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.
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.
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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Accelerate Your Transition to SAP S/4HANA With These Tips
Increasing digitization has caused businesses to face a multitude of challenges in their working environment. In order to map business processes and forecast better business decisions, your data and work processes to be analyzed in real-time. SAP S/4HANA is an intelligent ERP software designed to cover all your day-to-day enterprise requirements. It integrates crucial functions from various lines of businesses as well as industries and incorporates parts of SAP Business Suite Products.
SAP will be offering its support for its ECC ERP software until December 31, 2025. Any business that seeks continued support from SAP will need to migrate to SAP’s flagship ERP software, SAP S/4HANA. Prior to performing SAP S/4HANA implementation or migration, you need to define your business needs and priorities. Having an appropriate migration strategy is crucial for achieving your goals with minimal disruption.
Here are a few tips that will help you ensure a smooth transition to SAP S/4HANA.
Tip 1: Analyzing The Right Platform That Addresses Challenges
Switching to SAP S/4 HANA successfully requires businesses to first analyze their requirements and budget.
With the on-premise deployment of SAP HANA, the user gets to manage the entire HANA database, applications, OS, middleware, servers, networking, data centers, and virtualization. On-premise deployment of SAP S/4 HANA thus ensures control in addition to maximum risk reduction. This requires choosing a certified SAP HANA appliance from a hardware partner of SAP. Additionally, SAP HANA’s TDI (Tailored Data Center Integration) helps in reducing infrastructure costs.
Related Reading: How To Choose Best IT Infrastructure For SAP HANA
SAP S/4 HANA Cloud integration which is the SaaS version of S/4 HANA can function without the need for hardware, databases, or IT personnel. SAP HANA Enterprise Cloud is SAP’s very own cloud offer and provides improved flexibility, and scalability.
TIP 2: Providing User Support For Improved Decision-Making Process
The simple data model provided by SAP S/4 HANA makes it easier for decision-making and performance improvement. Hence, analyzing and identifying master grids in the system, specifically the key values that were not being used even after a key date provided by the user. This will prevent errors happening in the future. These benefits and necessary changes need to be provided to the users for better support to enhance the decision-making process.
TIP 3: Real-Time Insights From Prepared Data To Ensure Reduced Down Times And Costs
Real-time insights are crucial for businesses to be able to optimize various processes involved. SAP S/4HANA platform involves a simplified data model that makes data migration quick and simple. SAP HANA provides advanced analytical tools that help in analyzing large chunks of data in real-time. A preparatory activity of cleansing data is crucial to avoid risks of licensing, downtimes, and so on.
TIP 4: Creating A Deployment Group Of SAP Experts
A proficient group of SAP experts is the key to ensuring a successful transition to SAP S/4HANA. The deployment requires conducting workshops on functional planning, which can be performed by an SAP partner or can utilize internal resources with adequate training as well. Getting the deployment group of experts on board might even require prototypes and test systems to be installed. This can be done quite inexpensively with the cloud.
Related Reading: SAP HANA Technology: The Game Changer
TIP 5: Creating A Detailed Road-map For Business
Mission-critical applications can now be separated from peripheral LoBs (Business line applications) with the SAP BIModal IT. These applications are developed on the SAP cloud platform and allow SAP S/4HANA to perform as the digital core of organizations. Additionally, SAP business services provide technical support services during implementation.
TIP 6: Planning Migration with High Industry Standards
All actions from the planning phase to migration are critical and require to be methodical. The SAP must be in its latest version for a smooth transition. Also, it is equally important to have backups and archive points to avoid unnecessary risks.
TIP 7: Create SAP Sandpit Environment Initially As A Proof Of Concept
Implementing a proof of concept is vital before performing the actual migration process. This helps in identifying various issues and resolving risks if any. It also supports the decision-making process and improves the overall performance of the project.
SAP S/4HANA is the future of SAP. Ensuring a smooth transition to SAP S/4HANA is crucial for outcomes concerning data processing, analytics, overall performance improvement, and improved profitability. Get in touch with our SAP expert to get free guidance on migrating to SAP S/4HANA seamlessly.