THE AUTHOR
Mukund Shinde
Sr. Vice President (Enterprise Solutions – SAP Practice)
The shift towards the cloud is more of a necessity, rather than a choice. While most businesses have been harnessing the vast set of features that cloud-based ERP deployments offer, there are still some who are still deciding to move. We will now address the common myths regarding SAP S/4HANA cloud implementations and give a broader perspective on dispelling the notions that businesses have about making the essential shift.
SAP S/4HANA is one of the most widely used ERP systems, with both on-premise and cloud-based deployments. While cloud-based deployments are seeing a heavy surge in adoption, SAP is also offering bundled offerings such as GROW with SAP, aimed at net new customers from the SMB segment. GROW with SAP is hosted on SAP’s data centers, giving a perfect SAP S/4HANA public cloud deployment advantage.
GROW with SAP is hosted on SAP’s data centers, giving a perfect SAP S/4HANA cloud implementation advantage. RISE with SAP is another SAP S/4HANA bundled offering that suits medium scale businesses and is hosted on a public cloud.
The best part is that GROW with SAP works on a subscription-based pricing model so that customers only pay for what they consume, which is flexible and scalable.
Myths on SAP S/4HANA Cloud Implementation
1. SAP is only for Large Enterprises
One of the most common notions that businesses have is that SAP is only for large enterprises. SAP‘s flagship ERP product S/4HANA cloud suits even net new and SMB customers. With the recent GROW with SAP offering, SAP has made it easy for small and medium businesses to make their way to the SAP S/4HANA cloud, suiting companies of every size and vertical.
2. The Cost Factor
Adding to the above notion, most businesses think of SAP as a costly solution that requires heavy upfront costs. But, with offerings such as GROW with SAP, you have minimal upfront costs and data storage is on the cloud, which works on a pay-as-you-go pricing model.
The major cost advantages of SAP S/4HANA Cloud implementation are highlighted below.
- No upfront costs for servers and storage space.
- Low TCI & TCO
- No investment in having experts administer and secure the application.
- Easy flexibility and scalability.
- Does away with hiring and training security support resources.
- 50% decrease in Project cost.
3. Security in the Cloud
Another common notion is that cloud-based deployment is not secure, as they are distributed across various consumers. While cloud-based deployments do have an aggregate of storage capabilities that are shared amongst customer, each customer will have a dedicated space, which can be easily extended or reduced, as per the business requirements. Also, the security of SAP S/4HANA cloud storage, both with public and private models leverages the native security features of that environment, making them less prone to security incidents.
While the SAP S/4HANA cloud implementations also offer anytime and anywhere access, users can securely access cloud-deployed applications from any device, by installing security solutions such as Mobile Device Management (MDM), or Mobile Application Management (MAM). Rest assured, your data is more secure on the SAP S/4HANA cloud than on-prem installations, where security requires upfront costs and resources.
4. Data Migration
Businesses running on legacy ERP platforms, or having on-prem storage models, often face the challenge of what to do with existing data, in case of an ERP shift to the cloud. SAP S/4HANA cloud implementation addresses these challenges by having various options to deal with existing data.
With SAP S/4HANA cloud, users can:
- Choose a Greenfield SAP S/4HANA cloud implementation approach by discarding your existing data, and redefine your business processes with a focus on future innovation. This does not necessarily mean that your data structure is being altered, but it’s just a move to start on a clean slate with optimized processes and systems. All historical data can be archived and moved into SAP Datasphere.
- Choosing a Brownfield SAP S/4HANA cloud implementation approach, where you retain all your data and workflows and move them to the cloud. It can be termed as a landscape shift, retaining all that you have.
- The other approach is a hybrid approach for SAP S/4HANA cloud implementation, where you can selectively retain data and processes, and discard others. This is useful when you have complex workflows, but still want to leverage the optimization capabilities of SAP S/4HANA cloud implementation.
5. Change Management
Change Management is a very crucial aspect that businesses tend to overlook. When you make a shift from a conventional ERP to SAP S/4HANA, the entire interface, the processes, workflows, roles, and responsibilities change. However, SAP S/4HANA applications makes the change management simpler. With AI-driven guided on-screen tools, your end-users will be able to perform tasks with online directions, which can be used anytime. Such a feature simplifies the adaptability of the solution and drives seamless change management across all levels.
6. SAP requires all individual business applications to be purchased separately
No, SAP S/4HANA cloud is a bundled package that includes all the vital business functions.
Here are the included SAP S/4HANA applications:
- Finance
- Sales and Distribution
- Procurement
- Human Resources
- Manufacturing
- Supply Chain Management
- Enterprise Asset Management
- Services
- Project management
Functionally, SAP S/4HANA cloud implementation provides an integrated solution for production planning, inventory management, batch traceability, transportation, and warehouse management.
The above features are native capabilities of SAP S/4HANA cloud and perfectly align with the business needs of any enterprise. Other modules can be added ala carte, suiting specific business requirements.
7. SAP is Rigid and does not allow Customization
SAP S/4HANA cloud works on standardized processes that are aligned with a fit-to-standard approach while migrating. However, you always have the flexibility to customize it to your specific requirements, and such a feature can be harnessed to its fullest extent.
8. Will SAP integrate with my current data and applications?
Yes, SAP S/4HANA cloud has a vast set of connectors that allow seamless integrations with third-party applications and data models. You get the advantage of using your existing data source to connect to S/4HANA, without discarding your existing storage models.
9. I have a lean technical team and cannot handle SAP S/4HANA implementation within our organization.
You have the advantage of being supported by a vast set of SAP-accredited partners who will work with you in making the ERP shift, across almost any geo-location. SAP has an active user community, where you can find solutions to any challenges that you might face, in addition to comprehensive support from SAP.
The above-illustrated points are major challenges that businesses debate while choosing SAP S/4HANA Cloud. While we have dealt with common challenges that business users face, do contact us for more information on how best SAP will work for you. Korcomptenz is an accredited GROW with SAP and RISE with SAP partner, with more than 20 years of experience in ERP solutions, and can be your perfect technology partner for an SAP S/4HANA Cloud implementation.
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