IBM has announced the successful completion of two significant SAP S/4HANA system upgrades for Toyota South Africa Motors (TSAM), marking a pivotal moment in the automotive leader’s enterprise-wide modernization journey.
Announced on November 26, 2025, the project was executed by IBM in collaboration with SAP to enhance Toyota’s operational agility, business resilience, and ability to make data-driven decisions.
With the industry facing a critical deadline as mainstream support for legacy SAP ECC systems is set to end in 2027, IBM guided Toyota through a “Brownfield” upgrade strategy. This specific approach was chosen to enable a seamless transition to the modern SAP S/4HANA environment while preserving Toyota’s existing investments in business processes. The strategy successfully minimized disruption to daily operations, accelerated deployment timelines, and ensured continuity for the automaker’s critical systems.
The transformation initiative focused on modernizing two core business functions. IBM led the upgrade of Toyota’s national Vehicle Management System, a mission-critical platform responsible for managing orders, inventory, sales, and financial reporting across both manufacturing and dealerships. By migrating this system to SAP S/4HANA, Toyota has secured benefits including real-time data visibility, optimized inventory management, and a faster ability to respond to customer demand.
Simultaneously, the second phase of the project focused on modernizing Toyota’s Human Capital Management (HCM) systems. IBM delivered a streamlined platform covering payroll and personnel administration. This upgrade simplifies workforce processes and establishes a robust foundation for enhanced talent management and employee engagement strategies moving forward. Both upgrades were delivered on schedule without interrupting operations, demonstrating a risk-mitigated transformation aligned with Toyota’s strategic objectives.
Sikhumbuzo Ngcobo, Managing Partner at IBM Consulting South Africa, stated that the company is proud to support Toyota South Africa Motors by delivering technology solutions that accelerate innovation. Ngcobo explained that IBM utilizes what they call the “Science of Consulting,” which combines human expertise, AI, and technology to deliver scalable, data-driven transformations. He noted that by improving data visibility and governance, IBM helps organizations like Toyota achieve their goals with speed and confidence.
Nazia Pillay, Managing Director for Southern Africa at SAP, added that the best companies run on trusted data and real-time intelligence. She noted that by upgrading to SAP S/4HANA, companies unlock a suite of intelligent technologies that help transform business processes through automation. Pillay commended both Toyota and IBM on the initiative, wishing them well as the rollout continues.
Building on these successes, IBM is already collaborating with Toyota on the next phase of its SAP modernization program, which will focus on parts management systems. This continued partnership brings together hybrid cloud infrastructure, automation, and generative AI innovations to drive further industry-specific transformation.
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