SAP Cloud ERP for Small and Medium-Sized Businesses
Many decision-makers at small and medium-sized businesses still believe that SAP Cloud ERP is too expensive, takes too long to implement or is unsuitable for their requirements.
However, cloud delivery, fit-to-standard implementation and scalable subscription models have changed how growing businesses can benefit from adopting SAP solutions. In this article, we answer seven common questions from SMEs decision-makers considering SAP Cloud ERP.
- Is SAP Cloud ERP only suitable for large enterprises?
No. SAP Cloud ERP can support organisations of different sizes, including small and medium-sized businesses with growth plans.
Its cloud-based architecture allows businesses to begin with the capabilities they currently need and expand as their operations, workforce or customer base grows. They can access enterprise-level ERP capabilities without having to build and maintain extensive on-premises infrastructure.
SAP highlights the example of Lagom, a company with 28 employees. Following its implementation, the business reported a 50% faster month-end close, a 40% reduction in the effort required for finance activities and 10% lower infrastructure costs.
Results will vary according to the organisation in question, its existing systems and the scope of the implementation. Nevertheless, examples such as this demonstrate that business size alone should not determine whether SAP Cloud ERP is considered.
The more important question is whether the solution supports the organisation’s processes, objectives and growth plans.
- Is SAP Cloud ERP too expensive for a growing business?
The cost of an ERP implementation depends on factors such as licensing, scope, integrations, data migration, extensions and the level of support required.
SAP Cloud ERP uses subscription-based pricing, which can make expenditure more predictable than purchasing and maintaining extensive on-premises infrastructure. Its scalable licensing model also allows businesses to begin with what they need and expand over time.
A fit-to-standard approach can further reduce the need for costly custom development by encouraging businesses to adopt established best-practice processes wherever appropriate.
However, this does not mean that every SAP Cloud ERP implementation will automatically be inexpensive. Clearly defining the project’s requirements and scope is essential to understanding the likely investment and avoiding unnecessary complexity.
As an experienced SAP Gold Partner, On Device Solutions can guide you through this process, helping you establish a realistic scope and make an informed investment decision. Get in touch to discuss your SAP Cloud ERP needs.
- Does an SAP Cloud ERP implementation have to take years?
Not necessarily.
Preconfigured processes, guided setup, automation and established best practices can reduce the time required to implement SAP Cloud ERP. SAP Activate also provides a structured methodology for guiding organisations through the implementation process.
In one of SAP’s customer case studies, PureTech implemented SAP Cloud ERP in 15 weeks without an internal IT team.
This example should not be treated as a guaranteed timeline. The duration of an implementation will depend on factors including:
- The number and complexity of the processes included
- The condition and readiness of the organisation’s data
- Integration requirements
- The extent of any required extensions
- The availability of internal decision-makers
- The organisation’s readiness to adopt standardised processes
Once again, an experienced implementation partner can help the business evaluate these factors, develop a realistic plan and identify potential obstacles before they cause delays.
- Does fit-to-standard mean giving up flexibility?
Fit-to-standard does not mean that every organisation must operate identically or abandon processes that genuinely differentiate its business.
The approach begins by using the standard processes available within SAP Cloud ERP wherever they meet the organisation’s requirements. This reduces unnecessary complexity, simplifies future updates and helps maintain a clean core.
Where standard functionality does not fully meet a genuine business requirement, standard APIs and extensions on SAP Business Technology Platform (SAP BTP) can be used to integrate other applications and provide additional capabilities while keeping the ERP core standardised.
The key is distinguishing between a process that provides real business value and one being retained simply because it reflects how the organisation has always operated.
As an SAP BTP specialist, On Device Solutions can help businesses identify where standard functionality is appropriate and where an integration or extension is genuinely required.
- Will employees find SAP Cloud ERP difficult to use?
The success of an ERP implementation depends not only on the technology but also on whether employees understand the new system and can use it confidently in their everyday work.
SAP Cloud ERP provides role-based applications, guided workflows, dashboards and embedded analytics designed to make relevant tasks and information easier to access. SAP Fiori applications provide a consistent user experience across different business processes and devices, while embedded AI can assist with selected everyday tasks.
Automatic cloud updates also give organisations access to ongoing improvements without requiring traditional upgrade projects.
Nevertheless, businesses should not assume that introducing a new interface will automatically result in successful adoption. Employees still need to understand why processes are changing, how the solution supports their roles and where they can obtain help.
Training, communication and ongoing support should therefore form part of the implementation plan from the outset.
- Will we need a large internal SAP team?
A growing business does not need to build a large internal SAP team before adopting SAP Cloud ERP.
With a cloud solution, SAP manages areas such as the underlying infrastructure, maintenance, security and software updates. An implementation partner can provide additional expertise in areas including configuration, integration, data migration, training and ongoing support.
This allows internal employees to focus on the organisation’s processes and priorities while working with specialists on the technical elements of the implementation.
Internal process owners will still be essential. The people who understand the organisation and its operations must be involved in making decisions throughout the project.
The objective should be to establish clear responsibilities between the business, SAP and its implementation partner.
- Can SAP Cloud ERP support our industry and deliver measurable value?
SAP Cloud ERP includes established best practices, data models, and industry-specific capabilities for sectors such as manufacturing, retail, professional services, and wholesale distribution.
However, businesses should assess the solution against their actual requirements rather than assuming that an industry template will cover every process.
For small and medium-sized service businesses, ODS Field-to-Finance Cloud provides a practical example of how SAP Cloud ERP can support a connected, end-to-end process.
The packaged, fixed-price solution brings together SAP S/4HANA Cloud Public Edition and SAP Field Service and Asset Management in one connected platform. It supports the service journey from the initial customer request and field execution through to inventory, billing, payment and performance reporting.
Aligned with SAP’s GROW Fast approach and fine-tuned for the SME market, ODS Field-to-Finance Cloud uses preconfigured best-practice processes and a simplified implementation model to provide a clearer scope, more predictable costs and a faster route to value.
Whether a business chooses a packaged offering or a broader SAP Cloud ERP implementation, its intended outcomes should be defined before the project begins. Relevant measures could include:
- Reducing the time required to complete the financial close
- Decreasing manual data entry and administrative work
- Improving inventory visibility
- Shortening procurement or billing cycles
- Increasing operational productivity
- Providing management with more timely information
- Improving cash-flow visibility
SAP’s customer examples include UniBetter, which reported a 40% shorter procurement cycle, 20% lower inventory carrying costs and 30% less manual effort.
Results will vary between organisations. However, these examples demonstrate why the value of an ERP implementation should be measured through defined business improvements rather than solely by whether the system goes live.
Is SAP Cloud ERP right for your growing business?
SAP Cloud ERP will not automatically be the right choice for every organisation. Equally, it should not be dismissed simply because SAP is traditionally associated with large enterprises.
The decision should be based on the organisation’s processes, growth plans, budget, internal readiness and expected business outcomes.
With an appropriate scope, a fit-to-standard approach and experienced implementation support, growing businesses can adopt SAP Cloud ERP without recreating the lengthy or heavily customised projects traditionally associated with enterprise software.
For organisations considering SAP S/4HANA Cloud Public Edition, On Device Solutions provides end-to-end services including consulting, migration, implementation and ongoing support.
If you operate a growing service business, explore ODS Field-to-Finance Cloud.
