SAP for Manufacturing in 2026: 8 Trends to Act On (With Actions)

(Updated December 2025)

The manufacturing landscape is evolving faster than ever. As companies continue to digitise operations and adopt SAP technologies, the stakes are rising: those who anticipate change and invest in data-driven, intelligent processes will be gifted the opportunity to outpace their peers. Here’s a look at the SAP and data management trends manufacturers need to know and act on in 2026.

1. S/4HANA Migration is Becoming Mission-Critical

For many manufacturers still on ECC or legacy SAP systems, migration to SAP S/4HANA is no longer optional. With support deadlines approaching, delays will mean increased risk, cost and missed opportunities. S/4HANA isn’t just an upgrade. It reshapes data structures, analytics capabilities, and operational workflows – just to scratch the surface. Don’t forget, as more and more SAP customers have the realisation that the time to move is now and act on it, demand for SAP Partners is sure to rise. This means you won’t be able to get it done as fast as you like and you definitely won’t be able to get it for as cheap as you like.

What manufacturers should do:

• Accelerate S/4HANA readiness planning.

• Embed data migration governance early, focusing on master data accuracy and quality. This is so you don’t take any erroneous or duplicate data across, which could spoil the fruits of your investment, or just increase the cost of storage.

• Consider hybrid transformation strategies to balance speed with risk mitigation.

2. AI is Embedded in ERP

AI is moving from experiment to enterprise, and SAP is leading the way. Tools like SAP Joule and other AI agents are enabling predictive maintenance, demand forecasting, quality optimisation, and automated workflows.

What manufacturers should do:

• Invest in AI-ready data foundations: ensure metadata, lineage, and quality standards are in place.

• Build skills in analytics and model governance to manage AI outputs responsibly.

• Explore intelligent automation opportunities across production and supply chain operations.

3. Data Governance and Quality are No Longer Optional

Manufacturers are increasingly realising that operational excellence depends on treating data as a product, not just a by-product. Strategies like data mesh are gaining traction, creating domain-oriented ownership and scalable governance.

What manufacturers should do:

• Implement continuous data quality monitoring and observability.

• Embed both business and technical owners into governance processes.

• Align governance models with cross-company data sharing, particularly across suppliers and logistics partners.

4. Security, Compliance, and Data Sovereignty

Tighter regulations, from GDPR updates to the upcoming AI Act, are changing the game. Manufacturers in regulated industries, such as pharma, aerospace, and automotive, must demonstrate auditable controls and secure data usage across AI and ERP platforms.

What manufacturers should do:

• Map compliance impacts across data and AI initiatives.

• Integrate SAP telemetry with enterprise security monitoring.

• Ensure strong, traceable data controls are in place across operations and supply networks.

5. SAP BTP as the Innovation Backbone

The SAP Business Technology Platform (BTP) is becoming central to connecting core ERP with cloud services, IoT, MES systems, and analytics platforms. It enables manufacturers to extend ERP capabilities, standardise data models, and govern integrations.

What manufacturers should do:

• Evaluate BTP for process orchestration, automation, and analytics.

• Use it to simplify data flows and enable cross-system visibility.

• Build reusable extensions and applications to accelerate innovation.

6. Supply Chain Visibility and Resilience

Global disruptions and increasing complexity make real-time supply chain visibility essential. Manufacturers are turning to integrated SAP tools to anticipate disruptions and optimise planning.

What manufacturers should do:

• Link production and supplier data for multi-tier visibility.

• Adopt AI-driven scenario planning to proactively manage risk.

• Use predictive insights to improve scheduling, inventory, and quality control.

7. Hybrid, Low-Downtime Transformations

Continuous change is the new normal. Manufacturers are embracing hybrid approaches to ERP transformation, including phased S/4HANA migrations and low-downtime upgrades.

What manufacturers should do:

• Standardise repeatable processes for migrations, carve-outs, and business evolution.

• Minimise operational disruption while maximising business impact.

8. People and Culture Matter

You can’t extract the most out of your SAP or Data landscape unless you’ve got the right talent in your organisation… or a great partner, like yours truly, to work with. With a widening skills gap, SAP professionals are expected to become invaluable to achieving successful digital transformations. Failing that, it’s going to be all about working with the RIGHT SAP partner who acts like an extension of your own data team.

What manufacturers should do:

• Upskill teams in data literacy and AI oversight.

• Promote cross-functional data ownership across operations, engineering, and supply chain.

• Foster a culture of data-driven decision-making at every level.

2026 will be the year when SAP-enabled manufacturers differentiate themselves through intelligence, agility, and governed, high-quality data. By acting now on S/4HANA migration, AI integration, data governance, and platform strategy, manufacturers can transform their operations from reactive to proactive — turning data into a strategic advantage rather than a compliance obligation.