Deployment of SAP S/4HANA Cloud in Hybrid System Landscapes

In addition to the classic, stand-alone use of SAP S/4HANA Cloud, further options are available thanks to the flexible subscription model. The focus here is particularly on companies that already use SAP and, for example, want to systematically integrate subsidiaries into the group.

Deployment scenarios in hybrid system landscapes

SAP has identified three typical scenarios for this in practice. Scenario 1, as already mentioned, deals with the seamless integration of the subsidiary into the corporate structure. The second scenario involves the spin-off of an entire line of business that is operated in S/4HANA Cloud. The third scenario describes the integration, for example of a subcontractor or dealer, along the supply chain. Depending on the use case and structure, this is preferably done via the SAP Business Technology Platform, via SAP Process Orchestration or the SAP Cloud Connector.

Scenarios

  • Scenario 1
  • Scenario 2
  • Scenario 3
Scenario 1

In this scenario, the headquarters as well as the subsidiaries are run on an on-premise or S/4HANA cloud system. Companies are acquired on a daily basis and their incorporation presents parent groups with a lengthy process. Using S/4HANA Cloud provides subsidiaries, whether new to the group or existing, with a flexible solution. The required Lines of Business (LoB) can be individually selected and the subsidiary can be seamlessly integrated in the shortest possible time with a low TCO (Total Cost of Ownership).

Advantages:

  • A native integration that supports end-to-end processes between headquarters and subsidiaries
  • A uniform data model and taxonomy between headquarters and subsidiaries
  • Consistent user experience across the Group
Scenario 2

Scenario 2 envisages the centralization of a corporate division that is operated with S/4HANA Cloud. The headquarters as well as the subsidiaries are optionally in on-premise or cloud operation. Suitable areas are, for example, finance or procurement. Centralization of these services offers enormous savings potential in the financial and administrative areas.

Advantages:

  • Consolidation of business processes for increased cost efficiency
  • Scalability of the business model
  • Optimization of available resources
  • Clear responsibilities between local companies and central teams
Scenario 3

The optimization of processes along the supply chain plays a major role in companies. This offers the opportunity to integrate suppliers who are switching or have already switched to S/4HANA Cloud into the supply chain network. Both parties benefit from a high visibility of the process flows.

Advantages:

  • Problem-free data exchange between customer and supplier system and a related reduction in manual activities
  • Time-critical delivery forms such as JiT (Just-in-Time) or JiS (Just-in-Sequence) can be implemented more easily
  • Lower inventories and cost reduction
Scenario 1
Scenario 1

In this scenario, the headquarters as well as the subsidiaries are run on an on-premise or S/4HANA cloud system. Companies are acquired on a daily basis and their incorporation presents parent groups with a lengthy process. Using S/4HANA Cloud provides subsidiaries, whether new to the group or existing, with a flexible solution. The required Lines of Business (LoB) can be individually selected and the subsidiary can be seamlessly integrated in the shortest possible time with a low TCO (Total Cost of Ownership).

Advantages:

  • A native integration that supports end-to-end processes between headquarters and subsidiaries
  • A uniform data model and taxonomy between headquarters and subsidiaries
  • Consistent user experience across the Group
Scenario 2
Scenario 2

Scenario 2 envisages the centralization of a corporate division that is operated with S/4HANA Cloud. The headquarters as well as the subsidiaries are optionally in on-premise or cloud operation. Suitable areas are, for example, finance or procurement. Centralization of these services offers enormous savings potential in the financial and administrative areas.

Advantages:

  • Consolidation of business processes for increased cost efficiency
  • Scalability of the business model
  • Optimization of available resources
  • Clear responsibilities between local companies and central teams
Scenario 3
Scenario 3

The optimization of processes along the supply chain plays a major role in companies. This offers the opportunity to integrate suppliers who are switching or have already switched to S/4HANA Cloud into the supply chain network. Both parties benefit from a high visibility of the process flows.

Advantages:

  • Problem-free data exchange between customer and supplier system and a related reduction in manual activities
  • Time-critical delivery forms such as JiT (Just-in-Time) or JiS (Just-in-Sequence) can be implemented more easily
  • Lower inventories and cost reduction

Conclusion:

Scenario 1 is suitable on the one hand for globally active groups that consist of several companies and carry out mergers or acquisitions due to their market position. On the other hand, S/4HANA Cloud offers the possibility to integrate independent sales companies quickly and cost-effectively. A major advantage of this scenario is the high level of flexibility without interfering with existing corporate structures.

The second scenario focuses on medium-sized and large companies that want to increase their efficiency and streamline business processes. Centralization frees up resources and, as business units grow, the central service can be easily scaled.

Scenario 3 focuses primarily on companies in the automotive industry. Due to time-critical process steps along the supply chain, close integration between OEM and supplier is particularly important. S/4HANA Cloud helps to ensure the successful provision of goods while streamlining and optimizing processes.