SAP Model Company: Understanding the Significance and More!

With changing business requirements, you need IT systems that support rapid business transformation. Your company needs to focus on innovation that is result-driven. Traditionally you had an on-premise style of implementation where you spent around 6-18 months implementing a solution. But this approach is not feasible in today’s ever-changing environment. If only you could find tried and tested solutions that could speed up your digital transformation. Here’s where SAP Model Company comes in.

What is SAP Model Company?

The SAP Model company is a set of pre-configured, ready-to-use, end-to-end business solutions that focus on ramping up the company’s digital transformation process. These solutions are customized for a particular industry or line of business. There are many teams working to outline the core processes of an industry or LOB. They combine the best practices of various successful business transformation projects which are powered by the most modern applications. In other words, you get prepackaged reference solutions that are based on what other companies have done successfully. Thus, the SAP Model Company is so much more than the older typical environments like IDES. 

SAP Model Company is an industry solution that helps companies in their move to SAP S/4 HANA. Apart from S/4 HANA, the SAP Model Company also contains SAP C/4HANA, SAP SuccessFactors and many other SAP solutions. It can be used in both Greenfield and Brownfield applications. 

SAP HANA Technology – The Game-Changer

Why you need SAP Model Company?

  • The complexity of SAP solutions overwhelmed users and hence they demanded guidance.  
  • SAP users had little or no knowledge of how to use or implement industry and LOB-specific processes using standard practices.
  • Changing times demanded rapid innovation. Companies required accelerators that helped to reduce the time of implementation and also reduced the risks of failure.
  • Enterprises spent a considerable amount of time on the blueprint phase just to find out that their concept could not be implemented using current technologies.  

Significance of SAP Model Company

The SAP Model Company is a true reference solution. In other words, you are to use the Model Company as a dictionary. You look into it for the terms and definitions and choose what you would like to take into your landscape. If you find a 100% fit, you can directly import the processes from the Model Company into your development environment. 

However, the Model Company focuses only on really important processes. For instance, a Model company in oil and gas has a very limited scope on how to manage a pipeline, whereas in a real-life scenario you have more than hundreds and thousands of pipelines. You can refer to the configuration guides in the Model Company and then scale out as required. 

SAP Model Company is Future-proof!

In the words of Stephan Klein, SVP and SAP Model Company Lead, the Model company is set to become the baseline for the entire SAP product portfolio. It spans across all SAP solutions for on-premise, single-tenant, multi-tenant cloud and hybrid platforms in industries and LOBs and is completely interoperable. 

The planned portfolio for 2020 constitutes more than 30 model companies for industries and LOBs. The industry model companies include Consumer Industries, Service Industries, Discrete Industries, Public Services, Energy and Natural Resources. These industry model companies are structured on top of the LOB model companies such as Digital Supply chain, CRM and Customer Experience, Financial Services, HR and People Engagement. The very baseline of the portfolio is built on S/4 HANA Best Practices or on SAP S/4 HANA Multinational Corporation. 

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Accelerate your business growth and intelligence with SAP Model Company

The SAP Model company contains market standard business processes together with their configurations. It aims to transform business processes by enabling enterprises to adopt industry best practices and incorporate innovative technologies wherever possible. 

Here are a few benefits of SAP Model Company:

  • Faster time-to-value, freeing up your resources for further innovation.
  • Accelerate your digital transformation by reducing costs and risks of implementation.
  • Choose the right solution based on the industry reference architecture.
  • Lower ratio of service costs compared to software costs. 

In the case of a cloud environment, Model Company services can be accessed immediately, within hours. If you want to use the Model Company on-premise, then you can start with your business users, fit-gap analysis or even your business blueprint design right away. You thus accomplish value-based outcomes in weeks rather than in months. Along with greenfield implementations, you can also use the Model Company as a sandbox system to facilitate back to standard discussions with your business. The end-to-end LOB-proven processes allow you to minimize customizations and benefit from the latest innovations with proven standard practices. 

Need help with your SAP Model Company implementation? Why not ask the pros? Contact us now!

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    About the Author

    ...
    Ashok Kumar

    Ashok leads Fingent’s SAP Consulting practice for ANZ, SE Asia, The Middle East and Africa (EMEA), and other global clients. More specifically, he helps companies improve operational efficiency by enhancing their digital cores and improving their application integration. Ashok has amassed over 20 years of leadership and consulting experience having worked with Global giants like SAP, IBM Consulting, Capgemini, & Oracle in his previous assignments. Connect with Ashok via LinkedIn and learn how your business can excel with recent SAP trends.

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      Step By Step Guide To Help You Choose The Best Infrastructure For SAP HANA

      Businesses today are undertaking the move to SAP HANA following the 2025 deadline by the Enterprise giant SAP who assuredly states that after 2025, all its’ systems will be built to run on only a single database, which is SAP HANA.

      Why Choose SAP HANA

      Along with providing a single and secure environment for all your mission-critical data assets, SAP HANA can ensure an increased improvement in the total cost of ownership as it is capable of managing large chunks of structured as well as unstructured data.

      SAP HANA is tailored to enhance business outcomes as it is one of the prime data management platforms that came into being first and also is competent enough to handle all transactions and also memory analytics on a single data copy. Data integration and quality are other 2 key characteristics.

      On a second note, if machine learning and predictive analysis along with advanced analytical processing are paramount for your business, then SAP HANA is definitely the best choice as your data management platform.

      In this era of digital reinvention, SAP HANA can reduce administrative efforts considerably now and in the future by rapidly improving application development capabilities in today’s digital landscape.

      Related Reading: Read on to learn how SAP HANA adoption is the new game changer trend. 

      Ways To Choose SAP HANA As A Digital Growth Strategy

      S/4HANA can be an integral part of a digital deployment and management platform for creating innovation and building business value for your company.

      Also, obtaining real-time updates is crucial that SAP HANA provides along with big data analysis. When HANA is implemented into your SAP system, it helps in building an in-memory database which helps in providing faster execution. This can provide a wider digital reinvention strategy now and in the future to increase business outcomes. Let us now look at ways to choose the best infrastructure for SAP HANA and what it can offer to your business:

      Related Reading: Find why should you choose SAP and how should you plan your budget for it.

      1. Real-time problem solving

      Real-time update paves the way into an increased business size. With SAP HANA, the data architectures have moved to complex data structures to provide a business process analysis using these real-time updates. The advanced analytical processing power of SAP HANA gets complex calculations performed in real-time and provides answers to the most pressing concerns in your business.

      Also, creating visual insight-filled applications have been made easy with SAP HANA implementation.

      2. Big data Analysis

      Decisions are well-informed than ever before with the implementation of SAP HANA. Multidimensional analysis that leverages spatial and business data to create applications that overcome the performance of traditional databases.

      SAP HANA can be thus used as the enterprise database for market-leading solutions.

      3. All-Transactions On A Single Platform

      SAP HANA is set up to be incorporated as an in-memory database system. High speed is a major advantage. Data integration and effective analytics contribute to the infrastructure.

      Analyzing malicious use of the system and predictive analysis is thus made easier through this high-speed data processing technique.

      4. Flexibility

      Appliances and Tailored Data-Centre Integration (TDI) are the 2 major types of HANA platforms of SAP. This includes a pre-integration of both hardware and software systems. The integration of hardware can provide increased performance and response times. This also ensures key features such as peak performance, memory space, disk space, average load, CPU space, etc. These values are based on the various business processes, a number of users, other factors such as data retention times and much more.

      5. Resilience Power

      If long term performance is one among your core requisites, the SAP HANA requires the right infrastructure for faster in-memory execution. A proper environment and infrastructure can support application migration as well with ease before failures can happen.

      For this, it is important to ensure that the data is not changing rapidly and unpredictably as it can cause the in-memory to slow down considerably.

      6. Scalability

      Statistics show that SAP HANA, though slow initially can increase the natural growth of structured data by about 20 percent yearly. Unlike other platforms, SAP HANA can take all the data onto the same platform, thus enabling scalability, in the long run.

      This feature as it provides scalability feature for the company, it also provides the company with an added advantage of not having to implement fragmented deployments or other complex settings.

      7. SAP Suite Of Comprehensive Services

       Big data analytics, a well-optimized and simple data structure, and an incorporated in-memory database together under a single roof ensure a suite of comprehensive business services from SAP HANA that enables users to work with high speed and virtualization capability.

      8. S/4 HANA Suite

      When a user needs to migrate, the Suite on HANA is readily available. A Suite is a tool that can be used for migrating from databases such as Oracle to SAP HANA. It provides users with optimized objects and code that yields a better and improved business performance and migration.

      9. Accelerated Insights

      Multi-threading features in SAP HANA ensure the availability of insights for your business. This helps in analyzing what changes are to be made to the existing system or what new features to be incorporated are.

      10. Spatial Solutions

      The advanced analytical power of SAP HANA can help in real-time calculations. This helps in building a better forecast on how to approach your business for profitable outcomes and also to understand what SAP HANA integration can do to your newly transformed system. Spatial and business data are thus leveraged to gain solutions for a faster business process.

      11. Data Protection

      Business analytical processes demand protection. SAP HANA is well-structured to store hybrid applications from entry-level to large businesses. This also reduces data center footprints and increases performance.   

      SAP Insider has introduced ‘Iterative Sizing’ feature to analyze and measure system requirements. They are a 5-step process and is described as follows:

      • Create a sizing project and enter relevant data.
      • Obtain an initial sizing result for CPU, disk, and memory.
      • Apply according to all SAP HANA guidelines.
      • Check to verify all hardware configurations as provided in the SAP HANA directory.
      • Provide the required SAP HANA vendor.

      These 5 steps provide all the required steps to gather information about the infrastructure.

      Related Reading: SAP Vs Oracle- Find who is winning in the race.

      The quality operations of SAP HANA are essential as a good level of infrastructure build is required for the transfer of data to the server RAM from the disks. This can successfully implement SAP HANA into your business process. To get personalized assistance on choosing the right infrastructure for SAP HANA, get in touch with us today!

       

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        About the Author

        ...
        Ashok Kumar

        Ashok leads Fingent’s SAP Consulting practice for ANZ, SE Asia, The Middle East and Africa (EMEA), and other global clients. More specifically, he helps companies improve operational efficiency by enhancing their digital cores and improving their application integration. Ashok has amassed over 20 years of leadership and consulting experience having worked with Global giants like SAP, IBM Consulting, Capgemini, & Oracle in his previous assignments. Connect with Ashok via LinkedIn and learn how your business can excel with recent SAP trends.

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          Despite the industry buzz over the past few years, benefits realization and simple operational stability after go-live are arguably the biggest challenges companies are facing when implementing their new ERP systems. Recently, 60% of organizations failed to realize the business benefits they expected from their ERP implementations!

          Among the business management tools available today, numerous studies illustrate the key factors to consider before choosing an ERP system for your business. The “Clash of the Titans” report by Panorama Consulting summarized quantitative results from hundreds of ERP implementations across the globe. The results showed that implementing the SAP ERP system, and implementing the Oracle ERP system produced very different results for different businesses!

          For instance, an Oracle customer spends less on its implementation. Compared to this, a SAP customer is able to offer an implementation timeline that is relatively close to what was forecasted to be.

          Another research considered a data set of over 2000 respondents from 61 countries, to illustrate the value of the people’s respective ERP implementation. The results showed that SAP held the largest market share of three vendors, with a 22% share.

          The Key Factors That Make SAP Stand Out

          • SAP or Systems, Applications, and Processes deal with data planning.
          • The use of SAP has been compatible with large corporations such as Microsoft and IBM. Oracle, on the other hand, stands for Object Relational Database Management Systems (ORDBMS) and can be hosted in a number of platforms.
          • SAP is a business management tool that allows real-time tracking in addition to the management of sales, finance, accounting, and human resources.
          • SAP does not follow the traditional information system management where each management tool is considered as an individual system that operates independently.
          • SAP integrates business applications using ERP (Enterprise Resource Planning Software) and on the other hand, Oracle, an Object Relational Database Management System (ORDBMS), is used in enterprise environments.
          • Development and deployment in SAP can include Oracle as a database system as it can be integrated with numerous databases.
          • SAP performs with a single information pathway alone for their entire enterprise and all other common information.
          • SAP applications cannot interact with their own systems but can interact with other processes in order for tangible business events to happen.
          • SAP ensures easier functions of management. This includes integration and other functions.
          • The SAP model runs on a programming language of the fourth generation. It is known to us as Advanced Business Application Programming (ABAP).

          Related Reading: Check out how SAP HANA technology is the new game changer for industries.

          On the other hand, Oracle is an Object Relational Database Management System (ORDBMS) that comes from the massive Oracle Corporation.

          The Oracle Database Management System is created with at least a single instance of a particular application. These specific instances are specific processes of the operating system, also benefit the storage!

          In a nutshell, the key differences between Oracle And SAP are as follows:

          SAP Oracle
          The highest share of the market Highest selection rate when shortlisted
          Highest short-listing rate Longest implementation duration
          Lowest selection rate when shortlisted The highest delta between planned and real implementation time frame
          Longest payback period The tiniest percent of users who realized between 81- and 100-percent of its advantages

           

          Related Reading: Find reasons why you should use SAP and how you can plan a budget for it.

          Who is King In The Area Of Business Software?

          SAP and Oracle compete mainly in the areas of Business Software like ERP, CRM, and SCM. SAP is said to have more installs than Oracle in bigger companies. Let’s have a walk-through across some key reasons:

          • SAP Being The Pioneer

          SAP ERP ran to the list first. SAP was already well established as a full ERP solution when Oracle was just starting to establish a Financials package for companies! By virtue of being first, SAP is well embedded in this environment.

          • A Much Better Integrated Solution

          The core SAP ERP modules were built from scratch to full integration. So when a change is made, all other related modules are updated immediately. This comes useful when you extend it with a CRM or SCM functionality.

          • Mind-Share And Brand Recognition

          Most companies/ people tend to have considered ERP implementation also as a status decree! They believe it increases their brand value.

          • Support Factors

          SAP has a much larger pool of developers and consultants with a much larger installation base!

          Read: 5 Tips For Getting The Best Out Of Your ERP System

          CIO Strategies Matter! – How SAP Drives Ahead Of The Game!!

          There are several case studies to validate why SAP is preferred over Oracle by many Business and CIOs. They are as follows:

          • SAP being the pioneer in ERP implementation

          As SAP has been the leader and the pioneer in implementation, it preferred over Oracle with a brand value which indicates ERP leadership and preference.

          • SAP is an in-house built product

          SAP was built in house. It has worked with industry experts to evolve the ERP processes and is able to build a robust solution. It allows customers to customize SAP functionality and yet get the client specific processes defined in ERP.

          • Robust integrated and scalable ERP

          SAP has designed a highly integrated ERP which has world-class performance and scalable to multiple solutions. It also easies integrations with 3rd party solutions.

          • IS –Solutions

          SAP has provided additional IS solutions which are optional but they allow businesses to have specialized processes on single ERP which is well integrated and reap benefits for “best industry solutions”

          • SAP Analytics

          Integration on ERP and BI is notable and provides unbeatable performance and flexibility to define reports. Analytics based reporting Management to take real-time decisions

          • SAP Support services

          SAP provides class support services which give Business assurance of resolution in critical situations.

          • SAP provides implementation methodology and Best practices and Tools

          These tools provide a fool-proof implementation road map and reduce risks during the course of implementations. Following this guidance one can implement SAP in as less as 4 months; which means faster ROI.

          SAP HANA with its “in memory” capability ensures super speed of processing data. The new UI solutions via Fiori give top class User experience.

          In a nutshell, hiring the best qualified, focused and unbiased ERP can make your business more successful. So stay focused with our latest articles and blogs on SAP versus Oracle ERP implementation to go-live successfully!!

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            About the Author

            ...
            Ashok Kumar

            Ashok leads Fingent’s SAP Consulting practice for ANZ, SE Asia, The Middle East and Africa (EMEA), and other global clients. More specifically, he helps companies improve operational efficiency by enhancing their digital cores and improving their application integration. Ashok has amassed over 20 years of leadership and consulting experience having worked with Global giants like SAP, IBM Consulting, Capgemini, & Oracle in his previous assignments. Connect with Ashok via LinkedIn and learn how your business can excel with recent SAP trends.

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