Vanilla vs customized SAP systems

Vanilla is the term used when computer software (also other computing related things like hardware) are not customized from their original form, i.e., they are used without any customizations or updates applied to them (see wikipedia).

A vanilla SAP system refers to a standard installation of the SAP software without any additional customizations or enhancements. It is also known as a standard SAP system or a SAP system without any modifications.

When an organization decides to implement an SAP system, they can either choose to use the vanilla SAP system or customize it to meet their specific needs. The vanilla SAP system can be flexible and configurable, in a way that to some extent it meets the requirements of the organization without requiring significant customization. However, it is not uncommon for the organizations to require additional functionality that are not provided by the standard system.

In such cases, the organizations may choose to customize the vanilla SAP system by developing custom programs, reports, and interfaces, or by implementing add-on modules or third-party software solutions. However, customizing the SAP system can be a complex and expensive process that requires significant resources and expertise.

In summary, a vanilla SAP system is a standard installation of the SAP software without any customizations or enhancements. It provides all the standard modules and features that are offered by SAP and can be configured to meet the requirements of different businesses to some extent. However, companies may choose to customize the system to meet their specific needs, although this can be a complex and costly process.

In an era of cloud computing when the organization are moving to the cloud it becomes important to analyze into what extend their SAP installation are customized. Heavy SAP customization can be challenge for the cloud. Mostly because of the customization may not be compatible with the cloud environment or the cloud platform on which the SAP instance is being hosted. In addition, there might be a security and compliance issues, impact on scalability and performance, and maintenance and support challenges. It is important to carefully evaluate the impact of customization when moving SAP to the cloud and plan accordingly to minimize any potential issues.

Vendavo – Price and Margin Management (PMM)

In case of software solution for Price and Margin Management SAP is relaying on company called Vendavo through their alliance since 2005. They offer this solution as reseller of Vendavo. It is officially called SAP Price and Margin Management by Vendavo (SAP PMM by Vendavo).

What basically Vendavo PMM is about? It is solution for creation of customer-specific pricing strategies, tools for optimizing price negotiations, and institutionalize best practices in value-based selling. There are available so called pricing “playbooks” a predefined set of structured analytical steps to help find margin leakage. Also role based dashboards available coming with prebuilt metrics of pricing. Finally there are visualization tools to understand revenue and profit levers.

Interesting part about Vendavo is that they also uses in-memory technology which runs on a traditional database (oracle and DB2). Basically they are using it to support its tool called Vendavo Profit Analyzer. The profit analyzer provides an in-depth analysis of transaction data to highlight opportunities for revenue growth. In 2014 both Vendavo and SAP announced broader relationship where HANA comes into play. The HANA will replace current proprietary in-memory technology used by Vendavo.

More information:

Homepage at sap.com

service.sap.com -> SAP xApps -> SAP Price and Margin Management by Vendavo

1229778 - Trouble Shooting Vendavo Price and Margin Management

SMP component: XX-PART-PMM Vendavo Price + Margin Mgmt.

Deactivating SAP functionality - hierarchical pricing

There might several reasons occur why customer and SAP would want to deactivate certain functionality provided with the software. From customer perspective: if there is more than one version of same functionality (e.g. old feature being replaced by new version of same thing) customer may want to employ new version of the thing and switch off the old one. In that case there are some customizing parameters provided (e.g. in form of tables, system profile parameters etc.) by SAP to support that kind of switch. Basically in this case it is up to the customer free will which version of the same functionality want to use.

However there might be cases that SAP wants to customer pursue to disable certain functionality. This is especially in case of patent infringement. Other organizations of individuals may claim ownership of ideas/algorithms etc. used in software. That would be typical case why software vendor would do that. Recently this happened for SAP’s solution like R/3, Enterprise, ECC, CRM, SRM, GTS.  They all are using so called hierarchical access feature in pricing and pricing-related functionality build into above listed solutions. There was a court trial being held between company Versata and SAP in the matter of hierarchical access feature. As the trail has been settled so far US customer of SAP are obligated to deactivate to this functionality. Herewith SAP is providing SAP Notes which automates deactivation of the functionality.

I’m not judging who is right or wrong in this case. However it is not beneficial for customer of both parties. As per this example it is obvious how monstrous, chaotic and messy are patents proceedings are and how time consuming it takes to settle it down.

For more information review following SAP Notes:

1600482 - Hierarchical access functionality (seems to be main note)

1645516 - Deactivation of hierarchical access functionality

1645515 - Deactivation of hierarchical access functionality

1643194 - Deactivation of hierarchical access functionality

1600091 - Deactivation of hierarchical access functionality        

1599403 - Deactivation of hierarchical access functionality