Cloud ERP & Digital Transformation: Why SMEs Choose SAP S/4HANA Cloud

1. Reduce their ERP investments

Cost efficiency is among the primary reasons why SMEs switch from traditional on-premise to cloud ERP platforms. On-premise ERPs require a substantial upfront investment in IT infrastructure, including servers, data storage, and software tools. Compared to on-premises solutions, the cloud-hosted SAP S/4HANA solution reduces initial capital investment through its subscription-based model.

On average, a small manufacturer can save around 30% of their IT investment by switching from an on-premise ERP to this SAP cloud ERP solution. They can redirect these savings to revenue-generating activities, such as product development and quality control.

2. Improve their ERP accessibility

With the increasing adoption of remote and hybrid working models, SME executives (such as sales professionals) still need to access their ERP systems from any location. In comparison to traditional ERP systems, SAP S/4HANA Cloud for SMEs offers seamless remote access to real-time data and cloud applications.

Additionally, a cloud ERP solution facilitates better collaboration among distributed teams or project teams working across different geographical locations. This ensures the continuity of business operations and crucial projects without any major disruptions or interruptions.

3. Adapt to changing market conditions

SMEs frequently face significant fluctuations in market demand and customer expectations. As a clean core ERP for SME companies, SAP S/4 HANA Cloud can help them scale up (or down) their ERP resources based on the current demands. For instance, an online retailer can scale up their operations during peak shopping seasons or festivals without experiencing any performance drop.

Similarly, SAP’s cloud platform allows SMEs to deploy their ERP solution in a quick time and apply frequent updates (without disrupting existing processes). SMEs in regulated industries can also respond more quickly to regulatory changes, thereby providing them a clear competitive advantage.

4. Improve data analytics

With ERP systems designed to handle massive data volumes, SMEs can leverage this tool to extract real-time analytics for business insights. For any fast-growing company, data analytics is crucial for making accurate, data-driven decisions and tracking its performance. With these insights, companies can quickly identify and address any process bottlenecks that are consuming both capital and time.

With SAP S/4HANA Cloud for SMEs, companies can also utilize predictive analytics to forecast consumer demands in real-time. For instance, retail companies can optimize their inventory levels at the right level, thus addressing any excess or low stock quantities.

5. Elevate their data security

In the face of growing cybercrimes, data security is of paramount importance in all industry sectors, including those with sensitive data, such as healthcare. On its part, SAP deploys advanced security protocols, including data encryption, stringent access control, and intrusion detection, to enhance data security for its customers.

Additionally, a cloud ERP platform enables service providers to quickly identify and address any security-related vulnerabilities and apply security patches. SMEs don’t need to worry about data security or invest separately in security tools and technologies.

6. Integrate their business processes

The presence of operational silos and fragmented data often hampers SMEs in any industry domain. With an ERP solution like SAP S/4HANA, enterprises can seamlessly integrate business processes, such as sales, inventory management, and customer relationship management, on a single, cohesive platform.

Companies can also automate manual, repetitive tasks, such as payroll processing and customer data entry. Besides saving time, this level of automation can eliminate multiple data entries and duplication. For instance, a logistics company can save valuable time by integrating its supply chains and financial processes.

How SAP enables SMEs to pursue digital transformation

With platforms like “GROW with SAP ERP,” SMEs can also use SAP’s expertise to achieve digital transformation. Powered by SAP S/4HANA Cloud, this platform enables SMEs to enhance their business scalability, which is often limited by legacy ERP systems.

For example, with its preconfigured industry practices and templates, GROW with SAP ERP can help small companies onboard their customers and go live in weeks, rather than months. Similarly, this public cloud platform delivers the power of AI and automation, along with the capabilities of the SAP Business Technology Platform (BTP) to meet growing market demands.

At the same time, SAP is enabling digital transformation for its existing customers with the “RISE with SAP” for mid-market SMEs. This platform is designed to help SMEs transform into digitally enabled enterprises. Powered by SAP S/4HANA Cloud, this SAP framework allows SMEs to connect with the SAP Business Network, along with industry-specific cloud solutions. Here are some of the SME ERP cloud benefits of adopting this solution:

• Lower total cost of ownership (TCO)
• Business innovation
• Seamless collaboration with business suppliers and customers
• Speed and business agility

Conclusion

With benefits such as cost efficiency and business agility, SAP S/4HANA Cloud for SMEs is the ideal ERP solution for building a competitive business environment.

As a reliable SAP partner, Praxis Infosolutions can help you transition from an on-premises legacy system to a modern cloud-powered ERP platform. Besides its technical expertise in assisting SMEs with cloud ERP migration using SAP tools, Praxis brings years of experience working in the fast-growing SME industry sector.

Are you seeking the ideal partner to drive your digital transformation? We’re here to help and guide. Contact us today with your business requirements and queries.