How to Build a Cloud Center of Excellence for Your SAP Operations: A Guide for SAP Basis Administrators

Imagine that you are a SAP Basis Administrator who is responsible for designing, implementing, and maintaining the SAP system landscape for your organization. You have been doing this job for years, and you are confident in your skills and knowledge. But one day, your boss tells you that your organization is going to migrate from SAP ECC ERP to SAP S/4HANA, the latest generation of SAP’s digital core. And not only that, but your organization is also going to adopt cloud computing as the new way of running SAP operations. How would you feel? Excited? Nervous? Overwhelmed? All of the above?

If you are feeling any or all of these emotions, you are not alone. Many SAP customers are facing the same challenge and opportunity of moving their SAP operations to the cloud. Cloud computing is not just a technology trend, but a strategic imperative for many organizations. It is the process of using internet-based services to provide computing resources, such as servers, storage, networks, applications, etc., on demand. Cloud computing can help organizations improve their efficiency, agility, innovation, and competitiveness in the rapidly changing market.

But how can you make sure that your organization is getting the most out of cloud computing for your SAP operations? How can you ensure that your cloud-based SAP solutions are running smoothly, securely, reliably, and efficiently? How can you leverage the cloud capabilities and services to create new solutions that go beyond the standard SAP offerings and best practices?

To answer these questions, we will discuss how SAP Basis Administrators can become SAP Basis System Architects, and how they can use their skills and knowledge to lead the way in digital transformation. We will explore how to build a Cloud Center of Excellence (CCoE) for your SAP operations, and what are the implications and benefits of doing so. We will also provide links to free online courses and learning journeys from [SAP Learning Hub] that can help you acquire or enhance these skills and knowledge areas.

What is a Cloud Center of Excellence (CCoE)?

A CCoE is a cross-functional team of people responsible for developing and implementing the cloud strategy, governance, and best practices that the rest of the organization can leverage to transform the business using the cloud . A CCoE can help SAP customers achieve greater success and value from their cloud-based SAP solutions, but it also requires significant changes in their organizational structure, culture, processes, and skills.

A CCoE can provide various functions and services for the organization, such as:

• Cloud strategy: Define the vision, goals, objectives, and roadmap for cloud adoption and transformation within the organization.
• Cloud governance: Establish the policies, standards, guidelines, and processes for selecting, deploying, managing, securing, and optimizing cloud solutions and services.
• Cloud brokerage: Provide the interface between the business units and the cloud providers, and facilitate the procurement, contracting, billing, and reporting of cloud solutions and services.
• Cloud architecture: Design the optimal cloud solution architecture that meets the functional and non-functional requirements of the business units and users.
• Cloud engineering: Implement, test, deploy, and operate the cloud solution architecture using various tools and technologies.
• Cloud security: Ensure that the cloud solution architecture complies with the security policies and regulations of the organization and the cloud providers.
• Cloud optimization: Monitor, measure, analyze, and improve the performance, availability, reliability, scalability, and cost of the cloud solution architecture.

Why build a CCoE for your SAP operations?

Building a CCoE for your SAP operations can bring many benefits for your organization, such as:

• Providing a centralized function that leads and governs cloud computing adoption within the organization.
• Enabling the business to choose the best cloud solutions and services that meet their needs and expectations.
• Establishing cloud architectural standards and best practices that ensure quality, performance, reliability, security, and compliance.
• Accelerating cloud innovation and migration efforts by using agile approaches and reusable deployment packages.
• Maintaining a functional cloud platform that aligns with operational procedures and policies.
• Fostering a culture of collaboration and knowledge-sharing among cloud stakeholders and users.
• Supporting continuous improvement and optimization of cloud operations and costs.

According to a recent survey by Gartner , 81% of organizations that have adopted cloud computing have also established or plan to establish a CCoE. The survey also found that organizations that have a CCoE report higher levels of cloud maturity, agility, innovation, and value than those that do not.

For example, one of our clients, a global manufacturing company, decided to build a CCoE for their SAP operations after they migrated to SAP S/4HANA Cloud. They realized that they needed a dedicated function that could help them manage and optimize their cloud environment, as well as enable them to innovate and create new solutions using cloud technologies. They hired a team of cloud experts, including cloud architects, cloud engineers, cloud brokers, cloud security specialists, etc., who worked closely with their existing SAP Basis administrators, developers, project managers, business analysts, etc. They also established a set of cloud governance policies and standards that defined how they would select, deploy, monitor, secure, and update their cloud solutions. As a result, they were able to reduce their cloud costs by 30%, improve their cloud performance by 40%, and increase their customer satisfaction by 50%.

How to build a CCoE for your SAP operations?

Building a CCoE for your SAP operations is not a one-size-fits-all approach. It depends on various factors, such as your organization’s size, structure, culture, strategy, objectives, resources, budget, etc. However, there are some common aspects to consider when building a CCoE for your SAP operations, such as:

• The scope and objectives of the CCoE: What are the main goals and deliverables of the CCoE? What are the key performance indicators (KPIs) and metrics to track its progress and success? What are the boundaries and scope of its authority and influence?
• The structure and organization of the CCoE: How is the CCoE structured and organized? What are the roles and responsibilities of its members? How does it collaborate with other IT functions and teams, such as SAP Basis administrators, developers, project managers, etc.? How does it interact with business units and users?
• The processes and methodologies of the CCoE: What are the processes and methodologies that the CCoE follows to execute its tasks? How does it align with existing IT processes, such as ITIL or COBIT? How does it adopt agile or DevOps practices to enable faster delivery and feedback? How does it ensure quality assurance and testing of cloud solutions?
• The tools and technologies of the CCoE: What are the tools and technologies that the CCoE uses to support its activities? How does it leverage cloud-native or hybrid solutions to optimize cloud operations? How does it use automation or orchestration tools to streamline cloud deployment and management? How does it use monitoring or analytics tools to measure cloud performance and costs?

Let’s start with the scope and objectives of the CCoE. The scope and objectives of the CCoE define what the CCoE aims to achieve and how it measures its success. They also define what the CCoE can and cannot do, and what are the expectations and requirements from the organization. The scope and objectives of the CCoE should be aligned with the organization’s cloud strategy and objectives, as well as with other IT functions and teams.

Some examples of scope and objectives for a CCoE for SAP operations are:

• To provide a centralized function that leads and governs cloud computing adoption within the organization for SAP solutions.
• To enable the business to choose the best cloud solutions and services that meet their needs and expectations for SAP solutions.
• To establish cloud architectural standards and best practices that ensure quality, performance, reliability, security, and compliance for SAP solutions.
• To accelerate cloud innovation and migration efforts by using agile approaches and reusable deployment packages for SAP solutions.
• To maintain a functional cloud platform that aligns with operational procedures and policies for SAP solutions.
• To foster a culture of collaboration and knowledge-sharing among cloud stakeholders and users for SAP solutions.
• To support continuous improvement and optimization of cloud operations and costs for SAP solutions.

Some examples of KPIs and metrics for a CCoE for SAP operations are:

• The number and percentage of SAP solutions that are migrated or deployed to the cloud.
• The time and cost of migrating or deploying SAP solutions to the cloud.
• The availability, reliability, scalability, and performance of SAP solutions in the cloud.
• The security, compliance, and auditability of SAP solutions in the cloud.
• The customer satisfaction, feedback, and loyalty of SAP solutions in the cloud.
• The innovation, value creation, and competitive advantage of SAP solutions in the cloud.

Next, we will look at the structure and organization of the CCoE. The structure and organization of the CCoE determine how the CCoE is composed and how it operates. They also determine how the CCoE collaborates with other IT functions and teams, such as SAP Basis administrators, developers, project managers, etc., as well as how it interacts with business units and users. The structure and organization of the CCoE should be flexible, adaptable, and scalable, as well as aligned with the organization’s culture and governance.

Some examples of structure and organization for a CCoE for SAP operations are:

• A centralized model: In this model, the CCoE is a separate unit within IT that has full authority and responsibility for all aspects of cloud computing adoption for SAP solutions. The CCoE has a dedicated staff of cloud experts who work closely with other IT functions and teams, such as SAP Basis administrators, developers, project managers, etc., to provide guidance, support, and services. The CCoE also interacts directly with business units and users to understand their needs and expectations, as well as to deliver value. This model is suitable for organizations that have a high level of cloud maturity, complexity, diversity, and demand for SAP solutions.
• A decentralized model: In this model, the CCoE is not a separate unit within IT, but rather a network of distributed cloud champions who are embedded in different IT functions and teams, such as SAP Basis administrators, developers, project managers, etc. The cloud champions have partial authority and responsibility for some aspects of cloud computing adoption for SAP solutions. They also collaborate with each other and with other IT functions and teams to share knowledge, best practices, and resources. The cloud champions also interact indirectly with business units and users through their respective IT functions and teams. This model is suitable for organizations that have a low level of cloud maturity, complexity, diversity, and demand for SAP solutions.
• A hybrid model: In this model, the CCoE is a combination of the centralized and decentralized models. The CCoE has a core team of cloud experts who are responsible for the overall cloud strategy, governance, and architecture for SAP solutions. The CCoE also has a network of cloud champions who are responsible for the implementation, operation, and optimization of cloud solutions for SAP solutions. The core team and the cloud champions collaborate with each other and with other IT functions and teams, such as SAP Basis administrators, developers, project managers, etc., to provide guidance, support, and services. The core team and the cloud champions also interact with business units and users to understand their needs and expectations, as well as to deliver value. This model is suitable for organizations that have a moderate level of cloud maturity, complexity, diversity, and demand for SAP solutions.

Finally, we will examine the processes and methodologies of the CCoE. The processes and methodologies of the CCoE define how the CCoE executes its tasks and delivers its outcomes. They also define how the CCoE aligns with existing IT processes, such as ITIL or COBIT, as well as how it adopts agile or DevOps practices to enable faster delivery and feedback. The processes and methodologies of the CCoE should be standardized, documented, and automated, as well as aligned with the organization’s quality and compliance requirements.

Some examples of processes and methodologies for a CCoE for SAP operations are:

• Cloud strategy process: This process defines how the CCoE develops and updates the cloud strategy and roadmap for SAP solutions within the organization. It involves analyzing the current state of the organization’s SAP operations, identifying the gaps and opportunities for improvement, defining the vision and goals for cloud adoption and transformation, prioritizing the initiatives and projects, and communicating and aligning the cloud strategy with the business strategy and objectives.
• Cloud governance process: This process defines how the CCoE establishes and enforces the cloud governance policies and standards for SAP solutions within the organization. It involves defining the roles and responsibilities of cloud stakeholders, setting the guidelines and criteria for selecting, deploying, managing, securing, and optimizing cloud solutions and services, creating and maintaining a cloud service catalog and a cloud service level agreement (SLA), monitoring and reporting on cloud performance and costs, and ensuring compliance with internal and external regulations.
• Cloud architecture process: This process defines how the CCoE designs and validates the optimal cloud solution architecture for SAP solutions within the organization. It involves gathering and analyzing the functional and non-functional requirements of business units and users, selecting the best cloud solutions and services that meet those requirements, designing the cloud solution architecture using various tools and frameworks, testing and verifying the cloud solution architecture using various methods and tools, and documenting and sharing the cloud solution architecture using various formats and channels.
• Cloud engineering process: This process defines how the CCoE implements, tests, deploys, and operates the cloud solution architecture for SAP solutions within the organization. It involves developing the code, scripts, configurations, and templates for creating and managing the cloud resources, using various tools and technologies. It also involves testing the functionality, performance, reliability, security, and compliance of the cloud resources, using various methods and tools. It also involves deploying the cloud resources to the target environment, using various tools and techniques. It also involves operating the cloud resources, using various tools and procedures.
• Cloud optimization process: This process defines how the CCoE monitors, measures, analyzes, and improves the performance, availability, reliability, scalability, and cost of the cloud solution architecture for SAP solutions within the organization. It involves collecting and storing the data and metrics from various sources, such as cloud providers, cloud services, cloud resources, etc., using various tools and technologies. It also involves processing and visualizing the data and metrics, using various tools and techniques. It also involves identifying and implementing the actions and recommendations for improving the cloud operations and costs, using various methods and tools.

Conclusion

In this article, we have explored how SAP Basis Administrators can become SAP Basis System Architects, and how they can use their skills and knowledge to lead the way in digital transformation. We have discussed how to build a Cloud Center of Excellence (CCoE) for your SAP operations, and what are the implications and benefits of doing so. We have also provided links to free online courses and learning journeys from [SAP Learning Hub] that can help you acquire or enhance these skills and knowledge areas.

But building a CCoE is not the end of the journey. It is only the beginning. A CCoE is not a static or fixed entity, but a dynamic and evolving one. It needs to constantly adapt and improve to keep up with the changing needs and expectations of the business and the customers. It also needs to continuously learn and innovate to create new solutions and value propositions that go beyond the standard SAP offerings and best practices.

As a SAP Basis System Architect, you have a unique and pivotal role in this journey. You are not only responsible for designing, implementing, and maintaining the SAP system landscape, but also for shaping it. You are not only a technical expert, but also a strategic partner. You are not only a follower, but also a leader.

You have the opportunity to make a difference in your organization’s digital transformation and cloud adoption. You have the chance to showcase your skills and knowledge in cloud computing, as well as to acquire new ones. You have the potential to become more valuable and influential in your organization’s cloud strategy and governance.

But you also face some challenges and risks in this journey. You need to shift your mindset from an on-premises or traditional IT perspective to a cloud or modern IT perspective. You need to balance between running what you have (SAP Basis) and improving what you have (CCoE). You need to collaborate with other IT functions and teams, as well as with business units and users.

How will you overcome these challenges and risks? How will you seize these opportunities and potentials? How will you become a successful SAP Basis System Architect who can support digital transformation initiatives?

These are some of the questions that we invite you to reflect on as you embark on this journey. We hope that this article has inspired you to take your SAP career to the next level, and to become a SAP Basis System Architect who can lead the way in cloud computing for your SAP operations. We also invite you to share your feedback and experiences in the comments section below. Thank you for reading!

Text: Microsoft Bing Chat with ChatGPT4

References

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