SAP Cloud Ecosystem : Complete Implementation Guide
Many enterprises today are showing increased interest in SAP Cloud solutions. With the digital transformation trend accelerated by COVID-19, the advantages of cloud adoption are gaining significant attention.
When evaluating SAP Cloud, many organizations initially think only of S/4HANA Cloud. However, there's actually a much broader and deeper integrated ecosystem available.
In this guide, we'll break down SAP Cloud's complete landscape into 4 core areas to help you understand the big picture and see how each area connects to complete your enterprise's digital transformation.
Understanding SAP Cloud - Starting with the Basics
What is SAP Cloud?
Cloud-evolved version of traditional on-premise SAP systems
Integrated business platform delivered as SaaS
Ecosystem that digitally connects all enterprise business processes
Core Value Proposition of SAP Cloud
Anywhere, anytime access to your business environment
Automatic updates ensuring you always have the latest features
Complete elimination of infrastructure management burden
Flexible scalability aligned with business growth
SAP Cloud represents more than just a system migrationβit's a platform that creates new business opportunities.
SAP Cloud Ecosystem Architecture - Understanding Through 4 Core Areas
Integrated Ecosystem Concept
SAP Cloud isn't a single product but an integrated ecosystem where numerous solutions are interconnected. Like organs in the human body working together as one organism, each solution operates in organic connection with others.
To facilitate understanding, we'll categorize this into 4 core areas:
4 Core Areas Structure
Area | Role | Key Products |
|---|---|---|
ποΈ Platform & Infrastructure | Core systems for company operations | BTP, S/4HANA Cloud |
π₯ Business Applications | Department-specific business processing systems | SuccessFactors, Ariba, Concur |
π Analytics & Intelligence | Data analysis and reporting systems | Analytics Cloud, Datasphere |
π§ Extension & Development | Systems for adding new features and connections | Build, Integration Suite |
Key Characteristics of the Integrated Ecosystem
π Organic Connectivity
Solutions across all areas share data and processes
Information entered in one system is automatically utilized in others
Business workflows are seamlessly connected
π― Selective Implementation
No need to implement all products at once
Start with the most urgent area first
Gradually expand after securing success cases
π Continuous Evolution
New technologies and features automatically apply across the entire ecosystem
AI, IoT, and other cutting-edge technologies are automatically integrated
Continuous innovation maintains competitive advantage
Core Products by Area
1. Platform & Infrastructure Area: Foundation of Everything
1.1 SAP BTP (Business Technology Platform)
"The Digital Nervous System Connecting All SAP Products"
Why is it needed? The true value of SAP Cloud lies in flexible ecosystem integration.
S/4HANA, SuccessFactors, Ariba, and other SAP products operate separately, making integrated process implementation difficult
Development outside SAP standards creates vendor lock-in risks and upgrade compatibility issues
Standard-based secure connections with existing systems and partner systems are limited
How does it help?
System Integration: Integrates enterprise-wide SAP solutions into a single platform ensuring process consistency
Platform-based Extension: Implements customized solutions for business requirements within SAP's standard architecture
SAP Standard-based External Connectivity: Safely connects with legacy systems and partner systems through SAP-compatible interfaces
Real Performance Examples
Company A: 60% reduction in overall process time through integration of 3 SAP solutions
Company B: 70% improvement in order processing time through real-time system integration
1.2 SAP S/4HANA Cloud
"The Central Nervous System of Company Operations"
Why is it needed? Have you ever experienced frustration when customer orders come in but each department works separately?
Finance, purchasing, and sales systems operate independently
Month-end closing takes 2 weeks just to collect data from each department
When customers place orders, inventory checks and production planning proceed separately, causing delays
How does it help?
Integrated ERP: Orders, production, purchasing, and finance are automatically connected in one system
Real-time Visibility: Check company-wide status anytime, instantly
AI Prediction: Analyzes historical data to help with sales forecasting and inventory optimization
Real Performance Examples
Company C: Month-end closing time reduced from 10 days to 3 days (70% time savings)
Company D: Real-time integrated management of financial data from 30 global entities
2. Business Applications Area: Daily Work Innovation
2.1 SAP SuccessFactors
"Your Dedicated HR Assistant for Employee Management"
Why is it needed? If you're an HR professional, you know the challenge of managing everything from recruitment to training and evaluation.
All processes from posting job openings to scheduling interviews and planning new employee training are manual
Complex processes often cause you to miss excellent candidates
Most time is spent on paperwork rather than employee development
How does it help?
Recruitment Automation: Automatically handles everything from resume screening to interview scheduling
Growth Management: Automatically creates training and career development plans tailored to each employee
Performance Analytics: Analyzes data to help make informed HR decisions
Real Performance Examples
Company E: Recruitment period reduced from 60 to 30 days, 40% improvement in quality candidate acquisition
Company F: 25% increase in employee satisfaction, 20% reduction in turnover rate
2.2 SAP Ariba
"Your Smart Procurement Manager"
Why is it needed? Procurement professionals know the stress of requesting and comparing quotes from multiple vendors.
Procurement staff must manually request quotes from dozens of vendors
Price comparison and negotiation alone takes several weeks
Finding and managing global suppliers is challenging
How does it help?
Global Network: Automatically finds optimal conditions from 5 million suppliers worldwide
Automated Bidding: Simultaneously requests quotes from multiple vendors and compares prices
Risk Management: Real-time monitoring of supplier creditworthiness and quality
Real Performance Examples
Company G: 15% reduction in procurement costs, 50% reduction in procurement processing time
Company H: Compliance risk mitigation through supplier management transparency
2.3 SAP Concur
"Your Personal Assistant for Travel and Expenses"
Why is it needed? Business travelers know the hassle of organizing receipts and entering expenses.
Organizing receipts and entering expenses after travel takes half a day
Difficulty checking policy compliance leads to problems later
Complex approval processes result in 1-2 week expense processing times
How does it help?
Mobile Convenience: Simply take photos of receipts to automatically create expense reports
Automatic Policy Checking: Immediately alerts about policy violations during entry
Fast Approval: Significantly reduces processing time through automated approval workflows
Real Performance Examples
Company I: 70% reduction in expense processing time, significant improvement in employee satisfaction
Company J: 5% annual cost savings through travel expense transparency
3. Analytics & Intelligence Area: Realizing Data Value
3.1 SAP Analytics Cloud
"Analytics Expert That Transforms Data into Insights"
Why is it needed? Data analysts know the challenge of having lots of company data but difficulty finding needed information.
Each department manages data separately in Excel files
Understanding the overall situation requires manually collecting materials from multiple departments
Future predictions rely on intuition rather than historical data analysis
How does it help?
Real-time Dashboards: Organizes all departmental data in one visually appealing screen
Predictive Analytics: AI analyzes historical data to predict future trends
Self-Service: Non-experts can easily create needed analysis reports
Real Performance Examples
Company K: 85% improvement in sales forecast accuracy, 20% cost reduction through inventory optimization
Company L: 30% reduction in defect rate through real-time production analysis
3.2 SAP Datasphere
"Data Expert That Organizes Scattered Data"
Why is it needed? Data managers know the problem of the same customer information being managed differently across departments.
Same customer information is stored differently in sales, marketing, and customer service teams
Data quality issues make analysis results unreliable
Finding needed data takes all day
How does it help?
Data Integration: Organizes data from multiple systems into one standard format
Quality Management: Removes duplicate information and fills gaps to create reliable data
Easy Access: Find and use needed data immediately without technical knowledge
4. Extension & Development Area: Innovation and Differentiation
4.1 SAP Build
"Digital Lego for Creating Apps Without Coding"
Why is it needed? Those with business improvement ideas often think, "This feature would be great, but development costs are too expensive."
Simple apps for business improvement cost tens of thousands of dollars to develop
Development takes 6+ months, often missing opportunities
IT department priorities often push these projects down the list
How does it help?
Drag & Drop: Create apps like assembling Lego blocks
Rapid Implementation: Build and use needed features within days
Cost Reduction: Reduce development costs by 90% or more
4.2 SAP Integration Suite
"Digital Bridge Connecting Different Systems"
Why is it needed? System administrators know the challenge of multiple systems not connecting, requiring duplicate data entry.
Cloud systems and existing on-premise systems don't connect
Same information must be entered multiple times across different systems
Security concerns when exchanging data with external partners
How does it help?
Hybrid Connectivity: Seamlessly connects cloud systems with existing on-premise systems
Automatic Synchronization: When data changes in one system, related systems automatically update
Secure Connectivity: Safely exchange data with external partners
Core Value of Integrated Ecosystem: The 1+1=3 Effect
Individual vs. Integrated Usage Differences
Limitations of Individual Usage
β Data Silos
Independent data management for each system
Duplicate entry of same information across multiple systems
Confusion and errors due to data inconsistencies
β Disconnected Business Processes
Manual connection work required between systems
Difficulty understanding overall process status
Reduced efficiency and time waste
β Increased Management Complexity
Individual management required for each system
Different security policies and user permissions
Difficulty creating integrated reports
Synergy Effects of Integrated Usage
β Automatic Data Connectivity
S/4HANA Cloud financial data β immediately analyzed in Analytics Cloud
SuccessFactors HR data β automatic payroll calculation in S/4HANA Cloud
Ariba procurement data β automatic receiving and inventory management in S/4HANA Cloud
β Complete Process Automation
Order receipt (S/4HANA) β Production planning (Analytics Cloud) β Purchase orders (Ariba) β Delivery (S/4HANA)
Employee hiring (SuccessFactors) β Account creation (BTP) β Work assignment (S/4HANA)
Travel requests (Concur) β Approval (S/4HANA) β Expense processing (Concur)
β Integrated Insights
Management insights combining finance + HR + procurement + sales data
Strategic decision-making through historical data + current situation + future predictions
Enterprise-wide integrated KPI management rather than departmental individual metrics
How to Start SAP Cloud Ecosystem Implementation
To successfully implement SAP Cloud, you must start by accurately understanding your current SAP systems. You need to systematically assess existing development assets, user work patterns, and data migration approaches.
1. Realistic Assessment of Current SAP Systems
Existing Development Asset Review
Distinguish between essential and disposable ABAP customization programs
Review cloud migration feasibility for interface programs
Identify existing reports that can be replaced with standard functionality
User Work Pattern Analysis
Check readiness of SAP GUI-familiar users for web transition
Confirm cloud-corresponding functionality for frequently used Transaction Codes
Identify departmental core business processes requiring changes
2. Specific Transition Scenario Planning
Data Migration Preparation
Check existing master data quality (eliminate duplicates, missing data, errors)
Determine scope of historical transaction data to migrate (typically last 3-5 years)
Establish phased migration approach to minimize operational downtime
Interface Reconstruction Planning
List systems requiring RFC and File I/F to API conversion
Coordinate communication method changes with external connected systems
Distinguish between systems requiring real-time connectivity and those suitable for batch processing
3. Proactive Risk Management
User Adaptation Issues
User training plan for SAP GUI β web browser transition
Change management for processes that differ from existing work methods
Train key users first, then cascade approach
Technical Risks
Adjust network performance and security policies for cloud environment
Configure hybrid connectivity with existing on-premise systems
Reestablish data backup and recovery policies for cloud environment
Conclusion
The SAP Cloud ecosystem is not just S/4HANA Cloud alone, but an integrated platform where numerous solutions are interconnected. Each solution connects organically to create much greater synergy effects than individual usage, and can be selectively implemented according to enterprise circumstances.
In our next article, we'll cover specific methods for utilizing the SAP Cloud ecosystem by company size and industry sector.
