For SAP customers in the public sector, the Public Sector Management (PSM) module with its components Budget Management (PSM-FM) and Grant Management (PSM-GM) is the crucial basis for efficient administration and modern control of their financial budgets.
However, the functional and process improvements relevant to the public sector resulting from cloud conversion have so far been almost entirely absent. This has therefore made a move to the public cloud inconceivable until now.
But what has changed since this year?
With versions 2402 and 2408 of the SAP S/4HANA Cloud Public Edition, crucial functionalities that were previously only available in the on-premise and private cloud were added to the public cloud.
Automatic value derivation, budget consumption by due date, budget monitoring, and the upload of budget data from external planning tools (e.g., Excel) are now finally available in the public cloud. The grant management module has also been enhanced with important additional functions. Automatic budget approval of grant funds, expanded reporting and monitoring, and integration with the SAP Concur travel expense management system can now be used without restrictions in the public cloud.
The AI-powered assistant Joule significantly simplifies navigation in budget and grant management. Thanks to its ability to formulate queries in natural language, Joule enables intuitive and rapid navigation to the relevant applications. This feature not only improves user satisfaction but also ensures that business processes can be executed efficiently and effectively.
These new features in the public cloud version of SAP S/4HANA thus close the previous gap to the on-premise version. They now offer public administrations a powerful and flexible solution for managing their financial resources and pave the way for future-oriented administrative transformation.
What advantages does the public cloud offer for the public sector?
Increasing efficiency
Unfortunately, the public sector is not immune to staff shortages. Up to one million vacancies will arise in the coming years, which will be difficult to fill. This makes it all the more important to utilize existing personnel resources effectively. Standardized processes in the public cloud can prevent redundancies in the process chain and minimize manual work.
Given the tight budgets of public institutions, the pay-as-you-go model, where administrations only pay for the resources actually used, can achieve significant cost savings. Resources can be further scaled as needed without having to procure additional hardware.
Increasing security
The increasing number of cyberattacks highlights the security risks associated with operating in-house data centers. SAP continuously invests in security measures to ensure data protection. This includes encryption, firewalls, and regular security audits. In addition, SAP ensures that its public cloud solutions comply with international standards.
Focus on core competencies
By outsourcing IT infrastructure, authorities can concentrate on their core competencies and reduce administrative effort.
Furthermore, the solutions in the public cloud focus on SAP’s standard processes and best practices. The transformation to the cloud therefore also entails a streamlining of administrative processes.
Rapid implementation and adaptability
Thanks to its high level of standardization, SAP can deploy pre-configured solutions. This significantly reduces time-to-market and further shortens implementation times. As a result, processes and systems can be adapted quickly to changing market conditions.
If sensitive data cannot be outsourced to a public cloud due to data protection concerns or regulatory requirements, a simultaneous use of public and private clouds would be conceivable. In this “hybrid cloud approach,” sensitive data continues to be stored and independently managed in a private cloud. At the same time, less sensitive data and applications can be hosted in the public cloud, thus ensuring optimal scalability and cost efficiency.
Standardization and innovation: The path of public administration to the cloud
Thanks to continuous innovation in the field of public cloud computing, a path is finally opening up for public administration to fully leverage the advantages of this technology. In addition to pure public cloud computing, hybrid cloud computing can also be used as an attractive alternative. This allows public institutions to benefit from both the security advantages of a private cloud and the flexibility and scalability of a public cloud.
