- BASF is transitioning to SAP S/4HANA Cloud Private Edition to modernise its IT infrastructure and reduce system complexity.
- The move includes adopting a clean core strategy and leveraging SAP’s AI and sustainability tools to enhance operational efficiency.
What happened: BASF begins SAP S/4HANA cloud migration to modernise operations
At SAP Sapphire 2025 in Madrid, German chemical giant BASF announced the initiation of its transition to SAP S/4HANA Cloud Private Edition, marking a significant step in its digital transformation journey. This move aims to modernise BASF’s extensive SAP IT estate, which has been in place for over four decades. The company is adopting a hybrid system landscape to integrate the new cloud solution, thereby reducing the complexity associated with on-premise management.
Petra Scheithe, Senior Vice-President of Digitalization of Services and ERP Platforms at BASF Business Services, highlighted that the existing global SAP system had become monolithic, with over 300,000 custom objects. The transition to S/4HANA provides an opportunity to streamline operations and implement a “clean core” strategy, ensuring that future customisations and extensions are cloud-ready.
BASF has already gone live with its first S/4HANA system in the coatings business. The company plans to leverage SAP’s artificial intelligence and sustainability solutions, including the Joule copilot in its SuccessFactors HR system, to enhance decision-making and operational efficiency.
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Why it’s important
BASF’s migration to SAP S/4HANA Cloud Private Edition signifies a strategic effort to modernise its IT infrastructure, improve scalability, and enhance operational efficiency. By adopting a clean core strategy and leveraging advanced AI capabilities, BASF aims to streamline its processes and reduce the complexity of its IT systems. This transformation is expected to provide the company with greater agility and resilience in a dynamic business environment.
The partnership with SAP, formalised through a new strategic agreement in December 2024, underscores BASF’s commitment to digital innovation and positions the company to better respond to evolving market demands.
