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From new business models and retail channels to rising demand for personalized products and services, more consumer products are being sold to more people in more parts of the world. And to seize this moment profitably, a growing number of industry analysts and experts are advising brands to move to the cloud to inform customer-centered strategies and respond to changes with speed and agility.

Yet, there is still some reluctance – especially among well-established, global brands – toward letting go of the de facto industry standard of legacy, on-premise ERP systems such as the SAP ERP application. In most cases, executives believe the cloud is too inflexible, narrow, and prescriptive to match the flexibility, control, and freedom that on-premise ERP provides to fine-tune applications as needed.

However, this industry perception about cloud technology is quickly becoming a myth with the introduction of a single tenant edition of a cloud-based ERP suite.

 SAP S/4HANA Cloud, single tenant edition: New rules call for new perspectives on ERP systems

When I hear executives engage in a debate weighing the promise of cloud ERP against the performance of their existing on-premise version, I often point out that the cloud is really a spectrum of choices. Each cloud type provides a different balance of cost reduction, speed of innovation, standardization, ease of replication and deployment, and scalability needed to help businesses run competitively on their terms.Figure: The Spectrum of Cloud Choices

Looking at the figure above, it’s clear that cloud environments can be structured to deliver the best attributes of on-premise ERP along with the fluidity of the cloud to take advantage of the latest technology.

As a dedicated cloud, the single tenant edition of SAP S/4HANA gives consumer products brands the best of two worlds. They gain a comprehensive ERP system with an optimal deployment model for accelerated innovation, full integration and extensibility, flexible release upgrades, and process standardization. The edition also provides rich end-to-end ERP functionality with lower total cost of ownership and better scalability, compared to on-premise ERP solutions.

The suite’s unique combination of software as a service, configuration flexibility, and best-practice processes fosters faster and more precise decision-making – leading to lower costs, higher productivity rates, and more satisfied customers, employees, and business partners. For consumer products companies, adoption of the single tenant edition can form the foundation necessary to be successful in tomorrow’s marketplace as a digital disruptor, instead of being disrupted.

How does SAP S/4HANA Cloud, single tenant edition, do that?

  • Fast, real-time solution with embedded analytics for up-to-date business insights

  • Innovative business processes to help employees of all roles assist consumer decision-making, create an engaging environment, and give shoppers a sense of value

  • An extended digital core that connects all lines of business and their solutions and networks to enable full operational transparency and company-wide data access

  • Internet of Things integration and innovation through a cloud platform to strengthen the consumer relationship with direct, meaningful, timely, and personal offers

  • Intelligent ERP skills, such as conversational artificial intelligence and automation, for more effective, efficient, and low-touch processes to free up resources for innovation and consumer and customer value generation

By applying all these capabilities from SAP S/4HANA Cloud, single tenant edition, consumer products companies – across all segments and categories – can find their edge. They can innovate new business models, processes, products, and services that are based on real-time intelligence. But more importantly, brands can deliver on consumer expectations with precision and without delay.

To learn more about SAP S/4HANA Cloud, single tenant edition, visit https://www.sap.com/products/s4hana-erp.html