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Integrating SAP with Salesforce: Scenarios and Challenges

SAP and Salesforce are two best-in-class software solutions which functionally complement each other. SAP is the most extensive ERP with an important role in significant business processes for many global enterprises. Salesforce has emerged  to a flexible CRM, Marketing, Customer Service platform (Force.com) aiming at making customer processes easier and customer friendly.

The concept of integration has been around for a long time. However, integration is still a complex beast that requires the right approach and the right enabling technology. When integrating an enterprise resource planning solution (ERP) like SAP and Salesforce you will encounter functional / organizational issues as well as technical issues.

Why Integrate?

The value of integration from a general business perspective is quite clear, specifically, the ability to sync information between several systems.

Thus reducing redundant data updates, and the ability for users to access more valuable information. This also allows organizations to further automate End-2-End business processes and work more efficiently.

  • Automation

    Efficient business models by automating business processes

  • Efficiency

    Save costs by improving data quality, providing valuable information to users

  • API Technology

    An integrated IT landscape could prove to be leverageable during merger/acquisitions.

Functional Challenges

You will encounter while integrating End-2-End business processes, that you will be impacting multiple business areas organized in different departments / business streams. Meaning having to deal with multiple business owners and accountable leadership. This fact alone will make decision making and finalizing requirements a much more complex and longer process.

Technical Challenges

The core challenge is around that Salesforce is a SaaS-delivered application and thus in the cloud, while SAP ERP is predominantly an on-premise making it less flexible. This complicates the integration but will diminish over time since SAP is making progress moving more functionality into the Cloud.

Other types of technical issues that may occur during integration are that SAP uses its own proprietary integration mechanisms using IDocs, BAPIs, ABAP, RFC, and JCo which are different from industry standards. Also SAP is highly customizable and can create massive data dependencies and configuration complexity.

There are always more options to achieve optimal integration. While all approaches can work, each carries its own set of risks, costs, and tradeoffs. The idea is to leverage the best approach for your particular integration requirements.

Integration scenarios

To successfully conquer these integration challenges, it is important to firstly determine the scope of the integration. Secondly it is vital to have the right business and technical stakeholders engaged in designing the integration scenarios and dive deep into the expected requirements. Examples of such requirements are displayed in the diagram.

The diagram shows an example scenario with multiple integrated objects that need to be configured to make the integration successful. Business input and standardization are necessary  to deliver an integration of this magnitude. Business areas that need to be defined and standardized:

  • Customer Data

    Synchronizing account and contact data from SAP to Salesforce.

  • Products & Pricing

    Products and pricing are maintained in SAP and synchronized with Salesforce

  • Qoutes and Contracts

    Quoting and contract management is handled in Salesforce

  • Order Management

    Orders are placed in Salesforce but fulfillment and logistics handled in SAP

  • Reporting

    Order history and financial status reportable in real time to Salesforce user

Conclusion

It is clear that integrating SAP and Salesforce has major business benefits and is becoming a minimum requirement as the market is moving towards digital transformation and improved customer processes. Nevertheless every SAP and Salesforce integration is a journey and needs to be undertaken with the right preparations.

Always start with clear business objectives and a clear technical scope. Deciding which modules to integrate to support clear End-2-End business processes is vital for a successful integration.

But when successful can unlock the full potential of a friendly customer journey supporting any organization in increasing sales, retention rates and customer satisfaction rates.

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