SAP® system

The future is hybrid: SAP® system environments in SCM

How can hybrid system landscapes optimize SAP® systems in global trade and logistics? Five aspects businesses should keep in mind when optimizing their SCM IT landscape.

Future-proving your IT investment and environment

Gartner reported in its 2015 Strategic Road Map for Postmodern ERP that “by 2020, less than 20% of multinational organizations will continue to plan and adopt an ERP strategy based on a single-instance mega suite.” As my colleague Steffen has put it, the days of the "almighty dinosaurs" are over. I couldn’t agree more with that statement.

Especially from a supply chain angle we will need more even more speed, agility, flexibility, visibility, and connectivity in the future. Supply chain leaders must be innovative today. They need to inspire, enable, lead, and provide their business units with the right tools to meet ever-increasing consumer demands. And they need make the right IT investments to keep up with competition in fast-evolving and technology-fueled markets.

So, what do you do with existing IT landscapes including legacy ERP systems and customized functionalities for global trade and logistics? How to speed up these mighty giants to ready your business and empower your supply chain for future success?

Go hybrid: safety for your core and flexibility for your environment

The same 2015 report from Gartner cites that “by 2018, organizations that have successfully renovated their core ERP will achieve a 75% improvement in IT response agility and cost-to-value outcomes.” That’s awesome! But what do “core renovation” and “hybrid system environment” mean in practical terms?
It’s always best to take a look for yourself – check out this visual example.

Hybrid system environment
Hybrid system environment

How do you know if it’s worth extending on-premise SAP® solutions with cloud applications? One crucial aspect to consider here is the total cost of implementation:

How much does it cost to implement the required functionalities within the SAP® core compared to the cost of a cloud solution and its integration?

And what about ongoing costs – for updates, upgrades, and maintenance? We’ve taken a closer look at these questions in the context of global trade and logistics solutions. Our result: in many cases, hybrid system environments are often significantly less expensive than on-premise solutions.

Of course, it’s an area where there are no “one size fits all” answers and individual company system landscapes and supply chain objectives must be scrutinized case by case. Still, latest analyses provide excellent insights, comparisons, and recommendations.

No rash decisions: five aspects to consider – get the fact sheet

We’ve created a new fact sheet to shed light on the topic. It’s titled “Optimized SAP® Systems in Global Trade and Logistics” and everyone can download it free of charge. It offers details on the following five criteria that companies should assess before making a decision for their business:

  • Total cost of ownership
  • Integration into the system environment
  • Functionality and usability
  • Service and expertise of provider
  • Data privacy and security

Keeping powerful ERP systems running really consumes a lot of a company’s IT resources.

Can hybrid system environments consisting of ERP systems and cloud-based applications offer an escape from the resource trap? Are they more flexible in addressing forward-looking issues, such as business intelligence, collaboration, and use of mobile apps in global trade and logistics?

What is the status of discussions on ERP or SAP® system landscapes and their future development in your company? I hope our new fact sheet offers helpful insights and helps to support your business in the decision-making process. I’m looking forward to your feedback on LinkedIn.

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