Written by Axel Buelow, Interim CIO – SAP AG
By setting up the SAP HANA Enterprise Cloud, SAP is offering customers a Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). However, Software as a Service (SaaS) is also a growing and compelling trend. I’d like to talk about the many ways SAP also provides SaaS internally, particularly in the areas of HCM, finance, procurement, sales and social collaboration.
In order to offer business processes successfully in the cloud at SAP, we first aimed at processes that either were decoupled from other processes, loosely coupled via single interfaces or those where integration was already in place. With these criteria in mind, we were able to find a number of opportunities where we could offer Software as a Service for SAP employees.
In terms of HCM, we now have several processes that we run in the cloud with SuccessFactors, from Talent and Compensation Management to People Development and Succession Planning. We plan to add Recruitment and Learning to our HCM cloud portfolio shortly, and will continue to move further processes into the cloud.
In the area of Finance, we are live on SAP Cloud for Travel, where employees can enter their travel costs and receipts for reimbursement – either via their laptops, their mobile devices or simply at their desktops.
We already have some key Ariba procurement scenarios live in the cloud – Ariba Supplier Information and Performance Management, Ariba Procurement Content, Ariba Sourcing and Ariba Collaborative Commerce (Connectivity to
In terms of SAP Cloud for Customer, we follow the hybrid strategy, with CRM on HANA as the backend. To support better user adoption, we have now made it available via mobile, so that account executives can use it to manage their sales opportunities while on the road.
At SAP, we offer an internal social collaboration platform with SAP Jam. This helps us to respond to internal demand and communications requirements as the organization becomes more and more social. We have implemented SAP Jam across SAP and will develop its capabilities further with additional apps and functionality, as well as integration to other applications.
One motivation to pursue SaaS is the positive impact on operations. For example, in Q1 2013, traditionally a peak period for performance reviews, we saw a 35% reduction in tickets for those processes running on demand.
SaaS offers us the opportunity to standardize processes, as with a cloud solution there is no need for customization to match regional flavors. This means we no longer require a long roll-out cycle, with specific country requirements and instead we are able to deploy software instantly to a global user group. We see that this offers an instant cost benefit, especially as software developers are no longer required to do costly customization.
By focusing on supporting processes in the process landscape, instead of those at the core of the value chain, we can gather experience with SaaS and then use our experience to address our core processes.
From my perspective, the benefits of SaaS will outweigh related concerns going forward (see the link below to a post on cloud security). This is a trend that is not only compelling, but is inescapable. We can’t ignore the fact that the majority of today’s software is being built to match the SaaS model, and our role is to prepare our organizations for the transition. The role of IT will continue to change, as the IT team starts to focus on processes and offers internal consulting rather than internal programming. I have talked before about the need for IT and the business to collaborate and this will be essential when switching to SaaS.
Security will also be the watchword, as it is clear that when implementing standard software across geographies; there will be different requirements for different countries. For example, EU countries cannot allow data to reside in APJ. This is a vital aspect of the SaaS transition, and IT will have to assist the business in negotiating the data specifics of different countries.
The transition to SaaS means a major transition for IT too – instead of doing it all from implementing to programming, IT will now manage different partnerships with third parties, working together on security, business processes and infrastructure to ensure the successful deployment of on demand software in the corporation.
SAPPHIRE NOW 2013/Session #64983
For SAP, there is no mission more critical than satisfying customers. So when the company decided to move its SAP CRM application onto SAP HANA, it was not a decision that was made lightly. At this SAPPHIRE NOW 2013 theater presentation, Axel Buelow described the impact of SAP CRM on SAP HANA – and the implementation process that has made it an unqualified success.
A New World
Axel began by putting the new application into context, including such megatrends as the increasing need for pervasive access, the rapid accumulation of “Big Data,” the move toward “global-class” delivery through the cloud, and the emergence of a generation that was raised on social media.
Customers, he said, look to SAP for innovation and inspiration. And SAP CRM on SAP HANA illustrates SAP’s ability to deliver.
Bringing Innovation to Life
“SAP Runs SAP is bringing innovation to life with 100 projects and five percent of the project portfolio,” Axel said. “Our job is to assess, evaluate, and prototype new components to see what value they bring.”
Axel also described SAP’s internal roadmap for the adoption of SAP CRM on SAP HANA, which included side-by-side operations for functions such as the SAP sales pipeline.
After a migration period of two and a half months, SAP CRM went live on SAP HANA in March, 2013. Today, Axel reported, “SAP CRM on SAP HANA supports 15,000 business users – including up to 10,000 users per day.
“It was a ‘big bang’ implementation,” he added, “reaching all users in all geographies. Our search performance improved by a factor of 250.”
Early in the process, Axel said, “There was a lot of concern in the area of custom code. But in the end, we had to adjust less than five percent of the custom code.”
New Business Scenarios
Axel cited examples of how SAP CRM on SAP HANA enables new business scenarios, including:
The Roadmap Continues
Axel closed by discussing SAP’s future plans, which include leveraging SAP HANA for receivables management; fraud management for governance, risk, and compliance (GRC); and procurement.
Most significantly, Axel said, “We will continue by moving SAP ERP to SAP HANA in August, with 50,000 to 60,000 users.
“Our roadmap,” he concluded, “is not at an end yet.”
Author: Bill Kozel
Find out how Global IT was able to provide HANA analytics to several thousand users in this blog by Dirk Pluschke from the SAP Runs SAP team.
Read the blog here.
“You might have read the news: SAP’s own CRM system now runs productively on the SAP HANA platform and the earlier blogs SAP Runs SAP CRM on HANA & How to Migrate a Productive CRM System to the SAP HANA™ Platform. In this blog [by Meenakshi Sundaram P], you will learn how SAP’s IT organization managed to plan & execute Performance Testing for one of the world’s largest CRM systems to the SAP HANA platform in only 2.5 months.”
Peter Boegler, IT Solution Architect, explains how SAP’s IT organization managed to migrate one of the world’s largest CRM systems to the SAP HANA platform in only 2.5 months in this blog.
Click here for the full story.
Written by Axel Buelow, SVP & Head of Application Services
Innovation without disruption – We did it!
On March 4, SAP went live with SAP CRM on HANA after a two and a half month implementation project. Key for us was to ensure that SAP’s 14,000 business users did not experience any disruption.
However, we are now live with one of the biggest projects on HANA across the globe, supporting daily peaks of 9,000 concurrent users and one billion SQL statements per day. We are live in 70 countries, 251 locations – and all on a single global business system instance of SAP CRM.
And, as program sponsor, I can safely say that we achieved this without disruption to the business. Here’s an overview of some of the steps we took to ensure this:
First of all, to keep our CRM processes running, we started in a prototype environment. We kept our custom code, our applications and our transportation mechanisms above the database layer, and so were able to protect their integrity.
The software upgrade to CRM 7.12 / NW 7.40 took us about two weeks – much the same as a standard enhancement pack upgrade. We had no issues here. For the following migration we held many rehearsals and thus our team gained a very good understanding of the migration process itself and optimized the overall downtime, which was over an extended weekend.
Many customers are concerned about their custom code. We were certainly concerned about ours, as we knew we had areas with lots of custom code.Using the code scans offered by SAP’s AGS services, we were able to identify which custom code objects needed adaption – and we adapted them in less than a week. This was entirely manageable.
As the first customer on CRM on HANA, we made sure we did extra testing. Using our testing procedures, we found relevant topics and fixed them in time. We also tested with a load profile that reflected the load pattern of our productive system including batch jobs. Finally, we were able to show major database time improvement on many of the top business scenarios, such as in our call center environment which will pay off in better customer experience.
We would not have been able to go live without our disaster recovery approach. Since HANA is a new technology, we wanted to have the same level of confidence on our hardware failover scenario that we had in place prior to the migration.
Now, nearly three weeks since the go-live, we approach our first quarter end closing period.
(This is the first in series of blog posts on the SAP CRM on HANA go-live. The second post will talk about our collaboration and teamwork across the lines of business as well as within the IT organization and in the third, I’ll deal with the business and costs benefits of CRM on HANA.)
Oliver Bussmann spoke to Fran Foo from The Australian about SAP HANA and real-time data. Read the article in full here.
This is my very first SAPPHIRE NOW and SAP TechEd and I want to take you with me.
My name is Anita Riegel, and I am the editor-in-chief of the SAP Runs SAP blog. I’m also a gadget geek. I’m armed with my iPad, BlackBerry, and laptop (OK, so I am old school too), and I am not afraid to use them.
I am writing this post on my laptop (as I said, old school) whilst on the plane from Frankfurt to Madrid. Only a curtain divides me from the business-class passengers and their free food. (I had to pay for mine.) I thought I would make the most of my time on the plane and read through some SAPPHIRE NOW and SAP TechEd material to see what Global IT has planned in our SAP Runs SAP floor space.
My first reaction is “WOW”. I know I often claim that SAP Global IT has a packed SAP Runs Run agenda, but I ain’t kidding, it’s bursting at the seams. SAP Global IT is very well represented with a variety of experts, and thanks to our colleagues within the Global IT events team (who always manage to rock the house with their efficiency), our Global IT evangelists will be available and accessible throughout the show.
What does analytics look like on BW powered by HANA