SAP Transformation | Business Case
SAP S4 Public Cloud Business Case | Punch Rule of Five
The SAP S4 Public Cloud Business Case is a comprehensive approach to understanding the potential benefits and value of implementing SAP S4 HANA in a cloud environment. One of the key principles often discussed in this context is the "Punch Rule of Five," which serves as a guideline for evaluating the critical aspects of the business case.
By focusing on these five critical areas, businesses can build a compelling case for adopting the SAP S4 Public Cloud, demonstrating not only the immediate advantages but also the long-term strategic value.
I. Enterprise Challenges
Difficult to keep up with SAP system maintenance, implement new solutions or fixes, and stay updated with technological advancements. Current SAP ECC system will be gradually discontinued starting from 2026.
Business transaction processing is mostly relying on manual efforts, resulting in significant reconciliation difficulties (payables, receivables, cash application, banking, tax, intercompany etc.).
Financial reporting heavily depends on spreadsheets, leading to heightened risks concerning data accuracy and integrity, while also hindering timely reporting (for e.g., consolidation).
Financial analytical capability falls short of the established industry standards.
Business AI is currently not utilized.
II. Resolution Options
Transition from current SAP ECC to new SAP S4 HANA system.
Adopt SAP's cloud-based technological innovations featuring embedded AI to enhance processes, streamline automation, improve integration, and advance data reporting and analytics.
Implement SAP S4 Public Cloud edition to replace current SAP ECC on-premise system.
With cloud-based model, SAP deploys the software in the SAP-owned data center, while customer only pays the annual subscription for running the software.
SAP primarily manages the underlying infrastructure, IT security, and compliance. It usually works on a pay-as-you-go basis, which can save money for fluctuating workloads.
III. Adoption Cost Components
SAP Core Annual Subscription License Fees, 3 years or 5 years.
SAP Additional Block/Product Annual Subscription Fees (if applicable).
SAP Document Management Service Fees to store attachments.
Process definition, data cleansing & mapping cost.
New system deign, build, testing, and deployment cost.
IV. Cost Benefit
No system infrastructure cost (SAP on-premise serves are not required).
No upgrading cost (SAP will take care via automatic releases).
No system backup cost on-premise (SAP will do the system backup).
No system security compliance cost (SAP will apply security).
Decrease in IT Expenditures / Savings on IT Budget.
V. Value Points
Use SAP as the Single Source of Truth (SSOT) for accessing data from various source systems.
Evidence indicates a 30% rise in production capacity due to enhanced efficiency as well as reduction in days to close books (25%-50%).
Align system applications with business processes and priorities.
Immediate focus to initiate business AI-driven strategy in order to stay competitive in the market.
An enterprise approach for timely reporting & advanced analytics.
The finishing touch | SAP Go-Live with fast implementation.
Going live with SAP S/4HANA Cloud in 13 weeks: Thielco’s successful digital transformation
Leading LED lighting and controls company 'Current' is officially live on SAP S/4HANA in the public cloud - Most aggressive project timelines
World’s Fastest SAP S/4HANA Cloud Implementation by Kāpura, NZ - InsideSAP
https://insidesap.com/worlds-fastest-sap-s-4hana-cloud-implementation-by-kapura-nz/
Disclaimer: The information presented above is intended for informational purposes only. Always seek advice from qualified professionals for expert guidance. It is essential to cross-reference information and consult multiple sources to ensure well-informed decision-making.
For any assistance, reach out to Team Mondial RIC at team@mondialric.com.