A Strategic Approach to ERP Transformation with SAP

For organisations still operating on legacy systems like SAP ECC, the path to modernisation is becoming increasingly urgent.

As support deadlines approach and competitive pressures mount, businesses are seeking a reliable and streamlined approach to move to SAP’s cloud-based ERP solutions.

SAP ERP

At On Device Solutions (ODS), we believe that accelerating the journey to cloud ERP requires a strategy grounded in pragmatic transformation, actionable process insights, and value-driven planning. In this article, we highlight the essential considerations for cloud migration and outline practical steps that enterprises can adopt to move forward with confidence.

Why Move Now? Creating Awareness Around Cloud ERP

The first step in any transformation journey is awareness. While many organisations are aware that change is needed, they may not fully understand the range of options available or how their unique business structure should influence the path they choose.

SAP’s approach encourages organisations to first evaluate whether a public cloud, private cloud, or hybrid ERP landscape is the best fit. Industry analysts and market studies indicate that hybrid ERP models are increasingly common, especially within large or multinational organisations. This approach allows businesses to balance the agility of public cloud solutions with the flexibility and control of private or on-premise systems.

This step is less about technology and more about strategy. It’s about making informed decisions based on business needs, not simply replicating your legacy setup in the cloud.

Using Process Insights to Guide the Journey

One of the more innovative aspects of SAP’s methodology involves using process intelligence tools to analyse historical ERP usage. By capturing how business units use ECC or S/4HANA today, companies can begin mapping real-world operations to best practices and pre-defined business capabilities.

This is more than a data dump – it’s an intelligent analysis. Tools such as Signavio Process Insights and the Digital Discovery Assessment (DDA) can help identify process clusters across different entities or company codes. At ODS, we help our clients use this analysis to rationalise scope, eliminate redundancy, and group similar business units for transformation waves.

The outcome? Faster time to value, reduced implementation risk, and a roadmap rooted in real business activity – not guesswork.

Clustering and Scoping: The Power of Grouping for Transformation

A standout element of SAP’s approach is the use of process clustering. Rather than treating every business unit or company code as unique, this methodology identifies where standardisation is possible. If several units operate similarly (e.g., using standard procurement and finance flows), they can be grouped and migrated together – drastically simplifying scoping and reducing cost.

This step is key for multinational or diversified businesses. It also opens the door to rethinking business models – such as deploying public cloud solutions for new ventures, while retaining private cloud for highly regulated or complex business areas.

From Insight to Action: The Role of the Digital Discovery Assessment

Once process clusters are identified, the next step is to validate and plan using the Digital Discovery Assessment (DDA). This interactive platform allows SAP, customers, and SAP partners like On Device Solutions to collaborate on defining requirements, integration needs, localisation factors, and additional business-specific needs.

What’s particularly useful is the ability to pre-populate the DDA with scoped insights from earlier analysis – saving time and providing a solid foundation for stakeholder discussions. Whether it’s identifying which custom codes need to be retained, or determining integration with third-party platforms, this phase helps ensure nothing critical is overlooked.

Tailoring the Cloud Architecture: Hybrid Is No Longer a Compromise

Not every system or process is a natural fit for public cloud. SAP’s methodology acknowledges this and supports a hybrid landscape where business units can run on different deployment models – unified through common data structures and integration.

This flexibility is crucial. Many enterprises adopt dual cloud strategies – for example, using a public cloud tenant to support new business models or acquisitions, while maintaining a private or hybrid tenant for core operations that require greater customisation and control.

As cloud capabilities evolve, hybrid ERP is becoming not just a transitional phase but a long-term operating model for many enterprises.

A Partner-Led Approach to Transformation

The move to cloud ERP is complex, but with the right process-driven approach enterprises can navigate it successfully. At On Device Solutions, we combine deep SAP expertise with business insights to guide clients through each step of this transformation – from initial process discovery to system design, implementation, and beyond. If you’re considering your move from ECC to the cloud, we can help assess your readiness, define your roadmap, and unlock the value of modern ERP – on your terms.

Let’s talk about your digital transformation journey today.

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