SAP’s main goal is to simplify business operations and help organizations succeed in the digital age. Their fourth-generation business suite, SAP S/4HANA, has a modern design and user-friendly interface. This integrated product platform uses advanced in-memory technology and includes features like IoT, big data, and business networks to simplify processes and improve efficiency. With SAP S/4HANA, businesses can adapt to the fast-paced digital world and thrive.
Define SAP/4HANA
Enterprise Resource Planning (ERP) systems are necessary for organizations to efficiently manage various business activities like accounting, project management, procurement, compliance, and supply chain operations. These systems integrate multiple business processes and allow for smooth data flow. The latest ERP system from SAP, called SAP S/4HANA, is a major improvement in their software product line and offers advanced features.
SAP S/4HANA is a contemporary ERP software package designed to replace SAP ECC. It runs on the SAP HANA database and offers quicker processing and real-time data analysis. S/4HANA is recognized as the fourth generation of SAP’s ERP solutions, focusing on streamlining business operations. As the first SAP Business Suite to run solely on the SAP HANA database, SAP S/4HANA offers numerous advantages. Organizations can efficiently deliver mission-critical applications and streamline their IT landscape by leveraging a streamlined infrastructure with a unified database, operating system, and user interface.
Features of SAP S/4HANA
SAP S/4HANA is an ERP system that aims to enhance performance, usability and efficiency. It achieves this through a simplified data model and lean architecture while providing an easy-to-use experience through the SAP Fiori UX. SAP S/4HANA incorporates cutting-edge technologies like AI, machine learning, analytics, and IoT, infusing intelligence and innovation into the realm of enterprise resource planning. Key features of SAP S/4HANA include:
- Smaller total data footprint
- Higher throughput for increased processing speed
- Faster analytics and reporting capabilities
- Co-deployment of ERP, CRM, SRM, SCM, and PLM functions
- Unlimited workload capacity for scalability
- SAP HANA multi-tenancy for flexibility
- New SAP Fiori UX that adapts to any device (mobile, desktop, tablet)
- Three deployment options: on-premise, public cloud, and managed cloud.
With a unified data model, SAP S/4HANA eliminates the need for multiple redundant data layers, often present in traditional RDBMS-based systems. This optimization allows for high-volume real-time analytical processes (OLAP) and transaction processing (OLTP), improving performance and efficiency.
Distinguishing SAP S/4HANA and SAP HANA
New ERP users commonly feel confused when encountering terms like SAP HANA and SAP S/4HANA, as they may sound similar. However, understanding the basic difference between the two is relatively straightforward. SAP HANA refers to a specific type of database, while SAP S/4HANA is an ERP suite specifically developed to run on the SAP HANA platform.
SAP S/4HANA utilizes the in-memory infrastructure of SAP HANA to facilitate quick data access and analysis. It takes advantage of the high-performance capabilities of SAP HANA to deliver real-time insights and enable faster processing of business operations. On the other hand, SAP HANA serves as a platform for developing user-defined applications in software development, providing a foundation for custom solutions and innovative applications.
Advantages of SAP S/4HANA
SAP S/4HANA offers a range of business benefits that drive success in today’s agile business landscape. With its performance capabilities powered by SAP HANA’s in-memory database, SAP S/4HANA enables faster processing, simplified transactions, and real-time reporting and analytics on live data. The user-friendly SAP Fiori interface provides agility by delivering real-time business insights on any mobile device, empowering users to make informed decisions anytime, anywhere.
With a simplified infrastructure and digital core, SAP S/4HANA brings simplicity to IT landscape management and administration, while the potential for cloud adoption centralizes resources and reduces the total cost of ownership. Embedded AI and machine learning capabilities enhance forecasting accuracy and modelling, while process automation automates tedious tasks, freeing up time for more productive activities. SAP S/4HANA also fosters innovation through an open platform, driving advanced applications and protecting existing investments. By embracing SAP S/4HANA, businesses can unlock speed, simplicity, flexibility, and cost savings while driving innovation and achieving sustainable growth.
The Different Lines of Business Under SAP S/4HANA
SAP S/4HANA reorganizes the core modules of SAP ERP into distinct lines of business (LoBs) to provide a comprehensive suite of functionalities. These LoBs in SAP S/4HANA include:
SAP S/4HANA Finance
This LoB focuses on financial activities such as financial accounting, treasury and risk management, controlling, financial planning, financial close, and consolidation.
SAP S/4HANA’s SRM and SCM Offerings
The SRM and SCM Offerings encompass supplier relationship management and supply chain management solutions, providing end-to-end logistics capabilities.
SAP S/4HANA Sourcing and Procurement
This LoB handles the acquisition of raw materials through extended procurement, supplier and contract management, and operational purchasing processes.
SAP S/4HANA Manufacturing
The Manufacturing LoB covers the product manufacturing process, including responsive manufacturing, scheduling and delivery planning, production operations, and quality management.
SAP S/4HANA Supply Chain
This LoB focuses on overall business planning activities, from production planning to warehousing and inventory management.
SAP S/4HANA Asset Management
The Asset Management LoB maintains fixed assets, including EHS (Environment, Health, and Safety) monitoring and plant maintenance.
SAP S/4HANA Sales
The Sales LoB encompasses activities related to completing sales orders, including pricing, quotes, sales inquiries, contracts and agreements, free-of-charge orders, repair orders, individual requirements, credit and debit memo requests, packing and picking, and revenue recognition.
SAP S/4HANA R&D/Engineering
The R&D/Engineering LoB manages the product life cycle, including defining the product structure, bill of materials, managing portfolios and projects, product lifecycle costing, and driving innovation.
SAP S/4HANA Human Resources
SAP S/4HANA Human Resources is a module within the SAP S/4HANA suite specifically designed to manage and streamline human resources processes in organizations. It offers comprehensive functionalities to handle various aspects of HR management, such as personnel administration, organizational management, time management, payroll, benefits, talent management, and employee self-service.
SAP S/4HANA Deployment Options
On-premise
With on-premise deployment, organizations utilize traditional in-house IT infrastructure to host their SAP S/4HANA instance. This model involves physically hosting the SAP S/4HANA solution on the customer’s property, allowing for greater control and customization.
Cloud
SAP S/4HANA also provides various cloud deployment options, all of which involve the use of external cloud infrastructure. The main cloud options are as follows:
- SAP S/4HANA Cloud SaaS edition is the Software-as-a-Service (SaaS) edition of SAP S/4HANA specifically designed for the SAP HANA in-memory database. It is shared with other customers and available on a subscription basis, often called RISE with SAP. It offers a standard, preconfigured setup for organizations seeking a streamlined, cloud-based solution.
- The S/4HANA Cloud Public option is a restricted version of the complete S/4HANA Cloud software. It involves placing a customer’s solution instance on a partitioned cloud server shared with other tenants. While it provides S/4HANA functionality, the standardized setup limits the scope.
- S/4HANA Cloud Private deployment option offers greater scope and flexibility than the public cloud. It allows organizations to host their S/4HANA solution on a private cloud managed by SAP or a trusted partner. This remote cloud deployment is well-suited for companies with SAP ERP experience and desires more control and customization capabilities.
Additionally, the RISE with SAP license provides access to either the SAP S/4HANA Cloud or SAP S/4HANA hosted on a private cloud, offering customers flexibility in choosing the deployment model that best fits their needs.
Hybrid
A hybrid deployment of SAP S/4HANA combines both on-premise and cloud deployments. It allows organizations to benefit from the advantages of both models, such as hosting the main deployment on-premise while utilizing cloud deployment in satellite offices or for specific purposes. This approach provides flexibility, scalability, and optimizing resources based on particular business needs.
SAP S/4HANA Release Cycle
The release cycle of SAP S/4HANA involves regular updates throughout the year. For cloud-deployed instances, updates are delivered quarterly, ensuring organizations have access to the latest features and enhancements. On the other hand, on-premise deployments receive updates annually, typically in September. The naming conventions for SAP S/4HANA releases follow a four-digit year/month format. For example, the 2021 release of SAP S/4HANA Cloud signifies the release made available in 2021 (21) during February (02). This naming convention helps users identify and track the specific release version they are utilizing, informing them about the latest developments and capabilities of SAP S/4HANA.
If you are looking to gain comprehensive knowledge about SAP S/4HANA, enrolling in a reputable training institute like Finprov can be a valuable investment. Finprov Learning offers a flexible SAP S/4HANA training program that caters to the preferences and needs of learners, providing both online and offline learning options. With a team of experienced faculty members, interactive sessions, and 24/7 mentorship, Finprov ensures learners can effectively apply SAP S/4HANA to real-world scenarios.
Finprov’s courses are designed for finance and accounting professionals seeking career advancement. Through hands-on training and practical examples, learners acquire practical skills and deepen their understanding of SAP S/4HANA. Additionally, upon completing the training program, learners receive an SAP S/4HANA certification, further enhancing their professional credentials.
