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The CCoE is no longer a strategy under S/4

An S/4 transformation is only successful if the project and subsequently also the ongoing operational management can be ensured. For this, the CCoE organizations must be aligned to these new tasks in good time.
John N. Szalachy
18 October 2021
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This text has been automatically translated from German to English.

With its successful R/3 strategy, SAP had already recognized that well-organized operational management at customers' premises could also save corresponding support costs. An important building block for this was the introduction of SAP OSS (Online Service System), the ongoing online connection to customers with a focus on error processing and correction.

However, the successful implementation of the entire support process also required corresponding organizational prerequisites in SAP operations management at the customers. The newly developed concept under the name SAP Competence Center also mapped the necessary processes between SAP and the users. It structured all the necessary operational tasks and described the processes so that collaboration could be carried out as efficiently as possible.

The further development of the SAP Customer Center included the introduction of certification levels, which also included monetary benefits for customers. The CCoE model was also strategically positioned under Kagermann, accompanied by appropriate events and actively brought to customers. This led to a high level of acceptance, particularly in the DACH region.

With the global development of SAP, the roll-out of the CCoE concept to other countries has been comparatively moderate. CCoE collaboration between SAP and customers was subsequently strengthened on a technical level through the development of Solution Manager. The solution launched by Gerd Oswald was a birth with many ups and downs, but today it is a fully recognized, comprehensive and integral part of SAP Basis. This has enabled SAP CCoE to prove itself very well to customers in all forms as an operational management concept over many years.

Due to SAP's rapid and global growth, however, the topic of SAP CCoE has fallen out of focus due to the acquisition of new technologies. At the latest with the transformation to S/4 Hana, the topic of SAP CCoE should, one would think, move back into focus. There are many reasons why this is not the case. The sense of SAP CCoE is likely to have stuck as a result of the new board members. Unfortunately, SAP's current market position has also shifted some strategic issues to the detriment of customers.

But why is the topic of SAP CCoE considered so important in the context of the S/4 transformation? The original reason has not changed - on the contrary. Due to the growing complexity of the new transformation technologies, not only a successful project is desired, but also secure operational management is required. On the one hand, project management adapted in all areas is a prerequisite for a successful S/4 transformation, on the other hand, secure operational management must continue to be ensured afterwards due to massive technological innovations. Both can only be guaranteed by an updated SAP CCoE.

The responsible department at SAP is already working on an update of the guide. Due to many customer inquiries, DSAG is also planning to offer an up-to-date concept. The requirements are technically complex and organizationally diverse because a wide variety of CCoE structures have developed at customers over the years: large and small, centralized and decentralized CCoEs with on-prem, hybrid and pure cloud system architectures.

However, only a renewed strategic orientation of the SAP CCoE by the new generation of SAP executives can bring success. Customers also expect operational support to the extent that each SAP country organization takes on an active roll-out function and monetary incentives are offered again.

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John N. Szalachy

is an SAP consultant and DSAG working group spokesperson Austria. His company specializes in S/4 project work.


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Working on the SAP basis is crucial for successful S/4 conversion. 

This gives the Competence Center strategic importance for existing SAP customers. Regardless of the S/4 Hana operating model, topics such as Automation, Monitoring, Security, Application Lifecycle Management and Data Management the basis for S/4 operations.

For the second time, E3 magazine is organizing a summit for the SAP community in Salzburg to provide comprehensive information on all aspects of S/4 Hana groundwork.

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Wednesday, May 21, and
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The event is organized by the E3 magazine of the publishing house B4Bmedia.net AG. The presentations will be accompanied by an exhibition of selected SAP partners. The ticket price includes attendance at all presentations of the Steampunk and BTP Summit 2025, a visit to the exhibition area, participation in the evening event and catering during the official program. The lecture program and the list of exhibitors and sponsors (SAP partners) will be published on this website in due course.