End-to-end ERP

The SAP community is celebrating over 50 years of existence and there is still a debate about successful end-to-end processes. Why? "Many companies have optimized their respective areas. The consistency of business processes requires high data quality and also completeness," says Michael Neuhaus, one of the Managing Directors at Networker Solutions, adding: "This is still a constant challenge for processes that are often still implemented with third-party software and individual solutions." This confirms that ERP software does not have to be complicated, but it is certainly complex. End-to-end in an IT architecture with modifications through to third-party software remains a challenge.

"The willingness to think holistically in terms of processes and functions within the company and to implement this consistently has improved with the topic of S/4," notes Ralf Krohn, also Managing Director at Networker Solutions, in the E3 interview. The clean-core concept and the use of the cloud have at least made many companies aware of this necessity, says Ralf Krohn: "However, in many companies, knowledge of the entire company and business processes has been reduced to just a few people over the years. In my view, a company absolutely needs experienced partners who can advise with a holistic approach."

End-to-end processes not only need a stable IT basis, but also a meta-level so that the holistic view is not lost. This cybernetics - the art of controlling holistic end-to-end processes - is sometimes lost in the day-to-day operations of existing SAP customers, and SAP's ERP offering is too function-oriented to reflect this cybernetics. Michael Neuhaus explains: "The basis is high-quality data. In the past, companies have often started to implement their processes and requirements with a single focus in one system - finance, sales or production. But that is not enough. Ideally, all business areas should be integrated. R and D, marketing, sales, finance, controlling, design, AV, production, logistics, QM, service and maintenance. And data management should be designed for the entire life cycle."

The art of controlling a successful end-to-end process therefore consists of algorithms and data structures, which is also how Ralf Krohn and Michael Neuhaus see it: Data management should be designed for the entire life cycle. And what technology, ERP architecture and IT infrastructure are required for this? Networker Managing Director Neuhaus: "S/4 Hana with AVC, possibly CPQ and/or SAP Commerce and especially the BTP with the CPS."

ERP life is also characterized by constant change. And ECC 6.0 and S/4 provide the necessary components for end-to-end processes. Ralf Krohn adds: "Yes, this was already the case in ERP times. However, we now have all the options that a modern UI should offer, integration across an ERP with the help of BTP." And colleague Michael Neuhaus believes that existing E2E gaps can be filled and optimized with the Business Technology Platform, SAP BTP, and this applies to a very large extent. Even third-party products can be integrated for very specific cases.

Clean Core plus SAP BTP

For the existing SAP customer, the question arises: is SAP's desire for Clean Core plus BTP a relevant approach for end-to-end? "Yes, indeed," answers Michael Neuhaus quickly. "This is exactly what solves many of the problems of the past. Many in-house developments that were integrated into an ERP and then caused maintenance and performance problems and prevented further developments from being used in the standard will no longer be a burden on the core."

The SAP concept of only accessing the S/4 core via APIs and customizing extensions based on SAP BTP seems to have arrived in the SAP community. On the topic of extensions with Steampunk, Abap, CAP and RAP in a BTP environment, E3 Magazine is organizing a conference on 5 and 6 March 2025 in Heidelberg. Steampunk and BTP Summit. There is the challenge of continuing to customize modifications for existing SAP customers, even with third-party products. Michael Neuhaus has an example: "I can think of a system configuration using a 3D configurator, for example, as well as the efficient maintenance of complex models and the maintenance of models.

Partners have many years of experience in making large volumes of data and complex products and processes manageable for a company. But this is only possible if you think E2E in advance and take this strongly into account in the design. However, existing SAP customers make the mistake of maintaining duplicate data due to different systems and logics in systems, mapping a lot of data or even bringing functions from an ERP into a configurator. This is already a dead end after a short time."

Networker Solutions has a clear opinion on the traditional topic of modifications. "No modifications are necessary," explains Michael Neuhaus. "We rely entirely on SAP systems such as S/4, CPQ, AVC, Sale or Commerce and, of course, BTP. What we add is maintenance via modern tools on the BTP, but these support the SAP standard 100 percent. The 3D configuration also uses the SAP data and uses the configuration of AVC or CPQ."

Holistic E2E approach

But are the implementation partners also thinking about costing, reporting or change management? What about preference calculation, interaction with a PLM and the requirements of a design department? Can Sales really configure complex products and projects quickly and as guided as possible? "This is where our experience and additions help," Michael Neuhaus knows from his professional practice. "Yes, we have a team of experts who contribute their experience from projects across all areas. Our team has been together for 20 years. Our newer colleagues are trained with a focus on E2E."

Supply chain planning is a domain of end-to-end processes, and variant configuration poses a particular challenge here. "In most cases, preliminary planning results in planned independent requirements for specific materials, whereby a specific bill of materials is used," says Ralf Krohn, describing the situation. "With a configurable material, there is not just one bill of materials, but completely different versions, which makes preliminary planning much more complex. In addition, there are different concepts in the area of variant configuration and several integration scenarios for certain SAP components, which have to be weighed up in each case and in combination with each other."

The variant configuration in the supply chain end-to-end view also includes the components AVC, aATP, PPDS, IBP (Integrated Business Planning). It is possible to take configurable materials into account in extended planning (PP/DS). Michael Neuhaus explains: "There is an integration for the extended availability check, aATP, which is called Supply Creation-Based Confirmation, in which receipt elements are created and feasibly planned directly when the sales order is created in order to be able to determine a reliable delivery date. Supplementary pre-planning from the IBP at raw part or assembly level can ensure better delivery dates. The combination of these components helps companies to meet delivery deadlines and adapt to the rapidly changing market situation. This is becoming increasingly important, especially in today's world, with supply chains as the keyword."

A much-discussed topic in the SAP community is APO, Advanced Planner and Optimizer. According to SAP, IBP should be a successor. "In addition to IBP, the SAP components PP/DS and aATP can also be functionally described as successors to APO, as APO was made up of several modules," says Michael Neuhaus, outlining the current challenge for existing SAP customers. "PP/DS and aATP are now even available in the S/4 Hana core. Many existing customers are switching to the new SAP components as part of an S/4 conversion. IBP can also be operated with an ECC system. However, the market shows that more and more customers are willing to switch to the cloud."

An existing SAP customer with a two-digit customer number has selected a third-party manufacturer as an on-prem supplier following the APO termination because it does not want to move to the cloud with IBP. Isolated case or trend? "In the course of the S/4 transformation, many SAP customers are questioning their current system landscape and analyzing it very closely," says Ralf Krohn from numerous discussions with existing SAP customers. "Many factors play a role in this analysis and it can lead to the individual decision to replace individual SAP products with third-party manufacturers. I don't see this as a trend; it has to be assessed separately in each individual case. Many customers also consciously opt for additional cloud products or applications, such as PP/DS or aATP, during the S/4 transformation."

SCM cybernetics

In conversation with Networker Managing Directors Ralf Krohn and Michael Neuhaus, it becomes clear that a holistic approach is necessary in order to achieve the art of SCM management. "We see supply chain planning as an overall solution comprising several SAP components," explains Michael Neuhaus. "For us, these include a holistic view of the supply chain of the modules aATP, PP/DS, IBP and, if Finance and Controlling are to be included, also SAC. The PP/DS and aATP components are part of the S/4 Hana core and can be operated both in the private cloud and on-premises, although we see the future in the private cloud. The IBP and SAC components are only available in the cloud anyway."

For the Networker managing directors, it is important that a distinction is no longer made between on-prem and cloud, but that the S/4 core is the decisive factor. "This can be operated both on-premises and in the private or public cloud. Where the system is operated depends on many factors that have to be assessed individually in each project," says Michael Neuhaus, who has worked on many successful customer projects.

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