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SAP Business ByDesign

SAP Business ByDesign

This specialist article focuses on one of the first ERP systems from the cloud then available on the market, SAP Business ByDesign, and its relevance for companies when it comes to selecting a system.

Andreas Czech

Partner Manager at FIS

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What is SAP Business ByDesign?

SAP Business ByDesign is a cloud-based Enterprise Resource Planning (ERP) solution specially developed for medium-sized enterprises. It offers a comprehensive suite of functions covering all essential business processes of an enterprise, such as financial management, purchasing, sales and distribution, production and human resources. As a software-as-a-service (SaaS) model, it enables enterprises to efficiently manage their operational processes and, at the same time, avoid the complexity and costs of traditional on-premise ERP systems.

What is the history of SAP Business ByDesign?

SAP Business ByDesign was presented for the first time in 2007 and was an important component of SAP’s strategy to offer a high-performance and cloud-based ERP solution to medium-sized enterprises. It was developed as an answer to the growing demand for flexible and scalable ERP systems that meet the requirements of smaller enterprises. Compared to bigger SAP solutions such as SAP S/4HANA, Business ByDesign offers a more inexpensive and more easily scalable alternative without losing the comprehensive functionality of an enterprise ERP system. 

Declaration of SAP Business ByDesign as “feature-complete”

In 2023, SAP declared the Business ByDesign solution as “feature-complete”, which means that there will be no more functional further development within the solution. Instead, it is restricted to statutory requirements and the compliance with SAP standard versions. The current roadmap only extends to the year 2025.

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What does SAP Business ByDesign offer?

SAP Business ByDesign covers a multitude of business functions that are of vital importance for companies. It enables the seamless management and integration of financial, HR, supply chain, project, purchasing and sales processes in one single central solution. Companies obtain real-time data through the integration of these areas and can make well-founded decisions that increase their efficiency and competitiveness. In addition, Business ByDesign offers high-performance analysis tools and dashboards for monitoring corporate key figures in real time. 

Overview of SAP Business ByDesign

SAP Business ByDesign is a completely integrated ERP solution based on SAP Cloud Platform. It is flexible and scalable and suitable for companies of different sizes. Business ByDesign can be used both as single application and part of a more comprehensive SAP ecosystem. The solution is hosted in the cloud, which means that no expensive on-premise infrastructures are required. Regular updates and the possibility of adjusting the solution to the specific requirements of a company make SAP Business ByDesign a future-proof solution.

Core functions and modules

SAP Business ByDesign offers a multitude of modules that cover all important business processes of a company:

  • Financial management:
    It includes accounting, financial reporting, budgeting and forecasting.
  • Supply Chain Management (SCM):
    It helps companies optimize their supply chains and manage stocks and deliveries.
  • Customer Relationship Management (CRM):
    It optimizes customer relationship management and support the sales process.
  • Human Resources (HR):
    It offers functions for the management of employee data, payroll and personnel development.
  • Project management:
    It enables the efficient planning and execution of projects.
  • Purchasing and procurement:
    It automates purchasing processes and supports the management of vendor relationships.
  • Business Analytics:
    It offers comprehensive analysis options and dashboards for well-founded business decisions.

Cloud ERP solution: Software as a Service (SaaS)

SAP Business ByDesign is an SaaS solution, which means that it is provided via the Internet instead of being installed on local servers. For companies, it enables a quick implementation and reduces the necessity of comprehensive IT infrastructures and maintenance efforts. Regular updates are made automatically without the customer having to intervene manually. The cloud-based provision ensures scalability and flexibility so that companies can adjust and extend their systems as required.

Who is SAP Business ByDesign suitable for?

SAP Business ByDesign was mainly designed for smaller medium-sized enterprises looking for a scalable and cost-efficient ERP solution. Originally, the solution was developed for enterprises that

  • wish to grow and automate their business processes
  • need an integrated solution to combine different business areas, such as finances, purchasing and HR
  • require flexibility and scalability without having to invest in complex on-premise infrastructures
  • wish to work in the cloud in order to benefit from the advantages of mobility, flexibility and low IT costs.
  • Since 2023, the SAP Business ByDesign ERP system has been considered as “feature-complete”!

Advantages of SAP Business ByDesign

  • Cost saving:
    As SAP Business ByDesign is a cloud-based solution, no costs are incurred for the hardware and maintenance of on-premise systems. 
  • Scalability:
    The solution grows together with the company so that companies can add additional functions at any time.
  • Real-time data access:
    Companies obtain an instant overview of their business processes through integrated analysis tools and dashboards.
  • User-friendliness:
    The system is easy to operate with an intuitive user interface and minimal training efforts.
  • Integration:
    The seamless integration with other SAP solutions ensures smooth information flows within the entire company. 

Disadvantages of SAP Business ByDesign

  • Adjustment and flexibility
    Although SAP Business ByDesign offers high functionality, additional adjustments may be necessary for very specific demands, which may require additional costs and time. 
  • Costs:
    Smaller companies might consider the current costs of the cloud use and possible additional modules as expensive. 
  • Implementation complexity:
    In spite of its easy provision, the implementation of the solution may be complex in some cases, in particular with the integration into existing systems and business processes.

What distinguishes SAP Business ByDesign from other SAP products?

SAP Business ByDesign mainly differs from other SAP products, such as SAP S/4HANA or SAP Business One, through its target group and architecture.

While SAP S/4HANA is a more comprehensive and high-performance solution for small and medium-sized enterprises, Business ByDesign offers a cloud-based ERP solution specially designed for smaller medium-sized enterprises. In contrast to S/4HANA, which is rather suitable for bigger enterprises and complex business processes, SAP Business ByDesign is less complex and easier to scale without giving up essential functions. Compared to traditional on-premise solutions, it offers a user-friendly user interface, quick implementation and low IT costs.

Conclusion

SAP Business ByDesign is one of the first then available ERP systems from the cloud and basically covers the requirements of smaller medium-sized enterprises. As the system has obtained the “feature-complete” status in the meantime, we recommend that you focus on the current and strategically relevant SAP S/4HANA Public Cloud product in case of a system selection. This ensures that even the increasing requirements of companies can be covered in the ERP system.