From Monolithic to Modular: A Composable Enterprise Solution Story - SAP S/4HANA

The digital era has brought a paradigm shift in the way businesses to operate, and Enterprise Resource Planning (ERP) solutions have played a critical role in facilitating this transformation. However, with time, the rigidity of these solutions has become a significant bottleneck for any innovation or renovation activities, leading to the emergence of the concept of composable enterprise solutions.

The idea transpired after a discussion with my friend Aritra Kar over my post on the traditional approach to ERP implementation. The blog is me narrating in 2027 !! ( End of mainstream support for SAP S/4HANA )

Once upon a time, there was a company that had been using a monolithic ERP solution for years. While it had served the company well, it had become rigid and difficult to change, leaving the company struggling to keep up with the changing demands of its customers.

One day, the company's management team decided it was time to explore new ways of working, and they stumbled upon the concept of composable enterprise solutions. The team realized that this approach could help them break down their monolithic ERP solution into more flexible and modular components that could be easily adapted to meet the needs of their business.

Excited by the potential of composable enterprise solutions, the team began researching the best practices for implementing this approach. They soon discovered that the process involved several key steps.

Step 1: Assess the Current Solution

First, they needed to assess their current processes and identify areas where they could break down their monolithic solution into smaller components. They decided to focus on their Order to Cash (OTC) processes, which were both critical to their business operations. SAP's approach included using its cloud-based platform, SAP Cloud Platform, to build and deploy composable enterprise applications that can integrate with its ERP solution, SAP S/4HANA.

Step 2: Identify the Key Components

Next, the team worked on identifying the right components to build their composable solution. This included order entry, pricing, invoicing, and collections.SAP's modular solutions included SAP Sales Cloud, SAP Billing and Revenue Innovation Management, and SAP Customer Data Cloud.

Step 3: Prioritize and Plan

After identifying the key components, businesses prioritized them based on their criticality to the OTC process. It was essential to involve key stakeholders, including sales, finance, and IT, in this process. We leveraged SAP Activate which provides guidance and best practices for implementing composable solutions.

Step 4: Build and Deploy

They chose to use microservices (YAY!!) and APIs to create modular building blocks that could be easily combined and reused.

With the building blocks in place, the team started building and deploying the composable components. They leveraged low-code and no-code platforms, as well as containerization, to create and deploy the components quickly and efficiently. Leveraged SAP Cloud Platform Integration, SAP API Management, and SAP Containerization Services to build the API.

Step 5: Monitor and Improve

After deployment, the team monitored the performance of the composable components and made necessary improvements based on key performance indicators (KPIs), such as order cycle time, order accuracy, and customer satisfaction. They used data analytics, machine learning, and artificial intelligence to identify areas for improvement and ensure the components were delivering value to the business. ( SAP Analytics Cloud and SAP Machine Learning Foundation)

The company's management team was thrilled with the results of their composable enterprise solution. They saw a significant improvement in their operational efficiency and customer satisfaction, and they were able to adapt to changing business requirements quickly.

Disclaimer: The views expressed on this platform are solely my own and do not reflect the views of my employer. I welcome constructive feedback and comments as they assist me in growing and enhancing my perspectives.