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Transformation Backlog in the SAP Community

Given SAP's comprehensive range of ERP and cloud products, it seems surprising that many members of the SAP community criticize the slow pace of digitalization. There is a transformation backlog, perhaps because there is a lack of orientation.
Peter M. Färbinger, E3 Magazine
November 21, 2024
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SAP orchestration in the digital ERP transformation

The number of SAP services, products, and solutions has grown exponentially in recent years. It is rare to find another B2B software provider with such a comprehensive range of offerings, spanning from a database (SAP Hana) to middleware and a platform (SAP BTP, Business Technology Platform) to industry solutions.

SAP offers one or more answers to almost every ERP challenge, which in many cases overwhelms the SAP community. Numerous SAP solutions overlap or are mutually exclusive. Licenses are often difficult to assign and do not always reflect the true use and application. SAP offers a wide range of products, but it remains a major challenge for SAP customers to maintain an overview of their options.

The saying "many roads lead to Rome" is a popular one, but evaluating these numerous paths in terms of business management, organization, technology, and licensing law is a complex undertaking. The complexity of the SAP ecosystem impedes and delays the digital transformation of SAP customers.

SAP price and conditions list as a crystallization point

The SAP price list (PKL, price and conditions list) is the obvious starting point for many SAP projects. Many SAP customers employ their own pricing and license managers to provide commercial guidance and clarity. The time commitment for an S/4 conversion or the negotiation of a RISE with SAP contract can span multiple months, or even years. Digital transformations are at times put completely on hold during the months it can take to negotiate a RISE contract.

The DSAG user association has long advocated for a significant reduction in the complexity of the SAP price and conditions list. The disparate metrics, such as those pertaining to user and engine licenses, introduce complications and delays in contract negotiations between SAP and its customer base.

Multidimensional RISE with SAP

Even SAP's flagship product RISE does not have a single contract, but rather consists of a large number of supplements, web links, and different contracts for cloud subscription, lift and shift, on-prem replacement, S/4 transformation, as well as other requirements, regulations, and IT contracts.

The average duration of negotiations for a RISE contract between customers and SAP is approximately six months, which is a considerable time investment in an economy undergoing transition. In a period of cost reduction and transformation, it is crucial that technical IT contract negotiations do not impede progress. SAP must address the backlog of transformations through greater transparency, simplification, and improved orchestration.

SAP Executive Board member Thomas Saueressig's call for a faster and more efficient transformation at the DSAG Annual Congress 2024 in Leipzig is correct and justified. However, SAP must also make its contribution. SAP must become simpler! RISE contracts must be more transparent, equitable, and free of ambiguity!

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Peter M. Färbinger, E3 Magazine

Peter M. Färbinger, Publisher and Editor-in-Chief E3 Magazine DE, US and ES (e3mag.com), B4Bmedia.net AG, Freilassing (DE), E-Mail: pmf@b4bmedia.net and Tel. +49(0)8654/77130-21


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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.

Venue

More information will follow shortly.

Event date

Wednesday, May 21, and
Thursday, May 22, 2025

Early Bird Ticket

Available until Friday, January 24, 2025
EUR 390 excl. VAT

Regular ticket

EUR 590 excl. VAT

Venue

Hotel Hilton Heidelberg
Kurfürstenanlage 1
D-69115 Heidelberg

Event date

Wednesday, March 5, and
Thursday, March 6, 2025

Tickets

Regular ticket
EUR 590 excl. VAT
Early Bird Ticket

Available until December 24, 2024

EUR 390 excl. VAT
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.