When the Old Meets New: How App Factories are Bridging the Big Divide

App factories have evolved over the years from focusing on organizational efficiency to being driven by development to make a business more agile and innovative.

In a webinar hosted by Neptune Software, industry experts from Neptune Software, Nippon Gases, and Constellation Research, discussed how app factories have matured from an essentially “artisanal” solution that was the domain of software developers to one where even non-software engineers can build applications that meet their day-to-day requirements.

The speakers predicted a significant increase in enterprise applications in the coming years, necessitating a shift from simply accelerating application development to effectively managing a large volume of applications. This is where no-code/low-code platforms and generative AI will play a complementary role. While Gen AI enhances developer productivity, non-code/low-code platforms handle application governance and ensure broader organizational adoption.

An industrial approach to app development

Moreover, they advocated an industrial approach to app factories by establishing a repository of reusable components and implementing efficient and standardized development workflows. Highlighting how Nippon Gases has successfully implemented this model, Jens Wiechmann, SAP IT manager at Nippon Gases said that the company adopted this App factory model when it was undergoing a digital transformation towards SAP S/4HANA. The approach aimed to achieve four goals:

• Addressing the limitations of traditional SAP interfaces by creating more user-friendly and intuitive applications.
• Separating the user experience (frontend) from the core SAP system (backend) to allow for greater flexibility and customization.
• Adopting an App factory model to streamline application development processes, foster collaboration between developers, functional consultants, and business users, break down silos, and encourage a more agile approach to application creation.
• Not solely focusing on technical development but empowering citizen developers to define requirements and collaborate on application design.

A key factor driving Nippon Gases to foster an app factory environment was the need to differentiate itself through superior service offerings such as providing digital services and leveraging data insights. However, traditional SAP systems and their “best practices” did not always align with the company’s specific needs and regional variations, according to Weichmann.

To address this gap, Nippon Gases began developing custom applications that enhance the user experience and streamline processes. For example, the company created a specialized application for managing “cylinder bundles” in the offshore industry. This application:

• Simplified a complex process: Instead of relying on standard SAP procedures for serializing and tracking equipment, users could quickly scan cylinders, assign them to production orders, and visually organize them within a bundle using drag-and-drop functionality.
• Improved efficiency: It automated the creation of equipment hierarchies, reducing manual effort and minimizing errors.
• Combined flexibility with standardization: The app utilized standard SAP backend processes while providing a customized frontend for a more efficient and user-friendly experience.

Weichmann noted that the company developed this app within three days thanks to low-code/no-code technology. Moreover, it has successfully created over 100 apps designed for more than 500 users, connecting old and new SAP landscapes so far.

Weichmann concluded that apart from technology, the success of Nippon Gases’ app development lies in a thorough understanding of real-world workflows when developing applications. They include process analysis within SAP, user interaction, and direct observation to understand actual user behavior.

What this means for SAP Insiders

App factories enable rapid and scalable application development. The concept of an “app factory” allows organizations to industrialize the creation of applications, making the process repeatable, scalable, and efficient. By leveraging no-code/low-code platforms like Neptune, SAP users can rapidly develop applications that address specific business needs, often in days or weeks rather than months. This approach also helps manage the growing demand for applications while maintaining governance and quality.

Focus on user-centric design and frontend customization. It is important to design applications that align with how end-users work. By involving frontline workers in the design process, organizations can create applications that are intuitive and tailored to real-world workflows. This approach, combined with the ability to customize the front end while keeping the backend standardized, ensures that SAP systems are both flexible and user-friendly.

Governance and change management are critical. As the number of applications grows, governance becomes essential to managing the app inventory, ensuring consistency, and maintaining alignment with business processes. Tools like SAP Signavio can help map applications to specific processes, making it easier to track and update them as needed. Additionally, having a dedicated team or individual responsible for user experience and application governance ensures that the app factory runs smoothly and continues to deliver value over time.