What is SAP BTM?

SAP BTM (SAP Business Transformation Management) is a holistic approach from SAP. It combines methods and specialised software solutions to strategically plan, operationally implement and continuously optimise business transformations.

SAP BTM is a strategic suite of methods and tools for business transformation. To this end, SAP BTM combines the following aspects:

• Strategic planning
• Operational process optimisation
• Technological implementation

The aim of SAP's BTM suite is to align corporate strategy, business processes and the system landscape in such a way that transformation projects of various kinds can be implemented quickly, with minimal risk and in a measurable manner.

Another important feature of SAP BTM is that it combines the following components in a holistic approach:

• Business processes
• IT architecture
• Data
• User acceptance

SAP BTM is not a single software product. Nor is SAP BTM purely an IT tool or a traditional project management method. Rather, SAP BTM is an integrated transformation approach. It methodically connects several SAP solutions – from SAP Signavio to LeanIX.

SAP BTM is used for various types of transformation projects in companies:

• Transformation of IT systems: for example, SAP S/4HANA transformation or consolidation and modernisation of heterogeneous system landscapes, cloud transformation
• Digital transformation: for example, introduction of new business models such as subscription or platform approaches, implementation of future technologies such as business AI, optimisation of the customer journey
• Transformation of business processes: identification of potential for improvement, organisational and technical implementation including automation of repetitive tasks

SAP BTM process optimisation focuses primarily on linking strategic goals, operational processes and technical implementation.

SAP BTM also plays an important role in corporate transactions (mergers and acquisitions). Here, the methodology helps to merge different system landscapes and harmonise processes.

In regulated industries and international rollouts in particular, SAP BTM also serves as a governance framework for compliance and risk management.

The biggest advantage of SAP BTM is probably the end-to-end transparency across all phases of a transformation project.

For the first time, companies gain a complete overview of their process landscape, system architectures and actual user interactions. This significantly reduces project risks, as problems can be identified at an early stage.

Another key benefit is the acceleration of transformation projects.

This is achieved through a combination of process mining and automated process analysis, which allows optimisation potential to be identified much more quickly than with conventional methods.

Further advantages of SAP BTM include:

• Reduced transformation costs: Early error detection and efficient resource planning significantly reduce overall costs.
• Improved user adoption: The integration of digital adoption platforms ensures that new processes are accepted more quickly by employees. This also reduces the amount of training and support required.
• Measurable ROI evidence: The effects of all optimisation measures can be expressed in figures.
• Continuous improvement: SAP BTM makes it possible to replace one-off projects with a permanent improvement cycle.
• Risk minimisation: Dependencies and effects of changes are simulated before implementation.
• Greater agility: A central view of the "process truth" creates better adaptability to change.

In connection with SAP BTM, the term SAP BTP (Business Technology Platform) comes up repeatedly. It is important to clearly distinguish between the two terms.

An overview of the differences:

• SAP BTM is a business and transformation framework that methodically combines tools such as SAP BTP, SAP Signavio, SAP LeanIX, WalkMe and SAP Cloud ALM into an end-to-end approach.
• SAP BTP is a technology platform from SAP. It provides development and integration tools that companies can use to build applications, integrate data and extend business processes. SAP BTP serves as the technological foundation for SAP BTM.

An example: With SAP BTP, a developer could build a new integration between SAP S/4HANA and a third-party CRM system. SAP BTM would first analyse whether this integration is necessary at all, which processes are affected, how the integration impacts the user experience, and what changes are required in the enterprise architecture.

The functionality of SAP BTM can be described from both a functional and a technical perspective. From a functional perspective, it is an approach that combines methods from the areas of strategy, analysis, target definition, project management, change management, and ongoing optimisation.

From a technical perspective, it is a toolbox with several SAP solutions that support transformation projects in various ways.

What this means in detail is described in more detail below.

From a technical perspective, SAP BTM with SAP is based on the insight that successful business transformation comprises four pillars:

1. People: Successful change is only possible if employees are involved.
2. Processes: Process transformation is only possible if there is a clear understanding of current processes and a data-driven implementation strategy.
3. Applications: Companies must understand how their systems are connected and how they currently support their operational business. Based on this, they must define what the IT landscape should look like in the future.
4. Data: Companies need a holistic overview of their existing data and how it is managed. High data quality is essential for successful transformation.

Based on these premises, SAP has divided its SAP BTM approach into five stages:

1. Current analysis and prioritisation: Understanding processes from a technical and application perspective, establishing a single source of truth for business processes and the IT environment.
2. Identifying potential for improvement: Determining process performance, technical dependencies and suitable optimisation measures based on facts and data.
3. Planning: Defining the target state, including an implementation strategy
4. Implementing changes: Communication, training, impact analysis
5. Continuous optimisation: Permanent monitoring of process performance and ongoing improvement in the relevant areas

Put simply, SAP BTM follows a closed loop: Create transparency → Analyse potential → Define targets → Implement changes → Measure usage → Continuously optimise.

Technically, the SAP BTM Suite is based on several solutions that can be combined as needed. These are primarily:

• SAP BTP (SAP Business Technology Platform)
• SAP Signavio
• WalkMe
• SAP LeanIX
• SAP Cloud ALM

SAP Cloud ALM is not a standalone product in the SAP BTM Suite, but it plays a central role in the SAP BTM approach to the implementation, control and governance of transformation measures.

In many ways, SAP BTP is the technical backbone of SAP BTM. For example, the platform supports the following measures within transformation projects:

• Integration of process data from SAP and third-party systems into process mining solutions such as SAP Signavio
• Provision of a high-performance database (SAP HANA) for analyses, evaluations and KPIs
• Implementation of extensions and apps

SAP Signavio is the process component of SAP BTM and covers the entire business process management cycle. Key functions relevant to SAP BTM include:

• Process mining for analysing actual processes based on transaction data
• Collaborative process design with modelling, versioning and approval workflows
• Best practice content and benchmarking to derive target scenarios and key performance indicators

Signavio thus serves as an entry point for SAP BTM process optimisation, as weaknesses and potential are identified on the basis of data. Through integrations with SAP Cloud ALM, concrete implementation work items can also be derived from process models.

WalkMe addresses the "last mile" of transformation in SAP BTM: the actual use of new processes and applications. Key features:

• In-app guidance (step-by-step instructions) for users
• Automation to reduce repetitive clicks
• Context-sensitive help to reduce training requirements and support requests after go-live

WalkMe thus closes the gap between technical go-live and sustainable value realisation, which is highlighted as a critical success factor in many SAP BTM best practices.

SAP LeanIX is the central component for enterprise architecture management (EAM) in the SAP BTM context. LeanIX supports:

• Capturing and visualising the application landscape, including dependencies on business capabilities
• Assessing technology risks, lifecycle status and rationalisation potential
• Developing target architectures and transformation roadmaps

In the SAP BTM Suite, Signavio process maps and LeanIX architecture models are linked together so that it is clear which applications support which processes. This makes it possible to understand which system changes are necessary for specific process goals – a key point in SAP BTM. 

SAP BTM process optimisation generally targets end-to-end processes, not just individual transactions. Typical candidates are:

• Order to cash
• Procure to pay
• Plan to Produce and other manufacturing processes in production
• Record to Report, finance and controlling processes
• Hire to Retire in the HR environment

Process mining can be used to reveal throughput times, loops, manual detours and system breaks in such process chains. 

Based on SAP BTM functions such as benchmarking and best practice reference models, companies can also align their processes with standard processes in SAP S/4HANA and improve them in a targeted manner.

In addition, the underlying IT landscape is evaluated in SAP LeanIX to reduce redundant applications and lower integration costs.

The implementation of SAP BTM is individual. However, it often follows a path based on the "RISE with SAP" methodology.

This is not a classic IT project, but rather the introduction of a new way of working within the company.

The steps are:

1. Analysis: Recording the current state with Signavio and LeanIX (facts instead of assumptions)
2. Design: Modelling the target state and prioritising the most important improvement measures
3. Implementation: Carrying out the changes, controlled via SAP Cloud ALM
4. Adoption: Rollout in the organisation with support from WalkMe
5. Optimisation: Continuous measurement and readjustment

In practice, the introduction of SAP BTM is usually supported by consulting firms that provide templates, governance models and proven roll-out scenarios.

These firms can also implement qualification measures such as SAP training in BTM or specialised SAP HANA training in BTM to ensure knowledge transfer.

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The cost of SAP BTM depends on several factors, including:

• Number of users
• Functionality of individual products (e.g. SAP Signavio editions, SAP LeanIX modules, WalkMe licences)
• Contract model and term

SAP does not typically publish publicly binding price lists for the relevant cloud solutions, but works with customer-specific offers.

Companies interested in SAP BTM therefore often clarify the economic aspects in a joint business case and scoping workshop with SAP or a specialised SAP partner. 

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Alternatives to SAP BTM mainly consist of best-of-breed combinations of individual tools or platforms from other providers. Possible scenarios include:

• Use of independent process mining and BPM solutions combined with separate enterprise architecture tooling
• Use of strategic transformation suites from other manufacturers that integrate process mining, EAM and project portfolio management.
• Individual combination of open source or specialised tools

These approaches can be useful in certain contexts, but generally require greater integration and governance efforts, as end-to-end orchestration does not come from a single source.

Literature and consulting firms offer a range of best practices for SAP BTM implementations. Frequently cited recommendations include:

• View transformation as a continuous process, not a one-off project.
• Establish a central transformation office early on to take responsibility for SAP BTM governance, roles and KPIs.
• Consider processes, architecture and usage as integrated from the outset, not sequentially.
• Start with clearly defined pilot areas ("lighthouse projects") to test methods and toolchains.
• Plan change management and digital adoption (WalkMe, training, communication) as an integral part of the process.