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Active Participant
To accelerate digital transformation journey, SAP promotes swift adoption of new technology with SAP Model Company.   It is embedded in an overall transformation road map and delivered as a service.

1. Description

SAP model company helps customers in adoption of SAP S/4HANA, SAP C/4HANA, SAP Success Factors in a fastest way and can be used in both Greenfield and Brownfield implementations.

It is assemble-to-order or a prepackaged, end-to-end reference solution deployed in Cloud or On-premise or Hybrid scenario’s tailored to an industry and line of business.  In simple terms, it acts as a template and foundation for digital transformation with an aim to simplify and speed up the journey following agile and lean principles. It consists of preconfigured solution and business content which comprises of state-of-the-art applications, configuration, sample data, process flow diagrams, demo & test scripts, relevant guides, proven best practices which encapsulates the experience of real-life digital transformation projects, configuration workbook, business process hierarchy and end to end scenarios. Along with this, services and train-the-trainer workshops are conducted to minimize the risk and to attain predictable outcomes.

Idea here is to reduce the effort in terms of time, resources and money, simplify the digital transformation path and accelerate adoption of new technology and innovations.   It is available for many industry solutions such as discrete industries, core retail, automotive, life sciences, oil & gas, chemicals, utilities and life science and line of businesses such as connected manufacturing, supply chain planning, finance, human resources, logistics executions.  For details refer to Preconfigured Industry Solutions.

Figure 1 shows that the Model Company is fully aligned with Intelligent Enterprise portfolio to accelerate the digital transformation journey.

Figure1: Model Company alignment with Intelligent Enterprise portfolio

There are two best approaches to identify the right SAP Model Company.

  1. Based on industry, business users can do the selection of Model Company considering future business perspective.

  2. On other hand, technical users can use SAP Transformation Navigator to identify SAP Model Company for respective Industry considering target landscape and capabilities.


2. SAP Model Company Offerings and Deployment Options

In terms of transition scenarios, customer can plan to go for greenfield implementation to start from scratch or go for brownfield approach to migrate existing systems into SAP solutions leveraging SAP Model Company or rollout the SAP Solution to Subsidiary or acquisition.

In Figure 2 we have listed down the offerings and deployment options available for SAP Model Company. Deployment options listed below provide individual service levels, lead times and ability to provide flexibility to customers for deployment during different phases.

Figure 2: Deployment Options

SAP Model Company Service is embedded in an overall transformation road map and delivered or consumed as a fix price service

Find below the different offerings:

  1. Trial Edition: Customer can also get 30-day trial account where 10 users can discover a subset of SAP Model Company processes to get hands-on experience on SAP-Hosted environment.

  2. Prepackaged Edition: This includes prebuild reference solution containing accelerators for evaluation to support the explore phase before the start of implementation. Once a customer buys the service, the preconfigured solution can be deployed to the different customer-owned deployment options like Cloud providers, On-Premise, or SAP HEC.

  3. Assemble-to-Order Edition Generally, customers who are clear about implementation scope and software licenses leverage pre-assembled solution to setup directly development system to accelerator the project. This means they want to prepare development, quality, and production systems based on the SAP Model Company services.

For Prepackaged and Custom Edition Customers have below deployment options:

  1. Third party cloud solution: SAP Model Company installed on customer owned cloud provider. This is fastest way to deploy the model company solution and suitable option for customers already on AWS (Amazon Web Services), Microsoft Azure account or GCP (Google Cloud Platform). With this deployment option, customers use their cloud provider account to connect to a dedicated model company instance located in SAP Cloud Appliance Library (CAL).

  2. On premise solution: Second option for customers is to deploy SAP Model company on-premise in their infrastructure. This is applicable in situations where customer has required system landscape ready to run. In this case, a software downloads or Blu-ray shipment must be initiated, followed by installation from the customer’s IT team.

  3. SAP HANA Enterprise Cloud: This is applicable in cases where customer has SAP HANA Enterprise Cloud contract already in place.

Customer uses SAP Solution Manager in CAL or uses SAP Solution Manager 7.2 (Minimum SP07 or higher) on premise. Business content is shipped via SAP Solution Manager.  After this, customer will do the required configuration, process setup and creates a solution in solution Manager.  Once it is done, customer will import SAP Model Company business content for SAP Solution Manager as JSON files plus transports from SAP.  Customer can also follow cherry picking approach to manually transfer relevant Model Company processes to their development, quality and production system.


3. SAP Model Company Building Blocks

SAP Model company provide a solid foundation for SAP Solution. Below I have listed building blocks of SAP model Company:

  1. Prepackaged or assemble-to-order solutions: It consists of prepackaged, ready-to-use, comprehensive reference solution with pre-defined E2E business processes based on SAP Best Practices with respective reporting content and covers integration processes to other SAP solutions.

  2. Market standard content: It contains business blueprint with fixed scope for validation and ready to run template solution including all applications and encompasses real projects experiences and expertise in your industry or line of business, including workflows, reports, business process hierarchies, end-to-end scenarios, process diagrams, roles, and many more. It is enabled with SAP Leonardo Capabilities.

  3. Accelerators: It contains documentation with end to end descriptions, test cases, configuration and How-To guides. To cover understanding and usability aspect it contains demo scripts, process diagrams, recordings, master data uploading tools for rapid prototyping and learning materials.

  4. Partner framework and Services: SAP provides range of services and workshops to cover all the project phases such as solution discovery phase, preparation phase, exploration phase, and realization phase. Partner framework are established for more diverse portfolio and differentiating value.

  5. SAP Leonardo Innovation inside or Intelligent Technologies: It covers availability of new functionality from the latest solution releases and availability of fully configured innovative content such as Internet of Things scenarios, ML use cases.


3. SAP Model Company Benefits

  1. This is show and tell comprehensive solution which allows faster implementation, increase innovation adoption, decrease time to value through agile and lean principles. It shortens the project’s discovery, preparation, exploration and realization phase.  Find below the advantage received in each phase

    1. Discovery and Preparation phase: These phases support the customer to gain understanding of SAP provided new capabilities and to prove the ideas. Key users at customer end would get look and feel of the system and clear understanding of how the system is going to work by having hands-on experience on the pre-configured system.

    2. Exploration and realization phase: These phases support prototyping activities and to accelerate the implementation with proven methodology/tools. In fit-gap analysis, customer starts with solution validation workshop as a first step to validate the fit of the best practices to customer requirements and create a delta requirement document for further adoption or adaption of Fit-to-Standard based on complexity and customization. Next step is to get delta design workshop to prepare delta risk-free design document addressing all the identified gaps in previous step. Further, an updated and approved scope baseline and configuration cookbook is moved into the Realization phase.

  2. SAP Model Company services are built to cloud standards. Working on these services would provide customers great insights to cloud technology as well if not done previously.

  3. It helps the customers in reducing total cost and resource effort, increase quality, reduce the risk and accelerate SAP S/4HANA adoption via preconfigured ready to run reference solution. Avoid unnecessary modifications by evaluation and testing standard functionality.

  4. Localization aspect is also enabled in SAP Model Company.

  5. Interoperable platform is provided with NEW SAP Model Company to support one environment which can support multiple LOB’s or multiple industries.

Let’s take an example of greenfield implementation to explain the benefits obtained through SAP Model company:  In the past for greenfield implementations, we always start with gathering the requirements from the customer, preparing the blueprint and come up with comprehensive blueprint at the end of requirement phase spending lot of effort in terms of days, time, money and resources. With SAP model company, now customer can leverage preconfigured content of model company based upon industry, invest their time wisely in performing fit-gap analysis and use test data and test scripts to validate the solution saving lot of effort and efficiently jump start their implementation. In the end, customer share the victory of successful project in shorter time frame with high quality deliverable and less dependencies on 3rd party system integrators along with reduction in total cost of implementation.

Also refer to openSAP course: https://open.sap.com/courses/mod1.


4. Clean Core

In practical terms, keeping the core clean means applying a zero or minimum modification policy since the beginning and using white-listed APIs only.  In short, don’t modify the SAP standard code as it locks the system for system updates, system upgrades and increase the effort of testing and upgrade cycles.  Try to stand close to standard and for differentiating/unique needs of business, use white listed API’s for extensions to incorporate the custom code.