Sourcing SAP: Strategies, Solutions, and Best Practices

Sourcing SAP solutions and services is critical for any organization looking to embark on a digital transformation with SAP. With the diverse range of SAP systems, deployment models, and implementation expertise, making the right choices can be complex. This blog post explores key strategies, considerations, and best practices to guide you through the SAP sourcing process.

Understanding Your SAP Needs

Before you begin your sourcing journey, these key elements need definition:

• Business objectives: Clearly outline the business problems you want to solve with SAP. What processes do you want to optimize, what new capabilities are needed, and what are your expected outcomes?
• Scope: Define the specific SAP modules or solutions you require. Consider areas like finance, supply chain management, human resources, customer relationship management, and industry-specific solutions.
• Technical requirements: Assess if you prefer a cloud-based (SaaS) solution like SAP S/4HANA Cloud, an on-premise deployment, or a hybrid model. Also, factor in your integration needs with existing systems.
• Budget: Establish a realistic budget that includes software licensing, implementation costs, ongoing maintenance, and support.

Sourcing Options

• SAP Direct: Working directly with SAP offers access to their expertise, support, and potential package deals. However, larger enterprises might find this path less flexible for tailor-made solutions.
• System Integrators (SIs): Partnering with a reputable SI provides deep SAP implementation experience and guidance throughout the process. They’ll help with tailoring solutions to your specific needs and integrations.
• Independent Consultants: Individual SAP experts can be highly valuable for specialized support or filling gaps in your internal team’s skills on a project basis.

Evaluation Criteria

A thorough evaluation is critical to your SAP sourcing decision. Consider the following:

• Experience and Expertise: Assess the potential partner’s track record with similar SAP implementations in your industry and company size.
• Technical Capabilities: Ensure the team has the expertise to implement the specific SAP modules and solutions you need.
• Methodology and Approach: Understand the partner’s project management approach, communication plan, and implementation flexibility.
• Cultural Fit: Choose a partner who aligns with your company’s values and work style. This will foster a smoother collaboration process.
• Cost and Pricing Models: Compare cost estimates, pricing models, and any hidden or ongoing expenses to ensure they match your budget.

Best Practices and Tips

• Get Executive Buy-in: Secure strong support from leadership to ensure the project has the necessary resources and prioritization.
• Define a Clear RFP: A detailed Request for Proposal (RFP) outlines your requirements, expected outcomes, and selection criteria. It ensures clear communication with potential partners.
• Seek References: Speak to a partner’s past clients to gain insights into their experience, challenges, and overall satisfaction.
• Plan for Change Management: Be proactive about managing changes within your organization, ensuring user adoption and smooth transitions from legacy systems.
• Consider Long-Term Support: Negotiate ongoing maintenance and support to ensure the continued success of your SAP system.

Conclusion

Sourcing SAP requires careful planning, outlining your business needs, exploring different sourcing options, and evaluating providers with expertise aligned with your project. By following these best practices, you’ll put your organization in the best position to choose the right SAP solutions and partners to maximize your return on investment.