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AI vs. Traditional ERP: What LG CNS and SAP’s New Strategy Means for Your Business

EconomyAI vs. Traditional ERP: What LG CNS and SAP's New Strategy Means for Your Business
Courtesy of LG CNS
Courtesy of LG CNS

LG CNS is ramping up efforts to transform the enterprise resource planning (ERP) market through AI, in partnership with SAP.

On Wednesday, LG CNS and SAP jointly hosted the Business AI for ERP Summit at the Josun Palace Hotel in Seoul’s Gangnam district. The following day, LG CNS unveiled its next-generation ERP AX implementation strategy, powered by SAP Business AI.

SAP Business AI is a technology that integrates artificial intelligence into core business systems, including ERP, which manages critical functions such as finance, procurement, production, and supply chain. This integration automates routine tasks and facilitates data-driven decision-making.

At the event, LG CNS and SAP addressed how to achieve tangible results through the integration of AI into ERP systems. Paul Wang, SAP’s AI lead for the Asia-Pacific region, delivered a keynote speech highlighting the AI value gap. In this phenomenon, many companies struggle to realize concrete benefits from their AI investments. Wang introduced SAP Business AI and stressed the importance of embedding AI across all business operations to generate measurable outcomes.

In a subsequent session, Jang Hyun Jung, who heads LG CNS’s ERP AX division, outlined strategies for implementing SAP Business AI tailored to the Korean business landscape. Jang presented practical AI ERP adoption solutions that companies can implement immediately.

The event also featured case studies of ongoing AI ERP implementations. Park Jun Ki from LG Innotek and Moon Hyung Min from CJ CheilJedang shared their experiences working with LG CNS. Jin Kyung Sun, executive director of LG CNS’s ERP Innovation Business, presented on AX in ERP, detailing methodologies for identifying ERP AX use cases aligned with individual company needs, and frameworks for translating them into real-world implementations and results.

LG CNS also shed light on trends and applications in physical AI technology, a key component of AX. Son Dong-shin, head of LG CNS’s Future Robotics Lab, discussed the latest developments in humanoid robotics and explored ways to leverage SAP’s robot-based AI service, SAP Embodied AI, alongside LG CNS’s robotics platform. Son outlined the potential for practical applications of robots in various fields.

LG CNS continues to deepen its strategic partnership with SAP. Drawing on its extensive experience implementing SAP ERP across diverse industries, LG CNS has been a regular participant at SAP Sapphire since 2024, showcasing its ERP expertise. Last year, the company became the first in Korea to join SAP’s Asia-Pacific Strategic Service Partner Initiative.

Jeon Hoon Sin, executive director of LG CNS’s Enterprise Solution Division, emphasized that AI should not be viewed as just another tool, but as an integral part of an organization’s operating system. He added that companies need to move beyond simple technology adoption and redesign work processes around AI agents, noting that LG CNS aims to deliver measurable and innovative results through its collaboration with SAP.

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