S/4HANA signals the end of traditional transactional systems. It is designed to give users real-time assistance in making decisions based on internal and external data sources. For the first time, the new business suite has been released. SAP has begun to phase out older ERP products to make S/4HANA the flagship product. The new ERP suite allows businesses to create functionality specific to their industry.
SAP HANA is an in-memory database software. S/4HANA, the ERP suite designed to integrate it, is the ERP. Both SAP products were created for integration, even though they're not exactly the same. The two products are both parts of SAP's main product line, which is aimed at providing the latest generation of products to businesses across the globe.
The Unrivaled Benefits of SAP S/4HANA
SAP S/4HANA has a unique structure. It's not the same as traditional relational databases. It stores data in columns and works in memory. It allows fast and near-real-time analysis and computing. This blog will highlight the main benefits and value-added SAP S/4 HANA features that customers receive.
Simplification
SAP S/4HANA represents a major improvement in managing and administering your IT environment. SAP has added a simple interface to ECC Application Structure. SAP S/4HANA enables the centralization of network and hardware resources. The HANA memory database is the heart of the digital business process.
Cost Effectiveness
Adopting S/4HANA is a good decision if cost-efficiency is important. You can integrate the transactional and analytical capabilities of multiple systems into one system. This can improve the quality of your decision-making.
Actual Tables
S/4HANA simplifies the data model in Finance, Inventory Management, and other areas. ACDOCA is the table used for Finance. Materials Documents are only stored in one table (MATDOC). You can aggregate data on the fly. The data structure is simplified, and accounting becomes more flexible over time because the number of records in total is not limited.
SAP S/4HANA has undergone significant changes in how transaction data is stored for accounting and financial purposes. The ability to align reporting requirements for internal and external users is greatly improved. Accounting has become more flexible.
Planning Table
Since SAP S/4HANA 16.10, planning results can be stored in the ACDOCP table. The table has the same structure and structure as ACDOCA, the general journal. Plan/actual reporting can be done by comparing entries in both tables. The table, master data, and reference data can be used to integrate with SAP Analytics Cloud. You can source it via SAP S/4HANA and then SAP Analytics Cloud.
Innovation
SAP S/4HANA is an example of an SAP product that helps business models adopt cloud services. Cloud technology allows companies to develop innovative products and enhance the capabilities of S/4HANA.
What is SAP ECC?
SAP ECC stands for SAP ERP Central Component. SAP ERP is another name for it. This is an older SAP application that was developed originally to integrate with a third-party system. SAP ECC is a system that most companies are familiar with and use. It contains the most popular modules, such as financials (HR), logistics, warehouse management, and warehousing. SAP ECC includes modules for manufacturers, such as Production Planning and Materials Management.
SAP Business Suite is not to be confused with SAP ECC. SAP Business Suite is more than just the core modules. It supports complex functions like Supply Chain Management (SCM), Customer Relationship Management, and Customer Relationship Management. SAP Business Suite can run on third-party databases, such as MSSQL and SAP HANA.
Modules are another name for SAP components. They are part of ECC. They are designed specifically to complete specific business tasks for a business transformation. SAP ECC has ten core components.
Installing the component is required to use its features. To maximize performance, you may want to ensure that your components are linked. App developers can ensure that components are implemented and integrated properly. Not all SAP ECC modules are needed by all businesses. Some businesses may require only certain components, while others might need the entire 10.
SAP ECC is composed of ten main components:
- Distribution and sales (SD).
- Materials Management (MM).
- Financial Accounting (FI).
- Production Planning (PP).
- Quality Management (QM), also known as QM, is a term used to describe the management of quality.
- Controlling (CO).
- Services to Customers (CS), Services.
- Project System (PS).
- Plant Maintenance (PM).
- Human Capital Management (HCM).
SAP ECC and HANA
HANA, the information system that is SAP ECC (basically an ERP system) and the Business Suite foundation, can be described in the same way as SAP ECC. HANA is a data store in memory that lets you manage all of your analytics and transactions from a single location. Originally, it was designed for data warehouses and data mashups. HANA, however, has evolved to be able to handle all aspects, including analytics and transactions, of data platforms.
SAP ECC integrates data digitally into several -- but equally important -- components of a database system. SAP ECC is an on-premises system, but HANA can be deployed on-premises or in the cloud. SAP will no longer provide maintenance services for SAP ECC after 2027. By 2027, customers will be required to migrate to S/4HANA. It can be expensive and time-consuming. However, it could take years.
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What is SAP HANA?
SAP HANA is an in-memory database designed to accelerate SAP processes and applications. HANA design innovations, like memory and a simplified structure, improve performance. The result is greater productivity, transparency in real-time, and improved analytics. The data is current, so businesses can respond to the market's conditions rather than relying solely on quarterly reports. SAP HANA can analyze data in real time almost instantly. It allows companies to respond faster to changes in the environment, which can result in significant strategic advantages.
HANA runs the SAP landscape. It is a column-based Relational Database Management System that stores, retrieves, and manages information related to core business operations. SAP HANA does not define what an organization is supposed to do. It can handle any type of data. Businesses can use HANA to install SAP-based applications for financial, HR, and logistics. Businesses must choose the software that best meets their needs.
SAP is different from other RDBMS. HANA's column-oriented storage reduces memory consumption by 10% and increases efficiency. This storage combines OLTP/OLAP into a single structure. SAP HANA's layout can improve Online Transaction Processing (OLTP) and Online Analytical Processing. Most database data can be stored directly on the disk. The storage space is very small. Hard drives are slow, and they can only retrieve information at a slower rate.
SAP HANA Pros and Cons
HANA is a powerful tool that can quickly process information and not just data. This SAP type is ideal for those who require immediate information. SAP HANA provides many benefits to companies, including:
Application Developer
HANA can be used by independent or in-house software developers to create a unique and personalized user experience for each user. It can be used in conjunction with analytics, future gem transactions, and cross-devices. You will get the best performance.
Easier Data Access
SAP Hana also provides more accurate and detailed data to help businesses. All data sources, both internal and external, can help your company grow rapidly. Data of high quality increases confidence, making it easier to make these decisions. HANA can be useful for integrating data, replicating it, and searching for previously used data.
Administration
The final HANA benefit is its simplicity. It allows users to focus on improving and increasing efficiency within their companies and spend more time on processes. HANA enables you to monitor the security of applications and data. Data will always be available.
Process Analyze
SAP HANA ERP also has the ability to solve problems in business and make decisions that are appropriate for business challenges. The SAP HANA memory can be accessed by an analytics procedure to store data such as graphics and text.
Database Service
The importance of managing and maintaining databases is understood by all businesses, large and small. HANA is an advanced database container with a large storage capacity that can be managed dynamically.
HANA and S/4HANA
S/4HANA, is the ERP system. HANA is the data source. S/4HANA is specifically designed to run on HANA Memory Databases. HANA memory databases cannot be used in conjunction with other databases. SAP launched S/4HANA. Many users believe it is the next-generation SAP Business Suite. S/4HANA is specifically designed to handle more data and solve complex problems than its older competitors, ECC SAP and R/3. It can be accessed both on-premises and online.
S/4HANA and HANA are two completely different products. HANA is a platform for developing applications that use an in-memory database. Users don't need to spend much time writing or loading data with HANA's in-memory computing databases. HANA's memory-based computation databases enable developers to build and run custom applications.
SAP S/4HANA Cloud: Top 5 Value Areas
Globally, businesses are improving their digital strategy to keep pace with the digital age. The decision-makers must develop a cloud-first approach that addresses all future business requirements. In recent times, investments have been made across the three available cloud service models - software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and platform-as-a-service (PaaS). The cloud is set to become the main model of delivering technology with these strategic changes.
Let's start with the five most important value areas of the S/4HANA cloud. The top 5 value areas of S/4HANA Cloud are:
- Improved Business Agility
- Lower Total Ownership Cost (TCO)
- Smart Cloud ERP
- A Faster Return on Investment (ROI)
- Improved Governance & Compliance
Each of these will be explored in detail:
Improved Business Agility
In the digital age, traditional business processes cannot be run using their old methods. They are slow and inefficient. Businesses must be more intelligent and adopt an organic platform that allows rapid evolution at a large scale.
This platform is a powerful tool that offers endless possibilities. It supports hybrid cloud approaches (hybrid technology) and on-premises systems coexisting within a business environment. It also allows users to increase their cloud footprint according to their needs. The activities of merger and acquisition (M&A) are also considered. You can manage multiple customer-specific integration scenarios seamlessly. It is possible to connect SAP Ariba, SAP SuccessFactors solutions, and other SAP cloud-based products.
Lower Total Ownership Cost (TCO)
Heavy investments in infrastructure and other systems can block significant amounts of working capital. Here, automated innovations such as ERP can be of great help. These innovations allow a company to operate more efficiently and get a higher return on their investment.
S/4HANA's Cloud Solution offers a rapid deployment option and reduces overhead project costs. The support and training costs have also been reduced, which allows for the freeing of valuable resources.
SAP has a flexible pricing model based on subscriptions. Pay-as-you-go is the concept, and there are no upfront fees. As per your convenience, you can switch between license and maintenance and subscription. Virtualized infrastructures reduce the cost of ownership and maintenance compared to real infrastructures (hardware servers, etc.).
Smart Cloud ERP
Every minute and second, digital transformation happens everywhere. A simplified digital core is essential for a successful business. Businesses are looking for a cloud solution that can connect the entire business in a secure and end-to-end way.
S/4HANA Cloud integrates other applications and uses intelligent machine-learning algorithms to automate business processes. Integration with SAP Cash Application, for example, automates the invoice matching process. The SAP S/4HANA Cloud will receive the results of the prediction. Self-service analytics with context offers insights that can be used to make faster decisions for the business and accelerate its growth.
A Faster Return on Investment (ROI)
Indirectly, achieving a greater ROI in the shortest amount of time can be linked to an earlier point in this article. The total cost of ownership is lower. The total cost of ownership (TCO) is lower. You will still incur costs for the deployment of an SAP solution on-premises. This includes both the initial investment (CAPEX) and the ongoing expenses (OPEX).
Cloud solutions provide a quicker time to value, as well as the option of a dual deployment strategy for subsidiaries and divisions. The SAP(r) CoPilot assistant can help you to adjust the automation level. With its machine-learning capabilities, it is the driving force for business decisions. The ready-to-use applications increase employee productivity and return on investment.
Improved Governance & Compliance
Business process automation does not only mean optimizing workflows for better ROI. Data security is also a part of it, as well as a protocol for statutory compliance to ensure the safety of the data in the cloud. S/4HANA Cloud Platform provides local regulatory compliance through tax support, preconfigured accounting rules, and audit reporting features. There are also quarterly releases that include the latest compliance regulations.
Privacy is a part of the data security issue. SAP is always careful to consider all privacy policies. A built-in disaster recovery system ensures business continuity. It reduces the risk to critical business processes. Business users and auditors have access to a dashboard that simplifies cloud governance and compliance.
Read More: What You Need to Know About SAP ECC, HANA, S4HANA and Business Suite?
SAP S/4HANA Cloud Aligns Your Business Goals with Those of SAP
As time goes on, organizations will increasingly migrate to the cloud and their legacy systems due to the many benefits that these solutions provide. There are premier SAP consulting services that guide you through the complex deployment process to make your system cloud-ready. The experts will also make sure that you adopt the correct integration approach when recommending an SAP S/4HANA Cloud for your business.
SAP and other technology companies are transforming their product strategies in order to better suit the needs of today's organizations. This is also happening in enterprise resource planning. ERP can be compared to music. Music is built on the same building blocks, whether it's baroque or rock and roll. This essential structure has been used to create countless musical styles and flavors over the years. ERP is no exception.
ERP's core purpose has always been to assist customers in managing their business functions through a centrally integrated system. However, ERP has seen significant changes since its introduction in the 1960s. It integrated customer relationship management (CRM) and supply chain and evolved towards cloud and artificial intelligence. It is fundamentally recharacterized as agile, nimble, and collaborative. ERP exists to meet the needs of the current audience.
It can be difficult for some customers to choose the best ERP deployment option that suits their business needs. For existing on-premise ERP users, who may not have upgraded in many years, the idea of change can be overwhelming. SAP will guide and accompany you on your journey.
The Next Step in ERP for Customers
In life, as is so often the case, you must first define the what before deciding the how. The goal should be clearly defined. You're well on the way if you can answer this question in a single sentence. SAP wants to engage in open, honest discussions with customers about what technologies will help them achieve their goals. SAP ECC users should weigh their options carefully in conversation with SAP before jumping blindly into the cloud.
Before embarking on a transformation journey, customers should be clear about their destination. SAP's role is to help customers through this process and translate their business needs into solutions that are effective for all customers.
You may be a businessman looking for easy-to-use, cost-effective technology solutions to help your company get up and running. A public cloud is a great option for deployment. A private Cloud could be the ideal solution for a large multinational that wants to customize certain elements of its own cloud infrastructure. You may want to take advantage of the innovation and flexibility offered by public clouds but keep sensitive data within your data center in order to comply with regulatory requirements. A hybrid deployment might be the right choice in this case.
ECC in SAP customers who find this information overwhelming have many options. They can continue to use SAP ECC standard support, or they can start a conversation with SAP to learn how we could help them create innovative value to differentiate themselves from their competitors.
Three critical areas that businesses must focus on in order to be successful with the S/4HANA Program. Let's get started. Your current solution outdated, no longer viable, or not scalable enough? Are you looking for something better in order to stay competitive? What else is it? Each company is different. Communication with your team and partners is key to success.
The business case must align with the value you are looking to achieve. A value map that breaks down the benefits from the highest level to the capabilities enabled by the new solution is suggested. When you define your scope, you should select processes that are directly related to the capabilities you want to drive. Process mining as a way to identify inefficient processes and areas where improvements will lead to high-value use cases is recommended.
A second way to look at the process is by identifying which processes are unique to your company or brand and, therefore, worth investing in. If you are dealing with commodity processes, which are common across industries, then it is best to stick to SAP best practices.
When the change has been defined, ensure that your team is aware of and accepts its boundaries as well as where deviations from the standard are acceptable. This will ensure that low-value pet benefits are easily dismissed and kept outside of scope.
Your case for change should be more than just a business case. It must clearly state your mission, objectives, and how you expect to gain value. It must then be communicated to the project team and enforced. This is a project that will only be undertaken once in a generation. The first step is to make sure you have a good case for the change.
We have now covered the steps to develop a business plan. Let's move on to the "Why"s and "Hows" to develop a roadmap. Without a roadmap, your S/4HANA project is likely to lose focus and produce suboptimal results.
Create Your Own Roadmap
We begin by evaluating your organization and landscape based on the following criteria:
- The current landscape is complex.
- Adaptability is the ability to adapt to change.
- Risk avoidance during the transformation process.
Assessment
Assessing your processes, data, custom code, application architecture, and infrastructure will help you understand how complex your landscape is. You will likely need to start with cleanup activities or go back to basics by using industry best practices.
A thorough assessment of the people and organizational structure will help determine whether your organization can adapt to a new solution or if it will require extensive changes to match its current way of working. It is important to only make changes that support the arguments for change presented last time.
How much risk you are willing to accept will depend on your company's market position, the current business environment, and how well you know your employees. This will determine the direction of your Roadmap in balancing risk mitigation and time and cost. You can watch my video to learn more about risk aversion. The evaluation of these three criteria is not a binary yes-or-no. Each of these criteria has a sliding scale and can be weighed differently. The binary of brown vs. green is not valid.
Prepare Your Team by Identifying and Preparing Them
You need people to get things done. They need to understand the mission and how to achieve it. Start by identifying an executive sponsor who will provide day-to-day leadership, reinforce the mission and goals of the program and be a visible leader. It should be a senior manager who is committed to the value proposition and can stay in touch with the program long enough to remind the team of the need for change.
It is rare that an S/4 program will be simple for everyone. Most often, one department will take on extra work in order to optimize the entire process. They must facilitate the direction for the benefit of the company, even if that means causing some pain in their own area.
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Conclusion
It is hard to choose between SAP ECC vs SAP S/4HANA and the traditional SAP ERP products, but S/4HANA is an essential tool for today's complex business environment, people and technology.
