By Priyadarshi PD, Managing Director at BCG; Sanjay Vyas, Enterprise Solutions Director at BCG; and Sandeep Sahota, Principal IT Architect at BCG
The enterprise tech landscape is undergoing a transformative shift — legacy ERP systems are being reimagined by agile, cloud-native platforms that fuel enterprise acceleration. At the forefront is RISE with SAP, a comprehensive transformation-as-a-service offering that integrates SAP S/4HANA Cloud, BTP, industry solutions, and hyper-scaler infrastructure into unified platforms.
For tech leaders charting their modernisation journey, SAP RISE presents both a challenge and a game-changing opportunity: unlocking next-gen value while overhauling core processes
A quick scan of any organisation’s key IT spend reveals that ~ 70-80% of the cost is split between the hardware, cloud services, personnel & large enterprise apps. This necessitates decoding SAP RISE and identifying pathways to unlock efficiency & business innovation without compromising cost discipline
This cost concentration underscores the urgency for a strategic transformation agenda — one that optimises spending, modernises core systems, and accelerates business innovation. Platforms like RISE with SAP simplify, transform, and future-proof enterprise IT
Demystifying SAP RISE
SAP RISE goes beyond being a product— it drives enterprise transformation. It brings together three key domains:
- Functional Capabilities: Core ERP modules (Finance, Manufacturing, Supply Chain, etc.) enhanced with intelligent automation
- Technical Components: BTP, lifecycle management, integration tools, and advanced analytics
- Industry-Specific Solutions: Tailored offerings across 25+ industries
The SAP RISE BoM bundles a diverse set of components, demanding a razor-sharp architectural vision and seamless cross-functional orchestration
Without tight governance, TCO can balloon by 3–5x, undermining the business case for change. The shift to Full User Equivalent (FUE) licensing simplifies access management but also demands a disciplined license strategy to:
- Eliminate shelf-ware
- Rationalise overlapping entitlements
- Mitigate indirect access risks
To unlock full commercial value, enterprises must anchor negotiations on a value-first, outcome-aligned strategy. This includes:
- Clearly defining essential vs. optional components
- Optimising licensing structures and user types
- Hardwire SLAs to transformation milestones
- Using transformation roadmaps as strategic levers during contract discussions
Organisations moving to S/4HANA must address multiple cost drivers that influence total contract value (TCV). Licensing, implementation, and AMS are among the largest contributors to overall TCO.
This cost concentration underscores the urgency for a strategic transformation agenda — one that optimises spending, modernises core systems, and accelerates business innovation. Platforms like RISE with SAP simplify, transform, and future-proof enterprise IT
Demystifying SAP RISE
SAP RISE goes beyond being a product— it drives enterprise transformation. It brings together three key domains:
- Functional Capabilities: Core ERP modules (Finance, Manufacturing, Supply Chain, etc.) enhanced with intelligent automation
- Technical Components: BTP, lifecycle management, integration tools, and advanced analytics
- Industry-Specific Solutions: Tailored offerings across 25+ industries
The SAP RISE BoM bundles a diverse set of components, demanding a razor-sharp architectural vision and seamless cross-functional orchestration
Without tight governance, TCO can balloon by 3–5x, undermining the business case for change. The shift to Full User Equivalent (FUE) licensing simplifies access management but also demands a disciplined license strategy to:
- Eliminate shelf-ware
- Rationalise overlapping entitlements
- Mitigate indirect access risks
To unlock full commercial value, enterprises must anchor negotiations on a value-first, outcome-aligned strategy. This includes:
- Clearly defining essential vs. optional components
- Optimising licensing structures and user types
- Hardwire SLAs to transformation milestones
- Using transformation roadmaps as strategic levers during contract discussions
Organisations moving to S/4HANA must address multiple cost drivers that influence total contract value (TCV). Licensing, implementation, and AMS are among the largest contributors to overall TCO.
This reinforces the need for organisations to adopt a structured, value-led transformation roadmap, centered around cost optimisation and business impact. Key focus areas include:
- Strategic BoM Design: Align RISE components with actual business needs
- Landscape Rationalisation: Retire redundant systems and streamline architecture
- Talent Optimisation: Upskill teams and refine partner engagement
- Cloud Efficiency: Optimise cloud economics and architecture for sustained savings
- Value Realisation Tracking: Define KPIs to monitor ROI across business functions
With the right strategy, S/4HANA shifts from a tech upgrade to a springboard for innovation, agility, and sustainable advantage
Re-architecting Processes with SAP RISE
What sets SAP RISE apart is its ability to reshape—not just digitise—business processes. By combining real-time data, intelligent automation, and embedded analytics, it helps enterprises shift from reactive to predictive operations.
With S/4HANA Cloud and BTP as the digital core, organisations can:
- Simplify fragmented operations across functions
- Embed AI/ML for continuous process optimisation
- Enable adaptive workflows that respond to change in real time
- Create digital twins for scenario planning and simulation
Select transformative Use Cases
- Supply Chain Risk Management: Early-warning systems and scenario modeling to proactively address disruptions
- Touchless Invoice Processing: AI-powered matching and anomaly detection to accelerate finance operations
- Dynamic Retail Optimisation: Real-time pricing and inventory adjustments based on demand and market trends
- Predictive Maintenance: IoT and ML-driven insights to cut downtime and reduce maintenance costs
These are not just aspirational—they are already delivering 15%+ cost savings and up to 50% faster operations within 12–18 months.
A prime example: reimagining the procurement cycle in S/4HANA, using tools like self-service requisitions, catalog buying, flexible workflows, and rate contracts, has shown 25–40% PR-to-PO cycle time reduction through automation and process redesign.
SAP RISE doesn’t just modernise tech—it rewires the enterprise for what’s next
Strategic Imperatives for Tech Leaders
- Establish a Transformation Office to oversee BoM decisions and vendor strategy
- Leverage data to prioritise high-value process reinvention
- Align IT and business on shared KPIs and transformation goals
- Invest in change management to drive adoption and minimize resistance
- Deploy lighthouse use cases to showcase early wins and de-risk scaling
Closing Insights
SAP RISE is not just a modernisation initiative—it is a strategic catalyst for digital reinvention. With clear planning, disciplined execution, and a val