SAP S/4HANA: Everything You Need To Know About It!

Summary- S/4 HANA is the latest enterprise resource planning (ERP) system by SAP. It offers various advantages like improved business operations, faster performance, better security, etc. The ERP system comes with multiple deployment options such as cloud, on-premises, and hybrid and runs on the HANA database with an in-memory architecture. Here’s everything you need to know about this next-gen ERP. 

Introduction

An ERP, or Enterprise Resource Planning, is a software system that enables organisations to manage and administer day-to-day business operations such as supply chain services, financial processes, human resources, and much more. With the digital advancements in the last couple of decades, this software system has enhanced and upgraded over the years as well. 

 SAP has been the largest ERP provider in the world, and over the decades, it introduced several systems – starting from SAP R/2 to SAP ECC, and now the latest SAP S/4HANA.

Today S/4HANA is one of the most sought-after ERP systems as it offers multiple advantages and deployment options that facilitate business operations. 

Understanding SAP S/4 HANA

SAP will stop the support for ECC by 2027, which means that organisations currently utilising SAP ECC systems must migrate to its latest resource planning system- S/4 HANA. This next-gen ERP system comes with the ability to help organisations function efficiently in today’s modern economy and technologically advanced world. The framework differs significantly from that of a conventional relational database system with in-memory operations and column-based data storage that allow for more in-depth and faster analytics and processing. SAP S/4HANA focuses on giving its customers active, real-time, and data-driven support that includes internal as well as external data sources. As a result, organisations can obtain real-time insights, enabling them to become intelligent enterprises. 

Advantages of S/4 HANA

With an optimised data model, agile architecture, and an enhanced user interface, S/4 HANA was developed to improve, accelerate, and simplify resource planning. 

Here are some of its primary advantages:

In-memory database

The management and administration of the IT ecosystem are greatly simplified by this latest ERP system. Additionally, it serves as a digital hub for the automation and optimisation of business processes by centralising hardware and network resources through its in-memory database. 

Cost-efficiency

Over time, the deployment of S/4 HANA can significantly reduce the total cost of ownership (TCO). It amalgamates the transactional and analytical capabilities of multiple systems at a specific location. Organisations can reduce integration expenditure by implementing this new ERP since it simplifies and optimises the process of upgrading and integrating numerous systems as all the data is kept in one database. Moreover, companies can save money on hardware and maintenance costs as their hardware requirements are reduced.

Easy-to-use

With its clean modern design, Fiori 3.0 offers a completely novel user experience, letting users access work lists, overview pages, and list reports with ease. Furthermore, its user interface is developed to be simple, responsive, and personalised, enabling customers to ask queries and seek necessary information regardless of the deployment or device. 

Improved speed and performance

SAP S/4 HANA enhances efficiency and speed by allowing organisations to plan, execute, and generate data-driven reports and analytics, initiate period-end closures and offer better predictions. Moreover, it enables companies to serve customers through customer-focused apps better. 

Real-time information

Merely keeping up with rapidly advancing technology is no longer sustainable. Organisations must stay ahead of the competition by making future-proof judgements. S/4 HANA applications leverage data availability, speed, and context in remarkable ways. 

S/4 HANA deployment

When considering the implementation of this new ERP system, it is imperative to thoroughly prepare for the process and explicitly lay out business requirements with clearly defined goals and objectives. Precise data migration and mapping are critical for such projects which is why there are multiple deployment options.

On-premises deployment

SAP S/4 HANA on-premises is accessible through a standard licensing model. The company’s IT department oversees its deployment and maintenance. It is also fairly compatible with particular business needs for managing and storing data effectively. 

 Cloud deployment

The cloud version is a SaaS (software-as-a-service) product, which means that maintenance and infrastructure are managed by SAP and the latest upgrades take place automatically. Both private and public versions are accessible. It also provides the entire S/4 HANA capabilities, while offering efficiency and cost savings, mainly through a service provider. 

Hybrid deployment

SAP customers may utilise both on-premises and cloud solutions by utilising a hybrid approach. For example, a company using a hybrid model might use certain SAP solutions that are cloud-enabled while storing essential apps and data on a customer's hardware. 

Difference between S/4 HANA and SAP ECC

User experience

While SAP ECC is built on SAP GUI and has only a handful of Fiori apps, S/4HANA utilises SAP Fiori by default. SAP Fiori enables the development of business apps with user interfaces comparable to those of consumer apps. All things considered, SAP Fiori provides a far superior user experience, greater flexibility, and quicker development.

Deployment options

As mentioned above, there are multiple deployment options for this ERP system- be it on-premises, public or private cloud, or hybrid deployment. 

Enhanced features

This new ERP system leverages advanced technologies such as artificial (AI) intelligence, robotic process automation (RPA), machine learning (ML), embedded analytics, and the SAP CoPilot digital assistant.

The database

SAP ECC can run on several databases, including DB2, Oracle, SQL Server, and SAP MaxDB; however, S/4HANA only runs on HANA memory.

Preparing data for S/4 HANA migration

Effective data management is critical for seamless S/4 HANA migration as it has a direct impact on the functioning of the SAP system, thereby increasing the total cost of ownership. 

Numerous approaches can be used to address the issue of exponential data growth, and SAP data archiving is the most prominent and effective one proposed by SAP. It is an essential and viable approach for managing the continuous growth of data, boosting security, enhancing compliance, and reducing expenses. 

All in all, sizing the HANA database is an important part of its installation, and it is necessary to develop techniques to restrict database expansion as well as tactics to optimise SAP landscape expenses.

Wrapping it up

S/4HANA offers scalability and versatility to businesses of all sizes. Its simplified architecture allows businesses to seamlessly connect and enhance their data across various platforms. Additionally, it allows businesses to become more agile and responsive to ever-changing client requirements and demands.

Businesses can integrate present legacy systems and cloud-based software with recent technologies to gain substantial consumer insights and deeper analytics, employing predictive technology and AI-powered capabilities. It also streamlines project and portfolio management, allowing organisations to monetise their investments in real-time while providing greater value to their customers.