The global manufacturing industry is undergoing a major transformation, pushing organizations to leave behind outdated legacy systems in favor of smarter, more agile production platforms. In response to this shift, particularly following the announced end of support for SAP Manufacturing Execution (ME) and Manufacturing Integration and Intelligence (MII) by 2030, SAP is introducing a modern alternative: SAP Digital Manufacturing.
1. Introducing SAP Digital Manufacturing
SAP Digital Manufacturing is a comprehensive Manufacturing Operations Management (MOM) platform built on SAP Business Technology Platform (BTP), focused on execution, data analytics, process control, and integration. It empowers manufacturers to improve productivity, build a sustainable workforce, and remain agile in volatile markets.
This shift isn’t just a replacement for SAP ME and MII, but it’s a strategic opportunity to restructure operational capabilities, enable real-time data insights, and integrate artificial intelligence for smart manufacturing management.
2. Key Capabilities of SAP Digital Manufacturing
SAP Digital Manufacturing for Execution
This component delivers on-the-shop-floor production execution, resource monitoring, and process optimization. It includes native integration with SAP ERP, SAP S/4HANA, and SAP Extended Warehouse Management (SAP EWM), enabling seamless process alignment and automation:
- Hybrid Manufacturing: Supports a variety of production scenarios (discrete, repetitive, process, and service) in a unified application.
- Production Operator Dashboard (POD): Built on SAP Fiori, PODs are configurable for shop floor organization and real-time KPI tracking such as Overall Equipment Effectiveness (OEE) and downtime.
- Reporting & Issue Management: Visual data can be uploaded from any device or system to track incidents and initiate automated, AI-driven resolution workflows.
- Flexible Extensibility: Use no-code POD design tools or pro-code extensions via Kyma - SAP’s development framework for side-by-side extensibility.
SAP Digital Manufacturing for Insights
This solution provides real-time monitoring of assets, workforce, and machinery involved in production, improving visibility from enterprise-level to individual plant level:
- Real-time KPI Monitoring: Highlight key performance indicators across dashboards and tiles to guide operational decisions.
- Advanced Analytics: Embedded SAP Analytics Cloud provides cross-plant, mode-based visibility and customizable OEE analysis.
Seamless Connectivity, Workforce Management & Scheduling
SAP Digital Manufacturing connects business systems with shop floor equipment, offering complete visibility and coordination at every production center. Public APIs and customizable extensions allow tailored integration:
- Orchestration & Monitoring: Schedule operations, monitor events, manage resource states, and automatically rebalance workloads across the supply chain.
- Labor Assignment & Scheduling: Allocate workers to cost centers and shifts to track both direct and indirect labor.
- Skills & Certification Tracking: Manage workforce skill sets and certifications through a skill matrix, optionally integrated with SAP SuccessFactors.
3. SAP Business Suite: The Power Behind SAP Digital Manufacturing
SAP Digital Manufacturing’s true strength lies in its integration with the broader SAP Business Suite, anchored by SAP Business Technology Platform, SAP Business Data Cloud, and SAP Business AI. These pillars provide the innovation, scalability, and AI power needed to run modern manufacturing environments.
SAP Business Technology Platform (SAP BTP)
As the foundation of SAP Digital Manufacturing, SAP BTP offers robust scalability and flexibility. Advanced services such as SAP AI Core, Generative AI Hub, and SAP Build help organizations adapt quickly, scale operations, and innovate continuously.
SAP Business Data Cloud
With its industrial-grade data capabilities, SAP Business Data Cloud extends beyond traditional data warehouses. Manufacturers can train AI models using shop floor data alongside supply chain, financial, and market signals—thanks to two-way integration with Databricks via Partner Connect.
SAP Business AI
Rather than serving as an external tool, SAP Business AI is deeply embedded across production processes. New AI agents—such as Shop Floor Supervisor and Maintenance Planner Agent—are orchestrated by Joule, SAP’s AI copilot, using data from SAP BDC and contextual insights from SAP Digital Manufacturing and SAP S/4HANA. Real-time reasoning and action help AI surpass legacy tools like SAP ME or MII.
Toward Integrated, Sustainable, and Smart Manufacturing
The shift from SAP ME and MII to SAP Digital Manufacturing isn’t just a tech upgrade, it’s a strategic leap toward building the intelligent factory of the future. No longer siloed, manufacturers gain access to a fully integrated platform combining data, AI, and the entire SAP ecosystem. Together, SAP BTP, SAP BDC, and SAP Business AI empower unmatched visibility, automation, and control, laying the foundation for hyper-personalized, real-time-optimized, and agile production operations.
With years of experience supporting manufacturers of all sizes, CMC Consulting is committed to helping enterprises transform smarter and faster, reducing costs, enhancing agility, and boosting competitive advantage.
Contact CMC Consulting today for professional consulting and implementation support!
Source:
https://www.sap.com/products/scm/digital-manufacturing.html
https://blog.sap-press.com/what-is-sap-digital-manufacturing
CMC Consulting
13/07/2025
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