Frequently Asked Questions
IT Complexity & System Consolidation: Frequently Asked Questions
Common questions about IT Complexity & System Consolidation and how MYGO Consulting addresses this challenge with SAP solutions.
What does an IT landscape assessment involve?
A structured landscape assessment documents all applications, interfaces, data flows, and dependencies. We use automated discovery tools where available, supplemented by interviews with IT and business stakeholders. The output includes a landscape map, TCO analysis, risk assessment, and prioritized simplification roadmap with estimated costs and benefits.
What is the difference between system consolidation and harmonization?
System consolidation reduces the number of system instances (for example, merging three SAP ECC systems into one S/4HANA instance). Harmonization standardizes business processes, master data, and configurations across business units. Effective simplification requires both: consolidation without harmonization creates a single system with multiple conflicting processes, while harmonization without consolidation still incurs multi-system maintenance costs.
How does SAP BTP help reduce IT complexity?
SAP BTP replaces point-to-point integrations with an API-based integration platform (Integration Suite), provides a unified extension framework that keeps the S/4HANA core clean, and offers low-code development tools that reduce custom ABAP development. By centralizing integration, extension, and analytics on BTP, organizations reduce the number of middleware platforms and custom interfaces in their landscape.
What is the clean core principle and why does it matter?
Clean core means keeping the S/4HANA system as close to standard as possible, building extensions and customizations on SAP BTP rather than in the ERP. This approach reduces upgrade complexity, enables automatic cloud updates, and makes the system easier to maintain. Every customization request should be evaluated against the clean core principle, with BTP-based alternatives recommended where possible.
How long does a system consolidation typically take?
System consolidation timelines depend on scope and complexity. Consolidating two similar SAP instances typically takes 12-18 months including process harmonization, data migration, and testing. Larger consolidations involving three or more instances or cross-geography harmonization can span 18-36 months. Phased approaches that deliver value incrementally are preferable to big-bang cutover.
How should legacy system decommissioning be managed?
Legacy decommissioning follows a structured process: inventory functional capabilities, identify replacement in the target architecture, migrate required data and processes, validate business continuity, and formally retire the system. Data archiving requirements must also be addressed, ensuring historical records remain accessible for compliance and audit purposes after decommissioning.
What cost savings can we expect from landscape simplification?
Landscape simplification typically delivers 25-40% reduction in IT total cost of ownership over 3-5 years. Savings come from eliminated licenses, reduced hosting costs, lower support and maintenance effort, and decreased integration complexity. Additional value comes from faster change delivery and reduced risk, though these benefits are harder to quantify financially.
How does integration modernization work with SAP Integration Suite?
SAP Integration Suite provides pre-built integration content for SAP-to-SAP and SAP-to-third-party scenarios, reducing custom integration development. An API-based integration architecture replaces point-to-point connections with reusable integration flows, implements API management for governance and monitoring, and provides a self-service integration catalog for business teams.
What does SAP landscape simplification actually involve?
SAP landscape simplification involves consolidating redundant SAP instances, retiring legacy systems, rationalizing custom code, and standardizing business processes across the organization. The goal is fewer systems, fewer interfaces, and less custom code, resulting in lower maintenance costs, faster change delivery, and reduced risk. SAP S/4HANA’s simplified data model and SAP BTP’s extension architecture are the enabling technologies.
How does SAP BTP reduce the need for custom ABAP development?
SAP BTP provides low-code/no-code development tools (SAP Build), pre-built integrations, and cloud-native extension capabilities that address many scenarios previously solved with custom ABAP. Extensions built on BTP integrate with S/4HANA through APIs rather than modifying the core, which preserves upgradeability and reduces regression testing. This shifts the development model from custom core modification to clean core plus side-by-side extensions.
What is the clean core strategy and why does it matter for IT complexity?
Clean core means keeping the SAP S/4HANA digital core as close to standard as possible and building custom functionality on SAP BTP rather than within the ERP. This matters because a clean core can be upgraded automatically with each SAP release, reducing the upgrade cycle from months to days. Custom code in the core is the single largest driver of IT complexity, upgrade cost, and regression risk in SAP landscapes.
How does SAP support legacy system retirement?
SAP S/4HANA can absorb functionality from legacy systems, including separate warehouse management, transportation management, and planning systems, into the digital core. SAP BTP provides integration services that replace point-to-point interfaces with managed APIs. Data from retired systems can be archived using SAP ILM (Information Lifecycle Management) for compliance retention without maintaining the source systems.
Can SAP consolidate multiple ERP instances into one?
Yes. SAP provides multiple paths for ERP consolidation: system conversion with company code merge, selective data transition to a new consolidated instance, or Central Finance for financial consolidation without full operational merger. The approach depends on how standardized processes need to be, whether operational independence is required, and the appetite for business process harmonization across entities.
How does SAP Integration Suite reduce middleware complexity?
SAP Integration Suite replaces complex point-to-point interfaces and third-party middleware with a managed cloud integration platform. It provides pre-built integration content for common SAP-to-SAP and SAP-to-third-party scenarios, API management for controlled access to SAP services, and event-based integration for real-time data flows. This reduces the number of interfaces to maintain and the technical debt that accumulates with custom middleware solutions.
What is the business case for IT simplification with SAP?
The business case for IT simplification includes reduced maintenance costs (fewer systems, less custom code), faster time-to-change (standardized processes change faster than customized ones), lower risk (fewer integration failure points, better upgrade path), and improved user productivity (fewer systems to learn and navigate). Organizations typically see 15–25% reduction in IT run costs and 30–50% improvement in change delivery speed after landscape simplification.
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