Frankenstein ERP with SAP S/4 Hana

Machine learning, AI agents and LLMs

After the ERP successes of the past decades, SAP CEO Christian Klein is trying to find and ultimately define a new purpose for his ERP group in the cloud and AI age. In doing so, SAP is running after the buzzwords cloud, machine learning, AI agents and quantum computing (see Computerwoche.de interview by Thomas Saueressig), and not without success. The danger for SAP lies in the misinterpretation of the new IT terms. SAP CEO Klein asks far too few questions about the meaning and topics behind these buzzwords. There is a lack of critical discourse in the SAP community about a post-ERP world.

AI in general and large language models (LLM) in particular are an expression of rapid technical development at computer chip level. Without Nvidia and others, current AI development would be inconceivable. SAP can hardly score points here with its own expertise, so the global ERP market leader has been demoted to a follower and is trying not to lose touch with the technology through numerous alliances. These numerous AI and LLM collaborations inevitably result in a patchwork quilt (Muhammad Alam) or a Frankenstein architecture (Thomas Saueressig).

Exit: Composable-ERP

In the interview in the German-language Computerwelt.de warns SAP Executive Board member Thomas Saueressig against attempting to synchronize an old ERP on-prem system with new AI and LLM technology via interfaces. Saueressig deduces from the danger of a Frankenstein architecture that existing SAP customers should definitely and holistically transform into a cloud.

However, the ERP reality is different, as Thomas Saueressig should also know: Many successful existing SAP customers have connected an old Business Suite (ERP/ECC 6.0) to the SAP BTP (Business Technology Platform) via cloud connectors. Further orchestration will take place in the coming months via Databricks and Snowflake in the direction of SAP Business Data Cloud (BDC). The Frankenstein architecture is therefore a successful reality in the SAP community.

What CEO Saueressig unflatteringly disparages as an ERP Frankenstein architecture is ultimately a composite ERP system based on IP platforms such as BTP, BDC or Boomi. This composable ERP meets the requirements and wishes of many existing SAP customers because it opens up freedom, enables flexibility and prevents the dreaded vendor lock-in. Composable ERP is not subject to technical trends and fashions, but is a long-term ERP concept that can be used to orchestrate IT roadmaps.

SAP patchwork as platform output

At an SAP event in Las Vegas (USA) this fall, Executive Board member Muhammad Alam warned of the dangers of „uncontrolled growth“ in the ERP scene. SAP's vision is consistent end-to-end processes based on the new SAP Business Suite and ultimately everything together in the cloud. However, this SAP wishful thinking contradicts the reality of ERP in practice. Thanks to open source and composable ERP (Frankenstein architecture, copyright by Thomas Saueressig), the SAP world is also becoming increasingly colorful.

With its successful platform strategy (BTP and BDC), SAP itself has laid the foundation for an ERP patchwork and a composable ERP. Platforms from SAP or the hyperscalers and specialist providers such as Boomi enable successful ERP orchestration in the sense of best-of-breed. It is no problem to operate S/4 Hana, Workday, Salesforce and ServiceNow together, in parallel and successfully. The warning of a patchwork quilt is completely unjustified in view of the existing technology such as BDC, Databricks, Snowflake, Boomi, UiPath and many other IT experts.

Post-ERP era with new IT technology

SAP introduces new terminology to the ERP scene: Board member Thomas Saueressig spoke of Frankenstein architecture in an interview with Computerwelt.de and a few weeks before that, his fellow board member Muhammad Alam warned against patchworks in an ERP infrastructure. Is SAP afraid of a composite ERP? Of a composable ERP on a platform such as SAP BTP, BDC or even Boomi? What if hyperscalers and open source become the leading system?

Thomas Saueressig and Muhammad Alam's fears are justified: SAP is sliding into irrelevance because databases, AI and platforms are opening up new areas of freedom for existing SAP customers. And SAP itself seems to be to blame for this misery! SAP CEO Christian Klein is chasing buzzwords instead of cultivating the company's treasure and unique selling points. Why is SAP talking about Frankenstein and patchwork instead of putting the graph and vector engine of the Hana database platform in the spotlight?

Existing SAP customers should see a composite ERP architecture as a promise of greater agility. Orchestration is secured by ERP platforms, so the warnings from SAP board members Thomas Saueressig and Muhammad Alam reflect more their own fear than concern for the future of ERP.