Almost half of the respondents in SAPInsider research on Application Strategies and Development for SAP S/4HANA and Cloud are planning or evaluating low-code platforms. There is an expectation of significant impact from these platforms such as ability to deliver applications rapidly, reduced IT costs, and enabling industry standards. Almost half of the respondents in the survey expect reduction in IT costs and 45% want to deliver rapid applications using low-code/no-code platforms. Yet 34% of respondents in that survey mention governance as a major concern. Anecdotally, a concept of “shadow IT” in low-code is being bandied about similar to the perceived threat of shadow IT that was discussed during cloud adoption. Is such a concern real or perceived? How can this concern be demystified or alleviated? Low-code governance is about making decisions with consistent, structured criteria to rollout low-code apps to support IT in delivering business goals, so that they generate business value with minimum risks. While we are unlikely to see large scale business user development – called as “citizen development” - within the complex SAP landscapes, low-code promises faster development by IT teams. Yet, there are reasons why low-code governance is perceived as a challenge even within IT. The questions that stem from governance needs can be across these lines

1. Are the low-code apps delivering value to the business?
2. Do the apps post risks to the business – both technical and business risks?
3. Is the low-code platform going to deliver on the estimated cost reduction?

The utopia painted of rapid application development, freeing up IT time to focus on higher-impact projects, can quickly be shattered by a rigid governance approach.

Overcoming the Governance Challenge

How can companies launching low-code platforms overcome this governance challenge?

1. Establish the vision and purpose for the low-code platform. What is the role of the low-code platform in the company’s IT roadmap? What is its scope? For example, a low-code platform can be limited to freeing IT development or testing efforts.
2. Set criteria for the low-code application portfolio. What are some measurable criteria for business impact and risk? Business impact, for example, can be a reduction in development hours, revenue increase, cost reduction, etc.
3. Establish roles and responsibilities. Who decides the criteria for low-code applications? Who approves? Who develops and tests? Who ensures compliance? Typically, a combination of business users and IT product owners, developers, and testers collaborate on the low-code applications.
4. Ensure compliance. Which compliance requirements should the low-code applications comply with (GDPR, HIPAA, SOX, etc)?
5. Develop lifecycle process from concept to release. Who are the resources to collaborate or seek service to roll out? How can this process be seamless to achieve the promise of low-code?

Apart from the above structural guidelines, IT has a critical role to play in developing the building blocks which can then be used by IT and business users. Typically, low-code deployments need a library or catalog which will grow with use and provide repeatable, high-quality components. Low-code champions are responsible for delivering a governance model that delivers value while also ensuring security, privacy, and compliance.

What Does This Mean For SAPinsiders?

Low-code platforms in the SAP landscape have the potential to become a game-changer by freeing up IT bandwidth.

• SAPInsiders should carefully establish a governance model that delivers value and limits risk while not being a chokehold for transformation.
• A strong collaboration between business stakeholders and IT is even more critical for setting up foundational building blocks for low-code.
• Companies that invest in proper governance, libraries and roles will accelerate their application delivery. Many platforms are now in the market, which offer value. Evaluating and deploying the right ones is a critical success factor.