Hybrid Cloud ERP – an outlook for 2Tier ERP with SAP S/4HANA Cloud
ERP is not what it used to be, without a doubt the Digital transformation customers need to go through (constantly) has prooven this. A fourth era is emerging as ERP evolves into a necessary foundation that supports changing business models, methods of delivering enterprise business capabilities and moves to a more orchestrated – not monolithic ERP setup. CIOs must learn how ERP is evolving or miss opportunities to optimize value and business outcomes. (Reference: see ERP’s Emerging Fourth Era — Moving Beyond Postmodern ERP, ID: G00383503, Gartner)
Industries are being disrupted because of digitalization and the impact is that many businesses are venturing in to new markets, doing mergers and acquisitions and expanding organically to continue to grow and compete. These pose different challenges for CxO’s – like establishing standard business processes, supporting the supplier chain eco system and so on. The whitepaper ‘Two-Tier ERP with SAP S/4HANA Cloud and Deployment Possibilities’ published earlier offers a detailed study on these challenges and recommends deployment with Two-Tier as an optimal solution. Based on Two-Tier deployment model SAP has delivered best practice content in various LoBs currently supported with many dedicated scope items.
As an example, SAP S/4HANA Cloud Scope Item 2EJ related to integration of procurement with external suppliers – provides the content with the mapping towards the supplier’s EDI messages using set of SOAP APIs. Many customers implemented this scenario to send their Purchase Orders from Subsidiary to Headquarters.
Following picture shows an example of the process:
Figure 1: Procurement Integration with External Suppliers
Scope Item 2EL related to integration of sales process with external buyers – which automates exchanging of sales documents with external buyers through the EDI messages using SOAP protocol.
Similarly, SAP has provided many scope items with the standard content, which can be used by the customers depending on their business scenarios and their deployment model.
As look into the future in the Two-Tier space a recent whitepaper on ‘Business Process in Cross System Landscape’ has been published to address critical requirements across multiple industries. This whitepaper provides the details on intercompany process by focusing on stock in transit, since this scenario has many challenges in federated landscape vis-a-vis monolithic landscape. The detailed research has been published in by emphasizing various possible technical deployments as listed below:
- S/4HANA Cloud to S/4HANA Cloud
- S/4HANA Cloud to S/4HANA Private Cloud
- S/4HANA Cloud to S/4HANA OnPremise or SAP ECC
- S/4HANA Cloud to Third Party ERP systems
- Supply Chain collaboration in Multi-Tier network
Following are the few examples which has been discussed in this whitepaper in detail:
Figure 2: Various Deployment options with SAP S/4HANA Cloud
Stay tuned for further blogs in this series… and as always, keep your feedback flowing.
For more information on SAP S/4HANA Cloud, check out the following links:
- SAP S/4HANA Cloud release info: http://www.sap.com/s4-cloudrelease
- Best practices for SAP S/4HANA Cloud here
- SAP S/4HANA Cloud User Community: register here
- Feature Scope Description here
- What’s New here
- Help Portal Product Page here
Follow us via @SAP and #S4HANA, or myself via @SDenecken