Government On-board for Cloud

The government has been fully behind cloud for the Public Sector since the launch of  its supplier marketplace G-Cloud or Digital Marketplace. This offers public sector organisations a straight forward way to buy IT products and services from trusted cloud suppliers – you will find us on it here. Describing its public sector IT policy as ‘Cloud First’, the government believes cloud for public sector will boost business and deliver savings and efficiencies.

Up to a point it seems to be working. Research by the not for profit Cloud Industry Forum found that 78 per cent of public sector organisations have some form of cloud-based services in use today, having risen from only 38 per cent in 2010

Hard Times

But while Public Sector cloud adoption is on the move – many councils are struggling to keep their heads above water on a number of fronts. SAP Public Sector expert Phil King says;

Essentially, local government organisations need to provide better services at lower operational costs. Which, understandably, is not all that easy to do, especially since there are a lot of concerns to balance. These range from reducing the administrative burden on staff, improving the employee experience, upholding security, and even increasing collaboration between services like health and social care. Public sector organisations have to act quickly, but also intelligently, if they’re going to make the necessary improvements.

Phil King, How An Intelligent, Cloud-Based Future Can Benefit The Public Sector

Learning By Example

That leaves many Public Sector leaders – from IT directors to Finance Controllers trying to find the most cost effective, flexible and efficient technology to fit their organisations.

Phil King suggests following trail-blazers like Surrey County Council, who used technology to deliver a mobile self-service HR solution to its staff. The result? An 83% reduction in the amount of time employees spent on HR processes. You can read about it here.

Phil beleives that local government can’t afford to delay.

As they tackle on-going cuts and issues like caring for an aging population, local government needs to seek out the opportunity to streamline their processes and modernise their applications. The smartest way of doing this is by developing and building their new data-driven applications in the cloud, in order to achieve a degree of “future-proofing”. The gains to be had from doing so are significant – as are the problems created by failing to act.

Let the Search Begin

The evidence suggests that anyone considering cloud for the Public Sector should begin looking now. The Cloud Industry Forum advises;

…careful pre-procurement engagement that thoroughly examines all prospective Cloud suppliers.

What are the benefits of SAP Busines ByDesign?

SAP Business ByDesign is the best kept secret in the SAP armoury. Why? Because it’s the solution for growing mid-sized business that’s eclipsing all its rivals. Do you want actionable business information on which parts of your business are most profitable? Are you trying to unify your global business units onto one system? This software delivers time and time again.

Many customers, using alternative services like Microsoft, are now being forced to look at lengthy upgrades. Why go through the minimum of 9-12 weeks of hassle getting on to Microsoft Dynamics 365 when you can move to the best in breed ERP solution Business ByDesign in less time!

For our part, In Cloud Solutions has proved to be the company that knows the benefits of SAP Business ByDesign better than any other. We have the largest number of specialist Business ByDesign consultants operating in the UK and we are able to offer in-depth expertise, because our team use it everyday. So forget doing business with a company who implement a solution and move on. Our people live and breathe SAP Business ByDesign and know all the best tips and shortcuts to prove it. Get in touch with one of our team here if you currently use BYD need help getting the most out of it.

And if you would like some informative assistance on what you should select, here are 6 brilliant benefits of SAP Business ByDesign. Switch now and start benefitting straight away. Of course there are more than 6 so get in touch if you would like to hear more.

1. SAP Business ByDesign gives you the visibility you need

“Our BusinessByDesign users are really starting to see the benefits of being able to control and see their projects and how that project is performing from a proft and loss perspective. How much money is that project actually going to make and cost us as an organisation.” Liz Parsons Lloyd’s Register – 8k SAP Business ByDesign users planned. Hear more from Liz at Lloyd’s Register here.

Customers already on the system are delighted by the ability to see what’s going on. Are you an MD wanting to get an overall view of his manufacturing business? Or are you a CFO wanting to gain control of her budgets? Business ByDesign gives you the visibility and control you need.

2. SAP Business ByDesign is in the cloud

It’s the only place to be! The argument has largely been won for cloud. It is more cost effective, it doesn’t require a large dedicated IT staff and it is upgraded regularly so you are always on the latest version. When your entire business is on one cloud based system there are few limits on what you can do. For example you can; run intercompany transactions without the need for messy and complicated integrations and get in depth reports in real time.

3. SAP Business ByDesign grows with you

ByDesign is a “suite in a box” – with all the business elements you need inside and ready to go. Start with basic finance and open up functionality as you go along. Add more users as you grow. Find out how cutting edge brand Skullcandy grew thier business using SAP Business ByDesign – by watching the video below..

4. SAP Business ByDesign is quick to implement

8-10 weeks is not unsual. We will work with you to understand your business processes – configure and then implement your system with the minmum of fuss. Click here for more information on your implementation journey. Of course if you want more than the basic package we can build it out for you – that is the beauty of this flexible system.

5. SAP Business ByDesign is Your Digital Core

Cutting edge technologies slot right in. The Internet of Things, Advanced Analytics, Machine Learning & AI are all a perfect fit with the Business ByDesign intelligent ERP core. For more on this powerful solution sit back and listen to product chief Rainer Zinow (below). He explains how SAP Business ByDesign will enable your business to become an intelligent digital enterprise.

6. SAP Business ByDesign is great value

Zero in on where you are performing well. Eliminate waste and error. Maximise profitability and see a quick return on your investment.

SAP Business ByDesign is a great choice for companies moving to cloud ERP for the first time. It is also a good choice for companies with ageing legacy systems – or aquisitions that they want to bring in under one system. Lloyds Register use the projects and field services and repair elements on a daily basis. They have deployed ByDesign in 17 countries with another 17 due to go live soon.

Now listen to SAP’s Rainer Zinow explain the benefits of SAP Business ByDesign for enabling the intelligent digital enterprise.

When it comes to ERP systems – which is best?

In today’s “always on” digital world business leaders are increasingly turning to ERP business software to operate more efficiently. But there is still some confusion over which “type” of ERP system is best. Large bespoke “on premise” solutions have their fans but increasingly the spotlight falls on agile cloud solutions which suit businesses of all sizes.

SAP has a great reputation for serving large enterprises extremely well with bespoke ERP systems like S/4HANA but less is known about the great stable of smaller solutions such as Business 1 for small business and Business ByDesign for the rapidly growing and mid-size operation.

Spot the difference – SAP S/4HANA and SAP Business ByDesign

So instead of asking “Which type of ERP system is better” you could frame the question as “What is the difference between SAP S/4HANA and SAP Business ByDesign?

As it happens, In Cloud Solutions recently welcomed SAP supremo and head of Business ByDesign Rainer Zinow to London where over 50 solution users gathered to ask him just that. Below is a recording of Rainer’s answer in which  Business ByDesign customers are compared very favourably with fans of pod coffee. Do you want to pop the pod in and get a great cup of coffee or do you want to know the exact temperature to which the water is heated?

Have a listen – it might clarify a few issues about ERP systems for you. But if you don’t have the time – there is a transcript of Rainer’s words below.

“The S4 customer is typically any advanced in their experience – in their journey into IT. They are typically at the point now where they say look, the one size fits all solution is not what I am looking for.

The ByDesign customer is more – if I paint an extreme – the company which says, “you know what? I don’t want to have any IT people at all, I don’t know what they do – they have high salaries and traditionally whenever I wanted to grow my revenue by one pound I had to increase my IT spend at the same level.

Obviously they expect that that solution is open for integration if they want more, but they would describe themselves as the ones who have a Nespresso capsule in their hands – they can put it into the machine – they know that they need to put water in, they need to push the button but that is about as much as they want to do.”

Rainer Zinow – Head of SAP Business ByDesign 2018

If you would like to read a deeper dig into the differences between SAP Business ByDesign and SAP S/4HANA our managing director Bob Atkinson (pictured above with Rainer) wrote this informative article about the two ERP systems – just click on the text above.

And if you like the SAP Business ByDesign approach to modern ERP – the “solution in a box” answer to business integration and efficiency – then you can find out more by browsing our extensive website for useful content about the SAP Business ByDesign solution – and how we will support you . 

Finally why not call or e-mail for a chat with one of our friendly consultants about how you might use SAP Business ByDesign to make your business more efficient. Click here to get in contact.

Lloyd’s Register: Building a Safer Future

Lloyd’s Register is a technical and business services organisation and a maritime classification society dating back to 1760. Its stated aims are to enhance the safety of life, property, and the environment, by helping its clients  ensure the quality construction and operation of critical infrastructure.

Historically, as Lloyd’s Register of Shipping, it was a maritime organisation but during the late 20th century, it diversified into other industries including oil and gas, process industries, nuclear, and rail.

In 2015 Lloyd’s Register selected SAP to deliver an integrated, international, enterprise resource planning (ERP) and business management solution.

The Business Challenge for Lloyd’s Register

With operations in 78 countries and more than 9,000 employees, Lloyd’s Register was facing increasing complexity in managing its operations and wanted to take advantage of the opportunities being offered by the digital economy.

In Cloud Solutions were the SAP partner selected to implement the system with a brief to simplify and enhance the company’s finance, project management, project resourcing and human resources (HR) processes, helping Lloyd’s deliver on its commitment to keep employees at the heart of its business.

User-friendly solutions for everyday activities

Andrew Punter, transformation director, Lloyd’s Register says;

“We are 255 years old but have never stood still and continue to innovate and evolve. We selected SAP Business ByDesign to provide our teams with modern and mobile, user-friendly solutions to their everyday activities. This new partnership helps us to implement smarter and more automated processes across our global network.”

Benefits of SAP Business ByDesign for Lloyd’s Register

• Supports multiple languages
• Multiple currencies
• Varied global legal and financial conventions

The Lloyd’s Register Step-up programme is now in the process of being rolled out globally and supports the company in moving to a shared services operating model – driving compliance requirements for technical authorization more efficiently.

“By focusing on improving the Lloyd’s Register experience for customers and staff, we will be even better placed to deliver the performance standards demanded in today’s world.” Andrew Punter

Now watch the video to hear why Lloyd’s Register’s Head of Technology Liz Parsons chose SAP Business ByDesign supported by In Cloud Solutions.

SAP Business ByDesign for the Public Sector Your Way

Unsupported legacy systems are a ticking timebomb for the public sector.

A freedom of information request from “Computing” magazine recently found 50% of councils in England rely on unsupported server software – making them vulnerable to attack.

The government has been urging the public sector to make the move to well-supported cloud-based services and that need is now critical.

If finding software that connects your customers, your people and your data seems daunting we have good news.

SAP Business ByDesign for the Public Sector  – Easier than you think

With simple cloud-based ERP for the public sector you can;

• Meet increased customer expectation with fewer resources
• Ditch unsupported and outdated legacy systems
• Move to the cloud
• Give your customers and stakeholders the efficiency benefits they deserve
• User friendly portal interfaces for a simpler look and feel – interim and casual staff can use
• A host of user friendly apps – approvals, timesheets, project management and more

Why In Cloud Solutions?

In Cloud Solutions is a thriving, dynamic SAP partner which has carried out over 40 SAP Business ByDesign implementations and over 100 SAP Business ByDesign customer solution changes since 2012. We are proud to be one of the only true SAP cloud-based Enterprise Management specialists with the largest number of SAP Business ByDesign experts in the UK.

G-Cloud 10 Framework

In Cloud Solutions is delighted to be listed once again by the government as a Crown Commercial Service supplier to the G-cloud 10 framework. This is the go-to supplier directory in the digital marketplace for anyone in the public sector looking to embark on a cloud-based project.

Using this supplier list takes the guesswork out of finding expert help and is much faster and cheaper than entering into individual procurement contracts. Find a Buyer’s Guide to how it works here

Why SAP Business ByDesign?

Built on market leader SAP’s Business ByDesign platform our cloud ERP software for the mid-market takes users from insight to action in one smooth process. The solution is a cloud ERP “suite in a box” which allows you to offer your customers value for money from the start, without complexity. With user friendly interfaces even casual staff can manage, It connects every function to time-tested best practices and in-depth analytics. Highlights include:

• Streamlined end-to-end processes
• An end to siloed data
• Visibility across departments
• Real-time analytics to improve efficiency

 Intelligent Cloud ERP Your Way

Choose the solution YOU want from Finance Only to full ERP with or without HR & Payroll. We understand that not everyone wants the same thing which is why we want to help you get the solution that makes most sense for you. Business ByDesign is very flexible, so talk to us about what it is you need and we will get our developers to take a look.

Click here to talk to us!

SAP Business ByDesign User Day

Getting the most from your Cloud ERP is essential if you’re going to reap the returns on your digital transformation. Increased efficiency, greater transparency and real time analytics you can use – these are the rewards for getting it right. But it can take commitment to get the full benefit from your system and no one can afford to see their investment go to waste.

That is why we are inviting SAP Business ByDesign users to join us in London to really dig into what the system can do and we are delighted to say that the agenda has now been released.

Keynote Star

Top of the bill is SAP Keynote speaker Rainer Zinow – the chief architect of SAP Business ByDesign and senior vice president of SAP’s Business One & SAP Business ByDesign group. We are delighted to have someone with such deep knowledge and expertise join us and are very excited to hear his roadmap for the future of the solution.

Agenda Hot Topics

Throughout the SAP Business ByDesign user day we will be digging into some big topics including;

• Looking under the bonnet of SAP Business ByDesign
• Extending the boundaries of SAP Business ByDesign
• Focus on Reporting and Analytics

This SAP Business ByDesign user day, held at the historic Royal Institution – birthplace of modern science – represents a wonderful chance to get access to free training, both in the open sessions presented by leading SAP experts and from one on one Business ByDesign clinics with our own experts.

So, whether you want to learn tips, tricks and shortcuts or hear about exciting new add ons, apps and extensions such as SAP Analytics Cloud – and our own Intellectual Property Management Tool, Mayfair Central London is the place to be on October 18^th

There will also be sessions on Form Creation, Report Writing, 3rd Party Products and SCM Configuration.

Click here to sign up and find out more…

Analytics: Extracting Business Value from Your Data

Data is at the centre of our new digital ecosystem. Not only do we need to make sure that it is stored safely and kept clean but increasingly we need to look at how its value is being maximised.

Data now floods in from multiple sources and midsize businesses need to think about the best way to pull it all together, create insights from it and then distil those insights into value.

Technology can provide many of the answers, in the shape of increasingly sophisticated analytics and data managment tools.

Companies that have already invested here are seeing a competitive advantage. As the recent IDC report “The Growing Value of Data Management for Midsize Businesses” points out, “This is an essential part of digital transformation and technology strategy.”

A co-ordinated approach to ERP

Once upon a time business information lived in one data base inside a physical server on business premises – now it is everywhere and that means we need to take a co-ordinated approach – pulling in data wherever it exists – whether that is inside a CRM system or accounts database or whether it is coming in via social media or even from internet of things sensors. But the most efficient solution is to break down these silos altogether by introducing a single ERP which links everything together.

This is especially relevant to mid-sized companies because small firms are still intimately involved in all areas of their business while large ones have already moved on to advanced technology solutions. Midsize companies are often stuck in between, having outgrown the basic financial software they started out with, but not having moved onto something which links their processes together.

This is where we advise our clients to opt for cloud ERP with built-in analytics, tailored for mid-sized companies. Systems like SAP Business ByDesign will pull everything together including co-ordinating your data and giving you the opportunity to create useful real time reports. SAP Business ByDesign has excellent inbuilt reporting and analytics capabilities. However if you have large volumes of data or require even greater levels of sophistication you can accelerate your transition to an intelligent enterprise by adding in an advanced analytics solution.

This is where SAP Analytics Cloud comes in.

SAP Analytics Cloud – Key Benefits

• Cloud deployment
• Enriched, centralized business semantics
• Smart, contextual insights
• Integrated, agile planning
• Advanced collaboration
• Natural language processing

By running queries in real time you can achieve up to 80% efficiency improvements in key business functions without having to wait hours for results.

Source: SAP Analytics Portfolio – Modern Analytics for the Digital Enterprise white paper

Find out more about SAP analytics products here

Writing in ITpro Bobby Hellard says,

“Without analysing this treasure trove, (your data) businesses are left paying for servers or cloud services to store a massive unusable asset. But getting the right tools to perform this analysis means firms can start to gain business insights and understand customer behaviour better. They can also make use of IoT data and adjust their organisations quickly to take advantage of new market opportunities.

This puts analytics near the top of the list for most businesses. “

Reaping the benefits of analytics

As you learn to trust your analytics tools, businesses like yours can forge ahead using the insights that are revealed. Whether that is in the form of precisely pinpointed potential cost savings or revenue growth opportunities or even gaps in regulatory and policy compliance. It is an innovation that few mid-sized businesses can afford to be without.

You can find out more about SAP Analytics Cloud at the SAP Business ByDesign user day hosted by In Cloud Solutions at the Royal Institution Mayfair, London on October 18^th 2018. This session will be led by SAP Analytics expert Camelia Balon and there will be plenty of time to ask questions and delve into the benefits in detail.

Click here to register. Free to existing SAP Business ByDesign users.

Mobile App: Helps Your Run Smarter

Mobile apps in SAP Business ByDesign make running your business even more efficient – why?

Because you don’t need to wait until you get back to the office to get productive – so much can be achieved on the go and in real time.

Benefits;

• Staff can record hours & expenses against specific projects
• Managers can approve requests on the go
• Check your personalised KPIs
• Consult reports – set up as you want them
• Call & e-mail business contacts direct from your mobile contacts database
• Receive work schedules in the field & plan routes

Looks familiar

The SAP Business ByDesign app shares the same look and feel as your latest desk top version so you can get comfortable with it right away. When you logon via the mobile app you will see your launch pad and your embedded KPIs along with tiles that let you get things done on the go.

Take for example My Expense Reports – a self service app that allows employees to log expenses on the move. As soon as they’re created they’re sent for approval, where they can be dealt with swiftly via the management approval app or via desktop.

KPIs only need to be defined once and will then be brought over to your phone or tablet.

Access the Accounts Management section and go through to a full list of contacts – then call or e-mail while viewing their account history and CRM activities.

The Field Service and Repair order pipeline app is designed for service engineers who might be out in the field on a repair job. They will be able to receive a list of their service orders off base and on the move – allowing them to drill down into customer contact details, along with a list of the work required – then record time taken, costs charged and even invoices.

Also enjoy the benefits of Route Planning. By selecting multiple orders you can get the most efficient route between jobs using Google maps.

Personalise

Personalise your launch pad by adding or removing tiles in your mobile app e.g. order pipeline, shopping cart and create reports onto your smart phone, displayed according to your personal preference.

Project Management

Real time project recording is here! The SAP Business ByDesign mobile app is perfect for Project Management, allowing you to record expenses against individual projects at source and on the go. Cut costs by using your time more efficiently and delight your finance team with up to date real time project expenses and budgets that can be easily viewed by everyone.

Find out more about what is planned for SAP Business ByDesign mobile apps in this video guide;

If you would like to find out more, don’t miss the mobile apps session at our SAP Business ByDesign user day – hosted by In Cloud Solutions at the prestigious Royal Institution in Mayfair, London on October 18^th Sign up here and we will send you more information. Free to SAP Business ByDesign users.

Making Tax Digital, as the name suggests, is all about bringing tax into the digital age. Ultimately HMRC will require all tax calculations to be made online, with no paper filing at all and this will happen quarterly. So, if your expenses and invoices are still based on paper or Excel spreadsheets, the time has come to make some changes.

Making Tax Digital is a challenge that will affect some businesses more than others but the bottom line is all British companies will have to comply.

But the good news is, there is still plenty of time to make the changes necessary.

If you already have accounting software or ERP you will need to check with your provider about what arrangements they have made with HMRC.

Our software, Business ByDesign, is backed by SAP – who are fully committed to supporting you through the change. Watch the video, then read on to find out more about what you can do to help you get the most from your software.

Here is what you need to know…

When does it begin?

Making Tax Digital is being rolled out by HMRC starting in April 2019

Who will it effect?

To begin with it will only apply to VAT, so that means all businesses with a turnover over £85k

What will I have to do?

You will have to submit your VAT returns through the HMRC gateway using commercial accounting software. Which involves;

1. Keeping records digitally
2. Providing VAT returns information to HMRC through Making Tax Digital functional compatible software

Why is this happening?

HMRC loses upwards of £9bn each year on taxation errors, and they believe that’s partly due to the way businesses declare their income. Digital record keeping and automated VAT submissions should reduce error and hopefully make things easier for everyone.

What does this mean for people using paper and spreadsheets?

All data and evidence in relation to company spend – receipts, invoices and such – need to be captured digitally and submitted to HMRC using compatible software.

While the full Making Tax Digital roll-out to quarterly returns won’t happen until 2020, HMRC will require all VAT to be paid via the new system starting from April next year. This means relevant business transactions will have to be recorded digitally requiring many businesses to buy new software and train their staff in how to use it.

Cloud based software can be used to improve financial reporting both in house and to the government which will save time in the long run, more than compensating for the extra effort of reporting quarterly.

You could select a very basic finance package which will do the job just fine, or you could use this opportunity to consider your growth plans and step up to more sophisticated digital software in the cloud. We recommend SAP Business ByDesign.

What happens if I am already an SAP Business ByDesign user?

Rest assured, SAP is fully supporting the change and work is well underway to enable direct connections between HMRC portals and your own business software.

Developers will fully test the Making Tax Digital system with HMRC before releasing it to customers.

When do the quarterly tax returns begin?

The quarterly tax returns won’t be required until April 2020.   If you are a SME business you will have need to incorporate Making Tax Digital into your digital strategy.

Find more information about Making Tax Digital on the government website here  

If you would like to know more about digitising your finance function then please get in touch – we would be delighted to talk you through your options.

SAP S/4HANA v SAP Business ByDesign – What is the Difference?

Introduction – About In Cloud Solutions

In Cloud Solutions is a thriving, dynamic SAP partner which has, since 2012, carried out over 40 SAP Business ByDesign implementations and over 100  SAP Business ByDesign customer solution changes. We are proud to be one of the only true SAP cloud-based Enterprise Management specialists with the largest number of SAP Business ByDesign experts in the UK.

With a career in SAP behind me I am often asked to share my detailed knowledge of the company’s solutions and their history. Here is my guide to how the HANA in-memory platform came about and the differences between SAP Business ByDesign and SAP S/4HANA.

Bob Atkinson, Managing Director

SAP and the Cloud

SAP is a global IT leader and ERP solution specialist which runs the vast majority of Fortune 500 businesses and has done for 40 years. But until recently, the chief issue facing SAP was how to help companies make the strategic move onto ‘the Cloud’, where many benefits awaited – from greater flexibility to faster analytics.

It was from this quest for a cloud solution that SAP S/4HANA was born – note that it was not named R4 which might have been logical in the wake of its iconic predecessors R2 and R3 – but this was something different and deserved a new name. For those who are curious, the ‘S’ stands for ‘Simple’, 4 is the iteration and the HANA refers to the High Analytical database designed by SAP. Based on solid state memory the architecture means that reporting was for the first time truly ‘live’ –  real time reporting and analytics had arrived.

Enter HANA

So, considering what a departure this was – how did SAP go about creating something on the scale of SAP S/4HANA from the ground up and on totally unproven technology? To find out we have to spin back to 2008, when SAP made a very important decision – to purchase the core cloud technology which would make cloud ERP possible –  this just happened to be the very same technology which would form the basis of another SAP superstar product – SAP Business ByDesign – an ERP truly born in the cloud.

As we write, this mid-market marvel has just completed its 4th reincarnation, which saw a move onto the Fiori based HTML5 format from the slower Microsoft Silverlight platform.  And yes, SAP really do re-write the fundamental tables and process code each time to resolve know technical issues along with critical process changes to accelerate background speed for an overall quicker response.

HANA is the fundamental starting block, the core power if you like, that allowed both SAP Business ByDesign and SAP S/4HANA to come into being – so let’s  delve a little further into HANA’s history in order to understand it’s future as the backbone database for SAP’s cloud ERP offerings.

Core Principles Explained

SAP co-founder Hasso Plattner named HANA for the Highspeed ANAlytics processor he was developing in conjunction with Mannheim University. Back in 2000 they had performed the amazing feat of accelerating distribution/logistics processes from overnight to just one hour using the solid state processing power of their premium planning engine APO (Advanced Planner and Optimiser).  Now, as they worked on increasing speeds even further, they had an idea –  instead of just increasing the cache and RAM of the processors as a way of speeding things up, why not extend this type of memory to the full database?

It had already been recognised that delays in the standard Oracle based databases were being caused by the database code itself, which acted like a pseudo warehouse manager – running off to fetch the required information out of storage when asked.  This was a laborious process as the information then had to be written onto Hard Disk Drives (HDD), and reports had to be created overnight based on information which was already 24 hours old (Business Intelligence products); the new HANA processor was capable of doing the same thing in seconds, and with that, real time-live reporting was born.

We now take this sort of technology for granted but it was and remains, revolutionary in mainstream business software.

Savings in the Cloud

SAP S/4HANA signalled a move away from a transactional system that  recorded data and passed it to a BI tool to analyse the following day, toward giving end users active support in providing information for decision-making in real time – AND it was in the Cloud. One of the most immediate benefits of this was cost – no more hardware partners to negotiate, nor internal IT support staff managing back- ups, data migration to BI tools, and general systems maintenance – all gone, SAP handle all of these disciplines and wrap them up into an annual license fee.

We often get asked how SAP is able to keep the costs for Cloud so low (and this is true of both SAP Business ByDesign and SAP S/4HANA) compared with on-premise solutions – and it comes down to economies of scale. One Server can have up to 10 different Tenants (customer systems) within it, with securely partitioned memory, yet they use the same processors and associated server hardware – so there is total security for each customer but they are able to benefit from sharing the same physical space.  It is commonly known that the heart of the computer is its processor/s and during quiet periods, especially overnight, these processors may be idling, so why not put them to good use and have their processing time utilised across multiple businesses? With security running at Tier 4, which is military grade (retina scanning, oxygen free environments etc) the security on offer to keep your data safe is far beyond the capacity of most businesses.

Automatic Updates for All

Another benefit of the SAP cloud portfolio is that updates are offered automatically to all Tenants.  This is a big advantage as it minimises any legal process changes for the end users (e.g. you get automatic updates for IFRS16, GDPR etc) which would normally represent a huge headache for IT staff looking after on-premise systems. How does it work? Customer test systems are upgraded first to check everything is OK, and then 2-3 weeks later, the productive systems upgrade automatically, the customer may not even realise this has happened, it’s become so slick!  The exception is that the flagship SAP S/4HANA Private Cloud Edition could be kept on a specific version for up to 5 years under certain circumstances, to be discussed directly with SAP, but a very large upgrade at the end of this period would be necessary!

What is the difference between SAP Business ByDesign & SAP S/4HANA

So, now you know the background, what actually are the differences between SAP S/4HANA and SAP Business ByDesign? At first they both appear very similar – but in practice, the truth is they are very different. The illusion comes from the fact that they share the same front-end display – ‘Fiori’ –  which simply means ‘Flowers’ in Italian. It is coded in HTML5 which means it is super quick to display, even when information is being accessed from across the globe. In fact, all SAP products will eventually get the same Fiori treatment, so everything will look very similar – you may even end up with multiple solutions populating the same screen without even knowing – but it will save you time hopping between systems as you go about your daily role!

SAP Business ByDesign – Your Flexible Friend

The big difference between the two is in the architecture of each product.   SAP Business ByDesign is written with tools that utilise C#, .net, and Visual Basic to name a few, and by doing this SAP have created an application that is easily manipulated. It is possible to automate standard tasks or make minor changes in the system as necessary using a simple tool.  This tool is called the Cloud Application Studio, (CAS), and offers end users, (but primarily SAP partners,) the ability to change standardised core business processes such as Purchase to Pay (P2P), or Order to Cash (O2C) and amend them to suit the exact business requirements of the business implementing the solution. 80% of businesses say they want ‘vanilla’ processes, but in practice, it is the other way around! When 80% of businesses want to alter the standard processes to fit their business, it certainly helps to have that flexibility built in.

SAP S/4HANA – The Volume Handler

You might assume that SAP S/4HANA is simply a souped up version of SAP Business ByDesign?  Throw more computing power into the mix and off you go? But it doesn’t work like that. While the way SAP Business ByDesign is coded may be very rapid to deploy and manipulate when necessary, the code actually puts An ultimate limit on the volumes of data the solution can handle. SAP Business ByDesign is a fully auditable solution – data can’t be deleted from it, so a full record of every possible transaction can be viewed at any time.  Eventually – over many years – the database will fill up – so it won’t suit everyone, certainly not vast enterprises looking to run huge numbers of transactions daily – but please rest assured that this is not the case with most companies. The limit is set very high at 1000 users, and SAP Business ByDesign can and does handle millions of transactions annually, which is more than enough for the $1Bn businesses who use SAP Business ByDesign very happily on a daily basis!

Private Tenant?

Some people ask – What if we convert to become our very own Private Tenant on SAP Business ByDesign? Would it be even quicker?

The Private tenant idea, on the surface, may be a little misleading.  Essentially, what you get are ten of your own SAP Business ByDesign Tenants, and no other business having access to your hardware, Servers, etc.  The advantage being able to control your own destiny when it comes to mass uploads, major MRP runs etc, so as to schedule these common, less critical processes when the active users are working during the day, basically doing your own load balancing on the processors you have at your disposal. Is it any faster? Not really, maybe 10-15% quicker, but certainly not doubled in speed which was a common misconception in the early days.

Large Volumes

The appeal of SAP S/4HANA Cloud is that the coding is in the form of the native SAP Advanced Business Application Programming (ABAP), which brilliantly handles the colossal volumes that SAP are renowned for. This makes it a clear-cut decision when you are looking for those kinds of volumes.  SAP Business ByDesign was simply not designed for that, but as a rule of thumb when writing this, 1 million end to end processes per annum is about its limit, which includes multiple transactions in each process, so it’s process complexity dependant (Sales Orders, Purchase Orders, Project volumes etc), so still no slouch, but it is in bulk volume where SAP S/4HANA starts to stretch its legs, making the two solution great stablemates within the SAP Cloud Portfolio.

Pricing Models

This leads on to the pricing models for the two solutions. SAP Business ByDesign is the same user price no matter how much you use the tenant from a data point of view.  Within the Private edition, you will get 10 tenants and a minimum of 20 users per tenant, so you really need 200+ users to be thinking of this route, but for either flavour, you pay for the user licenses and forget about the cost of the hardware, maintenance and security. SAP S/4HANA is significantly different; as it’s ‘technically’ unlimited in capacity, SAP bring in on top of user licenses (of which there is a minimum of 120 users), a pay as you use volume hierarchy, currently in blocks of 135,000 transactions, whether it be Purchase orders or Sales Orders, so as you see, the bigger clients start paying for the privilege of somebody else looking after their hardware and security! In reality though, the Cloud version of SAP S/4HANA is still incredible value to the customer compared with the equivalent On-Premise solution.

Take a look at our cost calculator here.

Does Age Matter?

When it comes to the maturity of the two solutions, you should take into  consideration how long they’ve been around. SAP Business ByDesign has just had its 10th birthday, SAP S/4 HANA is barely 4 years old.  This shows in the complexity of the two solutions, SAP Business ByDesign is far richer across both Financials and Supply Chain (including manufacturing) capability, with another rewrite of Manufacturing on its way for 2020.  SAP S/4HANA will always be behind the pace of SAP Business ByDesign because SAP developers get key principles working rapidly in Business ByDesign first, before transferring this knowledge to the S/4HANA solution. S/4HANA takes far longer to program, and still doesn’t have the flexibility – at the moment – for critical changes to be made for individual customers, although the core scoping is still very strong for a standard product.

Concluding thoughts

In conclusion, both products seem very similar, but in reality they are very different! It shouldn’t be assumed that because something is bigger and more expensive that it is always the best. As ever, the best advice is to be very clear about what you require from the outset – at this point you may find that the little brother is more than adequate for your needs and is actually a better fit for your situation – surprising but true! And if you feel that global domination is your thing, upgrade to SAP S/4HANA when the time is right and the users won’t know much about the transition, so no extensive staff training or employee ‘hearts and minds’ concerns, it’ll be business as usual.  How very Germanic!