EY Supports Daikins Global SAP S/4HANA Cloud Transformation
Daikin, a Japanese multinational that designs and manufactures air‑conditioning and refrigeration equipment, has announced a “One Daikin” roadmap that seeks to unify its operations across regions. The company’s Vice President of Information Technology, Ken Landry, said the transformation is centered on delivering an “amazing experience for our customers.” He added that the goal is to create a customer‑driven organization that empowers teams to drive sales and exceed expectations at every touchpoint.
According to EY, the firm’s SAP expertise includes engineering assistance for SAP S/4HANA cloud migrations, consulting on cloud infrastructure, and support for sustainability reporting through SAP Profitability and Performance Management and SAP Analytics Cloud. EY’s global alliance with SAP is designed to help clients “accelerate to cloud” and transform disruption into strategic advantage.
The transition to SAP S/4HANA is a key element of Daikin’s plan. SAP S/4HANA is an enterprise resource planning (ERP) platform that replaces older SAP R/3 and SAP ERP systems. It is optimized for SAP’s in‑memory database, SAP HANA, and can run on SAP Cloud Infrastructure or on hyperscaler clouds. The move to the cloud version of S/4HANA allows Daikin to standardize processes, improve data visibility, and support real‑time analytics.
A significant part of the transformation is the development of a foundation for credit management. Credit management involves setting credit limits, monitoring risk, and ensuring compliance with company policy. By integrating AI into credit‑management workflows, Daikin aims to enable intelligent, compliant decision‑making across all regions. Singh, a senior executive involved in the project, said that the use of technology and AI at Daikin “serves as a benchmark for industrial business transformation and the transition to SAP S/4HANA.”
EY’s role extends beyond ERP implementation. The firm has partnered with other service providers, such as DXC, to offer engineering assistance for SAP cloud migrations. This collaboration is part of a broader industry trend where IT service companies help large enterprises modernize legacy systems.
Daikin’s transformation also includes the deployment of AI‑powered predictive maintenance for its Variable Refrigerant Volume (VRV) air‑conditioning systems. The company’s AI agent supports equipment failure diagnostics in factories, achieving response times under ten seconds and high accuracy. These initiatives complement the ERP migration by improving operational efficiency and reducing downtime.
The partnership with EY is expected to accelerate the rollout of the new SAP S/4HANA cloud platform across Daikin’s global operations. The company plans to scale the credit‑management foundation and expand AI‑driven experience solutions in the coming months. EY’s expertise in cloud infrastructure, analytics, and sustainability reporting positions it to support Daikin’s broader digital transformation goals.
In summary, EY’s SAP services are helping Daikin move to a cloud‑based ERP system, enhance customer experience, and build an AI‑enabled credit‑management framework. The collaboration reflects a growing trend of industrial companies adopting cloud ERP solutions to improve agility, compliance, and operational performance.