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SAP Business ByDesign

SAP Business ByDesign is a cloud-based (ERP) software solution developed by SE, launched in 2007 as the company's first on-demand offering tailored for small and midsize enterprises (SMEs). Designed to enable fast-growing midsize businesses to scale and compete without the complexity or high costs associated with traditional systems, it provides a unified integrating core functions such as , , , , and . The solution features pre-built processes across 39 business scenarios, real-time analytics, and support for over 12,000 partner-developed extensions, allowing users to adapt quickly to market opportunities while streamlining operations and improving efficiency. Powered by SAP HANA in-memory computing, Business ByDesign operates as a software-as-a-service (SaaS) model, ensuring secure data handling and compliance through nine global data centers. It serves customers in more than 160 countries, helping organizations enhance profitability by connecting disparate business areas into a single, agile system.

Overview

Definition and Core Functionality

SAP Business ByDesign is a single, unified cloud-based (ERP) solution designed specifically for midsize enterprises, enabling them to manage end-to-end business processes without the complexity or high costs associated with traditional ERP systems. It provides a comprehensive platform that integrates various business functions into a streamlined system, allowing organizations to scale operations efficiently while maintaining agility in dynamic markets. The core functionality of SAP Business ByDesign includes pre-built, industry-specific processes covering key areas such as , , , , and . These processes are enhanced with embedded real-time for informed decision-making and mobility features that support access from various devices, ensuring users can monitor and manage operations on the go. The solution supports 39 comprehensive, prebuilt business scenarios that address core process needs across these domains. SAP Business ByDesign operates in over 160 countries worldwide and supports 13 standard languages. It offers localization content for more than 193 countries or regions, ensuring compliance with regional regulations including tax calculations, financial reporting standards, and legal requirements tailored to specific locales. This global reach is supported by nine SAP data centers distributed worldwide, which handle data privacy and secure operations.

Target Audience and Use Cases

SAP Business ByDesign primarily targets fast-growing midsize businesses, typically those with 100 to 1,000 employees, that require an affordable, cloud-based solution without the complexities of on-premise deployments. However, as of September 2025, SAP announced that Business ByDesign will be delisted from the pricelist for new customers starting April 20, 2026, though support for existing customers will continue. This audience includes subsidiaries of larger enterprises seeking cost-effective scalability and operational efficiency, as the system's subscription-based model eliminates high upfront hardware and maintenance costs associated with traditional systems. The software streamlines operations across key industries such as , wholesale , , and consumer products, enabling end-to-end process management from to . For instance, a midsize manufacturer might use it for tracking and to optimize production and reduce stockouts, while a firm could leverage its tools for , time tracking, and automated billing to enhance client delivery. In wholesale , it supports visibility and , helping businesses like consumer goods distributors manage multi-channel and logistics efficiently. Key benefits include enhanced agility for global expansion through its cloud architecture, which supports multi-language and multi-currency operations, and cost efficiency via the pay-as-you-go subscription model that allows rapid deployment and updates without IT overhead. More than 11,000 companies utilize SAP Business ByDesign across over 160 countries, demonstrating its role in enabling scalable growth for midsize enterprises worldwide.

Architecture and Technology

Underlying Platform and Components

SAP Business ByDesign is constructed on a (SOA), which facilitates modular and interoperable business processes through standardized web services. This architecture enables the seamless orchestration of services across various business functions, supporting 341 web services APIs and 76 predefined scenarios for efficient data exchange and process . The platform leverages as its foundational middleware, providing the technical backbone for , application , and runtime services that power the entire system. At the core of SAP Business ByDesign is the in-memory database, which delivers real-time data processing and advanced analytics capabilities by storing and querying data directly in RAM for high-speed performance. This in-memory approach eliminates the need for traditional disk-based processing, enabling instantaneous insights and reducing latency in business operations such as reporting and decision-making. The solution is deployed exclusively in the cloud as a offering, eliminating upfront hardware investments and allowing to handle all maintenance, upgrades, backups, and infrastructure management. Hosted across a global network of data centers in regions including , , , and , the platform ensures , through , and by provisioning additional computing resources and storage as business needs grow. is embedded throughout, with to standards like ISO/IEC 27001 and SOC 2, including data encryption, 24/7 monitoring, and support for data residency to meet regulations such as GDPR for . Multi-tenancy is a key design principle, logically isolating customer environments to maintain data confidentiality and enable efficient resource sharing across tenants. Key components enhance usability and functionality within this architecture. The embedded analytics engine provides built-in, real-time reporting and visualization tools directly integrated into business processes, allowing users to perform ad-hoc analyses, simulations, and planning without external systems. Mobile access is supported through dedicated apps available on and , enabling users to execute tasks, view reports, and approve workflows on smartphones and tablets for on-the-go productivity. Additionally, e-learning tools and resources, including interactive guides, certification paths, and the SAP Help Portal, facilitate user training and onboarding to maximize adoption and proficiency.

Integration and Extensibility Features

SAP Business ByDesign supports seamless integration with on-premise, cloud-based, and third-party systems through 76 pre-defined integration scenarios, enabling connectivity across diverse enterprise environments. These scenarios facilitate data exchange for processes such as financials, , and , leveraging the underlying database for efficient, real-time data processing. The solution provides robust support, including /OData services for accessing business objects, reports, and data sources, as well as web services for more structured integrations. It integrates natively with the SAP Integration Suite, which offers prebuilt connectors and open APIs to link SAP Business ByDesign with other SAP applications and external tools like CRM or e-commerce platforms. For extensibility, Business ByDesign includes key user tools that allow business users to perform low-code adaptations, such as adding custom fields to business objects or modifying elements without developer intervention. Partners can develop and distribute add-ons via the SAP Store, extending functionality for industry-specific needs, such as enhanced reporting or customizations. Representative examples include predefined integrations with SAP SuccessFactors Employee Central for synchronizing employee data in human capital management scenarios, and connections to external logistics providers for real-time supply chain updates. These features ensure SAP Business ByDesign remains adaptable within broader enterprise ecosystems, supporting standards like OData for simplified data querying and REST for lightweight API calls.

Business Areas and Scenarios

Financials and Accounting

SAP Business ByDesign's capabilities encompass core s that handle essential processes, providing a unified platform for small and midsize enterprises. The general serves as the central repository for all financial transactions, enabling automated postings from integrated business areas such as sales and procurement to ensure data consistency and accuracy. and receivable functionalities facilitate efficient vendor and customer management, including , payment runs, and dunning procedures, with real-time visibility into outstanding balances to support timely collections and disbursements. Fixed assets management covers the full lifecycle of tangible and intangible assets, from acquisition and calculations to disposals and assessments, allowing users to monitor asset values and perform manual adjustments as needed. management tools track inflows and outflows across operational, investing, and financing activities, offering dashboards for liquidity analysis and to optimize . The system streamlines financial operations through automated period-end closing processes, leveraging built-in and tight with subledgers to reconcile data in and route tasks to appropriate users, thereby reducing manual effort and closing times. Multi-currency support is embedded throughout, handling transactions in multiple currencies with automatic exchange rate conversions and enabling the maintenance of parallel ledgers for different needs. Compliance with international standards such as IFRS and U.S. is achieved via standardized logic, audit trails, and multi-GAAP capabilities, which allow organizations to generate aligned with multiple principles simultaneously using a single dataset. Real-time financial reporting and forecasting are powered by embedded analytics, providing interactive dashboards and key performance indicators that draw from live transactional for instant insights into financial health, variance , and predictive trends without requiring separate . These tools support budgeting, profitability , and what-if simulations directly within the financial workspace, enhancing for teams. Integration with localized tax engines ensures accurate handling of indirect taxes like and across over 140 countries, with country-specific rules for tax determination, reporting, and compliance filings embedded in the system to automate calculations and minimize errors in .

Supply Chain, Procurement, and Inventory

SAP Business ByDesign provides an integrated process for stock materials, enabling end-to-end management from demand identification to invoice verification. The system supports supplier sourcing through requests for quotation (RFQs), where users can compare bids from multiple suppliers and assign sources of supply either manually or automatically to purchase requests. This facilitates the creation of purchase orders, which can reference existing contracts or catalogs, and includes automated bundling of multiple requests into efficient orders. covers the full lifecycle, from and RFQ-based creation to ongoing monitoring, ensuring and optimized terms. Spend analysis tools offer reports on total spend by category, supplier, or product, helping identify cost-saving opportunities and track purchasing efficiency. Invoice matching automates verification of supplier invoices against purchase orders and goods receipts, with for discrepancies and approval workflows before posting. For manufacturers, automated purchase orders can be generated via (MRP), triggering based on demand forecasts to maintain production continuity. Vendor performance dashboards provide insights into delivery reliability, acknowledgment status, and overall supplier ratings, allowing users to evaluate and select optimal partners. These features streamline operations while integrating with financial approvals for payments. Inventory control in SAP Business ByDesign emphasizes visibility and optimization, with features for tracking levels across locations through goods receipts, issues, and transfers. Demand planning uses statistical based on historical , , and , allowing manual adjustments and release of planned independent requirements to supply planning for balanced . This supports just-in-time approaches by leveling supply to avoid overstocking, with configurable horizons for rolling that integrate needs. Warehouse management basics include internal logistics for replenishment, removal, and picking via warehouse requests, ensuring accurate material flows without advanced WMS complexity. The system facilitates global supply chains through with external providers, supporting third-party operations for inbound, outbound, and adjustments via standardized scenarios. This enables of and handling while maintaining synchronized data for up-to-date views. for can further refine these processes, though detailed reporting is handled elsewhere. Overall, these capabilities enhance efficiency for mid-sized enterprises by reducing stockouts and excess .

Sales, Marketing, and Customer Service

SAP Business ByDesign provides comprehensive tools for processing, enabling automated creation and management of orders with real-time status updates and integration to processes for fulfillment. is handled through flexible price lists that support automatic discounts and require managerial approvals for quotes and orders, ensuring standardized and compliant pricing across transactions. Opportunity management incorporates CRM-like features, offering access to unified customer data including past interactions, quotes, and invoices to facilitate accurate , cross-selling identification, and development. Marketing functionalities in SAP Business ByDesign support end-to-end campaign management, from to lead qualification, with tools for creating targeted campaigns via , letters, calls, or faxes. Lead tracking is streamlined through response monitoring, dashboards for contacted members, and integration with for capturing interactions directly into the system. Customer segmentation relies on dynamic target groups formed from search parameters, response data, or extension fields like employee count, allowing precise audience definition across communication channels. Customer service management in SAP Business ByDesign encompasses ticket handling through service requests that track delivery status and trigger automated escalations for delays. processing is supported via entitlement management, verifying coverage for products and s to ensure compliant resolutions. Field dispatching integrates repair processes with product for efficient and on-site . Multi-channel includes , , and external web portals for request creation and tracking, complemented by a 360-degree view that unifies across , sales, and for holistic interactions. This setup enhances by providing consistent delivery and real-time insights into performance metrics.

Human Capital Management

SAP Business ByDesign provides embedded human capital management (HCM) capabilities tailored for midsize companies, enabling efficient workforce administration without requiring separate software. These features support core HR processes integrated with other business areas, such as time tracking linked to projects and , to streamline operations for organizations with 100 to 500 employees. The solution emphasizes of administrative tasks, ensuring consistency across the while maintaining with local regulations. The employee lifecycle in SAP Business ByDesign covers key stages from to offboarding, with automated workflows to manage hiring, , transfers, and terminations. During , the system generates role-specific security profiles for new hires, facilitating secure access setup. automates task routing to relevant stakeholders and supports employee maintenance through personnel files that track events like contracts and personal details. Time and expense tracking is integrated into the employee lifecycle, allowing workers to hours and via the time sheet, which links directly to project costing and service for accurate . Performance management involves ongoing evaluation through personnel administration tools, where managers can update employee s and monitor contributions aligned with organizational goals. Payroll processing in SAP Business ByDesign is designed for localization across multiple countries, using file-based interfaces to integrate with third-party providers for accurate wage calculations and deductions. This approach allows midsize firms to outsource complex computations while retaining oversight through downloadable employee data files that include time records and personal information. Benefits supports company-wide compensation structures, enabling teams to manage entitlements like and plans within personnel files, ensuring consistent application across the . These features automate routine updates, reducing administrative burden and supporting for global operations. Compliance with labor laws is embedded in the system's design, with personnel administration maintaining country-specific employee and employment data to meet regulatory requirements in supported regions like the US, UK, Germany, France, China, India, and Canada. Automated security profiles and access rights ensure adherence to data protection standards during employee transfers or role changes. Employee self-service portals provide convenient access to HR functions, allowing individuals to update personal details, view payslips, request time off, and complete tasks independently, which enhances efficiency and reduces HR workload. For advanced needs, the system supports brief integration with external HR tools to extend capabilities. Embedded learning modules facilitate training and development, accessible via the Learning Center where employees track personalized progress on assigned courses. The Employee Readiness Check report analyzes learning completion rates per organizational , highlighting passed and total modules to support development. These tools promote continuous learning integrated with processes, aiding midsize firms in building internal capabilities. planning , covered elsewhere, can draw from these HCM data for broader insights.

Project Management and Analytics

SAP Business ByDesign provides comprehensive tools for managing projects, particularly in services-based environments, enabling organizations to handle the full project lifecycle from initiation to closure. Project planning involves creating structured work breakdown structures, defining tasks and phases, and utilizing interactive Gantt charts and network diagrams to outline timelines and dependencies. Budgeting is integrated with financial modules to estimate costs, track expenditures against plans, and monitor year-to-date or monthly figures for both internal and external resources. Resource allocation supports staffing with internal employees—drawing briefly from HR data for availability and skills—and external partners via procurement integration, ensuring optimal assignment based on planned work and real-time availability calculations. Milestone tracking facilitates progress monitoring through real-time updates on deviations, resource consumption, and issue escalation, with automated workflows for approvals and change management using baselines. These project management capabilities foster collaboration across teams, partners, and stakeholders via multi-channel communication, document sharing, and centralized visibility into multiproject programs, which is essential for services-oriented work such as consulting or implementation projects. During execution, users can refine plans, record time and expenses, and control costs through dedicated reports that highlight variances, supporting proactive adjustments to maintain profitability. The analytics component in SAP Business ByDesign delivers advanced, cross-functional insights through embedded tools powered by , enabling real-time data processing and visualization across all modules. Dashboards and pages provide interactive views of key performance indicators (KPIs), such as project status, cost overruns, and revenue trends, with customizable variants for tailored monitoring. Predictive forecasting leverages integration with SAP Analytics Cloud to generate accurate projections based on historical data, incorporating for scenario planning in areas like resource demand or financial outcomes. Users can create custom reports using multidimensional analysis patterns, drill down to underlying transactional documents for explanations, and access insights via mobile-optimized interfaces on tablets. A key application of these is profitability analysis for projects, which integrates data from , , and modules to evaluate margins across segments like customer groups or regions. For instance, earned profit reports calculate actual gross profit on by combining , overhead allocation, and , allowing managers to assess project viability in and adjust strategies accordingly. This cross-module approach ensures holistic visibility, such as linking orders to project costs and HR-tracked labor expenses, without redundant data processing.

History and Development

Origins and Launch

SAP initiated the development of its cloud-based solution, internally code-named "A1S," in the mid-2000s to address the needs of small and medium-sized enterprises (SMEs) that found its traditional on-premise products, such as and , too complex and costly for their scale. This effort marked 's strategic pivot toward software-as-a-service () offerings, aiming to provide an integrated suite of business applications delivered via the without the need for extensive hardware infrastructure or lengthy implementations. The product, rebranded as SAP Business ByDesign, was publicly announced on September 19, 2007, at a special event in , where CEO Henning Kagermann positioned it as a groundbreaking solution for the midmarket. General availability followed with the release of Feature Pack 1.2 in October 2008, enabling broader pilot programs and initial customer deployments after a year of refinement. The core emphasis was on an model that promised to slash implementation costs and time compared to traditional on-premise ERPs, allowing SMEs to subscribe to preconfigured processes covering , , , and more. From the outset, SAP Business ByDesign faced early challenges, including significant delays in its rollout stemming from unexpectedly high development costs and technical complexities associated with building a comprehensive on SAP's platform. Additionally, the broader in 2007 exhibited skepticism toward cloud-based , with many SMEs hesitant to entrust critical business data to hosted solutions amid concerns over , reliability, and . These hurdles tempered initial adoption, though the product laid the foundation for SAP's expanded cloud portfolio.

Major Milestones and Updates

In 2010, SAP Business ByDesign received a significant technology upgrade that introduced , improving and enabling wider deployment for small and midsize enterprises. The solution also expanded its global reach, becoming available in six focus countries—, the , , the , , and —with additional markets planned for rollout. Between 2012 and 2015, SAP implemented quarterly enhancements to Business ByDesign, introducing mobility features for on-the-go access and advanced analytics tools to support data-driven decision-making. These updates contributed to substantial customer growth across various industries. In 2014, the solution began integrating in-memory computing capabilities, boosting processing speeds and enabling real-time analytics for business operations. By 2017, SAP shifted Business ByDesign toward intelligent technologies as part of its broader Leonardo initiative, piloting AI-driven features for and predictive insights to enhance planning accuracy. During the 2020–2022 period, the accelerated cloud adoption, with SAP reporting a 24% increase in overall revenue in Q4 2021, including heightened uptake of ByDesign among midsize firms seeking remote-accessible solutions. In 2022, rumors circulated about the potential termination of Business ByDesign, but SAP officially denied these claims, reaffirming ongoing support and maintenance for existing customers. In September 2025, SAP announced that Business ByDesign would no longer be available for new customers after April 20, 2026, but reaffirmed its commitment to full support, including security updates and maintenance, for existing customers.

Implementation and Operations

Deployment Process

The deployment of SAP Business ByDesign follows a structured, phased approach designed for efficiency in cloud environments, particularly suited to midsize enterprises seeking rapid operational readiness without the complexities of on-premise setups. The process begins with a discovery phase, where business requirements are assessed against available capabilities using the Business Configuration work center's scoping tools to create a tailored solution proposal. This is followed by , leveraging pre-built templates and industry-specific content from the SAP adaptation catalog to adapt the system to organizational needs. Subsequent phases include , which employs tools for reliable transfer of data with minimal mapping errors, and comprehensive testing to validate processes and integrations within the activity list framework. The rollout culminates in the go-live phase, where the system transitions to production after confirmations, enabling full operational use. Typical timelines for standard deployments range from 3 to 6 months, significantly accelerated compared to traditional on-premise ERPs due to the absence of hardware provisioning and infrastructure management. Implementations are typically partner-led through SAP's certified , where experts guide the process using predefined methodologies and tools from the to ensure alignment with best practices. User training is facilitated via the embedded Learning Center, providing guided e-learning content directly within the solution for administrators and end-users to build proficiency during rollout. Best practices recommend initiating with core modules such as financials and sales to establish foundational processes before expanding to additional areas, minimizing risks and optimizing resource allocation.

Customization and Maintenance

SAP Business ByDesign enables low-code customization through key user tools, allowing business users to adapt workflows, reports, and user interfaces without requiring developer expertise. Key users can modify UI elements such as adding fields, reordering components, embedding mashups, and adjusting layouts in adaptation mode, which applies changes across the system for designated roles. For workflows, the Application and User Management work center provides tools to create and activate rules for notifications and approvals, ensuring processes align with organizational needs. Reports can be customized by defining key figures, restrictions, and calculations directly in the system, supporting tailored analytics without external coding. As a cloud-based solution, SAP Business ByDesign receives quarterly updates, typically in February, May, August, and November, delivered as feature packs that introduce enhancements and are automatically applied to maintain system performance. These updates include patches and adjustments for legal , such as regulation changes, ensuring the platform remains current without manual intervention from customers. Maintenance activities occur during scheduled windows, such as Fridays and weekends, to minimize disruption, with major upgrades planned up to four times annually outside . The support model for Business ByDesign relies on SAP-managed infrastructure, where the company handles hosting, scalability, and core maintenance in the environment. For advanced customizations beyond key user tools, SAP partners provide specialized assistance, including development of extensions using tools like SAP Cloud Applications Studio. options are available through the SAP Support Portal and the in-system Service Control Center, enabling users to monitor system status, create incidents, and access resources like help documentation and webinars. The cost structure is subscription-based, with pricing tiers categorized by user types—such as , , and advanced—to accommodate varying access levels and functionalities, plus options for extensions like additional storage or integrations. As a fully cloud-hosted solution, no hardware maintenance or upfront costs are required, shifting expenses to predictable ongoing subscriptions.

Current Status and Outlook

Recent Enhancements

In 2023, SAP Business ByDesign introduced selective integrations through the cockpit, enabling in processes such as predicting purchase order item dates and customer delays to improve forecasting accuracy and management. These enhancements emphasized stability, achieving over 99.95% system availability month-on-month and supporting a 19% growth in productive companies to 16,022 across more than 160 countries. The focus remained on refining existing capabilities rather than major overhauls, including improved outlier handling in models and OData enablement for key processes like customer and supplier to facilitate better integration and . The 2024 updates prioritized and , with enhancements to dashboards that allowed for more interactive and Excel integration via a free , enabling users to and analyze seamlessly for better insights. improvements in release 2408 included upgrades to open-source libraries and the UI5 , alongside better offline capabilities for , supporting by allowing key tasks and monitoring on smartphones regardless of connectivity. These changes streamlined access to reports and tasks, reducing app-switching and enhancing productivity for distributed teams. In 2025, the 25.05 release (May) delivered cross-topic enhancements, including updates to the Business Analytics work center for improved employee turnover reporting with multiple rehire scenarios and historical data, alongside UX polishing for better accessibility and a refactored Microsoft Teams app for seamless collaboration. The 25.08 release (August) focused on process optimizations, such as multi-select data downloads, enhanced filtering for sales price lists, and new inventory fields for extraction, while introducing security updates like upgraded Outlook add-ins and SEPA compliance adjustments to ISO 20022 standards in regions like Germany and Belgium. These releases also addressed tax compliance with Peppol e-invoicing integration, ensuring regulatory adherence without disrupting core operations. The 25.11 release (November) further advanced automation, analytics, and compliance, with features such as attachment extraction from expense reports (in controlled availability), enhanced data extraction capabilities, new built-in support user guides, and updates to Web Service APIs totaling 341 for better integration. SAP Business ByDesign continues to provide robust support for existing users, maintaining over 3,500 feature capabilities across modules like , , and to enable comprehensive business management.

Future Roadmap and Announcements

In September 2025, SAP announced that SAP Business ByDesign would be delisted from its pricelist for net-new customers effective April 20, 2026, signaling a strategic shift away from acquiring new users for the solution. This decision aligns with SAP's broader emphasis on its cloud ERP portfolio, particularly Cloud, while ensuring no disruption for current subscribers. For existing customers, has committed to indefinite full support, including ongoing maintenance without an end-of-support date. Following an announcement in late 2022, effective in 2023, the product has operated in , with no development of major new features; updates are limited to essential legal compliance, security enhancements, and regulatory requirements. Future efforts prioritize integration with 's wider cloud ecosystem, such as through SAP Business Technology Platform (BTP), to enable seamless connectivity for intelligent enterprise capabilities without necessitating immediate system overhauls. SAP encourages existing Business ByDesign users whose needs outgrow the solution—such as those requiring advanced scalability or real-time analytics—to transition to Cloud Public Edition. The company and its partner network provide migration guidance, including data transformation tools and best practices, to facilitate smooth conversions while minimizing business interruption. Looking further ahead, plans to deliver quarterly updates focused on compliance and stability, with selective evaluation of emerging scenarios in areas like partner-enabled extensions or localized regulatory adaptations. This approach ensures the solution remains viable for stable midmarket operations amid 's pivot toward more innovative cloud offerings.

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