#sapauthorizationdesign

A New Era of Security and Access Governance Governance, Risk, and Compliance (GRC) and Access Governance are undergoing major changes due to digital growth and stricter regulations. As organizations connect more data and systems, they’re shifting from isolated security practices to proactive, integrated compliance processes. Raghu Boddu, founder of ToggleNow and a seasoned leader in SAP GRC, has observed these shifts closely.

“Fifteen years ago, most companies didn’t treat security as a separate function—it was part of Basis administration,” Raghu explains. “Today, security is essential, and organizations know it’s crucial for protecting data, compliance, and brand reputation.”

New Market Realities and Demand for Integrated GRC Solutions SAP has long been at the forefront of GRC, offering tools to help both finance and IT teams tackle compliance challenges. Solutions like SAP Access Control and Identity Access Governance (IAG) provide the flexibility to manage today’s security needs while adapting to future ones.

As businesses adopt hybrid and multi-cloud systems, managing security across different platforms has become more complex. This is where SAP’s Business Technology Platform (BTP) shines. BTP connects SAP and non-SAP applications seamlessly, creating a secure, compliant ecosystem. “BTP and SAP Identity Services have changed the game for multi-cloud environments,” says Raghu. “Today, integration is nearly seamless thanks to SAP’s open APIs and connectors. This has allowed companies to manage security across hybrid systems without needing extensive customization.”

Regional Insights: GRC Maturity and Market Growth The GRC and Identity Access Management (IAM) markets vary widely across regions, shaped by local regulations and market maturity. In the U.S., SoX compliance has driven strict GRC standards for years. Many American companies have developed sophisticated GRC processes, particularly around data security and financial compliance. Meanwhile, regions like India are rapidly catching up.

“The growth potential in India is huge,” Raghu shares. “Over the last five years, Indian businesses have started treating GRC as essential, not optional.”

In both the U.S. and other markets, companies are increasingly adopting automation and hybrid identity solutions to handle complex regulations. This shift reflects a global move toward integrated compliance, with GRC becoming a core business priority rather than a “tick-the-box” function. As Raghu adds, “It’s inspiring to see GRC prioritized as part of strategy, not just an audit requirement.”

The Future of GRC: AI-Driven Compliance and Embedded Solutions a) AI and Automation in GRC Automation and AI are quickly transforming GRC from a reactive function into a proactive one, identifying risks before they become problems. With AI-driven GRC, systems can automatically analyze data to help companies detect potential compliance issues and manage risk more intelligently. SAP’s GRC tools with AI simplify compliance processes and improve decision-making, allowing teams to focus on strategic priorities.

Raghu highlights the potential of AI in GRC: “AI has incredible potential in the GRC space. It’s about giving businesses more power to manage risk with accuracy, while reducing manual efforts and errors.”

b) Embedding Compliance into Daily Processes Looking forward, GRC will be embedded directly within applications and workflows, constantly monitoring for risks and responding to threats as they arise. Raghu envisions this future: “In the next five years, GRC as a standalone system may fade. Instead, it will be part of daily workflows, where applications flag risks and suggest controls in real time. AI will automate many compliance tasks, cutting down manual efforts.”

He adds, “Imagine GRC as a tool that proactively flags a potential access issue based on historical patterns—like a security recommendation engine. This proactive risk management approach is where AI will make the most impact.”

About Raghu Boddu and ToggleNow: Innovating in GRC and SAP Integration Raghu Boddu, founder of ToggleNow, has over two decades of experience in SAP GRC and has witnessed the industry’s evolution firsthand. He started ToggleNow to address complex GRC challenges, helping companies make compliance efficient and accessible. With solutions that streamline risk management and improve security, ToggleNow has become a trusted partner for organizations operating in SAP environments.

Raghu is also a published author, with books such as SAP Access Control 12.0 Comprehensive Guide, SAP Process Control 12.0 Comprehensive Guide, and SAP Cloud IAG eBite. The books offer practical insights into implementing SAP GRC solutions effectively. His books emphasize not only the technical aspects but also strategic best practices, making them valuable resources for GRC professionals.

ToggleNow has been particularly impactful in areas like SAP integration and GRC automation, where Raghu’s team develops innovative tools that simplify complex processes. “At ToggleNow, our focus is to help clients build a compliant, adaptable GRC framework that meets today’s demands while preparing for tomorrow’s,” says Raghu.

Conclusion: Building a Future-Ready GRC Strategy For companies looking ahead, the time to adapt is now. As GRC evolves, adopting flexible, AI-driven, and integrated solutions is key. Businesses should prepare for a future where compliance is embedded in every workflow and AI-driven insights make risk management smarter.

“The future of GRC is all about integration, intelligence, and ease,” Raghu emphasizes. “Companies investing in these areas today will be well-prepared to navigate tomorrow’s challenges.”

In an increasingly interconnected world, the ability to proactively manage risk and compliance is more than a regulatory need—it’s a strategic advantage. By embracing AI, automation, and integration, companies can transform GRC from a support function to a driver of resilience and growth.

An authorization redesign in SAP is critical to strengthen security, streamline access governance, and enhance overall efficiency within the SAP system. Over time, businesses evolve, and with these changes come shifts in roles & responsibilities. Often, initial authorization setups in SAP may not align accurately with these changes, leading to potential security gaps or unnecessary Segregation of Duties. Therefore, a redesign becomes necessary to ensure that the right individuals have access to the appropriate resources, mitigating risks associated with unauthorized data access or system misuse.

By undertaking an authorization redesign, enterprises can expect improved compliance adherence and reduced vulnerability to internal and external risks. This redesign allows for a thorough reassessment of user privileges, enabling organizations to align permissions more closely with current job functions. Moreover, a redesigned authorization framework fosters greater transparency and accountability across the system. Overall, the necessity for an authorization redesign in SAP is pivotal in adapting to evolving business landscapes, and ensuring seamless functionality within the system.

Research shows that 8 out of 10 organizations overpay SAP due to poorly designed authorization structures. This issue went largely unnoticed until SAP introduced its STAR analysis, shedding light on the inefficiencies in user access management. By leveraging this insight, companies can significantly reduce SAP licensing costs by redesigning roles and realigning user access. This strategic approach not only reduces unnecessary expenses but also enhances compliance and strengthens SAP security. SAP role redesign plays a pivotal role in achieving these outcomes, and solutions like SAP Optimus Solution can streamline the process.

SAP licensing is determined by authorization assignments and, in turn, the definitions and authorizations, where excessive transaction codes or overly broad access often push users into higher licensing categories. Organizations frequently incur inflated licensing costs due to poorly structured roles that grant unnecessary access to high-cost authorizations. For instance, a user needing basic reporting access may be assigned a role with permissions with wider access, such as value in the object, driving up licensing expenses.

This misalignment typically arises from outdated role designs, limited visibility into actual user activity, and inadequate governance over role assignments. Over time, such inefficiencies compound, creating significant financial strain for enterprises. Here is an overview of how incorrect maintenance will lead to a higher licensing category:

There are 160k+ transaction codes with 700k Authorization Objects. Is it possible to manually validated each of them?

Role Redesign: The Game Changer As mentioned, SAP licensing is one of the most significant expenses for enterprises, often inflated due to misaligned authorization design. Contrary to popular belief, licensing costs are not determined by how users utilize the system but by the design of their authorizations. Roles with excessive transaction codes or overly broad permissions often result in users being assigned to higher licensing categories than necessary. SAP role redesign focused on optimizing authorization design is the solution to mitigate these costs while ensuring compliance and system security.

By implementing SAP Optimus Solution, organizations can significantly reduce SAP licensing costs and enhance operational efficiency.

An authorization redesign in SAP is critical to strengthen security, streamline access governance, and enhance overall efficiency within the SAP system. Over time, businesses evolve, and with these changes come shifts in roles & responsibilities. Often, initial authorization setups in SAP may not align accurately with these changes, leading to potential security gaps or unnecessary Segregation of Duties. Therefore, a redesign becomes necessary to ensure that the right individuals have access to the appropriate resources, mitigating risks associated with unauthorized data access or system misuse.

By undertaking an authorization redesign, enterprises can expect improved compliance adherence and reduced vulnerability to internal and external risks. This redesign allows for a thorough reassessment of user privileges, enabling organizations to align permissions more closely with current job functions. Moreover, a redesigned authorization framework fosters greater transparency and accountability across the system. Overall, the necessity for an authorization redesign in SAP is pivotal in adapting to evolving business landscapes, and ensuring seamless functionality within the system.