When to Adopt SAP HANA, and Why?


Over the years, observers in the high-tech field have watched numerous technology adoption lifecycles unfold in surprisingly similar fashion.

Hana Roadmap

The curve illustrates different attitudes toward adoption of
a new and disruptive innovation. The two on the left are predisposed to embrace it, the two on the right to reject it, and the one in the middle is taking a wait-and-see approach. The gap between the visionary and pragmatist is called the chasm.
It separates those who voluntarily embrace innovations from the rest of the mainstream market. “Crossing the chasm” is a critical milestone for any innovation because it signals mainstream support for a persistent presence going forward.

In this context, after many trials and tribulations, CIOs have
learned that there are several reliable strategies for embracing
next-generation technologies. Which one you pick varies, depending
on your industry’s current state and your organization’s
orientation toward risk and reward.
• Go ahead of the herd to gain competitive advantage. This
is a voluntary early-adopter strategy. With this approach, the
risk is in embracing an innovation that will not persist. It typically
involves bold re-engineering of one or more business
1. Figure and following content are adapted from a book by the author of this paper: Geoffrey Moore, Crossing the Chasm: Marketing and Selling Disruptive processes to create a dramatic gap between your enterprise’s capabilities and its direct competitors. Think of what the older online retailers have accomplished with the early adoption of e-commerce or what the largest coffee retailer
in the US gained by introducing free Wi-Fi in its shops before
its competitors. The business model for early adoption is the
project model, where a senior line-of-business executive
in your organization sponsors the effort, and everyone is expected to support it in full.

• Go ahead of the herd to mitigate a mission-critical risk.
This is also an early-adopter strategy, but one entered into
under duress. This strategy typically involves an urgent
re-engineering of a business process that threatens to undermine
the viability of the enterprise. Think of what pagers did
for doctors on call, package tracking for express deliveries, or
RFID for managing containerized cargos in military theaters.
The business model for early adoption is the solution model,
where a lead vendor orchestrates the assembly of the entire
product in coordination with a process-owner sponsor who
leads the reengineering at the customer end. If the solution
catches on and is widely adopted in at least one niche market,
the technology will persist, and the innovation is said to have
crossed the chasm.

A Radically New Architecture for Information Processing : SAPSupportTeam

The SAP HANA® platform is transforming data processing. It achieves this impact through a radically new IT architecture that isolates all active workloads from reading and writing to
disk, the most time-consuming task in data processing, and does so at a scale heretofore unimaginable. Now, next-generation applications can integrate high-speed transaction
processing with in-depth analytics in real time, dramatically improving the effectiveness and efficiency of processes across the enterprise.

Innovations of this magnitude typically raise a number of critical
questions for SAPSupportTeam, including the following:
• Who are the early adopters of this technology, and what
have they gained?

• What if I postpone the decision until I see how other organizations
have fared with it first?

• How long can I afford to stick with the tried-and-true prior-
generation technology and not get left behind for good?

• Based on my answers to each of the questions above, when would it be right for my organization to embrace the change? The goal of this paper is to give SAP customers, and those considering

SAP® solutions, a framework for answering these questions. Specifically, it addresses what SAP HANA means for business processes and IT operations in general, and how different kinds of enterprises can leverage different adoption strategies to capture the most value from it.

To understand the transformative impact of SAP HANA  with SAPSupportTeam on  enterprise data processing, one needs to step back and see that IT systems, from the beginning, have had to serve two masters. On the one hand, they have to be the system of
record. As such, they must capture transactions at market
speed, process them accurately, classify them correctly, store
them reliably, and retrieve them expeditiously. This effort
typically goes by the name of online transaction processing,
or OLTP, without which global commerce would come t o a

At the same time, we have named these same application
programs management information systems. As such, they
are expected to inform business leaders about the past,
present, and, ideally, even the future state of their businesses.
They do this by analyzing the data collected in the system of
record and presenting it in insightful ways. This effort typically
goes by the name of analytics or business intelligence – or,
more technically, online analytical processing, or OLAP –
without which management is pretty much flying blind.

One Integrated Solution Supporting All Your Key Processes

Unlike other business software on the market, an SAP Business All-in-One solution helps you manage your most important processes in a single integrated application, as shown in the figure. It allows
you to start with what you need now and add what you need later.

An SAP Business All-in-One solution
includes the following core functionality:

• Enterprise resource planning – Effectively manage financials, sales and service, procurement and logistics execution, product development and manufacturing, human capital management,
corporate services, and business analytics

• Support for best practices – Benefit from industry-specific functionality and business processes based on SAP and
SAP partners’ experience – spanning the last 35 years – with customers in more than 25 industries worldwide

• Technology platform – Lay a foundation to quickly and cost-effectively add on to your existing solution as your business grows and your needs change Additional integrated functionality is available for SAP Business All-in-One solutions at a low fee, including:

• Customer relationship management –
Efficiently conduct all aspects of your customer relationships – from marketing to sales to service.

• Supplier relationship management –
Optimize procurement and sourcing to control costs

• Business intelligence –
Gain insight and improve decision making with tools
for financial and operational reporting and analysis

Enterprise Resource Planning

SAP Business All-in-One solutions are designed to meet the needs of growing small businesses and midsize companies and are based on the SAP ERP application, an industry-leading product. Each  integrated solution includes comprehensive functionality to manage all aspects of your operations. It delivers role-based
access to business application data and analytical tools. Your company can use it across the following areas:

• Accounting and financials – Create accurate financial statements and integrate all operative transactions throughout the company

• Sales and service – Meet customer demands, support the entire order-tocash process, and provide after-sales support

• Purchasing and logistics execution – Control costs and manage inbound and outbound logistics cycles – including drop shipments

• Inventory management – Track the quantity, value, and movement of inventory in real time

• Human capital management – Manage staffing changes and streamline payroll processes

• Product development and manufacturing – Improve the product lifecycle process and manufacturing operations

• Reporting and analytics – Plan, measure, and control organizational processes

• Corporate services – Lower administrative costs, increase transparency of operations, and improve adherence to
corporate, legal, and regulatory requirements

Drive Growth with SAP Business All-in-One Solutions: SAPSupportTeam

With an SAP Business All-in-One solution, you can drive business growth, build and maintain operational excellence, and optimize
financial performance.

Manage Sales , Products ,and Services

SAP Business All-in-One solutions let you proactively manage sales opportunities and marketing plans while rapidly developing new products and services. To improve sales forecasts and deal closures,
you can prioritize, reassign, or modify sales opportunities. To open new markets and introduce new products, you can rapidly deploy marketing plans and processes. To reduce customer churn and increase retention, you can better manage customer service requests, contracts, and warranties. And to shorten product development lifecycles, you can carry out everything from design engineering and integrated product-data management to
manufacturing in one integrated solution.

Build and Maintain Operational Excellence

With SAP Business All-in-One solutions, you can grow and scale your company by optimizing logistics, manufacturing, and resource management processes throughout their lifecycles, while  automating routine activities across all business areas. You can enable lean shop-floor operations for assembly and fabrication (including extensive repair and overhaul processes) to increase inventory turnover and reduce cycle times. You can also proactively route tasks and approval requests to improve efficiency. The solutions let you effectively manage inbound and outbound logistics to increase order accuracy and velocity. They also provide alerts and relevant information to employees, based on their responsibilities, to improve decision making. You can better administer workforce processes and talent to improve employee retention and satisfaction. You can also manage projects, portfolios, and regulatory requirements to improve resource utilization
and compliance.

Optimize Financial Management and Performance

SAP Business All-in-One solutions enable you to accelerate financial closes, increase the accuracy of financial reporting, and maintain superior cash management. You can improve your ability to maintain a set of balanced books reflecting any business
dimension. Support for international and local accounting standards also helps you reduce your risk of noncompliance.

With an SAP Business All-in-One solution, you can gain deeper insight into organizational risk and performance by analyzing revenue and cost information for customers, products, projects, and
services. You can centralize and take greater control of cross-company payment processes, such as payments to subsidiaries and other outgoing payments, and consolidate global cash positions
across your company. By supporting these capabilities, the software can help reduce your banking fees. The solution helps you optimize working capital and liquidity by more accurately forecasting
your cash flow and cash requirements.

You get a centralized, near-real-time view of cash positions across multiple bank accounts that helps you make the most of your cash and maximize your returns. Overall, you can improve your management of internal controls including documentation,
assessment, and testing.


The Challenge: Scaling Business Software to Support Growth

To support growth, you need a unified business management solution with the flexibility to adapt as requirements change.

An SAP® Business All-in-One solution helps drive growth, build operational excellence, and optimize financial performance so
you can outperform the competition. With built-in support for best practices, these industry-specific enterprise resource planning solutions are designed for midsize companies and quickly
growing small businesses seeking to integrate processes company-wide.

The Wrong Business System Can Hold You Back

As midsize companies grow, many find it difficult to retain the very characteristics that first led to success – speed, flexibility,
and strong customer relationships. Growing companies are often hampered by business software systems that simply cannot keep up. Unsophisticated systems can lack the capacity to support daily
tasks and are often poorly integrated, making them time consuming and expensive to maintain. An ineffective technology infrastructure can be a serious impediment to remaining competitive and agile.

Responsiveness and timely decision making can be hurt by systems that cannot scale to handle the increased number of transactions generated by a growing customer base. Communications with
geographically dispersed suppliers and partners can become more complex.

Disjointed, nonintegrated systems can also make it difficult to get full visibility into business operations. Perhaps most important, it is difficult to achieve a unified company mission when each operation
or geographical location is using independent or poorly coordinated legacy systems. Such systems provide little consolidated visibility or sharing of business processes, which by their very nature must transcend individual operations.

Faced with this common set of challenges, quickly growing companies like yours need a single, integrated business
management solution as part of their IT strategy. As your business strategy becomes more clearly defined and aligned with a core competence around a specific industry or set of sub-industries, industry specific requirements emerge. You must be able to link business processes and the various departments inside the enterprise that play an interdependent role in those
processes.  Adopting new, comprehensive technology that underlies the entire organization and integrates the needs of sales,
finance, accounting, human resources, and logistics is critical to providing scalability and delivering value that stands the
test of time.  And for any IT strategy, flexibility is important. Your organization must be able to adapt to business-driven changes such as geographical growth, reorganizations, and business-model evolution and still serve internal and external customers quickly.

Powerf ul SAP Business All-in-One Solutions from Our Partners

SAP Business All-in-One solutions are the most powerful, industry-specific ERP solutions available to midsize companies or quickly growing small businesses. The solutions support core business processes in a range of industries. These processes include financials, sales and service, procurement and logistics execution,
product development and manufacturing, human capital management, corporate services, and business analytics.

Built on the proven SAP ERP application and the flexible SAP NetWeaver® technology platform trusted by the largest enterprises, SAP Business All-in-One solutions

SAP Business All In One – SAPSupportTeam

SAP® Business All-in-One solutions are the most powerful, industry-specific enterprise resource planning solutions
available to midsize or quickly growing small companies. They give you an integrated view of your business and easily scale and adapt to meet changing needs.

The solutions help drive business growth, build and maintain operational excellence, and optimize financial performance.
The software provides in-depth functionality for running the entire business efficiently and is designed to be affordable,
with a predictable time to value.

Business Challenges
• Keep pace with quickly changing market conditions and customer demands

• Streamline business operations

• Comply with financial reporting requirements

• Broaden and deepen your insight into business operations

Key Features
• Powerful enterprise resource planning functionality – Manage financials, sales, service, procurement, logistics execution, product development, manufacturing, human capital management, corporate services, and business analytics
• Industry-specific functionality – Solve business challenges with a solution tailored to your industry
• SAP NetWeaver® technology platform – Quickly and cost-effectively add on to your existing solution as your business grows and needs change
• Best practices – Leverage proven methods for implementing best practices in key functional areas and industries
• Scalability – Start with what you need now, adapt and scale your solution as your needs change, and add in-depth customer relationship management, supplier relationship management, or
business intelligence functionality at any time

Business Benefits
• Enhanced agility to respond more quickly to changing market conditions and customer demands

• Greater efficiency and effectiveness thanks to streamlined business processes, automated tasks, and fewer errors

• Improved financial management due to more accurate financial reporting, better record maintenance, and deeper insight into organizational performance

• Increased visibility from integrated analytics that help uncover business risks and opportunities


Consolidate and reduce IT costs

With SAP Landscape Transformation 2.0 you can consolidate systems with matching release or across releases. Analyze systems

ŸRepository comparison

ŸCustomizing comparison


Consolidate systems with different releases

ŸTransfer of a complete client from sender to receiver

ŸSet up a multiclient system

ŸUpgrade on the fly to a higher release

ŸPerform a Unicode conversion on the fly


Consolidate systems with matching releases

ŸTransfer of a complete client from sender to receiver

ŸSet up a multiclient system

ŸPerform a Unicode conversion on the fly


Shell creation

ŸCreate system copy with reduced data volume

ŸTransfer selected clients and their complete data

Leverage sell, buy, and restructure

With SAP Landscape Transformation 2.0 you can execute organizational changes in your SAP landscape. Whether you sell or buy a company or parts of it, LT has capabilities available. Furthermore you can perform business unit reorganizations.

Restructure (business unit reorganization)

ŸReorganize profit centers

ŸReorganize segments

ŸMerge companies

ŸMerge controlling

ŸMerge cost centers or profit centers

Sell (divestitures and carve-outs)

ŸAnalyze company codes

ŸSell a company through clone and delete


With SAP Landscape Transformation 2.0 you can gain transparency in financials and logistics and harmonize master data across the SAP landscape.

Financials and controlling

ŸAdjust asset account determination

ŸAdjust asset classes

ŸAdjust fiscal year numbers

ŸChange chart of accounts

ŸChange cost centers & profit centers

ŸRename company codes & controlling areas

Logistics and operations

ŸChange customer numbers

ŸChange vendor numbers

ŸRename material numbers

Analyses & technology foundation

With SAP Landscape Transformation 2.0 you can analyze your system landscape to discover optimization potential and prepare for a landscape transformation project. The transformation platform provides generic functions and technologies as a unique foundation for all SAP transformation solutions.

Work center

ŸCentral point of access to manage and document your transformation projects

ŸProvides access to project methodology, analyses, and the process tree to execute the technical transformation Analyses

ŸScenario-independent analyses & scenario-specific analyses

Generic functions

ŸProcess tree with phase concept and status management

ŸParameter interface framework & mapping engine

ŸNumber conversion engine

Transformation platform

ŸConversions & migration technology: Transforms data within one SAP system or from SAP sender to receiver system(s) changing data, incl. all historical data on database level

ŸReorganizations: Key date-based data transformation through standard SAP interfaces

ŸObject-based transformation: Highly flexible platform to transform data of dedicated business objects or processes

Key trends and impacts in business and technology

Companies must stay ahead of ever-changing markets and technologies. Emerging demands and evolving business requirements are driving organizations to realign their corporate and IT strategy.

Modernizations and changes are triggered by:

ŸAdapting to SAP Innovation

–Accelerated prototyping of SAP Business Suite powered by SAP HANA

–Smooth and non-disruptive SAP OS/DB migration

–Selective transformation to SAP Business Suite powered by SAP HANA

–Data integration for SAP Business Suite powered by SAP HANA sidecar scenarios and data replication for SAP Business Suite powered by SAP HANA in the Cloud

–Cost-efficient setup of non-productive SAP Business Suite powered by SAP HANA environment and in the cloud solutions from SAP.

ŸBusiness and IT Transformation

–Mergers & acquisition, divestiture, reorganization

–Implement process and data harmonization

–System consolidation

ŸApplication and IT Retirement

–Technological enabler for data migration in the context of system decommissioning