suppliers and get them familiar with how to share documentation on TrusTrace within the first months.” 

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SAP on AWS Cloud Migration to Digitise adidas’ Core Business Processes

Global sportswear manufacturer adidas AG now adds to the list of enterprises that have embarked on a cloud migration journey with SAP on AWS (Amazon Web Services) to accelerate the digitisation of core business processes.

Over the years, SAP has worked closely with AWS to bring value to customers and enable them to be more agile and responsive to the demands of today’s business landscape. In December of last year, AWS launched a new category of offerings dubbed  SAP Beyond Infrastructure  to help more clients achieve their innovation objectives. Built by partners with extensive SAP knowledge, the solutions provide new capabilities for industry, line of business, and technical use cases to complement companies’ existing SAP environments.

Furthermore, leading organisations such as Under Armour and Qualtrics are already leading the way in reimagining SAP solutions by  leveraging AWS  to innovate and modernise their operations while also gaining new market opportunities. More recently, adidas joined the roster of customers running SAP on AWS globally. The athletic apparel retailer will digitise critical business processes across its value chain by moving SAP workloads on the cloud. The migration intends to create better consumer experiences, help the firm become more data-driven, and drive new business models including direct-to-consumer (D2C) frameworks.

Detailing more about the latest  collaboration with adidas , Greg Pearson, Vice President of Worldwide Commercial Sales at Amazon Web Services, Inc., shared in the statement released:

“We are seeing a fundamental change in how consumer goods companies run their technology infrastructures. adidas joins the thousands of customers that run SAP on AWS, leveraging AWS’s reliable and scalable global infrastructure and unmatched SAP experience to provide key insights, drive innovation, and support the creation of new products and services.”

“We look forward to working with adidas on its SAP and digital transformation strategies that will help speed the introduction of new cloud-based customer experiences like its mobile app, tailored shopping, and personalized offers that deepen the consumer relationship,” he further added.

Migrating SAP on AWS Cloud to Accelerate adidas’ Digitisation

adidas is a German multinational company that has over 62,000 employees across the globe. Dedicated to designing and manufacturing footwear, apparel, and accessories, the group’s brands are made up of Reebok, TaylorMade, and Runtastic. The sports clothing firm’s strategy to move towards cloud-based consumer experiences is anticipated to help provide personalised discounts, early access to new releases and collaborations, priority consumer service, and the flexibility to customise experiences and offers.

Expounding on the new cloud investment, Markus Rautert, Senior Vice President, Technology Enablement at adidas AG, explained:

“We want to drive innovation across our business, which includes everything from how we design our products to how we engage with the consumers who buy them. By committing to cloud infrastructure, we have the scalability and elasticity we need to handle the seasonality of our business during peak demand and support the projected growth in our e-commerce business in the years to come.”

Moreover, adidas’ modernisation of its SAP ERP system intends to deliver the technological foundation the company requires to connect data across the business. The cloud-based platform will help the company’s physical sales channel by integrating its SAP S/4HANA environment with AWS technologies including machine learning (ML) capabilities, such as Amazon SageMaker, as well as analytics to optimise the supply chain, inventory, and merchandising processes for retail outlets all over the world.

“Deploying SAP environments on AWS isn’t just about transforming our technology—it’s about transforming business opportunities and using AWS’s wide range of cloud capabilities to create efficiencies and bring us closer to consumers,” Rautert emphasised.

Under the partnership, AWS Sustainability programs will also assist adidas in reducing the environmental footprint of their cloud usage by assessing present and future cloud architectures and identifying which technological decisions will help the company achieve its overall sustainability goals.

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adidas gets cloudy with AWS & SAP

Virginia Backaitis

Digitizing Polaris

It seems like it was only yesterday that the CEOs of Adobe, Microsoft and SAP stood together on stage announcing the formation of the Open Data Initiative (ODI) . The date was September 24, 2018 and the setting was Microsoft’s Ignite conference . The purpose of ODI was to help enterprises “reimagine customer experience management” (aka CRM, CX) by being able to integrate CRM, ERP, commerce, sales, product usage and other data into a single data view that works across devices. It would leverage Microsoft’s Azure Cloud was part of the thinking.

CNBC’s Jim Cramer likened it to a call of war against Adobe, Amazon and Salesforce , but it didn’t turn out that way. Though the initiative hasn’t been announced as dead, SAP’s enthusiasm for partnership seems to have walked out the door at the same time that SAP CEO Bill McDermott did in late 2019.

Amazon (AWS) may or may not have been aware of the previous tie-ups, but today it announced that it will host Adidas’ SAP applications.

More specifically:

Today, Amazon Web Services (AWS), an Amazon.com, Inc. company, (NASDAQ: AMZN), announced that adidas AG, one of the largest sports brands in the world, has selected AWS as its preferred cloud provider for SAP workloads. With this announcement, adidas will migrate its SAP environment to AWS and implement a modern SAP S/4HANA platform. Running these business-critical SAP workloads in the cloud will enable adidas to digitize core business processes across its value chain to provide better consumer experiences, become a more data-driven business, and support new business models such as direct-to-consumer.

The near immediate wins for adidas and its customers include (according to AWS):

• the ability to closely integrate its SAP S/4HANA environment with AWS technologies to enable advanced analytics capabilities, data science, and enterprise reporting
• visibility across its internal and consumer-facing operations to deliver new business and consumer insights via building a cloud-based data lake on AWS
• the ability for developers and data scientists to easily build, train, and deploy machine learning models quickly in the cloud and at the edge
• the ability for data scientists to predict seasonal demand for products to ensure the right product is available at a specific warehouse or retail store at the right time to increase customer satisfaction by applying machine learning capabilities, such as Amazon SageMaker , AWS’s service that helps
• The application of Amazon SageMaker to sales data to enable personalized product and fit recommendations

These are big wins for adidas according to Markus Rautert, senior vice president, Technology Enablement at adidas AG. “We want to drive innovation across our business, which includes everything from how we design our products to how we engage with the consumers who buy them. By committing to cloud infrastructure, we have the scalability and elasticity we need to handle the seasonality of our business during peak demand, and support the projected growth in our e-commerce business in the years to come,” he said.

But it’s not just AWS Rautert wanted to pay homage to. “Deploying SAP environments on AWS isn’t just about transforming our technology — it’s about transforming business opportunities and using AWS’s wide range of cloud capabilities to create efficiencies and bring us closer to consumers,” he said.

Amazon went out of its way to mention that adidas is one among thousands of customers that run SAP on AWS. “We look forward to working with adidas on its SAP and digital transformation strategies that will help speed the introduction of new cloud-based customer experiences like its mobile app, tailored shopping, and personalized offers that deepen the consumer relationship,”said Greg Pearson, vice president of worldwide commercial sales at AWS.

Written by Virginia Backaitis

Narrating the trek to the digital economy from ActBrilliant.com

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In 2020 , Adidas , a Germany based Retail organization with 51777 employees and revenues of $24.64B selected SAP S/4 HANA for ERP Financial while displacing SAP ERP ECC 6.0 , and integrating with the existing systems being used.

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adidas group Hits the Ground Running

Finding the right fit for a reporting transformation with sap hana.

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adidas group knows that a simplified IT landscape and reduced operational costs over the next few years will be important in helping the company reach its ambitious goal of reaching €17 billion by 2015. See how adidas group consolidated its business warehouse environment onto a single SAP HANA platform; implementing SAP NetWeaver Business Warehouse 7.3 powered by SAP HANA for enterprise-wide embedded analytics, real-time reporting, and a reduction of TCO and IT operational costs.

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Inside adidas' supply chain

Following adidas announcing its intention to move its Speedfactory technology to Asia, Supply Chain Digital takes a closer look at the footwear company’s supply chain.

Adidas has outsourced the majority of its production. Working with around 700 independent worldwide that manufacture products in over 50 countries, the company’s supply chain is global, diverse and works with a range of business partners. In 2018, the top five countries per region by number of supplier sites were:

Asia: China, Vietnam, Korea, Indonesia and India

America: United States, Brazil, Argentina, Canada and El Salvador

EMEA: Germany, Turkey, Italy, United Kingdom and Spain

The company has five broad categories of suppliers. These are:

Main suppliers : They have a direct contractual relationship with adidas for the supply of products, for either export or domestic market consumption.

Subcontractors : These are factories that have been subcontracted by adidas’ suppliers to perform manufacturing operations the main suppliers are unable to do in their own facility.

Material and other service providers : These suppliers don’t have a direct business relationship with adidas but supply goods and services to the main suppliers.

Licensees : Independent companies which manage the design, production and distribution of specific products.

Agents : Independent companies that act as intermediaries to source product manufacturing, manage the manufacturing processes and sell finished products to the company.

Adidas to rethink supply chain if subject to US trade tariffs, says finance chief

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Adidas maps its supply chain risk to ensure that all its suppliers produce a socially and environmentally responsible way of using its resources correctly. 

It is expected that adidas’ switch to Asia will allow for better utilisation of existing production capacity and greater flexibility in product design. As part of the move, adidas will close its two Speedfactories in Ansbach, Germany and Atlanta, USA.

“The Speedfactories have been instrumental in furthering our manufacturing innovation and capabilities,” commented Martin Shankland, member of the executive board of adidas. “Through shortened development and production lead times, we’ve provided select customers with hyper-relevant product for moments that matter. This was our goal from the start. We are now able to couple these learnings with other advancements made with our suppliers, leveraging the totality of these technologies to be more flexible and economic while simultaneously expanding the range of products available.”

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Image: adidas press

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adidas docks ERP modernization drive onto AWS platform

Photo by Kaique Rocha from Pexels

According to Amazon Web Services (AWS), adidas has selected AWS as its preferred cloud provider for SAP workloads. The announcement comes as the global sportswear brand upgrades from SAP ECC 6 to the SAP S/4HANA.

According to AppsRuntheWorld , adidas is on an SAP ECC 6.0 environment, which it adopted in 2012.

In a press statement, moving SAP workloads will enable adidas to digitize core business processes across its value chain to provide better consumer experiences, become a more data-driven business, and support new business models such as direct-to-consumer.

By creating a cloud-based consumer experience, adidas can offer personalized discounts, early access to new releases and collaborations, priority consumer service, and the ability to personalize experiences and offers.

“Deploying SAP environments on AWS isn’t just about transforming our technology—it’s about transforming business opportunities and using AWS’s wide range of cloud capabilities to create efficiencies and bring us closer to consumers,” said Markus Rautert , senior vice president, technology enablement at adidas AG.

He added that the overall strategy goes just a technology refresh.

“We want to drive innovation across our business, which includes everything from how we design our products to how we engage with the consumers who buy them. By committing to cloud infrastructure, we have the scalability and elasticity we need to handle the seasonality of our business during peak demand and support the projected growth in our e-commerce business in the years to come,” he continued.

Greg Pearson , vice president of worldwide commercial sales at Amazon Web Services observed a fundamental change in how consumer goods companies run their technology infrastructures.

Like others, adidas is leveraging AWS’ global infrastructure and SAP experience to provide key insights, drive innovation, and support the creation of new products and services.

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Infosys Case Study Recognized by ISG Digital Case Study Awards

Infosys has been recognized with 2021 ISG Digital Case Study Award™ for its work with adidas in the Retail and Global Implementation categories by Information Services Group (ISG), a leading global technology research and advisory firm. The Infosys case study on our retail client, adidas, has been selected as ‘Standout’ in the Retail and Global Implementation categories by ISG Digital Case Study awards. When our client witnessed fraudulent transactions leading to revenue leakage, Infosys stepped in by creating a center of excellence to prevent fraud. We helped adidas identify around $2.5 million worth of suspected fraud, which is a YoY reduction of 15% in suspicious transactions. ISG selected case studies from 39 providers for this year’s awards from a record of nearly 250 submissions. A majority of digital transformation initiatives submitted for consideration were focused on improvements in customer and user experience, with the related goal of driving top-line revenue growth.

The following are some of the key highlights of our fraud prevention solution:

• Live Enterprise CoE for risk management
• Point-of-service data mining solution to find fraud patterns
• Training employees to detect suspicious transactions
• Setting up estimation models

To read the adidas digital case study, click here & here .

About ISG Digital Case Study Awards

The ISG Digital Case Study Awards evaluate the objectives, solutions and outcomes achieved through digital transformation projects. Technology and service providers worldwide submit case studies, which are independently validated by the enterprise client and reviewed by an expert ISG digital research review committee. Selections are based on a multi-dimensional assessment of the tangible impact of digital transformation on the client’s business and the uniqueness of the provider’s solution. “The events of the past year have accelerated the adoption of digital technologies and business models,” said Paul Reynolds, ISG partner and chief research officer. “Enhancing customer and user experience was the most prevalent objective across the enterprise-provider projects we examined, and the transformational role providers are playing was evidenced by the many innovative and impactful solutions they delivered.”

ISG (Information Services Group) (Nasdaq: III ) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries — a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com .

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Adidas Case Analysis

Adidas AG is a multinational corporation, founded and headquartered in Herzogenaurach, Germany, that designs and manufactures shoes, clothing and accessories. It is the largest sportswear manufacturer in Europe, and the second largest in the world, after Nike. It is the holding company for the Adidas Group, which consists of the Reebok sportswear company, TaylorMade golf company (including Ashworth), Runtastic, an Austrian fitness technology company and 8.33% of German football club Bayern Munich. Adidas’ revenue for 2016 was listed at €19.29 billion.

The company was started by Adolf Dassler in his mother’s house; he was joined by his elder brother Rudolf in 1924 under the name Dassler Brothers Shoe Factory. Dassler assisted in the development of spiked running shoes (spikes) for multiple athletic events. To enhance the quality of spiked athletic footwear, he transitioned from a previous model of heavy metal spikes to utilising canvas and rubber. Dassler persuaded U.S. sprinter Jesse Owens to use his handmade spikes at the 1936 Summer Olympics. In 1949, following a breakdown in the relationship between the brothers, Adolf created Adidas, and Rudolf established Puma, which became Adidas’ business rival.

Adidas’ logo is three stripes, which is used on the company’s clothing and shoe designs as a marketing aid. The branding, which Adidas bought in 1952 from Finnish sports company Karhu Sports, became so successful that Dassler described Adidas as “The three stripes company”. The brand name is uncapitalized and is stylized with a lower case “a”.

Adidas Case Study Examples

Case study on adidas.

Adidas Case Study: Adidas is the great German international corporation which produces sportswear, sports equipment, shoes and bags. Today Adidas consists of a range of branches: Reebok, Y-3, Taylor-Made Golf, etc. The existence of the company began in the 1920 when the Dassler family decided to start producing shoes, generally sports shoes for sportsmen. Very […]

Case Study on Adidas and Reebok Merger

Adidas and Reebok Merger Case Study: Adidas and Reebok are the world leading multinational companies producing sportswear and sports equipment. Reebok is considered to be the oldest company of this type, because it produces sportswear since the end of the 19th century. Adidas on its turn is a quite younger company and it appeared in […]

Adidas – Case Study 2

1. What is Adidas‘ corporate strategy? Has the corporate strategy changed with restructuring? – Lead the sporting goods industry. – Provide athletes with the best possible equipment to optimize their performance. – Market penetration, gain access to all markets in which they can compete. – Develop and expand into new markets and express interest in […]

Adidas Swot and Pestel Analysis

This report is representing and discussing the SWOT and PESTEL analysis of Adidas sports’ wear company. Adidas, a German company with roots in Herzogenaurach near Nuremberg, tells a quintessential success story. The work of brothers Adi and Rudi Dassler, Dassler Brothers Shoe Factory focused on creating the best shoe for each sport and was one […]

Adidas Future Plan

Group is the world’s second-largest sporting goods company and had net sales of IJS$ 7. 74 billion in 2004. Adidas‘ product range includes shoes, apparel and accessories for basketball, golf, soccer, fitness and training. The company has over 14,000 employees, 110 subsidiaries and sources from 840 factories across the world. 0 per cent of the […]

Adidas: SWOT analysis and Michael Porter’s Five

These sports have been replaced in market share by sports such s baseball, basketball, football, and fitness activities like aerobics. Ideas has not developed the marketing mix to compete in these sports and fitness activities. The participation by women in these sports is growing, yet Ideas has neglected this market by remaining a preferred supplier […]

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