SAP Customers are diving into the world of SAP BTP (Business Technology Platform) to supercharge their RISE transformation. But waiting for its completion to start innovating? Old school! Imagine redefining the whole idea of innovation and transformation.
Think of it as a tech dance where McKinsey's Two-Speed IT and Gartner's Pace Layer Model join forces. McKinsey talks about stability (like S/4HANA) and agility (hello, SAP BTP). Gartner layers systems: core (S/4HANA), customizations, and innovation (cue SAP BTP).
Now, practically speaking: SAP BTP is a turbo booster for short-term innovation, bringing rapid prototypes, integrations, and custom apps to the table. Tools for analytics, AI, IoT? Yep, they're in the mix, helping businesses adapt on the fly.
But guess what? SAP BTP isn't just about integration anymore. It’s the epicenter for innovation, even before you've migrated all your SAP data. It's got prebuilt content, APIs, and AI-driven magic for those on Non-SAP backends or in hybrid modes.
It’s the 'Infinity model' in action! It’s this epic blend of short-term sparkles of innovation and long-term ERP transformation. It’s like a dance between agile BTP innovations and the rock-solid ERP backbone, creating a power-packed duo.
This isn’t about installing systems; it’s about unleashing everyone's innovation potential across the organization and the supply chain, minus the tech hurdles. It's about making innovation a core business process, not a one-time gig.
Why does this matter? Fast innovation = better business performance. Picture happy customers, a rockstar brand, and a magnet for top talent. And here’s the kicker: SAP’s Business AI? It’s all about embedding smart AI into business processes.
Let me explain a bit more. McKinsey's Two-Speed IT theory and Gartner's Pace Layer Model offer valuable frameworks for managing technology landscapes and innovation. When applied to SAP Business Technology Platform (BTP) within an S/4HANA project, they provide a structured approach for balancing short-term innovation with long-term transformation.
The Two-Speed IT concept emphasizes the need for two distinct approaches to IT: one focused on stability and reliability (the 'core' or 'backbone' systems like S/4HANA) and the other on agility and innovation (the 'edge' or 'front-end' systems like SAP BTP). In this context, S/4HANA represents the stable core providing essential business functions, while SAP BTP acts as the agile layer enabling rapid innovation and flexibility.
Gartner's Pace Layer Model complements this by categorizing applications and technologies into different layers based on their rate of change. The model identifies three layers: the 'Systems of Record' (such as S/4HANA, serving as the core transactional system), the 'Systems of Differentiation' (which include customizations or extensions to the core), and the 'Systems of Innovation' (like SAP BTP, fostering rapid experimentation and innovation).
For an S/4HANA project, leveraging SAP BTP aligns with these models by facilitating short-term innovation through its capabilities for rapid prototyping, integration, and development of custom applications. The BTP's tools for analytics, AI, IoT, and other emerging technologies allow businesses to experiment and iterate quickly, addressing immediate needs and market changes. Moreover, SAP BTP's compatibility with S/4HANA supports long-term transformation. It enables seamless integration and extension of S/4HANA functionalities while ensuring the stability and reliability of the core system. This integration facilitates the gradual evolution of the core system (S/4HANA) by accommodating innovative features developed on the BTP without disrupting essential business operations.
However, that’s so last season.
The shift towards a composable architecture within SAP ERP, specifically SAP S/4HANA, has propelled SAP Business Technology Platform (BTP) into a pivotal role. With functionalities transitioning into apps on BTP, it has become a launchpad for rapid short-term innovations. These apps, built on BTP, facilitate quick and targeted solutions, addressing immediate business needs.
Simultaneously, this evolution marks a broader transformational journey. As more functionalities find their home on BTP, it lays the groundwork for long-term digital transformation. The platform's expanding ecosystem of apps fosters a culture of adaptability, allowing businesses to seamlessly integrate new functionalities, scale operations, and architect their digital future.
SAP BTP's dual role as an innovation accelerator for immediate needs and a catalyst for sustained transformation signifies its pivotal position in driving the agility and evolution of modern ERP solutions.
The collection of apps on BTP that support this composable architecture can be found here.
Where BTP has evolved into, is the unique ability to combine Two Speed IT and Pace Layering but provide early intervention for innovation, into an infinity model. No longer do customers with S/4HANA projects need to look at SAP BTP as a platform for integration and analytics alone that can be leveraged only when all the SAP Data is in place or are migrated. BTP provides a plethora of prebuilt content, libraries of APIs, BOTs and analytical models and content all driven by AI that can be leveraged while one is with a NON SAP backend, on ECC or on Hybrid mode.
The "Infinity model" within SAP BTP embodies a strategic approach that harmonizes short-term innovation and long-term ERP transformation, fostering a symbiotic relationship between them. It emphasizes the interplay between agile, experimental innovations facilitated by the flexibility of SAP BTP and the comprehensive, evolving ERP transformation efforts. This model is uniquely tailored to capitalize on emerging trends in composable ERP and SAP's business AI, ensuring that short-term innovations inform and enrich the ongoing ERP transformation, while the robustness of ERP provides a stable platform for scaling successful innovations and integrating cutting-edge AI capabilities.
Its not about installing a new system, it's about unleashing the ability of everybody in the organization ( and beyond, deep into the supply chain) to innovate in their area of expertise, without IT and technology being a bottleneck. With the right user authentications, security and workflow in place.
And it's about turning business innovation into a core business process itself, so that you're always learning and improving, and going faster – rather than innovation being a series of one-off, manual initiatives.
Research shows that organizations that are able to innovate faster with software are able to turn that into better business performance, and they score higher on all the key metrics that you care most about, such as customer satisfaction, brand perception, and talent management.
Additionally, within this infinity model, with Business AI, SAP focuses on embedding AI that is relevant, reliable and responsible by design. This is achieved by Combining the power of generative AI with the context of your business data and processes that only SAP Can do. For example creating compelling job descriptions and interview questions and helping hiring managers attract top talent by generate interview questions tailored to the candidate and the role.
For a Consumer Packaged Goods (CPG) or Retail customer, SAP BTP allows short-term innovation by swiftly deploying customer engagement apps (developed through the Extension Suite) that offer personalized experiences. Simultaneously, it supports long-term transformation by integrating supply chain analytics (leveraging Analytics Cloud) into their ERP for data-driven decision-making and predictive demand analysis.
For a manufacturing customer or wholesale customer, SAP BTP facilitates immediate innovation by deploying IoT-connected production monitoring apps (via the Extension Suite) for real-time insights. In the long term, it aids transformation by utilizing AI & ML Services to optimize predictive maintenance and quality control, ensuring efficiency and product excellence or automate supply chain logistics, improving efficiency and reducing costs over time.
While the journey to the cloud and the pursuit of a clean core integrated landscape takes time and its success is more a cultural shift than a pure technical deployment, one can now start funding that journey via early outcome driven innovation. The Two-Speed IT approach recognizes that different parts of an organization may have different needs and priorities when it comes to IT systems. By dividing IT systems into two categories, an organization can better align its IT strategy with its overall business strategy. The approach allows organizations to balance the need for stability and security with the need for innovation and flexibility, and to adapt to changing business requirements more quickly and efficiently. A more comprehensive pre built solutions list can be found at the SAP Store where all solutions ( both SAP and NON SAP ) are built on the Business Technology Platform.
In summary :
SAP BTP isn't just a sidekick; it's the superhero in the evolution of ERP solutions. The game-changing transition toward composable architecture in SAP S/4HANA has catapulted SAP BTP into an extraordinary role. It's not just about integrating and analyzing data anymore; it's a launchpad for rapid innovation and a catalyst for long-term transformation. This dynamic platform's expanding ecosystem of apps doesn't just address immediate needs; it architects a digital future, fostering a culture of adaptability and innovation. Say goodbye to tech bottlenecks—SAP BTP's 'Infinity model' seamlessly blends short-term innovations with ongoing ERP transformation, revolutionizing the way businesses operate. Now, innovation isn't an event; it's ingrained in the core processes, fueling better business performance and a future-ready landscape. How can you see that for yourself right now ? Choose your own transformation adventure.
Welcome to the infinite possibilities—where innovation meets transformation.
Think of it as a tech dance where McKinsey's Two-Speed IT and Gartner's Pace Layer Model join forces. McKinsey talks about stability (like S/4HANA) and agility (hello, SAP BTP). Gartner layers systems: core (S/4HANA), customizations, and innovation (cue SAP BTP).
Now, practically speaking: SAP BTP is a turbo booster for short-term innovation, bringing rapid prototypes, integrations, and custom apps to the table. Tools for analytics, AI, IoT? Yep, they're in the mix, helping businesses adapt on the fly.
But guess what? SAP BTP isn't just about integration anymore. It’s the epicenter for innovation, even before you've migrated all your SAP data. It's got prebuilt content, APIs, and AI-driven magic for those on Non-SAP backends or in hybrid modes.
It’s the 'Infinity model' in action! It’s this epic blend of short-term sparkles of innovation and long-term ERP transformation. It’s like a dance between agile BTP innovations and the rock-solid ERP backbone, creating a power-packed duo.
This isn’t about installing systems; it’s about unleashing everyone's innovation potential across the organization and the supply chain, minus the tech hurdles. It's about making innovation a core business process, not a one-time gig.
Why does this matter? Fast innovation = better business performance. Picture happy customers, a rockstar brand, and a magnet for top talent. And here’s the kicker: SAP’s Business AI? It’s all about embedding smart AI into business processes.
Let me explain a bit more. McKinsey's Two-Speed IT theory and Gartner's Pace Layer Model offer valuable frameworks for managing technology landscapes and innovation. When applied to SAP Business Technology Platform (BTP) within an S/4HANA project, they provide a structured approach for balancing short-term innovation with long-term transformation.
The Two-Speed IT concept emphasizes the need for two distinct approaches to IT: one focused on stability and reliability (the 'core' or 'backbone' systems like S/4HANA) and the other on agility and innovation (the 'edge' or 'front-end' systems like SAP BTP). In this context, S/4HANA represents the stable core providing essential business functions, while SAP BTP acts as the agile layer enabling rapid innovation and flexibility.
Gartner's Pace Layer Model complements this by categorizing applications and technologies into different layers based on their rate of change. The model identifies three layers: the 'Systems of Record' (such as S/4HANA, serving as the core transactional system), the 'Systems of Differentiation' (which include customizations or extensions to the core), and the 'Systems of Innovation' (like SAP BTP, fostering rapid experimentation and innovation).
For an S/4HANA project, leveraging SAP BTP aligns with these models by facilitating short-term innovation through its capabilities for rapid prototyping, integration, and development of custom applications. The BTP's tools for analytics, AI, IoT, and other emerging technologies allow businesses to experiment and iterate quickly, addressing immediate needs and market changes. Moreover, SAP BTP's compatibility with S/4HANA supports long-term transformation. It enables seamless integration and extension of S/4HANA functionalities while ensuring the stability and reliability of the core system. This integration facilitates the gradual evolution of the core system (S/4HANA) by accommodating innovative features developed on the BTP without disrupting essential business operations.
However, that’s so last season.
The shift towards a composable architecture within SAP ERP, specifically SAP S/4HANA, has propelled SAP Business Technology Platform (BTP) into a pivotal role. With functionalities transitioning into apps on BTP, it has become a launchpad for rapid short-term innovations. These apps, built on BTP, facilitate quick and targeted solutions, addressing immediate business needs.
Simultaneously, this evolution marks a broader transformational journey. As more functionalities find their home on BTP, it lays the groundwork for long-term digital transformation. The platform's expanding ecosystem of apps fosters a culture of adaptability, allowing businesses to seamlessly integrate new functionalities, scale operations, and architect their digital future.
SAP BTP's dual role as an innovation accelerator for immediate needs and a catalyst for sustained transformation signifies its pivotal position in driving the agility and evolution of modern ERP solutions.
The collection of apps on BTP that support this composable architecture can be found here.
Where BTP has evolved into, is the unique ability to combine Two Speed IT and Pace Layering but provide early intervention for innovation, into an infinity model. No longer do customers with S/4HANA projects need to look at SAP BTP as a platform for integration and analytics alone that can be leveraged only when all the SAP Data is in place or are migrated. BTP provides a plethora of prebuilt content, libraries of APIs, BOTs and analytical models and content all driven by AI that can be leveraged while one is with a NON SAP backend, on ECC or on Hybrid mode.
The "Infinity model" within SAP BTP embodies a strategic approach that harmonizes short-term innovation and long-term ERP transformation, fostering a symbiotic relationship between them. It emphasizes the interplay between agile, experimental innovations facilitated by the flexibility of SAP BTP and the comprehensive, evolving ERP transformation efforts. This model is uniquely tailored to capitalize on emerging trends in composable ERP and SAP's business AI, ensuring that short-term innovations inform and enrich the ongoing ERP transformation, while the robustness of ERP provides a stable platform for scaling successful innovations and integrating cutting-edge AI capabilities.
Its not about installing a new system, it's about unleashing the ability of everybody in the organization ( and beyond, deep into the supply chain) to innovate in their area of expertise, without IT and technology being a bottleneck. With the right user authentications, security and workflow in place.
And it's about turning business innovation into a core business process itself, so that you're always learning and improving, and going faster – rather than innovation being a series of one-off, manual initiatives.
Research shows that organizations that are able to innovate faster with software are able to turn that into better business performance, and they score higher on all the key metrics that you care most about, such as customer satisfaction, brand perception, and talent management.
Additionally, within this infinity model, with Business AI, SAP focuses on embedding AI that is relevant, reliable and responsible by design. This is achieved by Combining the power of generative AI with the context of your business data and processes that only SAP Can do. For example creating compelling job descriptions and interview questions and helping hiring managers attract top talent by generate interview questions tailored to the candidate and the role.
For a Consumer Packaged Goods (CPG) or Retail customer, SAP BTP allows short-term innovation by swiftly deploying customer engagement apps (developed through the Extension Suite) that offer personalized experiences. Simultaneously, it supports long-term transformation by integrating supply chain analytics (leveraging Analytics Cloud) into their ERP for data-driven decision-making and predictive demand analysis.
For a manufacturing customer or wholesale customer, SAP BTP facilitates immediate innovation by deploying IoT-connected production monitoring apps (via the Extension Suite) for real-time insights. In the long term, it aids transformation by utilizing AI & ML Services to optimize predictive maintenance and quality control, ensuring efficiency and product excellence or automate supply chain logistics, improving efficiency and reducing costs over time.
While the journey to the cloud and the pursuit of a clean core integrated landscape takes time and its success is more a cultural shift than a pure technical deployment, one can now start funding that journey via early outcome driven innovation. The Two-Speed IT approach recognizes that different parts of an organization may have different needs and priorities when it comes to IT systems. By dividing IT systems into two categories, an organization can better align its IT strategy with its overall business strategy. The approach allows organizations to balance the need for stability and security with the need for innovation and flexibility, and to adapt to changing business requirements more quickly and efficiently. A more comprehensive pre built solutions list can be found at the SAP Store where all solutions ( both SAP and NON SAP ) are built on the Business Technology Platform.
In summary :
SAP BTP isn't just a sidekick; it's the superhero in the evolution of ERP solutions. The game-changing transition toward composable architecture in SAP S/4HANA has catapulted SAP BTP into an extraordinary role. It's not just about integrating and analyzing data anymore; it's a launchpad for rapid innovation and a catalyst for long-term transformation. This dynamic platform's expanding ecosystem of apps doesn't just address immediate needs; it architects a digital future, fostering a culture of adaptability and innovation. Say goodbye to tech bottlenecks—SAP BTP's 'Infinity model' seamlessly blends short-term innovations with ongoing ERP transformation, revolutionizing the way businesses operate. Now, innovation isn't an event; it's ingrained in the core processes, fueling better business performance and a future-ready landscape. How can you see that for yourself right now ? Choose your own transformation adventure.
Welcome to the infinite possibilities—where innovation meets transformation.
- SAP Managed Tags:
1 Comment
