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The lean archive

Complexity is a side effect of the digital transformation. SAP's existing customers are therefore encouraged to seize every opportunity to reduce the complexity of their IT. Consolidate, harmonize, automate - so that complexity is reduced and productivity is increased. Peter Färbinger, Editor-in-Chief of E-3 Magazine, spoke with the three KGS Managing Directors Winfried Althaus, Hermann Hülsmeier and Bernhard Morell.
E-3 Magazine
August 25, 2016
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This text has been automatically translated from German to English.

The topics around the archive in connection with SAP's ERP are currently very engaged, emotional and controversial.

KGS has taken a leadership position with its efficient and lean archive solution, which has been extremely well received in the market by existing SAP customers through consolidation and harmonization with both existing R/3 and ERP/ECC 6.0 systems, as well as S/4 and Hana.

Discussions such as those conducted by KGS's market companions, which claim a leading role for their ECM systems, completely ignore the needs of SAP's existing customers.

An enterprise content management system from OpenText currently seems to be less than adequate for the demands of the market. In the phase of digital transformation, an archiving system should be lean, support and leverage the SAP architecture, and not counteract it.

In general, it can be observed that traditional ECM systems for SAP are becoming increasingly complex and larger, sometimes even claiming to be the leading system in the ERP and business suite architecture.

"No, this can't be the right way".

argues Winfried Althaus, one of the three KGS managing directors, in an interview with E-3 Magazine.

The purpose of ECM systems is to manage information objects in a way that is optimized in terms of business requirements. And Althaus specifies:

"In the ERP context, however, these objects are used purely for process-related purposes. The ECM serves here as an archive in order to be able to trace possible data errors - mostly resulting from the data transfer.

Promotional promises such as single repository, centralized information repository for all content - from paper to email to voice messages in one system - and centralized corporate knowledge repository are not being delivered."

Managing Director Hermann Hülsmeier confirmed:

"Companies only invest in machine-based content storage when there is either an immediate benefit to the company or when the content needs to be retained due to legal requirements - we haven't found the central knowledge repository in any company yet."

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Digitization and automation

The goal is a holistic, consolidated, lean SAP system that is best prepared for the digital transformation processes and ultimately S/4 with Hana - whenever this decisive step is taken.

KGS therefore also sees itself as a bridge builder and companion in the current technological change. And the challenges are high, the tasks diverse, as the market researchers from IDC have surveyed:

Although German companies have begun to improve their document-intensive processes, they have not yet made decisive progress in digitization and automation; as a result, the competitiveness of many companies is negatively affected, this circumstance urgently requires the implementation of further measures, write the market researchers.

IDC recommends that companies and organizations drive digitization forward in stages: However, to make the decisive step forward in digitization and automation, companies should increasingly rely on external experts.

Industry-specific end-to-end solutions are crucial when it comes to choosing service and software providers for companies in Germany. According to IDC observations, this development is already reflected in the market.

Providers in the print and document management environment are investing in industry-specific consulting and process solutions, with the disciplines of print management and ECM growing ever closer together.

ECM software is also being equipped with file-sharing and collaboration solutions from the cloud and other BPM functions.

However, this disruptive and thus unclear market is also causing uncertainty among user companies, says IDC. Providers are now challenged to position themselves as competent partners for companies and organizations on the path to digitization.

KGS has developed a successful, pragmatic path for existing SAP customers - staying very close to the SAP standard, both in the ECC 6.0 and S/4 worlds. "You can say that exactly!" emphasizes KGS Managing Director Bernhard Morell.

"We use SAP for document management and merge the document world with the process world in the SAP system. To do this, KGS uses the functions of SAP and the advantages that this platform offers us.

With the KGS approach, there is no redundant management of metadata; there is only one user management, namely that of the SAP system. Authorizations are checked directly in SAP and only one front end is also used.

This way, the user always stays in the familiar application environment and doesn't have to learn anything new to manage their original documents."

Print And Doc Cover 1609Documents versus processes

How can an existing SAP customer decide for himself whether to keep his ECM close to the SAP standard or to set up an independent, autonomous ECM? The answer is simple, says Winfried Althaus:

"If SAP is the central system in the company and the processes are essentially controlled by SAP, then one should also stay as close as possible to the SAP standard and rather not use an independent ECM system.

However, if you have an inhomogeneous application landscape consisting of various ERP and legacy systems, then you should rather consider using a classic ECM system."

With the development from DMS to ECM, documents of any kind seem to gain in importance. It is argued that documents are more important than processes. Can this be true in an SAP environment?

"No, that's not true in any environment, and certainly not in the SAP environment. From an information processing perspective, documents are purely transport media for data."

explains Hermann Hülsmeier. The only exception here is the certificate.

"Let's take a look at the delivery bill. Here, it is not the document that is important, but only the content. What was delivered where, when and in what quantity.

All subsequent processes, from storage and payment to consumption of the goods, are based on this information. The document is 'only' the information carrier. And in the age of EDI, the physical document is also replaced by a defined, electronic transfer format.

This example shows that the document is becoming less and less important."

The market researchers at IDC argue similarly: The way users search for information, create, distribute, edit and archive documents and content is changing fundamentally.

In the digital age, information and data are the currency of the future. With document management, paper-based processes are digitized and subareas are improved before content in very different formats and data sources is processed as automatically as possible, thereby optimizing business processes holistically.

Nine out of ten of the decision-makers surveyed recognize this connection - albeit to varying degrees. One third of the companies are aware that they can use print and document management to improve not only operational back-office processes, but also the customer experience of customer-centric workflows.

One in five decision-makers has recognized that automated and digital document processes also create the basis for innovative digital business models.

The digital association Bitkom also came to similar conclusions in a trend study from last year: The intelligent processing of unstructured information has always been a topic for the ECM industry.

Classic examples of the automation of knowledge work are automated invoice receipt or the intelligent mailroom. For ECM providers, the topic of intelligence in particular will be a future challenge.

Here, the need for self-learning products, the networking of solutions to exchange intelligence, etc. will continue to grow. For users, the automation of knowledge work will become increasingly important, especially due to the increasing digitization of society and the world of work.

Without exception, all the trends examined in the Bitkom study are closely related to digital transformation. At its core, the digital world is about the use of available information, efficient processes, and mobile communication and collaboration, in addition to new business models.

ECM makes significant contributions to the most important of the global megatrends examined. User companies can implement their digital strategy in large part by introducing their own ECM strategy.

The archive a part of the whole

SAP can boast a long-standing companion on the subject of "electronic archiving" in the form of its partner OpenText (formerly Ixos). However, the OpenText system is now trying to establish its own domain and considers itself the leading IT system. Is this OpenText path still SAP-compatible from KGS' point of view?

"The compatibility issue illuminates only part of the 'compatible' system collaboration" "As long as an archive or ECM system supports SAP ArchiveLink or, even better, the SAP BC/ILM interface, it is compatible with SAP in principle.

However, in our opinion, the strategy of placing the ECM system above the ERP system leads to the sidelines. Money is not earned with content, but with business processes, and the processes, as well as the company itself, are controlled via an ERP system.

The ECM system almost exclusively manages unstructured content; however, for business, structured content is critical."

Winfried Althaus explains

His management colleague Hermann Hülsmeier describes the KGS way in addition:

"SAP manages the processes and the metadata and can aggregate almost any knowledge from this data. KGS is responsible for integrating the unstructured content into these processes. Only those who have access to the unstructured data in addition to the structured data are truly capable of providing information.

ECM, but the original term 'document management' is better, increases the readiness to provide information and can give a decisive edge in customer contact."

The aforementioned Bitkom study from last year talks about ECM where archives, however, are completely sufficient, see KGS references on page 69: Archive systems are simply indispensable in companies due to the need for audit-proof, access-proof and traceable documents and data.

Just as no company today can competitively process orders and invoices without an ERP system, no company will be able to manage its documents electronically in an audit-proof, access-proof and traceable manner without an archive.

IDC analysts also see that there is still a lot of potential for optimization: Almost all operational processes are to be further improved, according to those surveyed by IDC. Customer-centric workflows are clearly gaining in importance in connection with the transformation to the digital age.

Workflows to improve the customer experience are characterized by unplannable interactions, numerous review and approval processes. Accordingly, the need for integrated and lean archive, file sharing and synchronization solutions is high.

The way is the goal

Initially, the SAP legacy customer had two options: SAP Content Server or external ECM system. From KGS' point of view: What are the advantages and disadvantages of these two paths?

It is difficult to talk about advantages or disadvantages in this environment, says Winfried Althaus and explains:

"Both ways had their justification. The SAP content server was created as a 'simple' repository for living documents; this is where its real purpose lies."

ECM systems, on the other hand, have a long history of development; they often represent further developments of the archiving systems originally offered. From today's perspective, archive systems were the first real storage systems that could effectively manage large volumes of data and documents.

"Unfortunately, competition among systems has led and continues to lead to them being overloaded with functionality that adds no apparent value but significantly drives up costs."

Althaus says in an interview with E-3 Magazine.

The new way is to concentrate on the essentials and, as a result, to streamline the systems considerably. If we look at the use cases in the SAP environment, we see that the core requirement for an archiving system is to manage large volumes of data effectively and, if desired, in a legally compliant manner.

"Focusing on the essentials is only possible if the archive is designed to make the best use of existing systems"

Bernhard Morell defines the current situation. However, you need an interface component that connects the ERP system with the respective storage system. This interface component can be very lean in the form of a middleware solution.

If this middleware also masters the functions required by the legislator, there is no longer any need for complex ECM systems.

"Modern archives are lean and make optimal use of existing IT resources such as storage systems"

Morell once again emphasizes the KGS path. SAP itself has been recommending the path back to standard for many years. Can this return help existing customers with future release upgrades? How does KGS rate this recommendation from Walldorf?

"Back to standard is also the KGS credo".

"We are carrying out repatriation projects to the SAP ArchiveLink standard for many of our customers. This allows customers to effectively use their original documents in their processes again and reduces the risk of being dependent on an ECM provider."

confirms Winfried Althaus.

For the existing SAP customer, the stakes are high: a personal IT roadmap for 2025 must be found. A vendor lock-in would be a dangerous dead end. OpenText is trying to convince customers that content is the most important thing in the age of Big Data by offering numerous ECM functions and a holistic approach. How does KGS view this competition between ERP and ECM?

"When you look at it soberly, ERP already decided the competition in its favor more than ten years ago."

revised Hermann Hülsmeier.

Today, all important corporate decisions are made on the basis of data prepared from the ERP system. Unstructured content plays virtually no role in this. This is also reflected in the experience of users in the SAP environment.

And Hülsmeier explains the current status:

"If you ask them what the ECM system is used for, 90 percent of them answer 'as an archive for SAP'. If you ask the remaining ten percent about a company-wide ECM strategy, they are still very far away from it or have long since abandoned this plan.

The numerous functions offered by a modern ECM are de facto not used at all, but have to be paid for dearly."

"The KGS philosophy is to get back to basics".

Winfried Althaus emphasizes.

"We focus on archiving. We only use document management where it also adds value. Otherwise, we use the existing functions of the ERP system and thus achieve the best possible integration into the existing processes.

We also try to optimally integrate the existing resources, especially the existing storage systems, into the archive landscape."

And how does the existing SAP customer find his own, lean way? KGS recommends that existing SAP customers ask themselves whether what they are using their ECM system for is still up-to-date and appropriate.

Does it make sense to pay per SAP user for the ECM system if this system brings no advantage for most users and is often not even visible? Is it more about the aspect of fulfilling legal retention obligations (then an archive is sufficient) or more about creation processes in connection with living documents (then an ECM system makes sense). In which processes do original documents arise, and do you handle them correctly at all? Do you need the multitude of functions offered by an ECM system, or do you only use the archive part?

"If you answer these questions openly and without bias, it helps immensely to find your own right ECM path"

Hermann Hülsmeier is firmly convinced.

Lean Archives, Hana & S/4

To what extent will Hana and S/4 influence and change the ECM topic? Hana itself will not influence ECM for the time being, says Bernhard Morell.

"Our customers who are already running an ERP on Hana today haven't had to make any changes in the ECM area."

However, other topics are also coming into focus here. The topic of "housekeeping" through data archiving is increasingly being discussed according to the IDC study on print & document management data and original documents, even if concrete implementations are still rare.

"With S/4, the world already looks very different then"

emphasizes Morell (see also the following technical article).

"Here, the familiar integrations via ArchiveLink and BC/ILM, i.e. WebDAV, will initially continue to exist, but new interfaces and concepts are also visible. For example, in addition to ArchiveLink, there will also be a CMIS interface (Content Management Interoperability Services). Original documents can be stored and retrieved via this standardized interface.

Unlike ArchiveLink, CMIS can also be used to manage metadata. Document management moves even closer to the ERP system with S/4."

"This is exactly what is to be expected"

"With the provision of the CMIS interface and its own document storage class, SAP offers a basic functionality. It remains to be seen to what extent this will then meet the requirements for legally compliant and enterprise-compliant archiving. But it also raises the question of whether people want to entrust their unstructured content to the Hana database as well."

adds his colleague Winfried Althaus.

Back to standard, says SAP. With Hana and S/4, new architecture models are coming to existing customers. Has the time now come to downgrade external, large ECM systems and choose KGS? If so, why? The time to make the switch is just about ideal, says Althaus. And Bernhard Morell explains why:

"With the streamlining of the system landscape and the focus on what is really necessary in the area of archiving, a changeover makes sense right now.

As preparation for a possible Hana implementation, the streamlining of the archive is exceedingly important, especially since KGS offers all the necessary interfaces - ArchiveLink, BC-ILM and, in the future, CMIS - for a secure future with Hana."

Finally, perhaps the most important question: How much effort does it take for an existing SAP customer to replace his ECM system? Is that even possible anymore?

"Replacing an ECM system is possible at any time"

confirms Winfried Althaus.

"We can say this with a clear conscience because we have proven it in practice with many customers. For medium-sized companies with archives in the upper gigabyte range or even for corporate customers with many terabytes in the archive, KGS has shown that archive migration can now be implemented as a standard process.

Thanks to KGS's own migration solution Migration4ArchiveLink, the effort involved remains manageable and can also be carried out during ongoing operations. Our experience gained in many migration projects shows that the actual effort required depends primarily on the access speed and stability of the system to be replaced."

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