SAP Business ByDesign for Large Enterprises

May 8, 2012 by Dr. Christian Bätz and Christiane Stagge

Read here how to hook up SAP ERP with SAP Business ByDesign. (Photo: Fotolia)

SAP Business ByDesign is like a “mini SAP Business Suite” for the midmarket. It covers the most important business processes that run in small companies. These include financials, marketing, sales, services, human resources, manufacturing, planning and control of the supply chain, strategic and operational purchasing, and compliance.

SAP Business ByDesign comes in the form of software as a service (SaaS). The application is not installed on a company computer, but is hosted on external servers. Users work with SAP Business ByDesign through their Internet browser. Depending on its needs, the company can hire additional modules and new functions. In addition, the customer decides on what contract validity period best suits the company and when the licenses should expire.

Billing works using a flexible price model. There’s a fixed price for installation, which costs between €10,000 and €35,000, depending on the version. Then companies pay between €79 and €133 for each user every month. This includes service, maintenance, hosting, and support.

Small businesses and midsize companies often have limited IT budgets and resources compared with large enterprises, and the on-demand software should enable to them to save money and capacity. For example, there’s no need to hire a dedicated IT administrator responsible for the SAP software. Hosting and support is taken care of by the SAP partners and external IT service providers. To find an SAP Business ByDesign partner, click here.

Next page: SAP Business ByDesign for large enterprises

For large enterprises: hooking up SAP Business ByDesign to SAP ERP

SAP Business ByDesign is kept up-to-date using special enhancement packages, known as feature packs. The updates are integrated into the application once or twice a year. Feature pack 3.5 (FP 3.5) has been on the market since January 2012. This current feature pack provides new functions that enable large companies and corporations to connect their branches and subsidiaries to their central SAP ERP application.

There is, for example, an integration scenario to map procurement processes (procure-to-pay) more effectively. If a branch receives a sales order, the order is automatically forwarded to SAP Business Suite at headquarters.

SAP Business ByDesign has also made progress in terms of its language versions, making it suitable for bigger companies. The software is available in country-specific versions for Germany, the United Kingdom/the United States, China, France, Portugal, Spain, India, and Mexico.

It’s even possible to use SAP Business ByDesign on the go. There are mobile apps available for the iPhone and iPad in the iTunes App Store.

To connect SAP ERP and SAP Business ByDesign, SAP partner IBIS Prof. Thome AG differentiates between five different subsidiary types:

1) Local sales branch with central delivery: Here, the branch has direct contact with the customer and also sells the products to them. This includes creating the invoices. The goods are shipped from a central warehouse.

2) Local sales and logistics branch: In this case, sales and shipment to the customer also take place straight from the branch. The branch has its own warehouse. The warehouse at headquarters supplies the branches, but not the customers directly.

3) Branch as local service unit: In this scenario, the branch acts as the local contact. It is mainly responsible for local customer care. This includes repairs, maintenance, and consulting services.

4) Branch as internal service unit: In this case, the branch’s activities are limited to internal services, such as human resources or IT support.

5) Branch as internal and external service unit: Here, the branch performs services within the corporate group. These can be services for local customers within the framework of projects that include employees from headquarters or from other branches.

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