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Value of SAP HANA on Cloud for Indian SMEs Planning to Gain Global Competencies

The last decade has been extremely stressful for small and medium companies across India. This is due to escalating operational expenditure that is being incurred in order to comply with issues that are associated with demands of security and regulatory restrictions. Enterprises in the small and medium sector have been able to access network of suppliers across the globe while simultaneously improving their supply chain systems with enhanced ability to penetrate new and remote markets.

Role of ERP systems

In the larger business setups, where the annual business is plus Rs ten billions, owners are keen to make use of SAP ERP solutions to enhance efficiency. ERP systems have been able to mitigate turnaround times while helping companies reach global benchmarks easily.

One can easily deploy and manage sophisticated ERP systems because there are several packaged offerings to choose from. This has encouraged companies from SME sector to incorporate ERP systems for simplified management of business processes.

Standardized ERP products face challenges of diversity as every business cannot be expected to work in the same environment. Vendors of packaged ERP solutions encounter such challenges even while designing industry-specific products. This leads to increased costs and complexities that are viewed as roadblocks for ERP adoption across all enterprises.

If you consider an example of manufacturing industry that is a complex assortment of spare parts suppliers, OEM partners, and buyers to name a few. The industry is under a constant pressure of meeting challenges of cost controls, quality management, process controls, and meeting regulatory compliance objectives.

Customization of ERP products has become essential due to individual inventory tracking requirements in terms of movement of inventory in specific SAP HANA business environment. ERP solutions are also required to address process automation needs of companies who need to accelerate processes in order to higher as well as faster output.

Unless you have ability to develop bespoke software for reporting and tracking, it would be almost impossible to design an ERP product that caters to the needs of a manufacturer in India. This is due to uniqueness of a great number of processes that demand customization and also results in escalation of costs and complexities.

sap hanaIndian SMEs and challenges of globalization

Growth of Indian industry has made Indian entrepreneurs from SME sector think about ways to compete with their overseas competitors who are far ahead of them in terms of financial and technical capabilities.  These global players have attained amazing maturity in their ERP capabilities.

Maturity of ERP solutions facilitates instant decision making process as businesses need to come at par with global organizations that have acquired such caliber in addition to their strong financial capabilities. Apart from this an agile supply chain that is backed by scalable infrastructure can enhance cost optimization and accelerate turnaround time.

If small and medium sized organizations in India want to compete with their global counterparts, a sophisticated infrastructure such as SAP S/4 HANA is essential. HANA’s capability to enable in-memory data analytics offers an innovative and unique solution. Intricate issues related to businesses can be easily sorted out by unparalleled abilities of SAP S/R HANA including insight backed actions.

Implementation of SAP HANA, that matches enterprise IT environment is highly cost intensive. This is due to costly investments in SAP certified architectures, very high power of processing, and analytics which are on a much higher side when compared to legacy options of relational databases.

The issue can be effectively addressed by cloud offering of SAP HANA that is packed with pre-built constituents. Cloud version of SAP HANA is also designed to remove intricacies of SAP adoption. Moreover, it also obviates investments including software licenses, and infrastructure related expenditure.

SAP S/4 HANA is reckoned to be a public cloud hosting offering of choice for quite some time now. However, the private cloud version of the platform is only a recent introduction and is primarily focused at Small and Medium enterprises. The private cloud avatar of SAP S/4 HANA integrates extensive reach of its on-site version, enterprise grade features for enhanced security, and a prompt installation process that is completed in just a few weeks.

Organizations in SME sector are free to choose from different options. They can leverage a managed provider of infrastructure services for Tailored Datacenter Integration and appliances that constitute deployment process of ERP. The second approach is adopted by majority of enterprises which needs preconfigured and SAP supported instances to be implemented. These instances receive robust support of SAP as well as its certified partners for infrastructure related services.

In conclusion

SAP offers predictive tools that can improve ability of SMEs to extract useful information from unstructured and voluminous data sets. SAP HANA Cloud perceives cloud to be an important and integral aspect of ERP implementation. Small and medium sized organizations can leverage SAP on cloud for greater cost efficiency and agility to gain competencies that can match their competitors in the global market place.

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About Abhay Singh (63 Posts)

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