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Creating the future enterprise with renewable enterprise

Prabhakar Lal
April 6, 2020

Today, with SAP asking customers to adopt SAP S/4HANA®, organizations are presented with a once-in-a-lifetime opportunity to re-architect the enterprise and make it future proof. In this blog, I’ll share my thoughts on assessments, on adopting a fit-to-standard, on innovations, on customizations, and on architectures and tools and methods showing you that your move to SAP S/4HANA, if done correctly, is as easily done as said. We all know how the enterprise has evolved into a complex architecture during the last 15–20 years. Regardless of whether the enterprise grew organically or through mergers and acquisitions, it has led to many businesses having multiple ERPs with heavy customizations, complex point solutions, and diverse integration technologies. Reactive decision making while the enterprise was growing at frantic pace resulted in the adoption of siloed applications on multiple technologies and the ensuant escalation of operational expenses and dependence on multiple products and support vendors.

Just imagine the difficulties a customer with a very complex architecture must go through to become a lean architecture that is flexible enough to adapt with ease according to future business requirements, technological obsolescence, and innovation needs. For example, if your enterprise architects recommend that you move from an existing, heavily customized ERP solution to a SaaS ERP solution, do you think it will be easy to follow it without creating an organization-wide storm and impacting the business?

Capgemini has perfected the Renewable Enterprise approach to help customers leverage this opportunity. I know you have many questions. What exactly is this renewable enterprise? How can it help me simplify my architecture?

Capgemini’s Renewable Enterprise is built on a few guiding principles. For each of them, we have developed methods, tools, and accelerators to support the customer journey. These are, of course, all flexible and adaptable to the individual customer’s context.

Start with an assessment

It is important to start with a transformation assessment. This lends transparency to the impact on architecture, business processes, data, applications, developments, integrations, interfaces, roles, and change management. It also highlights the business value of SAP S/4HANA migration and helps build a business case. The assessment provides insight into process-level challenges and pain points, and the outcome can help identify areas requiring urgent process-level transformation and opportunities for adopting innovations.

Capgemini has developed an assessment methodology leveraging our in-house tools and accelerators with SAP’s and our partners’ tools and accelerators to help customers build a viable roadmap for the future.

Adopt standard

We’ve been hearing about “back to standard,” “move to standard,” etc., for some time now. It wasn’t easy to follow these standardization approaches as there was no clear steps available. With the SAP Model Company-based implementation approach, it has become easier to start a project with a ready-to-use system loaded with specific industry or lines-of-business solutions or with a custom, handcrafted solution comprising the best bits from multiple industry or lines-of-business solutions.

Capgemini has been at the forefront of the SAP Model Company journey as an SAP Qualified Model Solutions partner and has been co-innovating with SAP on multiple industry solutions. We have perfected the approach and injected it into our proven delivery methodology to increase the extent of standardization in the solution.

Keep the core clean

If you adopt the standard, how do you meet the unique business requirements that can’t be met with standard solutions? Does it mean that you will lose your operational competitive advantage?

No. We have perfected an approach to help you adopt fit-to-standard and develop business critical customizations in the right system or platform as appropriate.

Capgemini has developed a multi-pillar solution architecture strategy as part of renewable enterprise approach to help customers build business advantages at the right place and platform. We recommend using the standard functions of the core ERP platform and performing extensions on either the SAP Cloud Platform or any other open platform. This approach is not only applicable for new implementations but also for customers who are migrating to SAP S/4HANA by system conversion. We recommend running an assessment to identify opportunities for moving to standard by reviewing existing developments, modifications, reports, clones, and complex user applications. This will certainly go a long way in building the development strategy on future platforms and keeping the core simplified.

Innovate on the go

Innovation is a business urgency and you simply can’t wait for your ERP modernization to be over before you start with applications with intelligent technologies. As part of the renewable enterprise, we have created several use cases that can work on your existing platform to help you transition to SAP S/4HANA once your modernization project is complete. Innovation can be built on the SAP Cloud Platform or on any open platform.

Our approach is to make you innovation-ready as soon as possible, starting with showing you selected innovation use cases and identifying scenarios that apply to you. This is part of our assessment approach, which can also include a pilot implementation.

SAP ERP migration to SAP S/4HANA isn’t only about changing the core and not leveraging this opportunity to re-architect your enterprise. Capgemini’s renewable enterprise can help your business achieve the agility and flexibility to meet current and future requirements. And the journey to the renewable enterprise is a “personal” journey.

The enablers and guiding principles can be the same, but the journey is not an industrialized copy-paste. For some, we start small. For others we go big. Or do a phased migration. Or build everything anew. For more information, please free to reach out to me or to one of my colleagues in your country.

Check out our SAP S/4HANA® Cloud for Automotive Suppliers offering which we have co-developed with SAP to help automotive suppliers meet all these requirements.