What are the benefits of SAP S/4HANA Cloud, and which criteria should businesses consider when selecting an SAP partner to ensure a successful digital transformation?
With the flexibility of Software-as-a-Service (SaaS) solutions, many organizations are turning to SAP S/4HANA Cloud, the SaaS version of SAP S/4HANA. According to Gartner, the SaaS ERP market share is approaching USD 26 billion, mainly driven by the rapid adoption of financial management and human capital management solutions among businesses of all sizes [1]. While the advantages of SAP S/4HANA Cloud are significant, businesses still need to evaluate four key criteria when choosing an SAP partner to fully realize its potential.
What are SAP S/4HANA Cloud benefits?
SAP S/4HANA Cloud helps businesses increase efficiency through easier test automation, greater flexibility, optimized costs, and improved data management. By running on an in-memory database and a SaaS model, it supports real-time insight, scalable resources, and lower operational overhead.
Businesses can maximize their efficiency with the following SAP S/4HANA Cloud benefits:
Easy integration with automated testing tools
SAP S/4HANA Cloud integrates seamlessly with third-party automation testing tools such as the Tricentis Tosca Testing tool. This integration helps businesses reduce manual and repetitive code testing steps, saving up to 50% of testing effort [2]. As a result, employees can focus more on strategic tasks. Training efforts are also minimized, as SAP Fiori screens are more intuitive and easier to use for end users.
Flexibility
SAP S/4HANA Cloud allows users to access the system from any location with an internet connection. This level of flexibility is particularly important for organizations with a distributed workforce or teams that require on-the-go accessibility. In addition, the cloud deployment model enables faster implementation compared with traditional on-premise installations.
Organizations can scale their computing resources up or down according to their requirements. SAP S/4HANA Cloud also updates automatically with minimal disruption to users, helping ensure the system remains consistently available and fully operational.
Cost savings
When transitioning to SAP S/4HANA Cloud, businesses typically subscribe to an annual model. This subscription covers core licenses, solution hosting, and box-level support. Critical functions such as backups and performance monitoring give customers access to essential support services.
Furthermore, companies can achieve lower application support costs due to reduced customization and decreased reliance on highly specialized objects. Operated as a SaaS model, SAP S/4HANA Cloud can help reduce operating expenses and unlock long-term organizational savings. For example, Forrester illustrated a case study where an organization could realize benefits of $10.2 million over three years and achieve a 383% ROI [3].
Better data management
One of the key SAP S/4HANA Cloud benefits is its ability to integrate various business processes, such as finance and sales, to provide end-to-end visibility. By leveraging an in-memory database, SAP S/4HANA Cloud supports real-time data processing and establishes a unified source of truth for enterprise data.
As a result, businesses can build more connected and efficient data management. In fact, 49% of companies reported enhanced business processes thanks to ERP implementation [4].
4 critical considerations for choosing an SAP partner
When evaluating an SAP S/4HANA Cloud partner, organizations should assess four core criteria to ensure a successful engagement and implementation:
1. Skills and expertise
From an SAP expertise perspective, organizations should prioritize partners with industry-specific experience that closely matches their own business. With deep domain knowledge, a partner can understand the unique challenges and regulatory or operational requirements of the sector, enabling a tailored SAP S/4HANA Cloud implementation.
Companies should also examine a potential partner's performance history by reviewing successful SAP S/4HANA Cloud implementations. This evaluation can draw on case studies, client testimonials, and references to verify the partner's capabilities in practice.
In addition, a partner with strong communication and collaboration skills is essential for navigating the complexities of ERP implementation. Clear and consistent communication helps all stakeholders fully understand project requirements, objectives, and timelines, and supports timely identification of issues or risks, reducing misunderstandings and delays.
2. Agility
Choosing an agile SAP partner is crucial in the dynamic landscape of SAP technology. As the SAP ecosystem evolves, a partner's ability to rapidly adapt to changes is a key factor in the success of a business's SAP implementation.
An agile SAP partner is better equipped to navigate updates, patches, and new features. This agility helps businesses keep their S/4HANA environment current with the latest advancements and take full advantage of new functionalities that can improve processes and performance.
3. Established partnership with SAP
An established partnership with SAP itself is another important consideration when selecting an SAP partner. Organizations that hold a formal partnership with SAP are more likely to receive early or prioritized access to updates, training, and support directly from SAP.
This direct affiliation enables the partner to better understand the intricacies of the software, anticipate changes in SAP's technology roadmap, and proactively incorporate those changes into their services. It also typically provides faster access to the latest training, certifications, and resources, allowing the partner to deliver a higher level of expertise and support to clients.
4. Flexible resource availability
Organizations should evaluate a partner's ability to scale resources in line with project needs. A partner with a flexible resource allocation model can accommodate changes in project scope while keeping the SAP S/4HANA Cloud implementation on schedule.
An SAP S/4HANA Cloud vendor should also have a well-versed team of professionals dedicated to this solution. This team typically includes consultants, developers, and project managers, each capable of addressing the specific requirements of individual businesses.
With flexible resource availability, an SAP partner can also better manage time zone challenges. For example, diverse delivery models that combine onshore, nearshore, and offshore teams can help the partner resolve issues and provide support more quickly. This versatile approach improves problem-solving efficiency and strengthens the partner's ability to serve a wide range of business needs.
FPT - your trusted partner for SAP S/4HANA Cloud
FPT’s SAP proven track record
FPT stands out as a reliable choice for SAP implementation thanks to its solid skills and extensive experience. The company’s SAP team includes more than 1,600 consultants holding over 1,250 SAP certificates. With a global footprint across 30+ countries, FPT is able to support business operations regardless of location.
Its SAP experience spans a wide range of industries, including energy, finance, FMCG, manufacturing, real estate, trading, and others. Notably, FPT is the first Vietnamese partner in Southeast Asia to join SAP's Regional Strategic Services Partner (RSSP) program in the Asia Pacific Japan (APJ) region. This recognition enables FPT to rapidly expand its SAP practice in the region and further strengthen joint success with SAP.
Over the years, FPT has received multiple awards from SAP, such as SAP Partner of the Year for Vietnam, Outstanding Performance in Midmarket Partner of the Year, and Best RISE Partner of the Year, which was recently announced at the SAP Partner Success Summit in April 2023. Based on this proven SAP track record, FPT was proudly selected by ITOCHU Corporation to implement its SAP S/4HANA Cloud system.
SAP S/4HANA Cloud migration for ITOCHU Corporation
ITOCHU decided to embark on a migration project after many years of running its existing system, which had accumulated numerous add-ons, changes, and modifications. Over time, these customizations made it difficult for users to access the functions they needed and to introduce the changes required for future innovation. To respond more quickly to evolving business requirements on a cloud-native platform, ITOCHU chose to adopt SAP S/4HANA Cloud.
To ensure the project would be successful, FPT and ITOCHU adopted the One Team model. This collaborative approach aimed to build a modern system that could support ongoing innovation, while fostering a positive and open working environment among developers from both sides.
The partnership delivered strong results. FPT’s responsiveness and procurement capabilities helped the project team handle unexpected resource demands effectively and keep the implementation on track. Launching a global SAP system migration project in 2019, ITOCHU leveraged FPTs latest S/4HANA technologies and Vietnam's abundant talent pool to accelerate project execution. S/4HANA was introduced to approximately 50 overseas locations, with the first site going live in 2020. By the end of 2022, the S/4HANA Cloud rollout had been completed across all locations.
Moving forward with the power of automation
The collaboration between ITOCHU and FPT has continued beyond the SAP project, extending into automation initiatives. In particular, ITOCHU sought to reduce manual work by applying RPA to tasks such as configuration and testing. FPT actively supported these efforts, showing strong enthusiasm for new tools and contributing significantly to the overall success of the automation and implementation journey.
The right partner for your SAP implementation
Long-term resilience on a digital transformation journey depends on partnering with an organization that truly understands SAP's complexities and brings the right capabilities to the table.
To maximize your chances of success, you should choose a partner that meets all of the following critical criteria:
- Proven SAP expertise
- Deep and up-to-date knowledge of SAP solutions
- Strong implementation and integration skills
- Scalable resources that can grow with your business
Unlock business success with FPT's SAP services here.