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Enterprise software from SAP enables many large organizations to process data. In a digital and highly competitive world, this ability is often their key to survival. As such, SAP cybersecurity is a top priority.
Of course, blocking attackers from important data isn’t a one-and-done task. Rather, it’s a dynamic game of cat-and-mouse in which attackers and defenders vie to outmaneuver each other.
It may seem like SAP cybersecurity is already a big issue in business. But in the coming years, experts predict it will become an even hotter topic. The pace of growth remains high for digital technology, online attacks, and new defenses. Coming developments will bring massive security advantages to companies that know how to use them.
For instance, artificial intelligence (AI) and blockchain technology are grabbing news headlines and receiving major investments. You can also expect quantum computing to go mainstream down the road. And methods such as DevSecOps and Zero Trust are winning converts in tech circles.
Embracing the Future of SAP Cybersecurity
All these exciting trends promise to deliver improved protection against the growing menaces to business. But the new technologies pose a challenge to the organizations that want to adopt them. There’s generally a learning curve for innovations; and in some cases, it’s too steep for a company to climb. What’s more, some of these technologies are double-edged swords that add new capacities but expose data to new risks.
Managed security solves these problems by offering the services of technology professionals who understand the innovations deeply. Providers such as Approyo stay on top of the tech through comprehensive cloud solutions such as monitoring, installation and upgrades, and SAP cybersecurity management. This means you can access the benefits of cutting-edge technology without the usual worry, cost, or risk.
Trends Affecting SAP Cybersecurity
Those responsible for IT should track the latest trends. These developments affect SAP cybersecurity by presenting new ways to tighten the system’s safeguards. Ongoing improvements apply to all levels: the basic hardware and network, the database and applications, organizational procedures, and so on.
1. Cloud Technology
The cloud is a spread-out set of IT resources that flexibly deliver both computation and storage. SAP has bet on the cloud, focusing development efforts on its cloud-based solutions. Some of these products and services are already available. But the trend is toward ever greater use of the cloud to host deployments like SAP S/4HANA Cloud and its database SAP HANA Cloud.
As companies move their enterprise resource planning (ERP) systems to the cloud, they’ll see more benefits to security, scalability, and cost. In addition, cloud-based SAP installations have multiple layers of defense. The facilities use physical, network, and software measures. But there are also security challenges, such as migrating and managing data.
Expert-led cloud transformation addresses these challenges. A careful assessment underpins the cloud strategy. Application modernization and regulatory compliance built on this strategy bring your systems up to snuff. With managed security for the leading cloud platforms, you’ll have SAP cybersecurity you can trust.
2. Artificial Intelligence and Machine Learning
Typically, computers were programmed to perform specific calculations in a direct, logical sequence. But more recent techniques powered by AI actually mimic human thinking. Machine learning (ML) is one such approach—devices are programmed to experiment with a problem until they find their own answer.
AI and ML are exploding in popularity, with new applications regularly coming to market. In terms of SAP cybersecurity, AI and ML enable organizations to recognize and resolve threats before they cause damage. For example, a bank could teach a machine learning algorithm to identify hacking attempts. It could then shut down attacks before they break into customer accounts.
3. Blockchain
Blockchain technology is even newer than cloud or AI technology. Basically, a blockchain ledger records transactions over the internet in a secure fashion. These transactions are often for cryptocurrencies such as Bitcoin, but there are many other interesting blockchain uses. For instance, future businesses may use “smart contracts,” and global finance and logistics will come to depend on blockchain technology.
When it comes to SAP cybersecurity, blockchain can protect the authenticity of business data. Because a blockchain ledger produces a record of events that cannot be modified, it will prevent people from tampering with your data. This is critical for data integrity, which lies at the foundation of the information systems driving modern business.
SAP is a longstanding contributor to the Hyperledger Project that’s bringing highly secure blockchain to more industries. For SAP cybersecurity, the use of blockchain could also bring more trust to the open-source modules used within enterprise software by tracking contributions flawlessly.
4. Quantum Computing
Compared to the other trends, quantum computing is the farthest from current technology in terms of its practicality for business. Classical computers work by sending electricity through a number of logic gates. By contrast, quantum computing relies on the more recently discovered physical phenomena called “superposition” and “entanglement.”
What this means for SAP cybersecurity is that future quantum computers may be able to break the encryption now in use.
Think of all the encrypted financial information, medical information, military and government data, and enterprise data that exists. Now, think of all that data out in the open. Threat actors are “harvesting” and stockpiling data to decrypt when quantum hacking becomes feasible. So, technology firms will need to develop quantum-resistant encryption schemes.
On the other hand, quantum cryptography enables new features like secure key sharing. Only the sending and receiving parties should have the key to unlock encrypted messages. With conventional technology, an attacker could try to steal the key undetected. But with quantum mechanics, any such attempts on a future quantum system would be found out.
5. DevSecOps and Zero Trust Methodologies
There are two models gaining steam among software professionals that help ensure SAP cybersecurity. One of them, DevSecOps, takes its name from the combination of development, security, and operations in IT. This approach uses automation extensively throughout the software lifecycle to make businesses more agile. Security is considered a core component of the entire process, not an add-on as in earlier methodologies.
The other model is called Zero Trust. As the name implies, this architecture doesn’t allow any connected device or user to access data without proper verification. With the increasing connectivity of workplaces, it’s becoming untenable to grant access beyond what’s truly necessary. In Zero Trust, even if someone has logged in before or is working from the corporate intranet, the system still has to authenticate them anew.
DevSecOps and Zero Trust join the technology-based trends generating stronger SAP security. Incidentally, these trends don’t work in isolation—they interconnect. For instance, quantum computing must now be taken into account for Zero Trust models to protect against future attacks. A complete solution provider can assist your organization with all these tactics.
Prepare for the Future of SAP Cybersecurity With Approyo
Hacks are growing in number and complexity each year. These attacks threaten to overwhelm companies that aren’t prepared. Fortunately, there are also several technologies in development to counteract the threats.
For instance, cloud technology is already on the scene and continues to expand its presence. Approyo has in-depth expertise in providing cloud solutions that future-proof enterprises. We also have vast experience with artificial intelligence and machine learning.
Emergent technologies like blockchain and quantum computing are drastically altering the competitive environment. What’s more, new methodologies, including DevSecOps and Zero Trust will rise to the occasion to enhance SAP cybersecurity. A knowledgeable technology partner is crucial to make it through the tough years ahead.
SAP, one of the largest enterprise resource planning (ERP) software solutions in the world, is evolving. SAP S/4HANA is the latest version of this popular business suite. And in light of its unique architecture that facilitates faster, real-time analytics and computational capabilities, SAP S/4HANA migration is a hot topic for many enterprises!
For over 40 years, SAP has been a trusted partner for businesses of all sizes, helping them execute mission-critical tasks—to the point that the software has become an integral part of business operations. However, come 2027, SAP will end support for its current business suite applications. Although this is in large part being done to encourage SAP S/4HANA migration, the advantages of the new generation’s performance enhancements are undeniable.
If your business is still on the fence about data migration to S/4HANA, then you’re missing out on its increased efficiencies, flexibility, and ease of use. And the longer you wait for the transition, the farther you’ll fall behind the competition.
Why Should We Migrate to SAP S/4HANA?
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Data migration to S/4HANA is more than just a technical upgrade—it’s a tool to transform your business. Full migration brings with it a multitude of benefits and an enviable return on investment.
Here are 3 compelling reasons to consider the upgrade.
1.Improved performance
SAP S/4HANA is designed to improve performance in multiple ways. Its most important feature is in-memory technology. Here, embedded analytics enable faster processing of data as well as generating insights in real time. Moreover, centralized data helps with coordination across different departments.
2.Digital Transformation
Many companies have large and complex data landscapes that are increasingly difficult to manage or have become redundant over time—all of which can be costly to clean up.
Harmonizing data is a core feature of digital transformation. S/4HANA can migrate historical data, remove duplications, and consolidate trusted data into a single structure. This makes your data systems more streamlined and efficient.
Another major benefit of S/4 HANA is that it allows the automation of repetitive tasks, using more than 150 robotic process automation (RPA) bots. Moreover, its artificial intelligence (AI) and machine learning (ML) technology automates data collection and generates intelligent insights.
3.Cost Saving
SAP S/4HANA migration can help you cut costs in several ways. Thanks to its in-memory technology and simplified data model, you won’t have to invest in additional IT infrastructure. Further, as it reduces data redundancy, even the maintenance expenses go down. You’ll also notice significant cost savings in day-to-day operations.
S/4HANA's real-time processing and analytics capabilities help companies make better-informed decisions and take corrective actions faster. HANA provides a single, integrated view of business processes to reduce errors and improve efficiency.
How Long Will It Take to Fully Implement?
The timeline for implementing SAP S/4HANA migration differs from company to company. Critical criteria include the complexity of the project, the size of your organization, and the level of customization required. Full implementation may take anywhere from six months to over a year, including the time required for testing, migration, and troubleshooting.
Because these steps can be complex and time-consuming, enterprises frequently opt for a phased implementation of SAP S/4HANA migration. This means starting with a specific business unit before rolling it out fully. The benefits of this approach lie in minimizing disruption as well as allowing you to become more accustomed to the system before tackling full implementation.
Do remember, however, that the implementation process doesn’t end with the initial deployment. Going forward, you’ll need to consider ongoing maintenance, upgrades, and improvements to keep the system running smoothly.
To minimize the risk of delays or complications, it makes sense to work with an experienced SAP partner or consultant who can guide you through the implementation process.
What Is Needed to Fully Implement SAP S/4HANA?
SAP provides several tools to make data migration easier. Here are some that you’ll need for installing SAP S/4HANA and migrating data.
SAP S/4HANA Migration Cockpit
The SAP S/4HANA Migration Cockpit automates data migration and data cleansing. It’s a user-friendly and intuitive process. The cockpit provides a step-by-step approach to migration, which includes pre-checks, system preparation, testing, and post-migration activities. You can also use this tool to track and troubleshoot any errors that may occur during the migration process.
Moreover, the migration cockpit lets you perform a "simulation" or a dry run. This helps to test the process, validate the steps, and identify any issues that could potentially result in data loss or corruption.
SAP S/4HANA Migration Object Modeler (MOM)
MOM defines and maps data migration objects, made up of individual data elements, between the source and target systems. Further, it provides a data modeling feature that allows users to create and edit data models. This is useful for preventing data corruption.
SAP Landscape Transformation (SLT)
SAP Landscape Transformation (SLT) is a tool used for real-time data replication and data integration between different systems. This means that any changes made to the data in the source system are immediately replicated in the target system. The result is near real-time data availability—a hugely useful feature for reporting and analytics.
Software Provisioning Manager (SWPM)
The SWMP is what you use to create a backup of the system prior to migration. In addition, to help with installing new software and migrating the data, it performs post-migration tasks, such as updating the system configuration and applying post-migration patches.
In addition to these migration tools, you’ll need to develop a comprehensive project plan that outlines the scope, timelines, and milestones of the implementation, and dedicate a project team for the task—not to forget training end-users and IT staff to ensure proper system usage and maintenance.
Will Our Third-Party Add-Ons Impact the Migration?
Any customized changes you’ve made to your existing SAP system won’t necessarily be compatible with the new system. And if re-coding or replacement is required, it will increase the time and resources required for the migration. To avoid this, first, do a code review and impact analysis to determine whether these custom developments can be replaced by standard SAP functionalities.
As an added precaution, you should retest third-party add-ons once the migration is complete. This will determine whether the custom developments are working as expected.
Approyo: Your Data Migration Partner
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Migration to SAP S/4HANA fits perfectly with your company's digital transformation goals—making your business more agile, capable, and productive. Moreover, with support for the current SAP suite set to end by 2027, it's important to make the migration now.
Partnering with an experienced SAP cloud provider like Approyo can make your migration process close to seamless. Approyo has managed over a thousand SAP environments worldwide. To start with, they’ll conduct a thorough discovery and assessment to ascertain your cloud readiness. After this, their dedicated IT team will map out the entire process for migrating your system, based on best practices. Approyo also provides options for ongoing support and monitoring after project completion.
With Approyo, you can trust that your workload migration will be stress-free and efficient. Contact them today for a consultation.
The modern business ecosystem increasingly relies on SAP systems. At the heart of this technology is an SAP database, which manages information for an entire enterprise. While this pivotal technology makes businesses more agile, it also exposes mission-critical data to cybersecurity threats. So, well-designed database protection is essential.
Managed security protection covers organizations against the growing menaces they face. The only way to stay ahead of the threats is to employ industry-leading practices.
For instance, Approyo’s 24/7 threat detection enables instant response times. It protects the SAP database as well as your network and connected devices, covering vulnerabilities and identifying risks. In addition, Approyo’s Overwatch technology monitors both cloud and on-premise environments to secure your enterprise data. Real-time reports and expert consultations keep your team abreast of SAP database security.
The key to navigating the modern threat landscape is knowing who’s doing what with your data. Let’s explore the most common database threats that businesses face, along with best practices to protect your sensitive data.
Threat Landscape for SAP Databases
The leading cybersecurity challenges come when bad actors threaten to steal or destroy sensitive information. With businesses now reliant on their data, such breaches affect their survival prospects. An attack that breaks into an SAP database could lead to severe problems such as fines and litigation, lost customers, and stolen trade secrets.
What’s more, the threat landscape constantly evolves, with new attacks developing to counter available defenses. One of the more common threats is phishing. Basically, cybercriminals trick employees into revealing sensitive information like database passwords. Numerous variants have also developed, including spear phishing. This targets a specific individual rather than casting the net among several victims.
Ransomware is a particularly pernicious attack in which data is encrypted so your enterprise can’t access it. The perpetrators then demand payment to unlock your data—a bargain they may not uphold. Ransomware falls under the broader category of malware, which is malicious software that harms a system.
Another category of attack is distributed denial of service (DDoS). These crimes use overwhelming traffic to defeat a system’s normal defenses. An SAP database hit by such an attack may become slow or unusable due to the massive influx of connections.
Many hacks are conducted by individuals or groups unknown to the victim. But in some cases, insider threats occur from employees, contractors, or others who have access to your infrastructure. These threats impose additional challenges, since it’s harder to tell if employees are using their credentials properly or improperly. It’s also tougher to limit insider permissions while still letting people do their jobs.
SAP Database Threats
All these threats to your database can strike at any moment. For instance, hackers actively scan SAP ports to find security holes they can take advantage of. There are more than a thousand such weaknesses.
A complex environment contains an SAP database as well as applications and configurations. The custom code that enterprises commonly use exposes yet more SAP vulnerabilities, which hackers then exploit. One security flaw enabled attackers to completely take over unpatched systems, reading and writing any SAP database record.
New cloud deployments can be located and attacked in just three hours. Within a day of finding a vulnerability, the attackers can develop a break-in tool. And in under three days, they can clean out your organization. Given the great risks to business, you must be proactive and prepare for attacks.
Blueprint for SAP Database Protection
Securing your SAP database takes a multi-faceted approach, integrating various protective measures. Techniques like access controls and encryption work together to shield the database comprehensively. Approyo CEO Christopher Carter outlines these techniques and more in his book, Mastering SAP: Protecting Your SAP Environment in Today's Cybersecurity World.
Carter shares a five-step blueprint for protecting your SAP database. These best practices will solve your security problems and streamline your processes to improve your overall efficiency. It’s like having Approyo’s certified SAP consulting services in your back pocket. Let’s dig in.
1. Establish Robust Access Controls
Access control lets you restrict who can use which resources in an SAP database. There are multiple approaches, such as role-based access, in which users are assigned to permission groupings. For example, your organization could have roles for cashiers, managers, marketing, HR staff, and so forth.
Robust access controls limit privileges to only those necessary to do specific jobs. These controls can prevent unauthorized access, minimizing the risk of insider threats.
Access controls can also limit the damage done by other attacks. Say a hacker uses phishing on a naive secretary. Most of your organization’s data will remain protected.
2. Strengthen Password Policies
A common way for attackers to gain access to sensitive data is by taking advantage of weak or default passwords. An improved password policy addresses this issue and bolsters SAP database protection.
Your system should enforce a minimum password complexity and length, with frequent expiration. That way, employees will have varied passwords that are difficult for criminals to guess. You should also advise employees to not reuse their SAP database passwords for other systems.
Strong password policies serve as an initial line of defense against attempts at unauthorized access. They complement access controls to prevent people from abusing your resources, enhancing your overall database security. Another related measure is not storing passwords in plain text, which brings us to encryption measures.
3. Deploy Encryption Measures
Database encryption is the application of mathematical techniques to conceal information. It’s a highly secure way to protect passwords and other sensitive material. Any private data should be encrypted. In many cases, such as financial or medical data, encryption is a legal requirement.
SAP database technology includes functionality for encryption. This applies to data that’s both “at rest” (in storage) and “in transit” (being moved). You can encrypt individual columns like credit card numbers or the entire database.
When used correctly, encryption measures prevent data exposure—even in the event of a breach. The attacker won’t be able to see the contents of the stolen data.
4. Enact Security Monitoring and Routine Log Reviews
To ensure your other measures are working as desired, it’s important to have proactive security monitoring and routine log reviews. If you have a misconfigured access control policy—or if someone’s cracked a password—you’d want to notice as soon as possible. Security monitoring detects unauthorized access attempts and other anomalies.
Real-time monitoring enables you to detect unusual activity or violations. It’s like having a security camera system for your SAP database. Suspicious activity triggers a response, identifying problems before they become unmanageable.
5. Execute Patch Management
Any software can have vulnerabilities, so developers create “patches” that fix these vulnerabilities when they’re found. Regular patch management is a critical step in maintaining the security of your SAP database. Unpatched vulnerabilities are often exploited to break into a system.
All too often, organizations delay or ignore patches. SAP publishes frequent updates as it discovers new vulnerabilities. In a given year, it may release over a hundred SAP Security Notes with patches.
An unpatched database can grant criminals access to your complete database, along with the underlying operating system and connected systems. It’s the worst security outcome, revealing why it’s necessary to use the best protection: working with a demonstrated technology partner.
Secure Your SAP Database With Approyo
SAP database protection is critical for the many enterprises relying on this software. The threat landscape poses a broad range of challenges, including dangerous attacks like ransomware and denial of service.
Use industry best practices such as access controls, strong password policies, and encryption to tackle these problems. Security monitoring ensures these measures work properly, and patch management keeps your software up-to-date.
Database security is an ongoing process. You must be vigilant and adaptable to survive in an ever-evolving environment. Approyo’s 24/7 monitoring and best-in-class security processes protect hundreds of SAP deployments. Plus, the secure-by-design philosophy means problems are identified and fixed faster and at a lower cost.
Our dedicated team of experts is on hand to provide your organization with unparalleled defense. Contact Approyo now for a free security consultation that’s tailored to your unique requirements.
American tech companies are actively expanding into global markets to both grow their customer bases and access new pools of talent. However, this international reach also exposes them to new threats to safety and security. For instance, foreign threat actors including governments regularly target American data and intellectual property.
A security breach can cost a business in numerous ways. Lost data impacts its ability to continue operations. What’s more, criminals may sell an organization’s confidential information or commit blackmail. There’s also the threat of fines for failure to protect sensitive information.
The Government’s Role in Protecting American Tech Companies
Fraud protection and data security are the responsibility of American tech companies and the government. The U.S. government has taken some steps to protect businesses from foreign influence. For instance, the Committee on Foreign Investment in the United States (CFIUS) reviews foreign investments in U.S. companies—and their national security implications.
But is this enough? China has been accused of acquiring American tech companies to steal technology and overtake America as a tech innovator. Russia actively fights against American interests. Foreign countries may also use stolen tech to spy on U.S. citizens.
As innovation becomes more critical to the economy, there’s growing pressure for the American government to do more to protect the nation’s tech firms. Otherwise, we risk the collapse of a company’s—or even the country’s—infrastructure.
Technology fuels everything from businesses and personal activities to military applications. It’s so widespread that people take it for granted. But the United States can’t afford serious losses to its IT sector; finance, health, and transportation rely on secure data. Reinforced policies are necessary.
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The Threat of Data Theft to American Tech Companies
As data becomes a more valuable commodity, it’s attracting the attention of criminals. Thieves who make off with business data can sell it on the black market or exploit it for themselves. For instance, hackers can drain bank accounts using stored credentials or threaten to expose customers’ private information to the public.
American tech companies are particularly susceptible to threats because they rank among the most innovative on the planet. Criminals plot against these organizations for economic and political gain. They can steal data from company servers or from American employees working overseas.
Now that people and resources depend heavily on information, the government must defend it.
The Cost of Data Theft
Companies should know the risks of doing business overseas. For one thing, they’re vulnerable to data breaches, ransomware, and other attacks. Financial losses can add up to millions of dollars for a single occurrence. But the loss of reputation and customers can be even more severe.
And in the aggregate, it’s not just about individual companies—they’re also putting the country at risk. American security depends on tech leadership. The defense and finance of the nation are now tied to its technology.
Tech enlarges the size of an attack—a single exploit can affect thousands of organizations. What’s more, practically everyone is now exposed to data in the cloud. Medical and financial data are especially vulnerable to hacks. And it’s not just outright theft that’s a risk, but also the acquisition of sensitive data through corporate mergers and joint ventures.
For example, foreign companies may offer several times the market value to acquire American companies. That should raise suspicions. These companies may have close ties to their governments and may be purchasing American companies for their data and trade secrets.
How to Improve Current Policies
The U.S. government can improve its defense of American tech companies by increasing its oversight of international mergers. After all, takeovers risk putting unique tech in enemy hands. And it’s not just military technology that’s sensitive; medical technology also exposes U.S. lives to threats and should have stronger oversight.
Oversight should focus on a combination of risks: corporate takeovers, exports of sensitive technology, overseas operations, and security policies for data stored in international cloud facilities. A new federal agency specifically dedicated to this task would make sense.
Often enough, the U.S. government responds to threats only after tech companies report them. The government should instead anticipate security risks more actively and collaborate more closely with the private sector.
At the same time, U.S. government intervention has already slowed down some investment in American tech companies. Therefore, policies must strike a balance in which they protect businesses against overseas threats without unduly interfering in the market.
America Needs Firm Policies in Place
The U.S. intelligence community has recently started advising American tech companies on emerging technologies to protect. This information should be more widespread and updated as new advances unfold. For instance, artificial intelligence (AI) and other developments may overturn the world order. If America wants to remain ahead, policies must recognize which technologies and companies need defense.
The Chinese and Russian governments are employing all means at their disposal—including illegal measures—to gain a strategic advantage. They’re willing to hack into U.S. companies and place insiders to access data.
As a result, America and its tech companies must understand the situation as a potential conflict and enact policies appropriate to this level of implications. Foreign governments are attempting to usurp America’s technology lead. Only firm policies will staunch the loss of data and security.
The foreign powers threatening U.S. technology companies are run by dictators who don’t share American values. Therefore, the United States should enforce strict requirements on proposed mergers and joint ventures. It should also spend resources securing data on particularly important innovations. Finally, violations of American data security must be found and punished.
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Protecting American Tech Companies
While there’s plenty of opportunity for American tech companies to do business internationally, there are also plenty of risks. Data breaches have become more common and larger in size. Foreign attackers are working to undermine the safety and security of U.S. data—and the American public.
Government protections have only gone so far. More resources geared toward modern security threats and greater public-private cooperation will help protect American technology and data. Innovation will continue as policies improve. In the meantime, tech companies and the people who rely on their products and services must remain alert.
American tech companies like Approyo are working to improve data security internationally. For instance, Approyo’s Overwatch monitors IT infrastructure for clients globally, 24/7/365. Contact us today to see how we can help secure your business.
SAP S/4HANA adoption is gaining pace across the business community—including new and existing enterprise resource planning (ERP) customers.
The new ERP system from SAP—S/4HANA—adds exciting new features and capabilities to boost performance, productivity, and growth. It’s the biggest overhaul since R/3 in 1992, and leverages cloud-enabled technologies to optimize business processes.
S/4HANA runs on an extremely fast in-memory database that increases the system’s speed and intelligence. Further, it includes finance, logistics, extended warehouse management, and more in a single solution. However, while the benefits of S/4HANA migration are extensive, the transition is also somewhat more complicated than previous upgrades.
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The Six Steps to SAP S/4HANA adoption
Each step of SAP S/4HANA adoption helps to ensure a worry-free installation—and an enterprise system that will last for years.
The stages include discovery, preparation, exploration, realization, deployment, and implementation, and generally occur in a series. However, depending on your schedule, it’s possible to work on two or more stages in parallel to accelerate deployment. Take note that while these stages apply to SAP S/4HANA itself, the process can be modified for add-on software.
Switching to SAP S/4HANA involves a range of challenges for the deployment team. These can be categorized into areas such as project management, architecture, configuration, testing, and support. Every one of these stages is critical, and working together is vital to achieving a smooth and efficient transition.
Quality “gates” between each step help to validate the progress of adoption. Should any of these checks fail, return to the previous stage to iron out the issues. Some tasks occur within a single stage, while others extend over several. In combination, these six stages will carry an organization into the digital future of big data and real-time analytics.
1. Discovery
Start the journey to SAP S/4HANA adoption by exploring the technology and ways in which it can benefit your organization. Anything learnt during this stage will feed into a successful transition through the other stages. Here, you’ll discover the business value of the solution and how it fits into company processes.
With a cloud trial, you’re able to demonstrate how the new platform functions. Cloud technology hosts the enterprise resource planning data in servers at different geographic locations. The result is infrastructure flexibility and cost-effectiveness along with resilient security features.
A discovery assessment investigates the project scope and produces a report that can be used later on in the implementation phase. A key feature here is the in-depth insight it provides into the capabilities of the S/4HANA Cloud. Moreover, it brings together all the documentation related to organizational requirements.
You can edit the discovery assessment online at any time. To assist, there’s a purpose-built app that helps in identifying the necessary features and systems. You’re also free to ask SAP for clarification. Thereafter, the report is made available for use in the subsequent stages.
Application value and scoping complements the discovery assessment. This process addresses business rather than technical needs and identifies the rewards (or justifications) for moving to S/4HANA.
A separate analysis searches for potential road blocks to the deployment. If any such problems are found, they have to be dealt with before moving forward. The overriding rationale behind all these analyses and reports in the discovery phase is to ensure it makes sense for your business to prepare for and use S/4HANA.
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2. Preparation
Once you know what SAP S/4HANA is all about, it’s time to ready people and resources to deploy the new solution. A successful deployment depends on adequate preparation. This stage initiates the busiest elements of the implementation.
In the planning stage, familiarize yourself with the SAP documentation. Then, allow employees access to SAP resources—for instance, their support portal and best practices information. SAP will also connect your organization with the S/4HANA system.
Now you can now establish the project team environment, assign users, and determine goals. Tasks are given to specific users and their status is tracked.
During the course of preparation, the team studies the components of SAP tools at their own speed. It’s smart to learn as much as possible prior to deployment—and while you’ve got the time. Moreover, this will enhance efficiency at later stages.
The preparation stage marks the official start of the project, which has gone from an idea to an active area of work . It’s important that the manager in charge defines responsibilities and ensures that the necessary information and commitment are present.
Governance documents set the ground rules for how the project will be run going forward. This is where it’s vital for internal staff and executives to be on the same page as the implementation partner and other stakeholders.
Before instigating SAP S/4HANA, ensure you develop a schedule and a budget. This includes planning tasks and timetables for the initial deployment period. Project management should include enough structure to support the scale of the endeavor. Document the risks, changes, and other variables.
The project is now on a schedule, which can adapt to the unfolding progress and events. Preparations to start using the system are complete.
3. Exploration
The exploration phase of SAP S/4HANA adoption involves trying out the technology to see how it works in practice. At this point, you need to become more closely acquainted with the system itself. In addition to monitoring performance, address any discrepancies from the initial plan now.
Throughout exploration, it’s crucial to communicate with team members and assess the quality of output and presence of risk. The project doesn’t need to go precisely according to plan, but adjustments should be documented.
Perform a fit-to-standard analysis to validate the solution’s functionality and determine whether business requirements can be satisfied. There are workshops designed around the various aspects of S/4HANA to show you how the technology addresses business needs.
This analysis facilitates execution and highlights any areas where new requirements appear. It’s worthwhile going through fit-to-standard analysis several times to iron out any unexpected complications, noting updated configurations to include in the next phase.
At this stage, workshops will go over standard processes and ideas and see how they fit into the organization’s needs. Further, they examine any additional requirements, such as integrating with other software. As a result, you should be able to determine the appropriate configuration for execution. Ideally, you should document the entire analysis.
After the workshop, system experts begin running the standard processes. This is when everyone needs to be brought up to speed with the tools and confirm (or deny) decisions that were made earlier. Exploration provides an opening to course-correct while it’s still relatively easy.
Also, while in the “Exploration” stage, it’s helpful to plan and design for several activities, for example, extension and integration. This involves detailing which add-on packages from SAP or other vendors to use. You can also consider how to use analytics and artificial intelligence, which are key features of S/4HANA.
4. Realization
Here, you’ll build and test systems based on processes identified in “Exploration” phase. The basic ERP system is now in place, and you’re establishing its functionality.
In this phase, your company’s data goes into the environment. Plans are made for the go-live event itself and for ongoing operations after the switch. Further, steps are taken to plan for SAP S/4HANA adoption by users.
Thereafter, the test, development, and production systems and business configuration are engaged. SAP S/4HANA has to be configured in accordance with the fit-to-standard analysis before use. Any integrations should also be configured now. System access is enabled for users, while test and production configurations are kept in sync via a transport process.
Extensions can now be transported to the test and production systems. If setup guides are necessary, they’re produced at this time. This applies to key-user extensions, developer extensions, and side-by-side extensions.
Your organization should make easy-to-understand information available for users. Further, change management must take into account the expected transition. You can finalize any additional actions at this stage.
This is also the time to do build-test-document sprints, each of which may take a week or two. When the development system is configured, corrections are made, transported to the test system, and then to the production system. Bear in mind that SAP regularly releases software updates, which need to be reviewed.
Then, you need to prepare the system for robotic process automation (RPA), which is a modality of artificial intelligence (AI) used in S/4HANA. The relevant applications are installed and tested before being moved into production. The same sequence also applies to analytics functionality.
After you’ve documented the strategy and scheduled the transition to powering business operations, the system is finally ready for deployment.
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5. Deployment
With the technology vetted, you can set up production systems, test the business’s readiness, then switch operations to the new systems. S/4HANA goes into “Run” status, and after the cutover it will be live.
The production cutover involves business and technical actions in the days leading up to the big switch. This includes final setup for the production system and interface connections. It also covers the migration of data from any previous systems.
If any other entities are going to be affected by the transition, such as partners or suppliers, they should be notified ahead of time. This is also an opportunity to make final adjustments or decisions.
The process of training staff on the new system helps ensure that the organization is ready. That said, it will still take some time for business operations to become completely normalized for personnel. Therefore, monitoring should continue from the earlier phases and into deployment.
Deployment is also the stage at which any remaining organizational change management should be executed. Thereafter, your company will be operationally ready to make full use of the system. SAP S/4HANA adoption is now embedded into the enterprise.
At this point, the deployment team should verify that the project has met its goals, noting any issues for further work as well as completing regulatory documentation. After transitioning has taken place, the company can shut down any remaining legacy systems.
6. Implementation
Finally, after deployment, you can focus on fine-tuning the implementation, which includes further optimizing and automating the system. Having successfully adopted a new ERP system, the business should now be confidently employing the technology. This stage covers the ongoing use of SAP S/4HANA.
Automation can dramatically improve the system’s performance, helping it to function in a stable and efficient manner. Most importantly, it must remain available for users and facilitate the planned-for business activities.
Routine tests can verify that processes are running normally. Further, with continuous improvement, you’ll be able to elevate your company’s performance levels. In other words, deployment isn’t the end of the story. Experts will be able to identify additional areas where S/4HANA enhances business processes, as well as finding new features to incorporate.
Make use of benchmarking to reveal the degree of benefit afforded by S/4HANA production, as well as areas for improvement. Comparing results from the “Discovery” stage to those in the “Implementation” stage should make the differences clear as day.
Key performance indicators pertain to all business functions, including sales and finance. SAP provides real-time data on process maturity and best practices in relation to industry standards. Value management then supports the organization in working toward long-term goals. Taken together, the technology, lessons, and operational improvements gained from SAP S/4HANA adoption serve to put your business on the right track.
Make 2023 Your Year of SAP S/4HANA Adoption
The new enterprise software from SAP introduces a whole different way of managing data. The unique architecture and in-memory database provide enhanced capabilities, innovative features, and optimal speed—all guaranteeing improved performance for your company. Further, by following these six stages of SAP S/4HANA adoption, the transition becomes more manageable.
Approyo is the leading full SAP service provider, able to take care of upgrades and new installations as well as managing secure global infrastructure. If you’re looking for a partner to support your SAP S/4HANA transition, Approyo can help make the migration seamless.
To succeed in the saturated business world, companies must leverage the fast, scalable, and flexible cloud. SAP is one of the largest providers of enterprise application software that integrates multiple parts of a business into an intelligent digital suite. Now, 56% of the businessesthat rely on SAP plan to undertake a workload migration to SAP S/4HANA.
SAP S/4HANA is the latest business suite that offers improved performance and flexibility. So, the remaining businesses that are still evaluating a move to S/4HANA are missing out. The longer they wait for the transition or ignore their SAP operations, the farther they’ll fall behind the competition. And because SAP is planning to end support for its current business suite applications by 2027, migrating will ultimately become essential.
Let’s look at why CEOs and IT leaders should make workload migration to SAP S/4HANA a top priority.
The Business Value of Migrating to S/4HANA
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Millions of businesses worldwide use SAP to run their critical operations. In fact,77% of the world’s transactional revenue touches an SAP system. This is a big indicator of how SAP is bringing digital transformation to businesses. However, SAP is evolving. SAP S/4HANA can handle a multitude of functionalities that can raise the performance level of several business applications.
Even though SAP S/4HANA launched in 2015, most businesses have yet to undertake a workload migration. Migration isn’t mandatory to run current SAP applications. However, as SAP is planning to phase out its old software suites in favor of S/4HANA, workload migration is inevitable.
SAP’s S/4HANA provides superior benefits. Most IT experts and SAP administrators understand the advantages of migrating to HANA. However, many Chief Experience Officers (CXOs) might wonder whether the transition will be fruitful.
Here’s why businesses should strongly consider moving to S/4HANA sooner rather than later:
1. It supports digital transformation.
“Digital transformation” is more than just integrating technology into business. It’s an entire cultural shift that brings everyone together to provide a better customer experience. As such, a successful digital transformation strategy is the main driver behind adopting new tech.
SAP S/4HANA is a cloud-based software that heavily supports digital transformation. It takes into consideration the latest industry best practices along with continuous innovation. It also delivers results the right way and quickly gives companies tools to get started and scale themselves.
Another tenet of digital transformation is the ability to keep evolving. With workload migration to SAP S/4HANA, companies can stay ahead of the curve thanks to the latest processes and technological innovations. By using the latest technology such as built-in artificial intelligence (AI), machine learning (ML), and robotic process automation, businesses get what they need to innovate and move ahead of competitors.
2. It supports business agility.
Because SAP S/4HANA is a more flexible iteration, its deployment options make a business more agile. In addition, S/4HANA’s guided implementation process makes it easier for businesses to get started. In other words, it supports agility in every step of the process.
With a fast technical setup, an intuitive interface, and a team of experts that can lay down an implementation strategy, businesses will be more agile than ever.
Moreover, the agility factor is mainly due to SAP on the cloud. It makes things much more free-flowing, allowing companies to have more control over their data. It also makes data accessible only to the people who need to see it.
3. It helps reduce hardware and software maintenance.
Another big benefit of workload migration to S/4HANA is that companies can reduce hardware and software maintenance. When businesses store their data offline, they need regular hardware upgrades, fixes, and maybe even software updates.
However, with SAP S/4HANA storing the company’s data on the cloud, businesses no longer have to worry about maintaining and upgrading hardware and software. The hardware load will be minimized because the software will be running over the cloud. Moreover, storing data on the cloud gives companies a huge advantage because the risk of data loss, stolen data, or unforeseen circumstances is near zero.
In other words, with the digital transformation, SAP S/4HANA provides all the regular benefits a cloud has, but with more tools and a wider variety of features than ever.
4. It helps deliver services faster.
Thanks to its many cloud-based features, SAP S/4HANA enables businesses to be flexible and helps them deliver services faster. With the use of ready-to-go application programming interfaces (APIs), businesses can leverage those tools and documentation to easily provide the best customer experience.
Unlike regular SAP systems, it’s easy to update S/4HANA because the system is managed by SAP itself, so there’s no need for extensive IT resources or a big team. Simply put, since HANA is cloud-based, it can easily integrate with a company’s strategic business goals—including digital transformation.
But what are the components of S/4HANA migration? Let’s find out the most important aspects that form its infrastructure.
The Components of S/4HANA Migration
Only a small percentage of SAP customers have completed the workload migration process from their current systems to SAP S/4HANA. With the benefits it brings, it’s clear that IT experts, CEOs, and company owners need to learn about the main components of S/4HANA to understand it a bit more easily and effectively. Not only is it one of the biggest technical transitions your business can undertake, but it’s also a huge functional change.
Companies will need a detailed migration execution plan if they want to complete a successful migration. For that, it’s important to understand the various components that make up S/4HANA.
1. Code Modernization
First and foremost is code modernization. This is the core component of S/4HANA, and it takes away the traditional enterprise resource planning (ERP) models and custom code that make enterprise applications slow and bulky.
This component introduces a cloud-native DevOps platform to encourage SAP extensions. Moreover, during the workload migration to S/4HANA, all the extensions that require custom development will be done on the cloud-native platform and integrated with ready-to-use APIs.
This component is taken to the “clean” step where SAP upgrades become quite easy and seamless. On the other hand, businesses also leverage code modernization to incorporate new data sources into their applications.
A simple example would be to add innovative features like parcel location tracking for a logistics company. The main challenge is to choose a cloud-native DevOps platform that will run extension workloads anywhere without breaking down. That’s why cloud-based SAP business technology platforms are best suited for this need.
2. Data Quality and Conversion
Another important component of SAP S/4HANA is data quality and conversion. As businesses plan to move toward S/4HANA, they need to find out whether the current state of their data will provide any positive outcomes and align with their business plan.
This aspect is all about automating the remediation of data to reduce its complexity and make it clear, concise, and accessible. The workload migration to S/4HANA allows businesses to only keep the important data they need. As a result, it eliminates redundant or useless data.
So, let’s say a business has 10 different entries from the same user from 12 years ago. It will be able to cleanse the data easily and effectively.
3. Process Optimization
Minimizing the process’ complexity is another big challenge for businesses. However, SAP S/4HANA can simplify and optimize processes to make things simpler and faster. Since SAP is a transaction-driven application, processes are quite simple at their core.
Migrating to S/4HANA also lets you determine whether SAP is being used as intended. You can see if there’s potential to improve your business processes, such as through automation technology. As a result, you get a real-time look at your active processes, which helps you correct inefficiencies.
4. Infrastructure Modernization
For traditional ERP systems, infrastructure modernization means introducing cloud capabilities. After moving to S/4HANA, businesses need to look for a cloud provider that can make their investment come to fruition and ultimately bring a positive ROI. This will help you maintain the environment size that’s right for your needs.
Benefits of SAP ECC to S/4HANA Migration
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While SAP ERP Central Component (ECC) is a core ERP product, S/4HANA is an all-in-one cloud-friendly database that can perform intensive data processing, transactions, and analysis on one system. Here’s how businesses benefit by a workload migration to S/4HANA:
Scalability
Customer needs are evolving rapidly, which is why CEOs must adapt to them quickly. With S/4HANA, companies can get the freedom to scale their ERP system within realistic timelines. This ensures businesses won’t be hurt and will be evolving with their customers over time.
Flexibility
S/4HANA’s compatibility with a wide range of databases and integration capabilities make it good software. It can integrate with existing IT applications and infrastructure while taking a business to the next level.
Data Capabilities
S/4HANA gives businesses more control of their data by processing and analyzing large data sets in real time. As a result, it’s possible to get insights to make important business decisions and evolve a company.
Innovation
SAP S/4HANA is designed with the future and innovation in mind. Businesses are constantly changing, and S/4HANA provides all the tools and important information to make the transition happen. Latest technologies like AI, ML, and many more are available with it.
Automation
One of the biggest benefits of moving to the cloud is that businesses can leverage automation. This reduces human error and maximizes process automation. It also ensures high performance and cost optimization.
Finding the Best SAP Cloud Provider
The time to make a complete workload migration to SAP S/4HANA is now. It will support your company’s digital transformation as you evolve to keep up with customer needs. It will also make your business more agile, reduce maintenance, and deliver services faster.
Because SAP will stop supporting its current business suite applications by 2027, all companies will need to migrate their workload eventually. For that, businesses need an SAP cloud provider that helps them make the transition faster and more seamlessly. That’s why a solution like Approyo is ideal, as it makes the workload migration stress-free and easy.
Data is an invaluable asset in today’s business landscape, and data security is equally crucial. Fortunately, the popular SAP HANA cloud software has its own set of security tools. Among others, these cover identity management and data access—key elements to ensure that only the right people can see or use your data.
Cloud security functionality can encrypt data to prevent access by unauthorized users. This encryption safeguards data that are in use as well as data sitting in storage, thus protecting the entire data lifecycle.
The SAP HANA cloud also includes fine-grained access control features that assign individuals and groups of users to the correct IT resources. The system authenticates users to prevent wrongful data access. Furthermore, the software has the ability to “mask” data to hide sensitive information.
SAP HANA cloud has a range of tools for monitoring and logging information—all of which will help you find and handle security risks. Furthermore, the system receives frequent updates to keep ahead of potential threats. The goal of all these security tools is to protect the organization’s data and operations.
The SAP HANA cloud helps businesses systematize how people interact with applications and data. For instance, there are user management tools that let administrators create or modify accounts, assign permissions to various resources, and group together multiple users. Moreover, user management facilities also help you track each account within the system—an important element for identifying any suspicious activity and preventing potential security violations.
SAP HANA cloud enforces restrictions to ensure that users don’t accidentally—or intentionally—gain access to confidential or classified information. It also protects users’ data against outside attacks.
Authentication and Authorization
Authentication and authorization are the key mechanisms by which the SAP HANA cloud protects data. These twin processes check possible data access attempts against the configuration your organization has approved. The system detects and blocks any unauthorized access—as well as contacting your administrators.
It’s these authentication and authorization methods that stand behind SAP HANA’s user management functionality. Users have certain rights, and actions outside of these rights are shut down.
The SAP HANA cloud hosts multiple specific “auth” technologies, such as OAuth 2.0 and SAML. These work to connect users with applications and data in a structured fashion. Additionally, there’s role-based access control and attribute-based access control—complementary approaches to determining which resources can be used.
Authenticating a user for several different applications—without duplicating efforts—is a common challenge. Single sign-on (SSO) handles this by uniting the logins. Once users log in to one system, they’re automatically logged into other systems.
Ensure that logins are resistant to compromise. Multi-factor authentication (MFA) addresses this by requiring two or more separate confirmations of a login, such as using a password and an e-mail confirmation. These added layers of defense limit the risk of sensitive data falling into the wrong hands.
All these different authentication and authorization processes work together to secure the SAP HANA cloud. As such, users and administrators have a high degree of confidence that their data is only accessed appropriately.
Data that’s not encrypted can be seen by whoever downloads it. By contrast, encrypted data is unusable by anyone other than the intended recipients, even if someone gains unauthorized access. Therefore, encryption functions as another critical layer of defense.
The SAP HANA cloud uses enterprise-quality data encryption throughout all their storage—by default. The widely-recognized Advanced Encryption Standard (AES) is a benchmark that’s used by the US Government, among others. AES has undergone extensive testing and is an extremely reliable way to protect your information.
The SAP HANA cloud also employs hardware-based encryption devices, adding an additional element of security. This purpose-made equipment serves to strengthen the process of encrypting and storing data. Related features mask—or “tokenize”—information to control who can see what.
Data Masking and Storage
It’s not uncommon for an organization to have data that needs to be easily accessible, but at the same time requires being hidden, for the most part. For example, a business may need to store customer payment information, yet only make this available to employees at particular times. Data masking helps accomplish this purpose.
With the SAP HANA cloud, you can mask sensitive data in real time. Data is either shown or hidden on the basis of who’s using the system and which permissions that user has. Thus, there’s less chance of someone seeing data who shouldn’t.
Secure storage complements data masking. Using the aforementioned hardware encryption, businesses can deploy data to locations where it’s tightly controlled. The secure key management of the system lets authorized users—and no one else—handle the data.
Together, these features minimize the risk of intruders gaining access to your data. The SAP HANA cloud encompasses a mature enterprise technology that’s able to stand up to the unprecedented attacks now facing IT assets. Given the currently massive financial reliance on data, it’s imperative to choose a trustworthy platform.
Secure Your Data in SAP HANA Cloud
Data has become the lifeblood of the modern enterprise—and it’s one of the most vital assets for businesses to secure. Identity management and data access security helps to safeguard data, making sure that it’s under strict control and only available to authorized users.
In addition to user management and authentication, an enterprise software platform should employ the latest encryption standards. Features such as dynamic data masking and hardware-based secure storage round out the functionality that’s essential for keeping information where it belongs.
SAP HANA cloud addresses all these needs in a fast and reliable package. Globally, large organizations know they can entrust their mission-critical data to the SAP HANA cloud solution. This is where Approyo—the leading full SAP service provider—can help you achieve your data security goals. Contact us now to learn more about our key security, cloud-centric features.
The phrase “employee fraud” sounds scary, as the destruction caused by employee fraud can be quite substantial. Even worse, no company is immune. Employees entrusted with company resources can turn on the organization and do immense damage from within.
Corrupt workers may steal then cover their tracks. It’s not just money or physical products; they can also steal or expose data. And as everyone knows, in the digital economy, data is the lifeblood of business. Lost data will expose companies to fines and lost business, severely undermining the entire organization.
If you think employee fraud is uncommon, think again. Nearly all companies are victims of employee theft. And, on average, it takes two years for employee fraud to be found out. Some forms of fraud have subtle effects, while others can rack up more than a million dollars in losses.
In total, the costs of employee theft add up to around 7% of annual revenues, driving many businesses into bankruptcy. When it comes to technology companies, more than a fifth of employees steal. What’s more, new types of international fraud present growing risks.
So, how can you defend against employee fraud? Cloud technology from SAP helps. It can detect suspicious patterns and alert you to potential fraud before the damage gets out of control. If you need assistance deploying anti-fraud measures, you can rely on Approyo, the leading full SAP service provider.
What is Employee Fraud?
Employee fraud is the use of deceit by a worker to take financial or other resources from the company. This is commonly known as an “inside job.” For instance, employee fraud occurs when a worker produces false financial reports and extracts money from the organization.
There are many categories of employee fraud, and not all of them involve theft for personal gain. Some other examples include accepting or giving bribes, taking company data, and abusing one’s official authority. Other than direct financial gain, motivations include fear, envy, or assisting someone else.
Types of Fraud
Many types of employee fraud involve financial transactions, for the obvious reason of adding to the employee’s own wallet. The criminal may make fraudulent payments or modify payments, or they may intercept payments to or from the company. In some cases, this may go as far as creating entirely new accounts in the company’s system.
Fraud can also occur during procurement—the acquisition of products and services. Normally, this procedure is carefully designed to prevent unfair practices, but unscrupulous people attempt to circumvent such controls.
For example, someone may cheat the system to select the winning bidder unfairly. Another fraudster tactic is to arrange procurement for overpriced or non-existent products. In some cases, the insider works in collusion with someone at a vendor to break the system.
Any type of deliberately inaccurate claim constitutes fraud, such as an employee who makes a claim for travel expenses without traveling. This also covers claims larger than the amounts spent as well as falsified authorizations.
Regardless of the rationale and the specific offense, employee fraud can have devastating effects on a business. Most companies lack the necessary controls to detect and prevent fraud. The costs can tally up to immense sums of money, in addition to a damaged reputation and lost customers.
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How Employee Fraud Affects Tech Companies
Technology companies can be left exposed by the fraudulent use of their data. For example, employees may take advantage of their access to confidential information for personal gain. They may sell customers’ personal data or the company’s trade secrets. What’s more, the exploited assets don’t have to be digital. Employees may also abuse hardware or any other company resource for their own ends.
Another category of employee fraud affecting tech companies involves personnel management. For instance, employees may falsify the amount of work they’ve done, which is more of a risk with offshore workers. They may also take sick leave while not sick or abuse other policies.
Accounting fraud and payroll fraud are two relevant categories in which the company’s accounts or the employee’s billable hours are falsified. One such risk for American companies working with outside help is that there may be fake payroll for employees who don’t even exist.
Common Warning Signs of Employee Fraud
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The sooner you spot employee fraud, the less impact to your organization. Here’s a list of key warning signs. While they don’t necessarily show a crime is being committed, they at least deserve your attention.
If international workers aren’t online or answering calls when they should, there may be a problem.
When an employee seems to live a lavish lifestyle well above what you’re paying, this is the most common red flag. For example, fancy cars that aren’t normally affordable for a person with that job should raise eyebrows.
The opposite situation is also a signal, as an employee in financial trouble may resort to fraud. This is the second most common warning sign.
Addiction often feeds the financial issues that lead to occupational crime. Other personal problems such as broken marriages can also spur fraudulent behavior.
An employee who becomes more secretive and controlling about their work may have started committing crimes against your organization.
Hearing reports about an employee should tip you off. Fraud is often found through complaints made by others.
A sudden or unexpected change in your business’ financial activity should trigger a warning. If you’re seeing more transactions recently, it’s worth investigating.
An employee who consistently disregards the rules is circumventing important controls. This indicates possible ill intent. Even a broadly “shrewd” attitude can reveal criminal acts.
If an employee performs actions without the appropriate logging, they may be attempting to manipulate the system or avoid detection. Transactions should have evidence in case an investigation becomes necessary.
These are just some of the warning signs. There are other suspicious behaviors you may notice, and no warning sign on its own necessarily means an employee is committing fraud. Rather, these signs point to anomalies that may have ordinary explanations but deserve further consideration.
Other Warning Signs of Employee Fraud
Dealing with overseas workers adds to the challenge of finding fraud. For instance, they may regularly have to access the company’s online resources at odd hours. This behavior would be a warning sign for local employees, which complicates the matter for international employees. Watch for these additional red flags:
Lying about actions or using logins other than their own should ring alarm bells. A dishonest employee is not one you would want anyway, but this may indicate more serious fraud.
Talking or writing negatively about the company can hint at problems. Many fraudsters feel aggrieved, for example, if they didn’t get a promotion they expected. Employees who genuinely like the company are far less likely to commit fraud against it.
Asking for access to sensitive resources is another red flag. People who seem abnormally interested in having access to data or authority may be planning an attack. Employees should only have access to the data they need for work.
Unusual transactions should have a valid justification. If an employee wants to modify transactions or accounts, there should be a specific defensible reason.
Having too close of a relationship with suppliers is suspicious. Conflicts of interest can result in poor deals that cost your company. An employee’s tight personal ties with third-party vendors should be out in the open and minimized.
Mood problems can also give away fraud. Often enough, the criminal will feel worry over the misdeeds. This can result in the person acting defensive or irritable.
An effective anti-fraud system finds signals before, during, and after a crime. Approyo can help you establish practical controls to detect evidence of employee fraud. With a policy for risk management and appropriate staff education, you can mitigate the tolls of this serious problem.
Detect Employee Fraud Sooner
Employees are entrusted with certain privileges that are essential to accomplishing their work. However, these privileges also expose the company to fraud risks. Your own workers know the system better than anyone else, and they are ideally placed to commit a crime then conceal the evidence.
The frequency with which inside jobs are reported in the media testifies to these risks. In a sense, just being an employee is already a warning sign. However, it’s important to use more specific indicators to focus on the higher-risk elements within your organization.
If you identify fraud early, you can often handle the problem. But if it goes unnoticed for months or years, the damage may become unrecoverable. It costs a lot less to remedy fraud if you detect it through IT controls rather than only finding out when the police tell you.
Most organizations notice at least one warning sign before a fraud is found. In some cases, there are multiple warning signs. Ignore these red flags at your own peril.
The Demographics of Employee Fraud
While there are common warning signs of employee fraud, it’s also useful to develop a general profile of a fraudster. For instance, the people who commit employee fraud are on average 48 years old, with men more likely than women to offend.
Most perpetrators don’t have any previous conviction, which can make them harder to find in advance. In addition, they usually haven’t been previously fired or disciplined for fraud, even if they have committed prior fraud.
Around half of fraudsters work alone, while 18% work with a partner and 33% work in larger groups. The more people who are involved in a crime, the larger the fraud’s costs tend to be. Also, older criminals and those who have been with the company longer cause larger losses on average.
Fraudsters often have other troubles at work, too. In general, they aren’t the most stable people. Bullying is common enough, as well as showing up late or failing to go to work. Nearly half of offenders have had work issues such as negative evaluations, pay cuts, and the threat of losing a job.
Employee fraud is more likely when there are easy opportunities. For example, an individual given excessive access to company resources or not enough supervision poses more of a risk. Similarly, American companies with overseas workers may be less able to supervise these employees and therefore become susceptible to fraud risks.
How to Avoid Hiring Potential Fraudsters
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While there’s no surefire way to detect all fraudsters, the right tools and techniques can decrease the risk. Of course, it’s best to deter and prevent fraud even before the offender joins your company.
Publicize Your Policies
Having a clear policy can deter some frauds. If people see the risks they face, they will more likely reconsider before ripping off the company.
Get Fraud Insurance
Fidelity bonds offer insurance payments if the policy-holder is affected by fraud. Tech companies can purchase fidelity bonds to protect themselves against risks including computer theft. If an employee abuses company resources for personal gain, the policy covers those losses.
Audit Employees’ Work
Random audits are another way to find and prevent frauds. You can do this on your own or work with an external partner. The goal is to sample transactions and ensure they’re valid. This doesn’t entail micromanaging every aspect of employees’ behavior, but rather selectively and fairly ensuring processes are working as they should.
Require Regular Breaks and Vacations
An unusual technique to decrease the risk of fraud is to encourage or require employees to take breaks from work. Taking leave usually involves someone else handling the same duties, which may uncover fraud. Some guilty employees attempt to work year-round to cover their tracks.
Also, those who work without pause become overly focused on money and may lose sight of the reasons not to cheat. So, increasing people’s days off can actively discourage fraud. Furthermore, people with good morale and a positive attitude toward the company are less likely to offend.
Offer Good Employee Benefits
Other ways to improve employee morale include providing opportunities for career development and offering benefits such as insurance or retirement packages. When people feel valued, they’re more committed to the company. Many cases of fraud occur when employees feel disrespected.
Technological and Financial Methods to Prevent Employee Fraud
Automating your payment systems is an effective way to eliminate some processes where fraud could happen. For instance, if an employee has the opportunity to intervene in a payment manually, that’s a risk of fraud. On the other hand, if the entire process runs on its own, then the employee is denied this opportunity.
Reconcile your balance sheet regularly—say, every quarter—to find and prevent problems. Undetected fraud will probably grow fast, so it’s important to keep tabs on financial activity. When it comes to employee time sheets, you should have a manager who approves these and also examines them afterward for accuracy.
American technology businesses have a duty to deploy access controls so sensitive information is only available for authorized employees. Cloud solutions from Approyo-managed SAP can help you control who has access to what data.
Another way to use technology to prevent employee fraud is to automatically detect large file transfers. These transfers may signal an employee is exfiltrating company data or installing risky software on the organization’s equipment. It’s smart to have an alert sent on suspicious transfers.
Using generally recommended computer security practices will also contribute to fraud prevention. For example, enforce strong passwords that are regularly updated. And, employees should only work with their own credentials.
Finally, while business has become mainly digital, don’t forget to deal with paper documents. After their retention period, you should ensure paperwork is disposed of properly. Crimes can still be committed by modifying or improperly using paper documents.
Managing Employee Fraud
The three stages of dealing with employee fraud are prevention, detection, and response. Ideally, you want to institute systems that prevent fraud from occurring in the first place. In practice, when fraud does occur, it’s important to notice it as soon as possible. Then, a firm response deals with the perpetrator and deters future offenses.
To manage the potential problems of employee fraud, your organization should implement controls then monitor behavior. This isn’t a one-and-done, but rather an ongoing process to watch and manage risks.
Deterrence is an important component of managing fraud. It may involve internal disciplinary methods as well as litigation or criminal proceedings. Depending on the size of an attack, it can result in fines reaching thousands of dollars or prison terms of several years.
If an employee has sole authority to process financial transactions, this increases the risk of fraud. So, it’s generally advised to have at least two people involved in any financial duties. An employee acting alone may manipulate accounts and payments. Use a system of checks and balances to protect the organization.
Defend Yourself with a Managed Service Provider
Using a managed service provider (MSP) will improve your risk management capabilities while lowering costs and aiding in your digital transformation. And when it comes to SAP products—which support innovation but are complex to use—an MSP is even more valuable.
With a reliable technology partner, you’ll have the industry’s best security and performance, no matter how complex your environment. For American companies working with overseas employees, an MSP is an important asset that can help protect you against employee fraud.
Essentially, the MSP handles technical needs for you. For example, Approyo can manage your enterprise resource planning (ERP) software and IT infrastructure, along with associated services built for the cloud. The efficiency of using professional support quickly delivers your return on investment (ROI).
Any company will encounter difficulties, but a company using an MSP will have access to time-tested solutions. Whether fighting against employee fraud or striving for better regulatory compliance, you can see precisely which steps would serve the purpose and how long they will take.
Approyo works on projects that must comply with regulations for the financial and medical industries among others. Unique monitoring technology protects your data 24/7 against threats, whether they’re internal or external.
Approyo Supports SAP HANA
Approyo offers expert support for SAP HANA, the fast new database. This in-memory database enhances decision-making with its functionality designed for business intelligence. SAP HANA unites your data in a safe and cost-effective store.
Whether you want to run SAP HANA in the cloud or on-premises, Approyo can develop a solution that meets your needs. The solution will grow to keep pace with your business and includes numerous features like real-time analytics and integration with other SAP products.
SAP HANA includes tools to detect and prevent employee fraud. The database analyzes transactions and reports to root out problems. It uses automation to strengthen investigative efforts, which has become practically necessary. Criminals continuously devise new methods to penetrate digital companies, and these tools let you keep pace.
For organizations already using SAP products, it’s smarter to keep data within the HANA database rather than using another tool. HANA makes searches faster and uses live information, improving data governance. You can accurately examine current and past evidence and even conduct predictive assessments of potential fraud.
Mitigate Employee Fraud With Approyo
Employee fraud is a serious problem when it happens, but you don’t have to stand by defenselessly. Noticing the common warning signs is often enough to defuse a situation before it explodes. Avoiding hiring fraudsters is even better.
Cloud technology can now help you identify and stop fraud before it becomes a serious problem. Approyo is the trusted provider for SAP solutions that require a focus on security. Contact Approyo today to increase your protection against employee fraud.
