THE THREE DIMENSIONS OF SAP BUSINESS ByDESIGN … Bydesign/documents/WhitePaper_The... · october...
Transcript of THE THREE DIMENSIONS OF SAP BUSINESS ByDESIGN … Bydesign/documents/WhitePaper_The... · october...
October2016
THETHREEDIMENSIONSOFSAPBUSINESSByDESIGNSETTHESTAGEFORGROWTH
SIMPLICITY,FLEXIBILITY,EXTENSIBILITYINTHECLOUD
InCloudERP:TheGreatEnablerofGrowth,MintJutrasexaminedhowEnterpriseResourcePlanning(ERP)solutionsdeliveredassoftwareasaservice(SaaS)helpcompaniesfuelandsimplifygrowthbyaddressingpeoplechallengesandmitigatingrisk,whilemaintaininggovernanceandcontrol.Cloudsolutionsenableyoutofail(orsucceed)faster,allowingyoutofocusonthenextandbestopportunityforgrowth.WhilesomeofthefactorsthatenablegrowthareinherentinanySaaSsolution,notallcloudERPsolutionsarecreatedequal.Targetingmid-sizeandfastgrowingcompanies,SAPclaimsitsSAPBusinessByDesignisdesignedspecificallytohelpthesecompaniesgrowandmaximizeprofits.Inthisreportweinvestigatethemeritofthoseclaims.
SAPBusinessByDesignwasborninthecloudin2007,longbefore“RunSimple”becamethemantraofSAP.Yettheinitialobjectivewastosimplify,deliveringa100%cloud-basedsolutionforthesmalltomid-sizeenterprise(SME),whilealsofullyleveragingSAP’sexperienceandinfrastructure.Insteadofreworkinganexistingproduct,SAPtooka“startover”approach,andoverthepastnineyearshasdevelopedandrefinedathreedimensionaldesignphilosophy.Thosethreedimensions:simplicity,flexibilityandextensibility.Thisphilosophyisaperfectprescriptionforagrowingcompanythatneedstogetoutofthegatefast,buthasnotyetreached,orperhapsevendetermineditsfinaldestination.HowdoesSAPdothat?
ABOUTSAPBUSINESSByDESIGN
Beforeweanswerthatquestion,itisimportanttounderstandwhatSAPBusinessByDesignis.Becauseithasbeeninandoutofthespotlightforthepastseveralyears,retracingabitofhistoryhelps.
HISTORYSAPBusinessByDesignwasfirstreleasedinSeptember2007,justasSaaSandcloudwereemergingasviableandappealingoptions,especiallyforSMEs.Both“cloud”andcompanysizeandcomplexitycontributedsignificantlytothelaunchofthisnewproduct.SAPhadbeenverysuccessfulinitsbidtopenetratethelargeenterprisemarketaroundtheworld.Butasitssolution
Who is SAP?
SAPisoneoftheveryfewERPsolutionproviderswithinstantnamerecognitionacrosstheglobe.Bysheernumbers,SAPisamarketleader,butisalsowell-knownforitsverycomprehensivesolutionforlargeenterprises.However,80%ofSAPcustomersaresmalltomid-sizecompanies.
Somefactsaboutthecompany:
üOver320,000customersin188countries
ü80,000+employeesandlocationsinmorethan130countries
ü45+yearhistoryasasolutionprovider
üAnnualrevenue(IFRS)of€20.79billionin2015
ü Listedunderthesymbol"SAP"onstockexchanges,includingtheFrankfurtExchangeandNYSE
TheThreeDimensionsofSAPBusinessByDesignSettheStageforGrowthPage2of12
addressedmoreandmorechallengesandsatisfiedmoreandmorerequirementsoflargemulti-nationalenterprises,thecomplexityofSAPERPhadgrownalongwiththecomplexitiesofglobalbusiness.Theinitialgoalwastosimplifyforthemid-market,whilealsodeliveringa100%cloud-basedsolution,adifferentiatingfactoratthetime.
SAPcouldhavetakenafewdifferentapproaches,includingmovinganexistingproducttothecloud.Buttocomedownmarket,SAPERPwouldhavehadtoshedsomeofthatcomplexityorbeoverkillforanSMEorevenforasubsidiaryordivisionofalargeenterprise.
Ultimately,startingoverallowedSAPtoarchitectthesolutionspecificallyforthecloud,drawingonacquiredandorganicallydevelopedleadingedgeinfrastructure.Andevenmoreimportantly,SAPwasabletodrawonthethousandsofperson-yearsofexperienceaccumulatedbyitsstaffinaddressingtheneedsofthelargeenterprise.Tohelpagrowingcompany,ithelpstofullyunderstandtheneedsitwillfacewhenitreachesitsdesireddestination.
AFRESHAPPROACHTOPRODUCTDESIGNSAPalsotookadifferentapproachtodesigninganddeliveringthefeaturesandfunctionsrequiredbySMEs.WhileSAPhadawealthofexperiencefromwhichtodraw,developmentteamswereessentiallystartingfromscratchintermsofactualcode.Thisinofitselfisquitealuxury,relievingthedevelopmentteamoftheburdenofdesigndecisionsmadewhentechnologywasquitelimitedandthebusinessworldwasverydifferent.Andthoseteamscoulddevote100%oftheirattentiontodevelopingnewproductsratherthanmaintainingorenhancingexistingcode.
Mostsoftwarevendorsbuildoutbasicmoduleslikeaccounting,purchasingandperhapsinventoryfirstandlaterfleshouttheproductwithfeaturesthathelpbringallthedifferentfunctionstogether.Eventuallytheyaddmorefeaturesandmodulesthathelpcustomersdifferentiatethemselves,butusuallythoseareonthelonger-termhorizon.
Thisistheeasiestwaytogrowyourdevelopmentorganizationandyourproductmodules–findsomeonewhounderstandsaccountingandputthemonthat.Findapurchasingorinventoryspecialistanddevelopthosemodules.Butthatmaynotbethebestwaytosupportabusinessanditisnothowacompanynaturallygrows.Youdon'tbuildyouraccountingfunctionsandthenfigureoutwhatthebusinesswilldotomakemoney.Youfigureoutabusinessmodelandthenbuildyourfunctionalteamsaroundthatandperformanend-to-endbusinessprocess,engagingavarietyofdifferentfunctionalareas.
SAPdesignedanddevelopedSAPBusinessByDesignaroundthewayabusinessdevelopsandgrows,creatingbusinessprocessscenarioslikeorder-to-cash,procure-to-pay,andintra-companystocktransfers(seesidebar,nextpage).Someofthesebusinessscenariosmaysitwithinasinglefunctionalarea
SAP Business ByDesign
Somefactsandcurrentstatisticsabouttheproduct:
ü 3,500+businessesrunSAPBusinessByDesignsupporting80,000+users
üUsedin90+countriesaroundtheworld
ü 175+largeenterprisesrunSAPBusinessByDesignintheirsubsidiaries
ü 250+value-addedpartnersworldwide
ü 200+softwaresolutionpartnerswith1,800+add-onsolutions
ü 19SAP-deliveredcountrylocalizations,supporting9languages
TheThreeDimensionsofSAPBusinessByDesignSettheStageforGrowthPage3of12
ofthebusiness,butmorelikely,theymightspanmanydifferentfunctions.Thisisalittlehardertodobecauseminimallythedesignersneedtounderstandmorethanonefunctionalsiloofthebusiness.Ideallythatinsightispassedontothedevelopersaswell.Bothneedtounderstandthebusinessitself.
ButSAPalreadyhadpeoplelikethis.Ithadspentmanyyearsdefiningrequirements,doingfunctionaldesigns,developingbestpractices.Itjustneededtoleverageallthispreviouslyacquiredexperienceandreinvent,redesignanddeliveritforthemid-market.TheSAPBusinessByDesignteamneededtomakesuretheproductcouldinstall,deploy,implementandrunsimpler,atalowercost.
TARGETMARKET:SEGMENTINGSMEsThisneedtosimplifyandreducecostwasdrivenbytheaudienceSAPwastargetingfortheproduct.WhileSAPalwayshadSMEsinmind,thespecifictargethasshiftedabitovertheyears,segmentingthisbroaddefinitionofSMEs,eitherbynumberofemployeesorrevenue,withthresholdsbetweensegmentssometimesvaryingbygeography.However,SAPBusinessByDesignalwayssharedtheSMEmarketwithSAPBusinessOneatthelowerendandSAPBusinessAll-in-Oneattheupperend.TypicallySAPBusinessByDesignsatinthemiddle,appealingtothoseinsearchofacloud-basedsolution,andyes,therewassomeoverlap.Thetargethasnowevolvedtotargetmid-sizeandfast-growingcompaniesandsubsidiaries(businessunits,divisions)oflargeenterprises.ThesesubsidiariesareoftenSMEsintheirownright,butthefactthattheymustinteroperatewithinalargerenterprisemakesa100%cloudsolutionevenmoreattractive.
ThisproposedmarkettakesthebestadvantageofSAPandSAPBusinessByDesign’sstrengths.Whiletheearlygoalwastosimplify,inrealitymid-sizecompanyneedsarenotthatdifferentfromlargeenterpriseneeds.AndwhounderstandsthoseneedsbetterthanSAP?Mid-sizeenterprisesjustdon’thavethesameresourcestogetthejobdone,whetherthejobisenteringnew,perhapsemergingmarkets,implementingERP,orboth…hencetheneedforsimplicityandlowercost.
LargeenterprisesubsidiariescreateaparticularlysweetspotforSAPBusinessByDesign,especiallyifcorporateheadquartersalreadyrunsSAPERP.Theintegrationandtheabilitytoconsolidatebacktothecorporatelevelcomebuiltin.SAPhasalreadyestablishedafootholdin175ofthese,withSAPBusinessByDesignrunningatsubsidiaries.
TARGETMARKET:SERVICESYetthetargetmarketforSAPBusinessByDesignisnotdefinedentirelybycompanysize.Needsvarybasedonindustryandproductofferingsofpotentialcustomers.Traditionallycompaniesfallintotwodistinctcategories:thosethat
SAP Business ByDesign Business
Scenarios
ü CashandLiquidityManagement
ü CustomerContractManagement
ü CustomerReturnManagement
ü DemandPlanningü ExpenseReimbursementü FieldServiceandRepairü FinancialClosingü FixedAssetManagementü Intra-CompanyStock
Transferü Make-to-Stockü Marketing-to-
Opportunityü Order-to-Cash
(StandardizedServices)ü Order-to-Cash(Project-
BasedServices)ü Order-to-Cash(Sellfrom
Stock)ü Order-to-Cash(Third-
PartyOrderProcessing)ü Order-to-Cash(Specified
Products)ü PayrollServicesü PhysicalInventory
Managementü Procure-to-Pay(Non-
Stock)ü Procure-to-Pay(Services)ü Procure-to-Pay(Stock)ü ProductCatalog
Managementü ProductDefinitionü ProductDevelopmentü ProductEngineeringü ProjectManagementü QualityAssuranceü Request-to-Resolveü ResourceManagementü StrategicSourcingü SupplierReturn
Managementü TimeandLabor
Managementü Workforce
AdministrationandAuthorization
TheThreeDimensionsofSAPBusinessByDesignSettheStageforGrowthPage4of12
make,moveand/orsellphysicalgoodsandthosethatbuildtheirbusinessonprovidingservices.TypicallyERPproductsaredesignedtofocusononeortheother,butnotnecessarilyboth.
Whilethisworkedwellfordecades,todaymanybusinessesareablendofthetwocategories.Manufacturersarequitelikelytoalsoprovideservices,whetherforrepair,consulting,projectmanagementoranyothercomplementaryofferings.Distributorsandevenretailersmayofferlightassemblyorsimilarrepairservices.Whilesomeserviceprovidersmaydelivergoods(documentation,contentonvariousmedia,etc.),allmustdealwithindirectgoods(suchasofficesupplies)andequipment(suchaslaptopsanddesktops).
ThefirstSAPBusinessByDesigncustomerscamefrombothofthesetwodifferentworlds,andhappenedtoberepresentativeoftherealitiesoftoday’schangingbusinessclimate.Itsmanufacturingcustomerswerealsodrawnintoprovidingservices(repair,support,consulting,etc.)anditsservicecustomershandledphysicalgoods,whetherjustinsupportoftheirownbusiness(indirectmaterials)orinshippingmaterials(e.g.fieldrepairservices,documentation,softwareonvariousmedia).
BythetimethedustsettledonthefirstSAPBusinessByDesigncustomers,SAPfounditcouldeffectivelysupportbothcategories,aswellasblendedbusinesses.Whilemanydifferentsolutionswereavailabletomanagethemovementofphysicalgoods,theservicesideofmanybusinesseswasunderserved,resultinginmanualprocessesandmultiple,disparateanddisjointedsolutions.Becauseitaddressedtheseneedsaspartofafullyintegratedsolution,thisbecamesomewhatofanicheforSAPasitactivelywentafterthatbusiness.
Thisisparticularlykeyduringgrowthandexpansion.Evenifyouarepurelyoneortheothertoday,itislikelyyouwillnotbetomorrow.Andasyouextendyourfootprintinternationally,differentlocations(whichifindifferentcountrieswillbedifferentlegalentities)andsubsidiariesmightplaydifferentrolesintheorganization.Youmighthaveasalesandmarketingarminsomelocations,adistributionwarehouseinanother,repairserviceshereandmanufacturingthere.Havingasingleproductthatcanhandlethesedifferenttypesofbusinessesiscertainlyanadvantage,eliminatingtheneedforintegration.
WHAT’SINIT?MintJutrasdefinesERPasanintegratedsuiteofmodulesthatformstheoperationalandtransactionalsystemofrecordofyourbusiness.Itincludesallthemasterdataneededtosupportthefullcyclefromordertocash,includingafullaudittrailofalltransactions.Whilethisisourminimaldefinition,mostcompleteandmodernERPsolutions,includingSAPBusinessByDesign,domuchmorethanthistoday.Besidesthetraditionalfiscaltransactions,SAPhas
Definition of ERP MintJutrasdefinesERPasanintegratedsuiteofmodulesthatformstheoperationalandtransactionalsystemofrecordofyourbusiness.Itincludesallthemasterdataneededtosupportthefullcyclefromordertocash,includingafullaudittrailofalltransactions.Whilethisisourminimaldefinition,mostcompleteandmodernERPsolutions,includingSAPBusinessByDesign,domuchmorethanthistoday.
TheThreeDimensionsofSAPBusinessByDesignSettheStageforGrowthPage5of12
includedsomenot-so-traditionalbusinessscenariossuchasthirdpartyorderprocessingandservice/supportrequest-to-resolve,anditspansallthevariousfunctionalareasofmostbusinesses,includingthoseprovidingservices(seesidebar).
SAPhasalsoleveragedtheknowledgeandexpertiseithasdevelopedandacquiredthroughitsinvestmentsintheunderlyingtechnology.SAP’sstrengthsincludein-memorydatabasesandintegrationcapabilitiesdevelopedinternally,reportingandanalyticsstrengthenedthroughtheBusinessObjectsacquisitionandmobility,bolsteredthroughtheacquisitionofSybase.Allcombined,thishelpsSAPprovideaddedvisibilityaboveandbeyondthetypical“accessanytime,anywhere”aspectofcloud,whetheritisthroughembeddedanalyticsoreasyandpurposefuldirectaccessthroughmobiledevices.
Buttherealvalueofcombiningallthistechnologyinvestmentisinthecreationofaplatformfordevelopmentthatsupportsflexibilityandextensibility.ThefollowingsectionexploresmoredeeplyhowSAPBusinessByDesigndeliversthistosupportgrowth,butfirstitisimportanttorecognizewhygrowingcompaniesneedboth.
Afastgrowingcompanyneedsto“rightsize”itssolutionateverystageofgrowth.Inthebeginning,andthroughoutthesedifferentstages,itneedstogetupandrunningquicklywithminimaldisruption.Thatmeansitneedstosatisfycurrentneedswithoutover-reaching.Thereisnoneedtobuildinaddedcomplexityinanticipationofpotentialrequirements.Andyet,implementingasolutionthatyoumayoutgrowveryquicklyisjustasrisky.Asolutionthatallowsyoutostartwithwhatyouneednowandaddmoreasyouneedit,whenyouneedit,whereyouneedit,isawisechoice.
HOWDOESSAPBUSINESSByDESIGNENABLEGROWTH?
Bynowitshouldbeclearthat,inordertoenablegrowth,asolutionmustbebroad(intermsoffunctionality),flexibleandextensible.WehavealsoseenhowcloudERPcanbeanimportantenablerofgrowth.SAPattackstheserequirementswithamodernandmodulararchitecturethatwasborninthecloud.ItdeliversanextgenerationuserexperiencethatcontinuestoevolveandabusinessconfiguratorthathasbecomethegoldstandardwithinSAP,helpingorganizationsadaptastheygrowandchange.Andfinally,itembedsreportingandanalyticsrightintheapplicationitselfsothatcontinualoversightandanalysisdoesnotbecomeanafterthought.
ARCHITECTURESAPBusinessByDesignismodularbydesign.Thisshouldnotbeconfusedwithsimplybeingcomprisedofasetofmodules.Bydefinition,anyERPsolutionisanintegratedsuiteofmodules.Itishowmodulesarecoupledtogether,orin
Functional Areas Covered by SAP
Business ByDesign
ü ProjectManagementüManufacturingü SupplierRelationshipManagement
ü SupplyChainManagement
ü CustomerRelationshipManagement
ü FinancialsüManagementReporting
üHumanResourceManagement
Afastgrowingcompanyneedsto“rightsize”itssolutionateverystageofgrowth….Asolutionthatallowsyoutostartwithwhatyouneednowandaddmoreasyouneedit,whenyouneedit,whereyouneedit,isawisechoice.
TheThreeDimensionsofSAPBusinessByDesignSettheStageforGrowthPage6of12
thecaseofSAPBusinessByDesign,howtheyaredecoupled,thatmakesasolutionflexibleorrigid.Mostmid-sizetolargeenterprisestodaynolongergrowtobelarge,monolithicenterprises.Theygrowmodularly,spawningnewdivisionsorsubsidiariestoexpandtoaddressnewproducts,productlinesorterritories.Butthesedifferentbusinessunitsmustinteroperatesmoothlyandseamlessly,makingobsoletethoselegacyERPsolutionsthatweresimilarlydesignedasrigidandmonolithic.
OneoftheguidingprinciplesofthedesignofSAPBusinessByDesignisdecoupling.Thisdecouplingisdeliveredinavarietyofways.Businesslogicisdecoupledfromtheuserinterface,allowingforeaseoftranslationandalsothereuseoflogicandservicesacrossanynumberofdifferenttypesofinterfaces.Thesametransactionscanbetriggeredwhetheryouareusingtheproductthroughabrowseronadesktop,amobileapplicationornouserinterfaceatall.Throughprocessautomation,sometimesthebestuserinterfaceisnointerface.
Inaddition,thesoftwaremodulesthemselvesareessentiallydecoupled.Insteadofhard-codedlogic,communicationbetweendifferentmodulesismessage-based.Thismakesitfareasiertoaddorswapmodulesandbusinessscenariosasneededoreventoconsumeinnovation.Witharigidmonolithicsolution,theentireenterpriseneedstomarchforwardtogether,oftentimesmakingsomedepartmentswaitformuchneededenhancementsbecauseotherpartsofthebusinessaren’treadyforchange.
Whilethereisalotofvaluetobegainedfromthistypeofdecoupling,thereisoneareawhereembeddingfunctionalityaddsmorethanitdetractsinvalue.Ifreportingandanalyticsarecompletelyseparate,theyoftenbecomeanafterthought,somethingtheimplementationteamneverquitegetsaroundtodelivering.Andeveniftheydo,ifdeliveredasanentirelyseparatefunction,theyareoftenoutofsightandoutofmind.
Separatingreportingandanalyticsisoftenrequiredinordertopreserveorimproveperformance,hencetheemergenceofsolutionsforonlineanalyticalprocessing(OLAP)separatefromonlinetransactionprocessing(OLTP).However,fromthebeginning,SAPBusinessByDesignwasbuiltusinganin-memorydatabasethatremovesthoseperformanceissuesandallowedSAPtoembedanalyticalcapabilitieswithinthesolution.Inadditiontobringingthisanalysisfrontandcenter,italsoprovidesrealtimeaccessfromawidevarietyofdatasources,includingdatafromsistercompaniesorheadquarters,eliminatingdelaysandspeedingdecisions.Thespeedandcapacityofin-memoryalsoremovestheneedtolimittheamountorgranularityofdataneededtohelpdeterminewhereandhowtoinvestnext.Insteadofusingaggregatedsummarydatathatmightbemisleading,SAPBusinessByDesignuserscandiveintoalevelofdetailthatwouldbeunmanageableandunimaginableusinglegacyarchitectures.
Mostmid-sizetolargeenterprisestodaynolongergrowtobelarge,monolithicenterprises.Theygrowmodularly,spawningnewdivisionsorsubsidiariestoexpandtoaddressnewproducts,productlinesorterritories.Butthesedifferentbusinessunitsmustinteroperatesmoothlyandseamlessly,makingobsoletethoselegacyERPsolutionsthatweresimilarlydesignedasrigidandmonolithic.
TheThreeDimensionsofSAPBusinessByDesignSettheStageforGrowthPage7of12
NEWGENERATIONUSEREXPERIENCEInCloudERP:TheGreatEnablerofGrowthwetalkedaboutthepeoplechallengesassociatedwithgrowth.NewgenerationsofERP,deliveredthroughthecloudcanhelpalleviatesomeofthesechallenges.ButMintJutrasresearchfindsthat“easeofuse”meansmorethanjustaprettyface.Easeofuseisfirstandforemostaboutefficiency,whichnotonlyrequiresauserinterfacethatisintuitive,butalsoprocessesthatalignwiththewaybusinessreallyworks-businessscenariosthatmaximizeefficiencyandminimizetimetocompletetasks.
OfcoursetherealproofthatSAPBusinessByDesigndeliversonthesepromisescomeswithademonstration,butSAP’sdesignmethodologyisconducivetosupportingboth.Whendesigningabusinessscenario,SAPdesignersgoonsite,observingthewaypeopleworkandinteract.Theirdesignsarebasedontheseobservationsandthenvalidated,typicallyinmultiplecountries(China,India,GermanyandtheUnitedStates)beforebeingincorporatedintotheproduct.
Theresultofthismethodologyhasbeenanemphasisonthehumanengineeringoftheprocess.Eachindividualworksfromapersonalizedhomepage,whichcombinesfunctionsfromwithinSAPBusinessByDesignwithotherfunctions(e.g.email,calendars,maps,etc.)andapowerfulenterprisesearchcapability(thinkofitasaGoogle-likesearchthroughoutyourenterprisedata).Businessprocessesaremademoreefficientastasksarepushedtousers.Throughout,thereisathemeofsimplicityandpersonalization.
BUSINESSCONFIGURATIONPersonalizationwithinSAPBusinessByDesignisachievedthrougha“BusinessConfigurator”thattakesadvantageofthepre-definedbusinessscenariosdiscussedearlierandarules-basedcatalog.Togetherthesealloweachcustomertotailorthesolutiontospecificneedsbyinteractinginbusinesslanguage,notcodeandwithoutinvasivecustomization.Thesebusinessscenariosmaptheworkflowofabusinessprocessthroughthevariousfunctionsofthesolution.Selectingapre-definedscenarioautomaticallyselectsallthefunctionsnecessaryduringinitialimplementation.Customerscanthenselectivelyfine-tunethesettingsimmediatelyorasbusinessconditionschange.
Thistypeofconfigurationtoolisparticularlyimportantascompaniesexpandintonewlocations,eitherthroughorganicgrowthoracquisition.CloudERP:TheGreatEnablerofGrowthadvisedgrowingcompaniestoestablishstandardstoensureahighlevelofgovernanceandcontrolwhilegrowing.Itspecificallynoted:
“WhatbetterwaytoenforcethesestandardsthanbyrollingthemoutthroughastandardimplementationtemplateofaSaaSsolutionthatis
Data Source InthisreportMintJutrasreferencesdatacollectedfromits2016(andprior)EnterpriseSolutionStudies,whichareusedtoinvestigatethegoals,challengesandstatusandalsotobenchmarkperformanceofimplementationsofsoftwareusedtorunbusinesses.
The2016studycollectedresponsesfrom~525participantsfromcompaniesofallsizesfromverysmalltoverylarge,representingawiderangeofindustries.
TheThreeDimensionsofSAPBusinessByDesignSettheStageforGrowthPage8of12
definedandmanagedcentrally?Acloudsolutionaidsbothoperationalandfinancialleadersinimplementingstandardcross-organizationalbusinessprocessesmoreeffectively.Lookforasolutionwithindustrybestpracticesbuiltin,tailorthemforyourcorporationandusethesebestpracticesasablueprintforgrowth.”
ThecombinationoftheSAPBusinessByDesignbusinessconfigurator,pre-definedbusinessscenariosandalibraryofbusinessrulesenablethistypeofstandardization.Customersneedonlytosupplycompany-specificdata,includingassignmentsoftasks,tosupporta“pushapproach”withinanorganizationalstructure.Bypushingtaskstoanindividual,processescontinueuninterrupted,makingthemostefficientuseofthatperson’stime.Nothingfallsthroughthecracks.
ORGANIZATIONSTRUCTURESAPBusinessByDesignallowsgrowingcompaniestomaintainasingleorganizationstructurethatdefinesrelationshipsbetweenalllegalentitiesbothfromafinancialconsolidationstandpointaswellasanorganizational(reporting)pointofview.Asenterprisesmatureandgrowbothofthesetendtoshiftandchange.
Legacysolutionsoftenrequirethesedifferentstructurestobemaintainedseparatelybybusinessunit,embeddingtheenterprisestructurewithinthegeneralledgeraccount,makingmaintenanceclumsyandanytypeofchangedifficult.Onceestablished,changingthestructureofthechartofaccountsisnexttoimpossible.Inlegacysystemspersonnelreportingstructureswerelikelytobedefinedinacompletelyseparatesolution,iftheywererecordedatall.Thesetwoareoftennotalignedidenticallyandthiscausesproblemsinmanagingperformancewhilemaintaininggovernanceandcontrol.
Takeyoursalesorganizationforexample.Salesisoftenmanagedasaglobalorganization,yetsalariesarepaidandrevenueisaccruedbycountryanddifferentcountriesmeanseparatelegalentities.Salesrepresentativesarepartofbothalegalentityandaglobalsalesorganizationthatspansmultipleentities.Pipelineandquotasmaybedeterminedinanentirelydifferentway,byinternal,externalorglobalsalesand/orperhapsbyproductlines.Wherecanyougetafullpictureofperformancefromanyorallperspectives?
SAPBusinessByDesignprovidestheflexibilitytostructureallofthisonce,inawaythatmakesmostsense,notinthewaydictatedbyyourERP.
WhileMintJutrasfindsthattodaymostcompaniesestablishcorporatestandardsforERP,oftenthisisatwotierstandard.Ourresearchfindsalmosthalf(44%)ofmulti-locationcompaniesuseadifferentERPatsubsidiariesorotheroperatinglocationsthantheERPusedatcorporateheadquarters(HQ).BecauseofSAP’sdominanceinthelargeenterprise,corporateisquitelikelytohaveSAPERPatHQ.ForthoserunningSAPBusinessByDesignatsubsidiaries,
SAPBusinessByDesignallowsgrowingcompaniestomaintainasingleorganizationstructurethatdefinesrelationshipsbetweenalllegalentitiesbothfromafinancialconsolidationstandpointaswellasanorganizational(reporting)pointofview.Asenterprisesmatureandgrowbothofthesetendtoshiftandchange.
TheThreeDimensionsofSAPBusinessByDesignSettheStageforGrowthPage9of12
theprocessoffinancialconsolidationtoSAPERP(runningatcorporateHQ)isverysimple.Thismakesa360oviewofyourentireenterpriseavailablefrommanydifferentangles.
EMBEDDEDANALYTICSOftencompanieslooktoreportingcapabilitieswithintheirERPsolutionsforthis360oviewandtraditionalreportinghaslongbeenanecessarytoolformanagingoperationalperformance.Yetinmanaginggrowth,youneedtolookbeyondcurrentoperationsandanalyzethepotentialofgrowthopportunities.Forthisyouneedanalytics.MostERPimplementationstodaydon’tadequatelydelivereitherbecauseERPhaslonghadthereputationforbeingeasiertogetdataintothandecisionsoutof.
StandardreportingisneverexactlywhatdecisionmakerswantandneedandtheyoftentireofwaitingfortheITstafftomakemodificationsordelivernewreports.Andwhenmakingmorestrategicdecisionsaboutgrowth,theyneedtoaskalotofquestionsandtheprocessisveryiterative.Yetitisveryhardtoknowwheretostartandwhatquestionstoask.
Companiesaresittingonamountainofdata,makingitdifficulttoprocessthroughitveryquicklyinordertodiscernwhichkeyperformanceindicators(KPIs)willbemostindicativeoffutureperformance.Afterall,theycan’tlookateverydetail.Sodecisionmakerssettleforaggregatesummarydatainsteadoftherealdetailtheyneed.Andtheyputtherequestforanalyticsonthebackburnerwhiletheyfighttheoperationalfires.Thisisparticularlytrueofmid-sizecompaniesstrugglingwiththesamekindofdecisionsaslargeenterprises,butwithoutthedeeppocketsandlargestaffstoaddressthemspecifically.
ThisiswhySAPBusinessByDesignembedsanalyticsdirectlyintothebusinessscenarios.WhileotherERPvendorspartnerwithbusinessintelligence(BI)andanalyticssolutionprovidersorstruggletodevelopthesetypesoftoolsthemselves,theacquisitionofBusinessObjectsbackin2007putSAPinaverystrongpositiontodelivernotonlytheBIcapabilitiesthathavebeenthetoolsofthetradefortheITstaff,butalsothetypeoftoolsbusinessusershavelongneeded.
Theanalyticsarebrowser-basedandavailableonmobiledevices,completewithalertsthatcanbesentinrealtime.SAPmakesextensiveuseofdashboards,whichbusinessuserscancreateorpersonalizeforthemselves.ButSAPdidn’tturnitsbackonbusinessusers’almostuniversalloveforspreadsheets.OfflineanalysisusingMicrosoftExcelisstillpossible.
Companiesaresittingonamountainofdata,makingitdifficulttoprocessthroughitveryquicklyinordertodiscernKPIswillbemostindicativeoffutureperformance.Afterall,theycan’tlookateverydetail…Orcanthey?
TheThreeDimensionsofSAPBusinessByDesignSettheStageforGrowthPage10of12
FEATURE/FUNCTION:GROWTHMAYREQUIREMOVINGBEYONDERPFUNCTIONALITY
ThegrowthanddevelopmentofSAPBusinessByDesignhasfollowedapaththatmodelsthegrowthandexpansionofabusiness.AndsometimesthismeansneedingsomethingwellbeyondthetraditionalscopeofERPquiteearlyon.Itisnotjustverylargeenterprisesthatfacethischallenge.Asyouexpandintonewcountriesandtransformyourbusinessintoa“blended”business,yourneedswillvaryateach(new)location.Herearesomeexamplesofhowyourbusinessmayexpandandgrow…andhowSAPBusinessByDesigncanadapt.
EXPANDSALESINTONEW(EMERGING)MARKETSLet’ssayyouarelookingtoexpandyourmarketintonewterritoriesbyopeninganewsalesoffice.You’llneedtosupportthebusinessscenariofrommarketingtoopportunity.Youwillneedtoconvertquotestoordersandthenperhapsmanagetheorder-to-cashcycleorsendthoseorderstocorporateortoothersistersubsidiariesinordertodeliver.
Ifyouaredeliveringservicesyoumaybedeliveringservicesfromagloballydistributedteam.Ifyouaresellinggoods,youmaybecreatingdemandforadistributionfacilityorevenamanufacturingsite.Youareinvolvedinthefrontandbackend,butalsoneedvisibilityintothemiddleoftheorder-to-cashcycleinordertostayclosetoyourcustomer.Thecombinationofbusinessscenariosyoumayneedisvirtuallyendlessdependingonthetypeofproductorprojectyoudeliverandtheglobaldistributionofresources.ApartiallistofSAPBusinessByDesignbusinessscenariosthatmayberequiredisshowninthesidebar.
RESEARCHPerhapsyouhaveasubsidiarydedicatedtoresearch.Humanresourcemanagementandprojectmanagementwillbeattheheartofyouroperations.Timeandlabormanagementandworkforceadministrationandauthorizationbusinessscenarioswilllikelybedeployed.
FIELDSERVICEOPERATIONSIfyousell,supportandrepairaphysicalproduct,youmayorganizerepairthroughdepotrepairandreturn,oryoumighthaverepairfacilitiesdistributedaroundtheworldforon-siterepair.Youwillneedfieldserviceandrepair,customerreturnmanagement,order-to-cash(forstandardizedorproject-basedservices),timeandexpensemanagement,eitherprocure-to-payorinter-companystocktransfersaswellastimeandlabormanagement–allbusinessscenariosbuiltintoSAPBusinessByDesign.
Business Scenarios– New Sales Office
ThefollowingBusinessScenariosdeliveredbySAPBusinessByDesignmayberequired:
üMarketingtoOpportunity
ü CustomerContractManagement
üDemandPlanningüOrdertoCashü ProcuretoPayü ProductCatalogManagement
ü StrategicSourcingü ProjectManagementüOthers….
TheThreeDimensionsofSAPBusinessByDesignSettheStageforGrowthPage11of12
MANUFACTURINGManufacturingrequiresallthestandardsupplychainoperationsfromdemandplanningandstrategicsourcing,procure-to-pay,physicalinventorymanagementandmake-to-stockscenarios.Plusyoucan’tforgettheorder-to-cashcycle,resource,timeandlabormanagement.
Thereaderwillnoticethatwehavenotreferencedthetraditional“modules”ofERPsuchasordermanagement,inventorycontrol,accountspayable,accountsreceivable,etc.Bychoosingthebusinessscenariosthatarethebestfittomodelyourbusiness,theSAPBusinessByDesignbusinessconfiguratorwillactivatethemodulesneededtosupportyourbusinessprocesses.Andofcourse,asa100%cloud-basedsolution,thosemodulesareallrighttheretobeused,ornot,asneeded.
GOODGROWTHISPROFITABLEGROWTH
Throughout,whetherlookingatsubsidiariesorthecorporatewhole,youwillneedtomanagecashandliquidity,payrollservices,qualityassuranceandthefinancialclose.Forthisyouneedvisibility,deliveredbySAPBusinessByDesign’sembeddedanalytics.Andyouwillneedaconsolidatedviewacrossthesepotentiallydifferentbusinesseswithinthebusiness.Youcan’trunasalesandmarketingteamlikeaserviceandrepairfacility.Andyoucan’trunafieldserviceoperationidenticallytoamanufacturingoperation.Yetallthesehaveacommonthreadofmasterdata(customer,products,parts,employees)andneedtobeconsolidatedatHQ.
Ofcourseyouwanttosatisfytheindividualneedsofthedifferenttypesofbusinesseswithinabusiness,butyoualsodon’twanttobetryingtocobbletogetheraunifiedviewfromdisparatesystems.ThisistheadvantageofSAPBusinessByDesign’sapproachofasingle,multi-purposesolution–providingitreallycanmeettheindividualneedsofthedifferentfunctions.Duringyourevaluationprocess,lookcarefullyatthosebusinessscenariosdeliveredwiththestandardsolution.Thesewillprovidethebaseofoperationofeachfacetofyourbusinessandthoseoperationsmayvaryandchangewithgrowth.
SUMMARYANDKEYTAKE-AWAYS
CloudERPisindeedagreatenablerofgrowthformid-sizecompanies,particularlythoselookingtotakeboldstepsinarapidlychangingbusinessclimate.ItisclearthatSAPhastakentheneedsofthesemid-sizecompaniesseriously,particularlythosethatarefastgrowing.Keepinginlinewithitscurrentmantraof“RunSimple,”SAPBusinessByDesigncanindeedhelpsimplifythegrowthprocessthroughitsthree-dimensionaldesignphilosophyincorporatingsimplicity,flexibilityandextensibility.
Bychoosingthebusinessscenariosthatarethebestfittomodelyourbusiness,theSAPBusinessByDesignbusinessconfiguratorwillactivatethemodulesneededtosupportyourbusinessprocesses.
TheThreeDimensionsofSAPBusinessByDesignSettheStageforGrowthPage12of12
Keyfactorsandthereforekeytakeawaysinclude:
• A“startover”approachthatkeepsthedesignanddevelopmentcleanandclear,butisabletodrawextensivelyfromSAP’svastexperienceandtechnologyinnovation
• AbusinessconfiguratorthathasbecomethegoldstandardwithinSAPforadaptingandpersonalizingthesolutionwithoutinvasivecodechangesorlock-in
• Theabilitytomaintainasingleorganizationstructurethatdefinestherelationshipsbetweenbusinessunits,locationsorsubsidiariesandalsoflexiblydefinesreportingstructuresthatmaycrosslegalentityboundaries
• Pre-definedbusinessscenariosthatallowentirecompaniesornewsubsidiariestogetoutofthegatefast,butwiththeflexibilitytoadapttochange
• Functionalitythatcreatesanend-to-endsolutionforavarietyofdifferentbusinessmodelsformanufacturedgoodsandservices,orablendedbusinessofboth
• Anextgenerationuserexperiencethatmakesextensiveuseofdashboardsandembeddedanalytics,whetheronadesktop,laptoporanymobiledevice
Formid-sizecompanieslookingtotakefulladvantageofunprecedentedgrowthopportunities,anyoldERPisnotenough.Ifyouareinsearchofacloud-basedERPsolutionthatcanhelpyougrowandgrowquickly,SAPBusinessByDesigndefinitelydeservesconsideration.
Abouttheauthor:CindyJutrasisawidelyrecognizedexpertinanalyzingtheimpactofenterpriseapplicationsonbusinessperformance.Utilizingover40yearsofcorporateexperienceandspecificexpertiseinmanufacturing,supplychain,customerserviceandbusinessperformancemanagement,Cindyhasspentthepast10+yearsbenchmarkingtheperformanceofsoftwaresolutionsinthecontextofthebusinessbenefitsoftechnology.In2011CindyfoundedMintJutrasLLC(www.mintjutras.com),specializinginanalyzingandcommunicatingthebusinessvalueenterpriseapplicationsbringtotheenterprise.