Illustration of seven TOGAF levers with SAP PLM automotive icons and their roles
Can implementing SAP S/4HANA or PLM alone achieve digital transformation?
The answer is NO!
Across many Tier 1 automotive suppliers, the same pattern appears repeatedly:
The root cause is clear: organizations treat system implementation as the goal, rather than designing enterprise-wide transformation.
TOGAF® (The Open Group Architecture Framework) addresses this issue by structuring digital transformation into the Seven Levers of Digital Transformation. These “levers” represent the fundamental drivers required to achieve real enterprise change. SAP and PLM are only one part of the picture.
Definition
Define competitive advantage and align all transformation initiatives with business strategy.
The first decision is not:
“Which ERP should we implement?”
The real question is:
“What will we win with in five years?”
Tier 1 Example
Automotive suppliers are facing major shifts:
A leading supplier defined its strategy as:
“Transform into a high-value EV component manufacturer.”
Only after defining this strategy do roles for:
Strategy is the starting point of all transformation.
Definition
Digitally transform customer touchpoints to deliver new value.
For Tier 1 suppliers, customers include:
In many companies, when OEMs ask:
Teams still search through Excel files.
Digital transformation aims to enable OEMs to access in real time:
This shift fundamentally changes customer expectations and trust.
Definition
Digitize not only products, but also the services around them.
Traditionally:
Selling a component was the end of the value chain.
Today:
Component + Data = Value
Example (Brake Manufacturer)
PLM becomes the backbone that manages this entire lifecycle.
Definition
Redesign processes end-to-end.
A common SAP failure pattern is:
Simply migrating existing processes into SAP without redesign.
TOGAF® emphasizes a full value chain perspective:
Tier 1 Example
A single flow includes:
Design change → BOM update → MRP → Procurement → Production → Shipment
This is why PLM and SAP integration is critical.
Definition
Transform people, decision-making, and organizational culture.
This is often harder than implementing SAP.
Typical challenges:
Digital transformation requires:
Data-driven decision making
This impacts:
Without changing these, transformation does not happen.
Definition
Build IT architecture to enable strategy.
Only at this stage do technologies appear:
SAP is not digital transformation.
SAP is an enabler.
Tier 1 Integrated Architecture Example
Value emerges only when these are connected.
Definition
Create value beyond the enterprise, including partners.
For Tier 1 suppliers, transformation cannot stop internally.
It must extend across:
Example
In a quality issue scenario, within minutes you can trace:
This interconnected visibility is known as the Digital Thread.
In many projects, the goal becomes:
“Implement SAP.”
But in TOGAF®, SAP implementation is only part of the Technology lever.
Project managers must continuously ask:
By evaluating all seven levers from the design phase, SAP and PLM become platforms for transformation—not just systems.
TOGAF’s Seven Levers of Digital Transformation are not a framework for implementing ERP, PLM, MES, or AI individually. They are a design philosophy for transforming the entire enterprise.
For Tier 1 automotive suppliers facing electrification, SDV, and increasing supply chain complexity, Enterprise Architecture plays a critical role in orchestrating these seven levers.
SAP and PLM project managers must go beyond delivering systems on time and within budget. The real question is how each lever contributes to enterprise value.
Sustainable digital transformation is achieved only when all seven levers are aligned and executed as a unified strategy.
This article is based on publicly available information and industry best practices from the following sources.
Parts of this article were developed with reference to generative AI suggestions and were reviewed, refined, and supplemented based on the author’s professional expertise and judgment.
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