Scenario
An enterprise currently has:
- On-prem EDW
- Multiple BW systems
- Custom ETL layers
- Separate semantic modeling
- Fragmented analytics tools
They adopt BDC as their strategic cloud data platform.
🧱 What BDC Replaces (Directly or Strategically)
🔹 1️⃣ Traditional Enterprise Data Warehouse (EDW)
Replaces:
- On-prem data warehouse systems
- Heavy multi-layer staging
- Custom-built reporting databases
Example:
- SAP BW/4HANA
👉 BDC becomes the cloud-native EDW foundation.
🔹 2️⃣ Separate Semantic Modeling Layers
Earlier:
- BW queries
- BEx queries
- Multiple KPI definitions
Now:
- Harmonized semantic layer inside BDC
- Standardized KPIs across domains
🔹 3️⃣ Custom ETL-Heavy Architectures
Earlier:
- ABAP routines
- Multi-layer LSA++ modeling
- Complex transformation chains
BDC promotes:
- Lean modeling
- Cloud-native transformations
- Reduced staging
🔹 4️⃣ Disconnected Data Silos
Previously:
- Finance BW
- Sales BW
- HR analytics separately
BDC enables:
- Cross-domain harmonized analytics
- Data Mesh-friendly architecture
🔹 5️⃣ Partial Replacement of Legacy Integration Tools
BDC can reduce dependency on:
- Separate integration servers
- Manual data exports
- Custom reconciliation layers
⚖️ What BDC Does NOT Fully Replace
Important interview insight 👇
❗ It does not replace:
- Operational ERP systems like SAP S/4HANA
- Transactional processing systems
- Highly specialized ETL tools in all scenarios
BDC is:
Analytical & semantic data foundation — not an ERP.
🏗️ Before vs After BDC
| Before | After BDC |
|---|---|
| On-prem BW | Cloud-native BDC |
| Multiple KPI definitions | Harmonized enterprise KPIs |
| IT-heavy modeling | Semantic-driven design |
| Data silos | Cross-domain data foundation |
| Manual reconciliation | Standardized governance |
🧠 Architect-Level Perspective
BDC is not just a tool replacement.
It is:
A strategic shift from traditional, IT-driven data warehousing to cloud-native, semantic-driven, AI-ready enterprise data architecture.
🎯 30-Second Interview Answer
SAP Business Data Cloud strategically replaces traditional on-prem EDW systems like SAP BW/4HANA, custom ETL-heavy architectures, and fragmented semantic layers by providing a cloud-native, harmonized, enterprise-wide data foundation. However, it does not replace operational ERP systems like S/4HANA, as it is focused on analytics and business intelligence.