Scenario
A global enterprise wants:
- Unified revenue reporting
- Cross-domain margin analysis
- AI-driven forecasting
- Real-time executive dashboards
Data comes from:
- SAP S/4HANA
- SAP ECC
- HR & Procurement systems
- Non-SAP sources
🧱 Step 1️⃣ – Source Layer
This is where transactional and master data originate:
- Finance postings
- Sales orders
- Purchase orders
- HR records
Data may be structured or semi-structured.
🧱 Step 2️⃣ – Data Ingestion into BDC
Data enters BDC via:
✔ Replication (batch or near real-time)
✔ Virtualization (federated access)
✔ APIs / connectors
Inside BDC:
- Data is stored in managed cloud foundation
- Incremental loads applied
- Basic transformations performed
- Data partitioned & optimized
👉 At this stage, data is technically ready — but not yet business-friendly.
🧱 Step 3️⃣ – Semantic Layer (Most Critical)
This is where BDC adds business meaning.
The semantic layer defines:
- Harmonized KPIs (Revenue, Cost, Margin)
- Standard dimensions (Company, Region, Product)
- Currency conversion rules
- Time intelligence
- Aggregation logic
Instead of table names like BKPF or ACDOCA, business users see:
- Revenue
- Gross Margin
- Fiscal Year
This ensures:
✔ Single version of truth
✔ Cross-domain harmonization
✔ AI-ready structured data
🧱 Step 4️⃣ – Consumption Layer
Data is consumed via:
- SAP Analytics Cloud
- APIs
- External BI tools
- AI/ML models
Executives and analysts interact only with the semantic layer — not raw data.
🏗️ End-to-End Flow Diagram
Source Systems (S/4, ECC, Non-SAP) ↓ Data Integration (Replication / Virtualization) ↓ BDC Managed Data Foundation ↓ Semantic Layer (Business KPIs & Entities) ↓ Consumption (SAC / APIs / AI)
🎯 Why This Architecture Matters
| Layer | Purpose |
|---|---|
| Source | Generate operational data |
| BDC | Integrate & optimize |
| Semantic | Standardize business meaning |
| Consumption | Deliver insights |
The semantic layer is the core differentiator in BDC.
🔥 Interview-Ready 30-Second Answer
In SAP Business Data Cloud, data flows from operational source systems into the cloud foundation through replication or virtualization. The semantic layer harmonizes KPIs and business entities to create a standardized, AI-ready model, which is then consumed by SAP Analytics Cloud or APIs for reporting and predictive insights.