Samsung C&T Deploys RISE with SAP on Microsoft Azure

Samsung C&T's Engineering & Construction Group holds a leading position in both the domestic and international construction industries, known for the Korean apartment brand Raemian and as the main contractor of the Burj Khalifa in Dubai and the Incheon Bridge. With the increasing number of overseas construction projects, the legacy on-premises ERP, which was customized solely for the Korean work environment, was no longer sufficient to support global business processes. The company recognized the need for a flexible ERP system that met global standards and decided to move to the cloud by deploying RISE with SAP on Microsoft Azure.

Global standardization of workflows and streamlining of IT asset operations

Aidan Nam, former Vice President of Corporate System Team at Samsung C&T, explains that the company started the ERP cloud transformation project when it realized that its existing ERP system, which was optimized for the Korean environment, was a barrier to global business expansion.

"When ERP was first introduced at Samsung C&T in 2012, about 70 to 80 percent of our projects were domestic. However, today, most of our projects are overseas. The ideas that were developed based on domestic work processes at that time are no longer suitable for use at overseas sites. Therefore, we sought to implement a standardized SAP system that local employees abroad could use seamlessly."

As a construction company, migrating to the cloud was unprecedented, and there were numerous constraints related to security compliance. Despite these challenges, Vice President Nam says he made the bold decision to move SAP ERP to the cloud for the following reason.

"If ERP can be successfully operated in the Azure cloud environment, it opens up the possibility of migrating many other IT assets to the cloud as well. We have built a landing zone on Azure that meets security compliance requirements, primarily for the ERP migration. However, this also lays the foundation for migrating approximately 100 legacy applications in the future. Through this, we aim to optimize the overall operation of IT assets."

Innovating UI with Azure and Power Platform 

Samsung C&T is known for its stringent security standards. Since Microsoft itself runs RISE with SAP on the Azure platform, this alone serves as a best practice that can be shared with customers. By managing SAP ERP workloads on Azure, Microsoft is effectively validating its capabilities in workload management, stability, and, most importantly, security excellence — providing strong credibility for customer decision-making. While Vice President Nam acknowledges this, he emphasizes that an even more crucial reason led to the final decision to choose Azure: it was a strategic choice that took into account the company’s existing Microsoft infrastructure.

"Because our employees are already familiar with Windows and Office environments, we leveraged Power Platform, a low-code development platform built on Azure, to implement intermediate interfaces that make connecting with SAP easy. Among other things, Power Apps allowed us to provide an intermediate step to work with our ERP system without directly exposing them to SAP's complex UI, which relieved them of the burden of learning a new interface." 

Additionally, Samsung C&T’s Corporate System Team is developing business processes for the construction sector using low-code tools, separate from the finance-focused ERP. For example, one of the key projects is the ‘HSE Platform,’ which is designed for managing workforce and subcontractors. As a platform for overseeing health, safety, and environmental (HSE) management at construction sites, it is being developed and operated as one of many low-code tools implemented on the Azure platform.

Samsung C&T has adopted a 'hybrid multi-cloud' strategy, utilizing various platforms and tools for developing and operating its IT assets. The Microsoft ecosystem on Azure is seamlessly integrated within this multi-layered environment, thanks to its unique flexibility and scalability. In particular, Power Platform contributes to UI innovation in management systems by providing a familiar interface.

AI and the future of construction 

The construction industry is currently facing many challenges. Traditional wet construction methods, such as concrete pouring, which rely on skilled manual labor, are becoming increasingly unsustainable due to labor shortages and rising wages. Vice President Nam emphasizes that the industry has reached a critical point for transitioning to new approaches.

"In the future, the industry must transition to dry construction methods, specifically the precast approach, which maximizes the use of factory-manufactured building materials. In this process, the adoption of AI, robotics, automation tools, and 3D printing technology will not be optional but inevitable. Currently, many construction standards are designed around manual labor, but new standards tailored to automation and factory-based construction must be established to secure a competitive edge in the global market. Smaller companies that remain reliant on traditional methods will inevitably struggle, while only those that proactively adapt to these changes will thrive."

In fact, Samsung C&T is expanding the application of AI across various areas, including reducing material code input error rates using Azure Machine Learning algorithms. Additionally, by integrating on-site data with Power BI, the company is driving innovation in field reporting and data management.

"Currently, the construction progress of high-rise buildings in Taiwan is visually and intuitively reported during weekly project meetings using Power BI. Previously, the process relied on document-based reports, but now, a template-based system allows for easy data entry and modifications. This has significantly improved operational efficiency and revolutionized data management. Additionally, we are conducting internal training on Power BI utilization."

Vice President Nam emphasizes that adopting a cloud-based standard platform in the process of digital technology adoption and AI transformation can accelerate the expansion and advancement of the construction industry's value chain. The transition from on-premises ERP to the cloud is only the beginning—this journey will lead to even greater innovations.
"Samsung C&T’s successful transition to RISE with SAP on Azure serves as a best practice for other Samsung Group affiliates considering cloud-based ERP adoption. It also demonstrates that even highly localized operations can be integrated into a cloud-based environment that supports global standards."